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

DATE: Wednesday, February 22, 1995           TAG: 9502220459
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   51 lines

NEGOTIATORS RESTORE MANY OF CUTS MADE IN ALLEN'S BUDGET

Legislative negotiators reached agreement late Tuesday night on several relatively minor differences in Senate and House of Delegates versions of the 1994-96 state budget.

The panel of eight senior lawmakers - four from each chamber - were generous with state money as they restored funding for many of the items that Gov. George F. Allen wanted to slash in the two-year, $32 billion budget.

The budget conferees met their midnight deadline for striking a deal on the budget amendments, which the General Assembly will vote on before adjourning Saturday.

``Both houses started down this path with very similar budget priorities,'' said Del. Robert D. Ball, D-Henrico, chairman of the House Appropriations Committee. ``Much of our work was directed at restoring the spending plan which was adopted last year with broad bipartisan support in the House and Senate.''

Indeed, the Senate and the House already had agreed to restore most of the $403 million Allen wanted to cut to pay for prisons and the first installment on his doomed tax cuts. Among the items that were not in dispute were $50 million for higher education and $16.5 million for a 2.25 percent raise for state employees.

However, there were a few differences in the House and Senate spending priorities. In most cases, the conferees adopted the position of the chamber that restored the most money.

For example, the negotiators agreed to restore $12.3 million for the Virginia Agricultural Extension Service and agricultural research. That was the figure favored by the House. The Senate had restored only $10.3 million.

The conferees also put back into the budget $2 million, as recommended by the House, for public radio and television. The Senate had proposed $1 million.

The conferees went along with a House recommendation in restoring $7.4 million for general relief - a form of temporary assistance for people who need help but don't qualify for welfare. The Senate budget contained $4 million.

One of the widest gaps was in a public housing and indoor plumbing program: $8.6 million in the House version, $2.4 million in the Senate bill. The conferees settled on $8.2 million.

KEYWORDS: GENERAL ASSEMBLY VIRGINIA STATE BUDGET by CNB