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

DATE: Sunday, December 25, 1994              TAG: 9412250079
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY WARREN FISKE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Long  :  105 lines

ALLEN TAX-CUT PLAN CREATES TOUGH CHOICES FOR DEMOCRATS

In an exasperated voice, state Sen. Clarence A. Holland recently ticked off objections to Gov. George F. Allen's plan to reduce state income taxes by $2.1 billion.

The Virginia Beach Democrat questioned the wisdom of slashing taxes at the same time Allen wants to cut funding to many colleges and borrow money to build prisons. ``It seems that the governor is saying that all the goals we've had for last 25 years aren't right,'' Holland said.

But don't mark Holland down as a vote against the Republican governor's budget plan.

``I have to make a decision whether I can live with this or run for re-election taking an unpopular stand,'' Holland said. ``It's an absolutely tough decision. You really have to decide whether you want to be a statesman or a politician.''

Scores of other Democratic lawmakers across the commonwealth face the same dilemma. With all 140 General Assembly seats up for election next November and Republicans poised to win ruling majorities for the first time in state history, many wonder whether they can dare vote against tax relief - no matter how good their reasons.

Democrats grudgingly admit that Allen, the first Republican governor to win office in 16 years, has them over a political barrel.

``We can make a case that the tax cuts are irresponsible and harmful to our financial future, but the public won't listen,'' said Del. Jay DeBoer, D-Petersburg. ``We can't win the war of 15-second sound bites.''

Many veteran lawmakers with more than two decades of experience say they have never seen the future of state government at a more critical crossroads.

Republicans argue that state government has become fat and wasteful under Democratic leadership. To pay for tax cuts that would reduce an average family's burden by about $350 a year, Allen is proposing sizable layoffs in the state bureaucracy and trimming aid to localities, the arts, social service programs and many colleges.

Democrats say Virginia has a proud tradition of fiscally responsible government and question the need for reform. They note that the Old Dominion already has one of the lowest tax burdens in the nation, is one of only five states with a perfect triple-A credit rating and has twice this decade received awards as the top financially run state.

``The governor's saying, `If it ain't broke, fix it,' '' said state Sen. Richard Holland, D-Isle of Wight County.

Many Democrats denounced Allen for promoting a political agenda that they say will impair vital state programs that are already efficiently run. They accused the governor of unfairly trying to extend public dissatisfaction with Congress to the General Assembly in an effort to sway next year's elections. Republicans need to gain only three seats in the state Senate and four seats in the House of Delegates to win majorities in both chambers.

``This is all calculated to the state elections and taking over the General Assembly,'' said Del. Jerrauld Jones, D-Norfolk. ``It's good politics, but it's not good governing.''

Republicans can't suppress a chuckle at the Democrats' discomfort. ``They sound a lot like we did all those years when we were out of power,'' said Senate Minority Leader Joseph B. Benedetti of Richmond.

Benedetti said Allen campaigned last year promising to cut taxes and the scope of government, and that his election is a mandate for reform. ``All George is doing is keeping his promises,'' Benedetti said. ``No matter how efficient state government already is, if we can operate it more efficiently and give money back to the citizens, we have a responsibility to do that.''

Ken Stroupe, a spokesman for Allen, warned that Democrats who oppose the plan will face certain peril. ``This is a threshold decision that will define every elected official in the commonwealth,'' he said. ``There's a tremendous amount of waste in government. Those who defend the status quo have forgotten what the voters want.''

Democrats argue that Allen's plan will cost taxpayers more money in the long run. They predict that Allen's insistence on scrapping a $300 million-a-year business gross receipts tax levied by localities will force hard-strapped municipalities to increase property taxes.

And they say the governor's plan to borrow money for prisons while he is lowering income taxes could jeopardize the state's credit rating - an argument Allen says is bogus.

Democrats are hoping to piece together a coalition of education leaders, local government officials and businessmen to urge rejection of Allen's budget. ``That would give legislators some comfort and cover,'' said a key Democrat who asked not to be identified.

They also voiced hopes that some Republicans might be tempted to stray from Allen's plan for the sake of protecting local programs. The governor's plan has something in it for everyone to hate. Hampton Roads lawmakers, for example, are upset about the proposed elimination of funds for a downtown Norfolk campus of Tidewater Community College. Roanoke lawmakers are angered by Allen's refusal to supply $700,000 for development of a local high-technology conference center.

``I'm hoping that in misery, there is not only company, but an emerging majority,'' said Del. Clifton A. Woodrum, D-Roanoke.

In the end, however, Democrats acknowledge that it may be impossible to convince voters that tax relief is not in their interests. And that makes for a tough decision.

``Many legislators feel Allen is very charismatic,'' DeBoer said. ``Very few will be willing to stand up to him and take a risk.'' ILLUSTRATION: Photo

BILL TIERNAN/Staff

Local lawmakers are upset about the proposed cutting of funds, in

Gov. George F. Allen's budget, for a Norfolk campus of Tidewater

Community College, including the Smith and Welton Building, shown

here being remodeled.

by CNB