ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Thursday, January 9, 1997 TAG: 9701100058
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
DATELINE: RICHMOND
SOURCE: WARREN FISKE STAFF WRITER
Studiously avoiding controversy at the start of a crucial election year, Gov. George Allen on Wednesday night presented a modest agenda to the General Assembly and called for bipartisan support to refine economic, educational and social programs.
The sole new initiative proposed by the Republican governor during his 40-minute State of the Commonwealth address to the legislature was a reduction over the next six years of the unemployment taxes Virginia charges businesses.
Allen also sought support for several small initiatives he has announced over the past month, including remedial reading help for first-graders, tougher trial procedures for drug dealers, and increased financial disclosure for legislators and lobbyists.
Allen's often self-congratulatory speech capped the opening day of the six-week General Assembly session and launched a political year in which Virginians will elect a new governor, lieutenant governor and attorney general. All 100 members of the House of Delegates are up for re-election, and Republicans need gain only four seats to gain their first majority in more than a century. A Virginia governor is not permitted by the state constitution to succeed himself.
The speech stood in stark contrast to his State of the Commonwealth address in 1995, when he was sharply partisan and proposed a controversial agenda of cutting taxes and popular programs, bitterly dividing Democrats and Republicans for the year.
This time, Allen was quick to share credit with Democrats for many of his successes and unreserved in seeking their support for his agenda.
"We've risen above partisan differences and regional jealousies," he said. "And we've worked constructively as Virginians questing to be the best."
The governor spent much of the speech giving his policies credit for reduced crime rates, low unemployment and an expanding economy in Virginia.
Allen said he is urging a cut in unemployment taxes because the state has in reserve $880 million from the levy - enough to pay the benefits for four years. The average reserve in other state is 19 months, according to the Virginia Institute for Public Policy, a think tank of conservative academics.
Virginia business are taxed between $8 and $496 per employee each year. The rate depends on the company's history of layoffs over a four-year period.
Allen said a cut in the tax would help economic development in Virginia: "We should not be unnecessarily collecting taxes from businesses when they could better use that money to make additional investments and create more jobs."
Allen did not specify an amount for the tax cut, saying he hoped to develop a plan with legislators this year. Lawmakers generally approved of the plan, although many said they are eager to see more details.
Virginia's unemployment rate is 3.8 percent, the lowest in seven years and well below the national average of 5 percent.
Allen also urged lawmakers to support:
* $30 million in new funding for public education, including money for a new diagnostic exam to help identify first-graders with reading difficulties and give them remedial help. Allen also wants textbooks and supplies to help teachers fulfill new back-to-basic learning standards.
* Longer prison sentences for drug dealers and legislation to let the state prosecute members of drug gangs together, instead of at separate trials as now required.
* $19 million to improve drinking water and clean up the Chesapeake Bay. Critics have said Allen's proposal came in response to a recent report by a state watchdog agency accusing the administration of being lax on polluters.
* A law requiring physicians to notify parents before performing abortions on minors. Democrats have defeated the legislation for more than a decade.
* Increased financial disclosure for legislators and lobbyists. "Our commonwealth has some of the weakest disclosure laws in the country," Allen said. "We can certainly do better. In fact, we have an obligation to do so."
LENGTH: Medium: 79 lines ILLUSTRATION: PHOTO: AP. Gov. Allen greets Del. Franklin Hall, D-Richmond, asby CNBhe enters the joint General Assembly session Wednesday night.
color. KEYWORDS: GENERAL ASSEMBLY 1997