THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, January 16, 1995 TAG: 9501160075
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 60 lines
Hampton Roads Democrats seeking support for riverboat gambling have discussed cutting a deal with General Assembly colleagues from Southwest Virginia to use casino tax revenue to aid the ailing coal industry.
``I will acknowledge that we have had some very recent talks with people who have an interest in that regard, but there's nothing finalized yet,'' Norfolk Del. Jerrauld C. Jones said Sunday.
Jones declined to discuss specifics, but one scenario outlined by sources would be to use tax revenue generated by riverboat gambling to fund all or part of $53 million in annual tax incentives sought by Virginia coal mine operators.
Talk of a riverboat-coalfield coalition is reminiscent of the waning moments of last year's General Assembly session, when Jones sought in vain to revive casinos by divvying up the state's estimated $80 million-a-year tax windfall to various regions around the state.
Jones said the agreement now under discussion would build on the existing ``community of interest'' between Hampton Roads and Southwest Virginia. ``The future of our ports depends on what happens in those coalfields,'' he said.
It also would be a marriage of political convenience. Proponents of a statewide riverboat referendum - which nearly passed the House of Delegates last year - would gain the support of lawmakers from a region where moral concerns about casino gambling run deep. And Southwest Virginia lawmakers would find a way to pay for coalfield tax incentives that otherwise would blow a gaping hole in an already-shrinking state budget.
Tommy Hudson of the Virginia Coal Association declined comment about the tax incentives, which will be considered Tuesday by the Virginia Coal and Energy Commission.
``We haven't decided if we are going forward with it,'' he said.
But one Republican lawmaker from Southwest Virginia said he would oppose tying the region's fortunes to casino gambling.
``It would be bad policy,'' said state Sen. William C. Wampler Jr. of Bristol. ``What would happen if riverboat gambling was not a success? Would that mean the coal industry wouldn't get a tax credit?''
Wampler said he would prefer to find another way to pay for the tax credits, even though that may be difficult if Republican Gov. George F. Allen gets his way on a $2.1 billion tax cut proposal.
The proposed riverboat-coalfield agreement could intensify an extraordinarily partisan legislative session. At issue is which party gets credit for rescuing the coal industry. At stake are generous contributions that coal operators could pour into this year's General Assembly elections, which will determine if the GOP can break the Democrats' lock on power.
In any event, Jones will again carry legislation setting up a statewide referendum that would allow floating casinos to dock in eastern Virginia. Some local governments, including those in Norfolk, Hampton, Newport News and Portsmouth, have begun negotiations with casino operators in case voters approve riverboat gambling.
KEYWORDS: RIVERBOAT GAMBLING GENERAL ASSEMBLY 1995 by CNB