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

DATE: Friday, January 19, 1996               TAG: 9601190643
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY ROBERT LITTLE, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   51 lines

A BUDGET, A BALANCE, TWO LOTTERY GAMES - UNCERTAINTY ABOUNDS LEGISLATURE AND GOVERNOR SQUABBLE OVER WHO'S TO BLAME.

There's a $67.3 million hole in the state budget, and the governor and the legislature can't agree how to fill it or who's to blame.

Gov. George F. Allen points to the General Assembly. The budget he gave legislators last month balanced, though it included money from two controversial new lottery games. Allen administration officials say they had to back off plans to implement the games this week because the General Assembly is considering laws to ban them.

But Democratic senators said Thursday they consider the multi-million dollar gap the governor's doing - and called on him to find a way to fill it.

``If we're going to put that on hold,'' said Sen. Edward Houck, D-Spotsylvania, ``then the governor has the responsibility to tell us what he would like to have cut - or where he'll come up with that extra revenue.''

In 1996's first public Senate debate, Democrats chided Allen for his two-year budget balanced with a $67.3 million question mark: Two new lottery games.

A Republican in the House of Delegates, who thinks the games are more addictive than typical lottery games, is sponsoring a bill that would prohibit them. Allen has promised to sign the bill if it passes.

Senate Democrats called that the equivalent of giving them a budget that doesn't balance.

``To me, it's a little bit late for the governor to develop some moral prohibition to these types of games,'' said Sen. Richard L. Saslaw, D-Fairfax, the Senate's Democratic leader.

But Allen administration officials say the General Assembly has caused the rift. Allen offered the new games because lottery officials recommended them as a way to raise money. Historically, the State Lottery Board has power to create games as it pleases. And if members of the General Assembly want to change that policy, it's their business.

``Right now, our budget balances,'' said Ken Stroupe, Allen's spokesman.

Stroupe said the governor has promised to help legislators balance the budget if they decide to nix the new games, but can't do anything until a decision is made.

``There are thousands of items that will be considered in the budget that the governor has submitted,'' Stroupe said. ``I doubt this will be the only one the General Assembly will tinker with for a few days before making a decision about it.'' by CNB