THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Tuesday, August 23, 1994               TAG: 9408230390
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   55 lines

STATE'S PAYROLL CUT BY 413 JOBS, ALLEN REPORTS THE GOVERNOR SAID THE CUTS WERE AN ATTEMPT TO EMULATE PRIVATE COMPANIES.

Gov. George F. Allen said Monday that his administration has trimmed the state bureaucracy by 413 jobs, saving an estimated $14 million a year.

Allen said the cuts, which represent less than 1 percent of the state's work force, were an initial attempt to emulate private companies that improve efficiency by laying off workers.

``The effort to streamline will never be complete during this administration,'' Allen told members of three General Assembly money committees.

The first round of cuts fell primarily on central offices of state agencies. Administration officials could not say exactly how many workers lost their jobs. Many of the affected positions were vacant, and many employees whose positions were eliminated have found jobs elsewhere in state government.

The administration reported eliminating 445 positions in various state agencies, while creating 32 new jobs. Most of the new positions will go toward beefing up the legislative and public relations efforts of Allen's eight cabinet secretaries.

Allen said the cuts will result in annual savings of $14 million. But the estimates do not include the cost of high-paid temporary workers who have been hired since Allen took office in January.

For instance, the Department of Environmental Quality has hired 11 temporary workers whose salaries could total as much as $468,000 this year. Department Director Peter W. Schmidt said the temporary workers have been assigned to specific tasks that should last no longer than a year.

Allen gave no goals for future layoffs but said he will give legislators further recommendations by Dec. 19.

The job cuts are part of the administration's hiring practices that have drawn criticism from Democratic legislators and state employee representatives, who claim that Allen has overly politicized the state work force.

Joan Dent, executive director of the Virginia Governmental Employees Association, said that numerous veteran state employees are being fired and replaced by the governor's Republican supporters.

Services to taxpayers will suffer, Dent said, if future governors follow Allen's example and throw state government into turmoil every four years.

Jay Timmons, the governor's chief of staff, argued that morale among state workers remains high, despite news reports that some state workers are afraid to make decisions or express their views out of fear of losing their jobs.

``It's easy to get worst-case scenarios and print that,'' Timmons said. ``We've received a lot of encouragement from state employees.'' by CNB