The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, January 11, 1996             TAG: 9601110549
SECTION: FRONT                    PAGE: A1   EDITION: FINAL 
SOURCE: BY DAVID M. POOLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Long  :  112 lines

ALLEN GIVES STATE ADDRESS GOV. GEORGE ALLEN, IN STARK CONTRAST TO HIS COMMENTS THAT OPENED LAST YEAR'S LEGISLATIVE SESSION, TOSSED AN OLIVE BRANCH TO DEMOCRATS IN THE GENERAL ASSEMBLY - ALMOST CERTAINLY OUT OF POLITICAL NECESSITY.

Gov. George F. Allen went out of his way Wednesday to reassure Democratic lawmakers that his in-your-face style of politics is a thing of the past.

In his annual speech to the General Assembly, Allen heaped praise on Democrats for past bipartisan efforts to reform welfare and overhaul the state's criminal sentencing laws. He even singled out senior Democrats whom last year he vilified as ``elitists'' and ``dinosaurs.''

``I've never heard the governor stroke so many Democrats in my life,'' exclaimed Sen. L. Louise Lucas, D-Portsmouth. ``You talk about the olive branch. He really stuck it out there.''

Allen has struck a conciliatory tone out of necessity; his effort last fall to gain GOP majorities in both chambers of the General Assembly fell short. The goal for his final two years in office will be to scale back his sweeping conservative agenda and try to achieve more modest goals.

``Whatever our differences may be,'' he said, ``let us each fulfill our duty - without regard to pride or petty political advantage - to bring forth the full flowering of our Virginia Renaissance.''

Republicans and Democrats alike said the tone of the speech bodes well for a more harmonious General Assembly session, which convened earlier in the day and is scheduled to continue for 60 days.

``I think we have more encouragement to work with this governor, and I welcome that,'' said House Majority Leader C. Richard Cranwell, D-Roanoke County.

``This was very positive,'' said Del. Allen W. Dudley, R-Rocky Mount. ``If the Senate ever gets started, we'll do some business.''

There were no surprises in the State of the Commonwealth Address, the third that Allen has delivered since taking office in January 1994.

Allen began by crediting the Democrat-controlled General Assembly for helping keep his campaign promises of ending parole for violent criminals and nudging able-bodied mothers off the welfare rolls.

Allen highlighted two of his more achievable goals for the coming session: overhauling the state's juvenile justice system and revamping local business license taxes.

He backed off his call for cutting the state income tax rate for individuals, an idea that the legislature summarily killed last year. Instead, he announced the creation of a bipartisan commission to study the state's tax structure.

``This debate (over taxes) is older even than our republic and it certainly was renewed in Virginia last year. In the climate of an election year, that debate became harsh and negative. But it doesn't have to be that way.''

Allen embraced the Democrats' agenda for more spending on public schools, with one caveat: accountability.

The chief executive renewed his call for spending up to $20 million to create standardized student tests that would gauge how well public schools are spending their state funds. School districts that do poorly would lose funding or face other sanctions.

Taking a page from populist Ross Perot, Allen held up a chart showing that while state spending on education has tripled since the 1980s, test scores have remained flat.

``Accountability is what is lacking in our schools today,'' he said, ``and providing it will be the true test of leadership in education in this session.''

On higher education, Allen took credit for coming up for an extra $350 million in his spending plan for 1996-98.

But Democratic lawmakers were quick to note that most of the money is either already in the budgets of state colleges and universities or would come from a one-time windfall from a proposed Trigon Blue Cross-Blue Shield settlement.

Not all Democrats were thrilled with Allen's speech. Petersburg Del. Jay W. DeBoer said much of the Republican's agenda sounds identical to the proposals he put forward last year.

``I see no new message here,'' DeBoer, a Democrat, said. ``I see a new `kinder and gentler' packaging of last year's message.'' MEMO: THE FULL SPEECH

The complete text of Gov. Allen's speech is on the News page of Pilot

Online at http://www.infi.net/pilot/

ILLUSTRATION: Color photo

BILL TIERNAN/The Virginian-Pilot

Gov. Allen and his wife, Susan, greet Del. David G. Brickley, a

Democrat from Woodbridge, as they leave the House chambers Wednesday

after the address in Richmond.

HIGHLIGHTS OF THE SPEECH

Instead of the Democrat-bashing of last year, Allen reached out

to his political rivals and called for a new spirit of cooperation.

``Whatever our differences may be, let us each fulfill our duty -

without regard to pride or petty political advantage - to bring

forth the full flowering of our Virginia Renaissance.''

He didn't abandon tax cuts completely. Announced he would appoint

a bipartisan commission to study ways to make Virginia's tax

structure more competitive with those of neighboring states.

Stressed the need to make schools more accountable for student

performance. ``Spending more money is easy. But, my friends,

insisting on accountability takes courage and vision. Accountability

is what is lacking in our schools today, and providing it will be

the true test of leadership in education this session.''

Called for a broad-based juvenile justice reform that seeks to

both rehabilitate youthful offenders who want to set their lives

straight and punishment for hard-core young criminals. ``We must

move the hardened juvenile murderers, rapists and other especially

violent criminals into secure and separate facilities within the

Department of Corrections.''

KEYWORDS: GENERAL ASSEMBLY by CNB