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

DATE: Thursday, December 8, 1994             TAG: 9412080463
SECTION: FRONT                    PAGE: A16  EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
                                             LENGTH: Medium:   93 lines

ASSEMBLY BILL WOULD AVERT BATTLE OVER WHO PAYS BENEFITS OF STATE WORKERS SO LOCALITIES WOULDN'T HAVE TO PAY, USER FEES ASSESSED BY SHERIFFS WOULD RISE.

A House of Delegates committee was to decide today whether to advance a bill aimed at averting a tug of war between cities and the state - over which should pay fringe benefits for state employees who work in localities.

Under the bill - which the Senate has passed and a House subcommittee approved Wednesday - the state would continue to pay the benefits. But it would recoup the cost by charging citizens a fee for court paperwork handled by sheriff's departments.

State Del. Jim Almand, who chairs the Courts of Justice Committee, said: ``The constitutional officers are lobbying hard to pass the bill, and I expect that will have a positive impact.''

The bill, originated by state Sen. Joseph R. Benedetti of Richmond, could head off a jurisdictional battle.

City officials wanted the state to continue paying health and retirement benefits for sheriffs' deputies, court clerks and other constitutional officers. The state, which is working to balance its budget, wanted to pass on the nearly $27 million in costs to the cities.

Suffolk Treasurer Ronald L. Williams, legislative chairman for the State Treasurers Association, was in Richmond on Wednesday to lobby for the bill.

``We're optimistic at this point that it's going to pass,'' Williams said, ``but it would be devastating if it didn't. The fiscal impact to the localities is tremendous.''

If the five cities in Hampton Roads had to pay the costs of benefits for their constitutional offices, they might have to raise their real estate tax rates by 1 cent or 2 cents, according to the Virginia Municipal League.

The offices involved include the sheriff's departments, treasurers, clerks of court, commissioners of revenue and commonwealth's attorneys.

Former Gov. L. Douglas Wilder originally recommended cutting the benefits from the state budget in the fiscal year that begins in July. Gov. George F. Allen kept the cuts in his budget proposal.

Benedetti, however, suggested a compromise: The state would charge $12 for any court document, such as subpoenas or divorce papers, served or processed by sheriff's departments and would apply that money to the state employees' health and retirement benefits.

Virginia currently charges a fee - ranging from $1 to $5 - only for Circuit Court papers. Sheriff's departments collect no fees for handling papers from the General District Courts.

Pennsylvania charges $12.50 plus mileage; West Virginia charges $20; Maryland charges $30; and Kentucky and North Carolina charge $5. And in those states, fees apply to all levels of courts.

Today, the Courts of Justice Committee will meet to decide whether to release the bill for a vote in the full House.

Should the committee bottle up the bill - or the House defeat it - localities already struggling to meet unfunded state mandates will be forced to pay the benefits, say officials with the Virginia Sheriffs Association and the Virginia Municipal League.

``In Portsmouth it means over half a million (dollars),'' Sheriff Gary W. Waters said. ``Half a million for the city is a lot of money. It's going to hit Portsmouth big time if it doesn't pass. I think it's (the fee) a win-win deal for everybody. We're serving your papers; why shouldn't there be a user's fee?''

The bill must be released by Dec. 20 to allow the House of Delegates to vote during its next session.

``I have indications that it will pass,'' John W. Jones, executive director of the Virginia Sheriffs Association said Wednesday.

``I feel much better today than I did yesterday. Members in both parties have indicated that they support the bill and realize that it is necessary to avoid a reduction in funding for public safety.'' MEMO: Staff writer Alec Klein contributed to this report.

ILLUSTRATION: Staff graphic by Steve Stone

IMPACT ON THE CITIES

Locality Estimated cost Real estate rate hike

of benefits

Chesapeake $627,663 $0.01

Franklin $32,280 .01

Norfolk $1,200,000 .02

Portsmouth $576,108 .02

Suffolk* $316,413 .02

Va. Beach $966,248 .01

Isle of Wight $205,207 .02

Southampton $226,074 .04

* - Includes the cost of fringe benefits for officers at the Western

Tidewater Regional Jail.

Source: The Virginia Municipal League.

by CNB