THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, January 24, 1996 TAG: 9601240356
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: BY MARGARET EDDS, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 68 lines
A leading Virginia businessman called Tuesday for a tax increase to fund college needs, while lawmakers scrambled to fill what educators say is a $340 million higher education funding gap.
Key legislators said there is no sentiment among Virginia voters or politicians for a tax increase this year.
But John T. ``Til'' Hazel, a prominent Northern Virginia developer, told the higher education arm of the House Appropriations Committee that it is time to start considering ``that awful spectre'' of raising taxes.
``We need to have a good, hard, solid, not politically correct look'' at the Commonwealth's financial future, Hazel said in introducing a line-up of college presidents on hand to lobby for increased funding.
Like that stockbroker on a long-ago TV commercial, when Til Hazel talks, the right people tend to listen. The Republican fund-raiser and donor emerged as a policymaking leader last year with a statewide crusade to boost higher education. Hazel's Virginia Business Higher Education Council, a group of business leaders from across the state, has argued that deep cuts in college aid in the early '90s have hurt the state's economic development efforts.
Hazel cited three alternatives: continue with a status quo in which Virginia has dipped to 43rd among the states in appropriations per college student; rob other programs of funding or find new revenue sources.
Asked if he believes taxes need to be raised, Hazel replied: ``I personally think so, and I think we need to start discussing the word.''
Meanwhile, leading lawmakers began lining up behind the effort to find at least part of the $340 million that a coalition of college presidents say is needed.
In the Senate, Sen. Stanley C. Walker, D-Norfolk, and Sen. John H. Chichester, R-Fredericksburg, introduced a $340 million higher education amendment to the budget bill. Del. Alan Diamonstein, D-Newport News, introduced a similar amendment in the House.
In interviews, however, both Walker and Diamonstein acknowledged that the figure is a goal that is unlikely to be met in a tight budgetary year.
``This is a genuine groundswell that started over a year ago,'' said Walker, referring to the efforts of Hazel and others to bring higher education funding to the forefront of the state's agenda. He introduced the amendment, Walker said, because it is important to sustain momentum for the cause.
Getting that actual funding is going to be ``very, very difficult,'' he added.
One suggestion gaining momentum is a $100 million bond issue that would fund maintenance work at various colleges. That money, in turn, would free up a similar amount already in maintenance reserves for use in funding equipment purchases, faculty salaries or other needs, said Diamonstein, House sponsor of the measure.
``We're going to look at it (the $340 million request),'' said Kenneth Stroupe, press secretary to Gov. George F. Allen, after listening to the college presidents. But, he said, the administration has already ``looked in virtually every nook and cranny we can find.''
Allen's proposed 1996-98 budget includes a $475 million increase for higher education. But critics say the plan only includes $105 million more for operating costs at state-supported colleges.
``We can't assume Virginia has an open-ended credit card,'' Stroupe said. ``You have to wonder whether enough is ever enough.''
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