Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, January 16, 1995 TAG: 9501170099
SECTION: VIRGINIA PAGE: C-1 EDITION: METRO
SOURCE: DAVID M. POOLE STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium
"I will acknowledge that we have had some very recent talks with people who have an interest in that regard, but there's nothing finalized yet," Norfolk Del. Jerrauld Jones said Sunday.
Jones declined to discuss the specifics of the negotiations, but one scenario would be to use tax revenue generated by floating casinos to fund all or part of $53 million a year in tax incentives sought by Virginia coal mine operators.
Talk of a riverboat-coalfield coalition is reminiscent of the waning moments of the 1994 General Assembly session, when Jones sought in vain to revive casinos by divvying up the state's estimated $80 million a year in revenues among various regions.
Jones said the agreement under discussion would build on the existing "community of interest" between Hampton Roads and Southwest Virginia.
"The future of our ports depends on what happens in those coalfields," he said.
It also would be a marriage of political convenience. Proponents of a statewide riverboat referendum - which nearly cleared the House of Delegates last year - would gain support of lawmakers from a region where moral concerns about casino gambling run deep.
And Southwest Virginia lawmakers would find a way to pay for coalfield tax incentives that otherwise would blow a gaping hole in an already shrinking state budget.
Tommy Hudson of the Virginia Coal Association declined comment about the tax incentives, which will be considered Tuesday by the Virginia Coal and Energy Commission.
"We haven't decided if we are going forward with it," Hudson said.
But one Republican lawmaker from Southwest Virginia said he would oppose tying the region's fortunes to casino gambling.
"It would be bad policy," said state Sen. William Wampler Jr. of Bristol. "What would happen if riverboat gambling was not a success? Would that mean the coal industry wouldn't get a tax credit?"
Wampler said he would prefer to find another way to pay for the tax credits, even though that may be difficult if Republican Gov. George Allen gets his way on a proposed $2.1 billion tax cut.
The proposed riverboat-coalfield agreement could intensify an extraordinarily partisan legislative session.
At issue is whether the Democrats or Republicans get credit for rescuing the coal industry and the resulting contributions that coal operators could pour into this year's General Assembly races, which will determine whether the GOP can break the Democrats' lock on power.
In any event, Jones again will present legislation setting up a statewide referendum that would allow floating casinos to dock in Eastern Virginia. Some local governments, including those in Norfolk, Hampton and Portsmouth, have begun negotiations with casino operators in the event voters approve riverboat gambling.
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GENERAL ASSEMBLY 1995
by CNB