THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, February 19, 1996 TAG: 9602190058
SECTION: FRONT PAGE: A1 EDITION: FINAL
SOURCE: BY MARGARET EDDS AND WARREN FISKE
STAFF WRITERS
DATELINE: RICHMOND LENGTH: Long : 121 lines
Higher education and state employees were the big winners Sunday as legislative money committees unveiled their proposed amendments to Gov. George F. Allen's $34.6 billion budget.
Lawmakers scrambling to reverse a five-year slide in state funding for colleges and universities proposed adding nearly $100 million for school operating expenses.
Even with $110 million in new money budgeted by Allen, the total is about half of what higher education advocates say is needed to raise Virginia's spending on college students to the average among Southern states.
Members of the House Appropriations and Senate Finance committees scaled back Allen initiatives in public safety and business recruitment as they added money to give state employees raises, reduce elementary school class sizes, put computers in classrooms and make dozens of other spending adjustments.
The House and Senate largely agreed on priorities, although they will need to iron out differences on dollar amounts before the General Assembly adjourns next month. Both said education and employee salaries topped their concerns.
``We need to keep in mind that the health of our colleges and universities is intertwined with the long-term economic well-being of the commonwealth,'' said State Sen. Stanley C. Walker, D-Norfolk, co-chairman of the Senate Finance Committee, at a meeting of his panel.
House Appropriations Chairman V. Earl Dickinson, D-Louisa, echoed the sentiment.
``We began the session with two major objectives - to find additional funds for higher education so we can begin to recapture our national standing and to demonstrate to state employees that they are not an afterthought in this budget, but a real priority to members of the General Assembly.''
To fund those and other projects, lawmakers came up with about $173 million in new revenues. Almost half of that sum derives from a recommendation that the state use all the money it expects to get from a settlement with Trigon Blue Cross Blue Shield.
The insurance giant has agreed to pay the state in return for approval of its request to become a for-profit company. Lawmakers are optimistic that the state will reap $175 million from the deal.
Allen already had proposed spending $95 million of the sum on higher education in the next biennium and putting the rest in an ongoing foundation. But the lawmakers want to invest the entire sum in the biennial budget, with portions going to the established foundations of the state's three public medical schools.
Allen, through a spokesman, declined comment on the budget changes, saying he had not had time to review them. The full House and Senate are scheduled to debate the budget bill on Thursday.
But Kenneth Stroupe, Allen's press aide, said he is disappointed in proposed reductions in business recruitment initiatives and in a recommendation that school testing changes be financed with money from a federal program Allen opposes.
The House committee agreed to a revised version of Allen's testing plan providing that it be paid for with money from Goals 2000, a federal program to help states improve educational standards. Allen has refused to accept $6.6 million in Goals 2000 money, saying he fears mandates will be attached.
Federal officials insist he is wrong.
Among the committees' recommendations:
SALARIES:
Allen proposed giving state employees and teachers a one-time 4 percent bonus check in the first year of the biennium, but no permanent increase in salary. They would receive a 3 percent across-the-board salary increase the second year. For teaching faculty, he recommended an average increase of 5 percent.
The Senate recommended a 4.56 percent increase for state employees the first year and a 2.25 percent hike the second year.
The House proposed a 4 percent raise the first year and a 2 percent ``placeholder'' raise the second year that members hope actually would be larger.
Under either the Senate or House proposals, teachers and state employees would come out ahead.
College faculty would get slightly larger raises than Allen proposed under both chambers' plans.
HIGHER EDUCATION:
The House proposed adding $91.4 million to Allen's budget for college operating expenses. The Senate recommended a $113 million increase.
Both chambers called for a freeze on college tuition hikes during the first year of the biennium. The House also would ban increases in the second year, while the Senate would allow modest increases.
Allen had proposed limiting increases to the rate of inflation.
Faced with major construction requests, the House and Senate have recommended expanding the ability of the Virginia College Building Authority to meet those requests. The House version would pay for servicing $136 million in new debt, while the Senate plan calls for $121 million worth of projects.
PUBLIC EDUCATION:
Both committees trimmed Allen's proposal to develop tests to measure student achievement under new state learning guidelines. Allen wanted to administer the tests five times during a student's career. The Senate panel recommended testing four times; the House supported three.
The House panel proposed investing $18 million in additional money to lower class sizes in kindergarten through third grade; the Senate included $16.1 million. Both figures are less than Democratic legislative candidates promised on the campaign trail last fall.
The committees agreed to spend $45.5 million next year to put more computers in public school classrooms. The Senate recommended $12.8 million in new money for disadvantaged school systems. The House was silent on the matter.
HEALTH AND HUMAN RESOURCES:
The House completely restored money cut in the Allen budget for general relief, community action boards and administration of local social services departments. The Senate included money for the latter two.
Both committees returned to the budget money for school nurses in several localities, including Norfolk.
PUBLIC SAFETY:
Both committees deducted about $40 million in prison projects recommended by Allen, redirecting about half of the money to juvenile justice and spending the rest in other areas.
KEYWORDS: GENERAL ASSEMBLY BUDGET by CNB