ROANOKE TIMES

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

DATE: TUESDAY, September 26, 1995                   TAG: 9509260046
SECTION: VIRGINIA                    PAGE: C-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium


PANEL BACKS LOTTO CASH TO LOCALITIES

An education panel appointed by Gov. George Allen expressed general support Monday for his plan to funnel lottery money to localities, although one member said she has some reservations.

A subcommittee of the Governor's Commission on Champion Schools is likely to endorse the plan, which Allen and many Republican candidates are trying to make a defining issue in the Nov. 7 legislative elections.

The Democrat-controlled General Assembly last winter rejected the Republican governor's proposal to send lottery profits to localities for education, law enforcement or tax relief.

``It really is an issue of empowerment,'' said Allen's chief counsel, Frank Atkinson. He said Allen trusts local governments to decide how the money should be spent.

But commission member Stephanie Lee of Fairfax County said she is afraid many localities would use the money to cut taxes, and the education spending gap between poor and rich districts would widen.

``I would feel much more comfortable with this proposal if we just used the money for education,'' she said. ``We do have a constitutional requirement to support education. I want to make sure we provide that support.''

Betsy W. Blaufelt of Warren County, immediate past president of the Virginia School Boards Association, said the organization ``does not favor unearmarked funds being sent to localities.''

Said Blaufelt, ``Education would receive less funding if it has to compete with other priorities.''

Harry Daniel, a member of the Chesterfield County Board of Supervisors and immediate past president of the Virginia Association of Counties, argued that localities need flexibility in deciding how to spend the money.

``What's best in Chesterfield County may not be what's best in Fairfax County or Wythe County,'' Daniel said.

The idea of the proposal is ``to get away from Big Brother government,'' he said.

``If local governments truly start squandering the money, I have a feeling this matter will be readdressed by the General Assembly,'' Daniel said.

Lee said she also wants to know what areas of the state budget would be cut to make up for the loss of lottery profits, which amount to about $300 million a year for the general fund.



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