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

DATE: Thursday, January 26, 1995             TAG: 9501260010
SECTION: FRONT                    PAGE: A14  EDITION: FINAL 
TYPE: Letter 
                                             LENGTH: Short :   43 lines

CUTS BY FEDS, STATES WILL HURT LOCALITIES

As chairman of Norfolk City Council's Finance Committee, I read with great interest ``Pain may trickle down'' (editorial, Jan. 17).

I agree with you wholeheartedly.

Any large-scale reduction in federal aid to the states is going to negatively impact our commonwealth.

But you stopped too soon. At the same time this is happening, the Allen administration is pushing for a $2.1 billion state-tax cut. In the end, Virginia's cities and counties - where the most direct services to citizens are delivered - will feel the impact most dramatically because the state will pass on much of its fiscal burden to us.

Although we may agree with the idea of a balanced federal budget and lower state taxes, we must realize these actions don't come without consequences for us. If Norfolk and other Hampton Roads cities are met with the federal/state double whammy, residents are going to feel it, either in their pocketbooks or in loss of services. Since most local-government leaders regard raising taxes as unacceptable with their constituents, the most likely choice is going to be the latter.

This means that cities and their citizens should prepare themselves for some tough choices. Where do you cut or hold the line? In social-services programs? Public safety? Arts and culture? Recreation programs? Neighborhood services?

Fiscal progress can sometimes be painful. The hard truth is that it will be on the local level that the pangs will be felt the most. Hampton Roads should prepare itself: If the federal and state governments pass localities the fiscal ``hot potato,'' we will all get burned.

G. CONOLY PHILLIPS

Norfolk, Jan. 20, 1995 MEMO: Mr. Phillips is a Norfolk city councilman.

by CNB