THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Friday, February 23, 1996 TAG: 9602230482
SECTION: LOCAL PAGE: B4 EDITION: FINAL
SOURCE: BY MARGARET EDDS AND WARREN FISKE, STAFF WRITERS
DATELINE: RICHMOND LENGTH: Medium: 53 lines
Debate was long and loud in the House of Delegates, but few changes emerged Thursday as the House and Senate approved competing versions of the state's $34.6 billion two-year budget.
The House plan was approved on a 79-20 count with some Republicans arguing that the proposal is unfair to public school teachers, relies too much on one-time windfall money and increases state debt too rapidly.
The Senate, with little debate, approved its spending package by a 38-2 vote. The two dissenters were Democrats who are vying for positions on an eight-person conference committee that will iron out House and Senate differences in the next few weeks.
``Much of what we've done on this budget is based on one-time revenues . . John H. Chichester, R-Fredericksburg, co-chairman of the Senate Finance Committee.
``Having said that, let me add that we've done the best job we can,'' he added.
Among the points of contention in floor debate:
House GOP budget critics complained that the bills call for too much borrowing. Both House and Senate plans would increase the state's bonded indebtedness by $136 million to pay for college construction projects, for instance.
Defenders of the budget proposal said that, according to the governor's bond advisory committee, the state can keep its top-flight bond rating if debt doesn't go above 5 percent of revenues. Debt will be about 3.5 percent of revenues under the proposed plan, they said.
Other Republicans complained that the House plan short-sightedly cuts economic development money sought by Gov. George F. Allen. For instance, that plan would take $10 million from a fund used to woo new businesses to the state and invest it instead in promoting regional cooperation.
The House also removed $1 million for industrial advertising, about $600,000 in performance pay for industrial recruiters and about $4 million for tourist promotion.
Budget supporters responded that regional cooperation will ultimately aid job recruitment, and that other cuts were necessary to fund priorities in higher education.
A House floor amendment requiring the State Corporation Commission to entertain consumer comment before deciding on Trigon Blue Cross Blue Shield's application to become a for-profit company failed on a voice vote.
KEYWORDS: GENERAL ASSEMBLY VIRGINIA STATE BUDGET by CNB