THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, August 25, 1995 TAG: 9508250014
SECTION: FRONT PAGE: A16 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 62 lines
Gov. George Allen boasted this week that state government is in the black and that policies pursued by his administration have helped lure $1.9 billion in new investment and 87,000 new jobs to the state in 1994.
Allen's critics claim the economic development trends he's taking credit for have roots in earlier administrations, but all governors take credit for good news on their watch. On taxes and education, however, Allen can be accused of trying to have things both ways.
The governor has long criticized Virginia as a high-tax state, which it has never been. This week he said one reason businesses have been choosing Virginia is it's positive tax policies, which is far more accurate.
Another contradiction is especially worrisome. The governor loves saying Virginia is open for business, but prominent business leaders have expressed alarm that his education policies could put the state out of business.
Most businessmen feel they can prosper if government will just get out of the way, but they make one exception. Businesses can't succeed without a steady and reliable supply of trained workers. And that's largely a government responsibility. Groups like the Virginia Business Higher Education Council worry that education is a responsibility the Allen administration is shirking.
Virginia is now 43rd in the nation in the tax support it provides per public university student. Consequently, Virginia now ranks as the second most expensive state in the nation when it comes to the tuition and fees a student must pay.
In 1980, higher education accounted for 16 percent of the state budget and students had to pay 30 percent of the cost of their education. Today, higher education accounts for 12 percent of the state budget and students now pay 60 percent of the cost of their education.
Worse, when Allen came to office he proposed to continue the negative trend with a $47 million cut for higher education funding. In response, the businessmen who make up the Higher Education Council - many of them Allen backers when he ran - have put forward a plan called Virginia First that recommends a $200 million increase in the education budget, almost 25 percent.
They worry that the state and its employers won't be able to compete if present education funding trends continue. Many of them have threatened to withhold support in the fall elections for candidates unfriendly to education. That includes many of Allen's supporters.
Perhaps the group has gotten Allen's attention. He recently announced that improving education will be a top priority next year, but the proof will be in the budgeting. There's no question that in the future the success of American business will depend on the quality of education the work force obtains, from preschool through graduate school.
Virginia's business leaders warn that the state's schools are not competitive today. Unless that's fixed, Virginia's businesses won't be competitive tomorrow. The governor should heed the warning and embrace the Virginia First recommendations. If he doesn't, future governors will have a lot less to boast about. by CNB