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

DATE: Saturday, July 1, 1995                 TAG: 9507010454
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: BY JON GLASS, STAFF WRITER 
                                             LENGTH: Short :   43 lines

GOVERNOR LETS DEADLINE PASS ON EDUCATION FUNDS

In what came as no surprise, Gov. George F. Allen let pass a Friday deadline to apply for federal Goals 2000 money, making Virginia one of two states that opted not to participate in a program designed to improve the nation's public schools.

Allen has received widespread criticism for failing to accept the money, which would have funneled about $8.5 million into Virginia's school districts over two years. The state Board of Education had urged Allen to apply for the funds, voting 4-3 in May to support state participation.

Despite assurances from federal officials that there were no strings attached, the governor and conservative critics of Goals 2000 worried that federal bureaucrats eventually would try to dictate education standards to states that took the money.

``While there are verbal assurances, there is nothing in the legislation or regulations to prevent them from doing that,'' Ken Stroupe, Allen's spokesman, said Friday.

Stroupe insisted that Virginia has not lost out because the Republican majority in Congress in coming weeks is expected to make substantial changes to the Goals 2000 legislation, a Clinton administration initiative that passed last year with bipartisan support. Stroupe said several states that applied for the funds are reconsidering.

``We do not feel we have missed our opportunity because there is an expectation that the Congress is going to repeal all or part of the legislation and offer money to the states in the form of block grants,'' Stroupe said.

Richard Riley, secretary of the U.S. Department of Education, last month turned down Allen's request for an extension of the application deadline.

But Riley said in a June 14 letter that the state would not be prevented from applying for Goals 2000 funds next year.

KEYWORDS: FEDERAL GRANT by CNB