Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 26, 1995                   TAG: 9501260085
SECTION: CURRENT                    PAGE: NRV-2   EDITION: NEW RIVER VALLEY 
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium

TOWN ASKING GOVERNOR TO HOLD LINE ON TAX CUTS

Specifically, council opposes the governor's proposition to abolish the Business, Professional and Occupational License Tax. Its resolution "opposing further reduction of certain revenues that support the provision of local government services" was voted on as part of the consent agenda, passing unanimously and without discussion.

Council also asked for no further reductions in state funding for police departments. The governor has proposed a 15 percent cut in House Bill 599 funding. Based on the money the town received last year - $321,000 - the Blacksburg Police Department would lose $48,000 if the proposal goes through. Since he began working for Blacksburg in 1989, that funding has dropped by $91,000, Town Manager Ron Secrist said.

Secrist said that he could at least view a reduction in the police aid as within the "purview" of state government, but cited Christiansburg Town Manager John Lemley's position when it comes to taking away the BPOL tax.

"The governor is proposing to eliminate a whole taxing source," Secrist said. "To take away a taxing authority is really interesting."

Christiansburg's Town Council passed a resolution against the proposed move three weeks ago.

Many of Virginia's towns and cities apply the BPOL tax with the logic that it helps pay for services rendered to the municipalities' businesses. Locales do not have to impose the tax, and many local governments think that the decision whether to use it should be decided within the community, not in Richmond.

Secrist said it would be premature to begin considering what services might be reduced or what other taxes might have to be raised if the governor's budget passes. The council will do that later in the spring when it considers its own budget, he said.

Perhaps foreshadowing that possibility, Secrist said he may have to go back to the drawing board when it comes to formulating a capital improvements program. Council adopted a program for 1995-2000 on Tuesday.

The program calls for $18.3 million in improvements over the next five years, including $2.78 million next year for street repaving, replacing sewer pumping stations, equipment purchases and setting aside of funds for future projects. It also calls for doubling the town's cigarette and lodging taxes.

Asked at an earlier meeting if the capital improvements program had been devised with the proposed budget cuts in mind, Secrist admitted that it hadn't, and said it would have to be revised if Allen's budget goes through. Secrist first unveiled the program in November; the governor's budget proposals came out last month.

The Virginia General Assembly will decide on Allen's budget proposals next month.