ROANOKE TIMES 
                      Copyright (c) 1997, Roanoke Times

DATE: Thursday, January 16, 1997             TAG: 9701160036
SECTION: VIRGINIA                 PAGE: C-2  EDITION: METRO 
DATELINE: RICHMOND


MISTAKE PAYS OFF WITH FUNDS

A federal accounting error and Virginia's own underestimation of what it was entitled to receive will result in a $135million windfall in federal money for the state's highways.

``It is good news for those who want to keep Virginia moving,'' Gov. George Allen said in announcing the windfall. ``Certain road projects will be funded more quickly than had been anticipated.''

The $135 million means Virginia will get about 40percent more money for highways than state officials had expected. And at least half the excess is the result of a mistake made by the U.S. Treasury Department three years ago.

States get back a portion of the money their residents pay in federal gasoline taxes. In 1994, the amount Virginia paid was understated, resulting in smaller grants in the next two years.

``How it came about, I don't know,'' said Jim Pinkelman, a spokesman for the Federal Highway Administration. ``But it was discovered, and we have corrected it.''

The rest of the $135million windfall came from state officials underestimating Virginia's share of other categories of federal transportation funding.

- Associated Press


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