The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Sunday, January 15, 1995               TAG: 9501130210
SECTION: VIRGINIA BEACH BEACON    PAGE: 08   EDITION: FINAL 
SOURCE: Bill Reed 
                                             LENGTH: Medium:   75 lines

IT'LL TAKE A HOUDINI TO MAKE BUDGET CUTS

Virginians want less government and lower taxes.

They especially want lower taxes. That's why they elected George F. Allen governor by a landslide, political pundits will tell you.

But is less government and lower taxes really what Virginians are going to get?

Maybe, if you believe in gremlins, elves, fairies and honest politicians.

Chances are what Virginians actually will get is a paltry reduction in their state income taxes AND local taxes that jump out of sight.

As that happens, Virginians can expect to experience a big drop in services at both state and local levels and wouldn't that be a revoltin' development?

Even local voodoo economists can see that lopping off 16,000 state employees, cutting back on financing for the arts, mental health, aid to localities for police protection and Medicaid for teenagers isn't going to produce savings enough to pay for more than $900 million in prison construction as proposed by Allen.

Throw into the mix Allen's proposal to phase out the business license tax, which provides localities with $300 million a year in revenues, and what do you have? The answer: a lot of sweaty municipal administrators scrounging around to find likely revenue sources.

If Allen's business tax recommendation slips through the General Assembly this winter - and there is a good chance that it will in some form - Virginia Beach stands to lose $20 million a year in revenues needed to run city schools and to pay for police and fire protection and trash collection.

And if that happens, city property owners can expect an 11 to 13 percent increase in real estate and personal property taxes to pay for those same services, says City Manager James K. Spore.

Hog wash, you penny-pinchers say. A lot of fat still can be cut from city operations. There are still too many hogs at the trough. All we need to do is just suck it up and make do with less.

Easier said than done, bunky.

This is the same community that has squawked about the need for more police - especially at the Oceanfront in the summer. And this is the same town where there has been a lot of wailing and gnashing of teeth about diminished trash collection and increased fees for just about everything from auto decals to water service.

Well, guess what? To maintain those services at their present levels, Joe and Jane Taxpayer probably will have to shell out more money.

In the city's defense, a major effort - it's called the Total Quality Management program - has been under way for three years. The object was to cut back the size and scope of local government.

It was triggered by a sagging national and local economy, which greatly reduced income for both businesses and government. The program actually produced substantial savings by consolidating some city services and instituting a hiring freeze.

While the economy is seeing a modest comeback, some political leaders at both state and local levels are making a big show of chopping government spending. They figure it will stand them in good stead when the next election rolls around.

They figure, and rightly so, that the electorate is fed up with shelling out hard earned money on tax-financed programs that are deemed ineffective, wasteful and unessential.

Welfare, the arts and some forms of agricultural and medical support first come to mind.

Wielding the hatchet on government programs is long overdue, almost anybody but the most eager beaver tax-and-spender would agree. There is waste at every level of government. No argument there.

But indiscriminate lopping that puts a greater burden on taxpayers is not only dumb, it's uncalled for.

A little common sense, foresight and patience are needed here.

These are qualities most in need now by governors and legislators. Too bad they can't be acquired with a high school or college diploma. by CNB