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

DATE: Wednesday, February 22, 1995           TAG: 9502220442
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   59 lines

LETTER BY ALLEN AIDE MAY STALL COMPROMISE ON WELFARE REFORMS

Chances for bipartisan welfare reform in this session of the General Assembly appeared to dim Tuesday when a key aide to Republican Gov. George F. Allen expressed little enthusiasm for compromise.

In a letter to Democratic lawmakers, Health and Human Resources Secretary Kay Coles James insisted that the administration get its way on six points of disagreement with a plan the Assembly approved last week.

``There appears to be a major philosophical difference,'' James wrote.

The tone of the letter disappointed Democratic leaders, who had written to Allen earlier in the day to express their willingness to give ground on several fronts.

``It's a very strident letter,'' said Del. David G. Brickley, D-Woodbridge. ``The tone of the letter sounds like they don't want welfare reform to pass this year.

``We are willing to negotiate in good faith.''

The Democrat-controlled Assembly approved a package that would vault Virginia near the forefront on welfare reform. It would:

Require recipients to work for their monthly Aid to Families with Dependent Children checks.

Cut off AFDC benefits after two years.

Deny added payments to mothers who give birth to additional children while on welfare.

Allen, however, has said the plan is so riddled with loopholes that it is welfare reform in name only.

Tuesday, Allen repeated his vow to veto the Democratic version now on his desk if a compromise cannot be reached by Friday. Asked whether the Democrats' plan would be better than nothing, he declared, ``It's worse than nothing.''

In her letter to Democrats, James spelled out provisions that must be in the bill in order to achieve ``real welfare reform for Virginia.''

These include demands that Democrats:

Close loopholes that would allow many of the state's 74,000 AFDC recipients to evade the ``workfare'' requirement.

Drop a requirement that localities provide services like transportation, child care and job training to help AFDC recipients make the transition to the work force.

Be more flexible in client-to-caseworker ratios.

Eliminate a requirement that statewide implementation of welfare reform necessitate future action by the Assembly.

In their letter to Allen, Democrats Brickley, Lt. Gov. Donald S. Beyer Jr. and state Sen. Clarence Holland of Virginia Beach said they were willing to yield on some of these points when the two sides meet today.

``I go into the meeting hopeful that we can farther narrow the differences,'' Beyer said, ``and that the General Assembly can pass welfare reform legislation that Governor Allen is willing to sign into law.'' MEMO: Staff writer Warren Fiske contributed to this story.

by CNB