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

DATE: Wednesday, November 22, 1995           TAG: 9511220507
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   52 lines

IN SWITCH FROM '94, ALLEN INVITES DEMOCRATS TO TALK THEY'LL DISCUSS THE 1996-98 BUDGET, BUT SOME DEMOCRATIC LEADERS ARE WARY.

Sobered by midterm election results and tight revenue projections, Republican Gov. George F. Allen will take the first step today to reaching out to senior Democratic lawmakers.

Allen has invited Democratic leaders to his Capitol office to discuss the outlook for the 1996-98 budget, which his administration will unveil next month.

The invitation is in marked contrast to last year, when Allen snubbed Democratic lawmakers and embarked on a go-it-alone tax cut proposal.

``We want to see where there is consensus and where there may be common ground,'' said Ken Stroupe, Allen's press secretary.

Democrats, who earlier this month repelled Allen's attempt to gain GOP majorities in the General Assembly, said the invitation was an encouraging sign, but no one was predicting it would usher in an Allen-Democrat lovefest.

``All governors have sat down to go over revenue projections,'' said Senate Finance Chairman Hunter B. Andrews of Hampton. ``This is a return to what is customary.''

With the bitter election campaigns still fresh in their minds, some Democrats remain wary of Allen.

House Majority Leader C. Richard Cranwell of Roanoke County said he was concerned that Allen would try to manipulate revenue estimates downward, leaving no money for Democratic promises to increase spending for public schools and state universities.

``I need to see evidence of good faith,'' he said. ``I told them I've seen a lot of bare knuckles in my face.''

Allen is expected to share the same disheartening news that legislative money committees have heard in recent days: existing commitments to prisons and education totaling more than $1 billion will consume most of the new revenue available in the coming biennium.

``I think it's important for everyone to know up front where we stand on the budget,'' Stroupe said. ``There have been a lot of large ticket items discussed publicly, and there is not an infinite amount of resources available to us.'' ILLUSTRATION: Color photo

Last year, Gov. George F. Allen snubbed Democratic lawmakers and

embarked on a go-it-alone tax cut proposal.

KEYWORDS: GENERAL ASSEMBLY VIRGINIA STATE BUDGET by CNB