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

DATE: Thursday, November 9, 1995             TAG: 9511090359
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY DAVE MAYFIELD, STAFF WRITER 
                                             LENGTH: Medium:   88 lines

VOTE INDICATES BUSINESS-AS-USUAL LEGISLATURE IS REGARDED AS UNIFIED ON BUSINESS ISSUES

The Republicans' failure to take control of the General Assembly in Tuesday's election might easily be seen as sidetracking Gov. George F. Allen's agenda on business issues.

But business, labor and consumer leaders said Wednesday that Allen's Government Lite push for less taxes, less spending and fewer regulations hasn't been stopped dead.

In spite of Allen's rhetoric to the contrary, the Democratic legislative chiefs who kept their seats are a largely business-friendly lot, the leaders said. That will put them in agreement with Allen on business issues more often than not, they added. The differences are in how fast and how far to go.

``If there was any message from the voters, and I'm not sure there was, it was, `Let's go a little slower,' '' said William H. Coiner, president of the Virginia Retail Merchants Association. `` `Let's continue to do it, but let's not go wholesale.' ''

``Obviously, holding the line on taxes, holding the line on government spending and reducing regulation is music to the ears of the business community,'' added Sandra Bowen, senior vice president of the Virginia Chamber of Commerce. ``But it's something that for the most part Democrats and Republicans in the General Assembly agree on already.''

On the day after the election, much of the talk among politically active business and labor leaders and consumer advocates wasn't about Allen's agenda and whether the Republican governor will be able to salvage his legislative goals in the second half of his four-year term.

They were largely preoccupied with figuring out the implications of the new 20-20 split between Democrats and Republicans in the state Senate and the unexpected ouster of powerful Senate Majority Leader Hunter B. Andrews, D-Hampton. Democrats retained outright control of the House of Delegates.

A key issue raised by the split in the Senate is representation on Senate committees, including the influential Finance, which Andrews has long chaired. Although the Democrats held only a 22-18 Senate edge over Republicans in the last General Assembly session, Andrews restricted Republicans to just three of the 15 Finance Committee seats.

The chamber's Bowen said she thinks Republicans will have a strong argument for more equal representation on key Senate committees. Although there's generally bipartisan support among legislators on issues key to a business-friendly climate, Bowen said increased Republican representation on committees would likely be viewed by most business leaders as a positive development.

Jean Ann Fox, president of the Virginia Citizens Consumer Council, said the new 20-20 tie in the Senate could affect the election next year of two of the three members of the State Corporation Commission.

That commission regulates insurers, financial institutions, phone companies and a number of other business interests. It is considered the most powerful public commission of its type in the nation.

Fox has long complained that the General Assembly's Democratic leaders have rammed through commissioners with little public comment. She hoped that the Republicans would use their better footing in the Senate to take a more active role in commissioner elections, and perhaps create an opening for more public participation in the process. That may produce a more consumer-friendly commission, she said.

Generally speaking, however, Fox sounded pleased that the Democrats didn't lose control of the legislature.

A Republican-controlled General Assembly would have been more likely to further slash state support for consumer education and enforcement of consumer-protection laws, Fox said. Allen had already convinced the Democratic-controlled legislature to greatly scale back protections against abuses by car dealers, she noted.

Daniel LeBlanc, president of the Virginia AFL-CIO, said the election results showed him that Virginians decided that the state doesn't have to go to extremes to maintain a good business climate - and that Democrats can be trusted to mind the store.

``Virginia is going to stay a mainstream state that pays its taxes on time, that balances its budget and continues to be rated as one of the best-managed states in the nation - because of the Democrats,'' LeBlanc said.

But Douglas Juanarena, president of Hampton-based Pressure Systems Inc., a measuring-device manufacturer, said Allen's haranguing of Democrats on tax and regulatory issues has been helpful - if undeserved.

``Most of Virginia's legislators, whether they're Democratic or Republican, are playing the right tune,'' he said. ``Virginia doesn't need a big sweeping change. What we need is a tweak here and there. But sometimes it takes somebody out there on the edge trying to shake things up to move things just a little in the right direction. I think Gov. Allen's doing that.''

KEYWORDS: ELECTION by CNB