ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Wednesday, January 24, 1996 TAG: 9601240055
SECTION: VIRGINIA PAGE: C-3 EDITION: METRO
DATELINE: RICHMOND
SOURCE: MARGARET EDDS STAFF WRITER
A leading Virginia businessman called Tuesday for a tax increase to fund college needs, while lawmakers scrambled to fill what some school officials say is a $340 million gap in funding for higher education.
Key legislators said Virginia voters and politicians are not voicing sentiments for a tax increase this year.
But Til Hazel, a prominent Northern Virginia developer, told the higher education arm of the House Appropriations Committee that it is time to start considering "that awful specter" of raising taxes.
"We need to have a good, hard, solid, not politically correct look" at the commonwealth's financial future, Hazel said in introducing a lineup of college presidents on hand to lobby for increased funding.
Hazel listed three alternatives: Continue with the status quo, in which Virginia has dipped to 43rd among the states in appropriations per college student; rob other programs of funding; or find new revenue sources.
Asked if he believes taxes need to be raised, Hazel said, "I personally think so, and I think we need to start discussing the word."
Meanwhile, leading lawmakers began lining up behind the effort to find at least part of the $340 million that a coalition of college presidents says is needed.
In the Senate, Sen. Stanley Walker, D-Norfolk, and Sen. John Chichester, R-Fredericksburg, co-chairmen of the Senate Finance Committee, introduced a $340 million higher education amendment to the budget bill. Del. Alan Diamonstein, D-Newport News, introduced a similar amendment in the House.
In interviews, however, both Walker and Diamonstein acknowledged that the figure is a goal that is unlikely to be met in a tight budgetary year.
"This is a genuine groundswell that started over a year ago," said Walker, referring to the efforts of Hazel and others to bring funding for higher education to the forefront of the state's agenda. He introduced the amendment, Walker said, because it is important to sustain momentum for the cause.
Getting that actual funding is going to be "very, very difficult," he added.
One suggestion gaining momentum is a $100 million bond issue that would fund maintenance work at various colleges. That money, in turn, would free up a similar amount already in maintenance reserves for equipment purchases, faculty salaries, or other needs, said Diamonstein, House sponsor of the measure.
"We're going to look at [the $340 million request],'' said Ken Stroupe, press secretary to Gov. George Allen, after listening to the college presidents. But, he said, the administration has already "looked in virtually every nook and cranny we can find" for money.
Allen's proposed 1996-98 budget includes a $475 million increase for higher education. But critics say the plan only includes $105 million more for operating costs at state-supported colleges.
"We can't assume Virginia has an open-ended credit card," Stroupe said. "You have to wonder whether enough is ever enough."
LENGTH: Medium: 61 lines KEYWORDS: GENERAL ASSEMBLY 1996by CNB