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

DATE: Friday, March 1, 1996                  TAG: 9603010493
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: BY MARGARET EDDS, STAFF WRITER 
DATELINE: RICHMOND                           LENGTH: Medium:   66 lines

ALLEN BREAKS SILENCE ON BUDGET CHANGE

Gov. George F. Allen on Thursday warned that jobs will disappear and academics suffer unless General Assembly budget writers return to his fiscal priorities.

Breaking weeks of near-silence on the state's $35 billion spending plan, Allen launched a spirited defense of his educational testing initiative, his economic development deal-closing fund and his efforts to turn various government functions over to private industry.

Portions of the 1996-98 budget plans adopted last week by the House and Senate ``hamper our efforts to improve academic performance in the schools, restrict my ability to attract more jobs and investment for Virginians and limit my administration's ability to manage state government efficiently,'' wrote Allen in a letter to budget negotiators.

Allen presented his spending plan to lawmakers as they arrived in Richmond in early January. Since then, House and Senate budget committees have separately reviewed those proposals and adjusted them. Now, a conference committee of senators and delegates has been assigned to work out differences in the two versions by next Tuesday.

The House plan, particularly, appears to take aim at Allen's primary initiatives, added Kenneth Stroupe, the governor's spokesman. ``It does smack somewhat of playing politics,'' he said.

Allen is a Republican; the House is controlled by a narrow majority of Democrats.

The governor unveiled his reply to the legislative budgets in his weekly radio show and in a letter to the House and Senate negotiators.

Allen warned that a House plan to reduce his proposed $38 million Economic Opportunity Fund will cost Virginia over 15,000 jobs during the next two years. The House cut Allen's request by $10 million and proposed switching another $10 million to a fund promoting regional partnerships.

``I just think it's foolish, it's petty and it's flat wrong for the House of Delegates to thwart our efforts to bring new jobs to Virginia,'' said Allen. He credits the deal-closing fund with bringing 18,000 jobs and over $2 billion in investment to Virginia since it was established in 1992.

Eighty-one grants totaling about $25 million have been made to woo companies considering investing in Virginia.

Allen also argued against a House plan to reduce from five to three the number of tests that would be given Virginia students to assess newly adopted learning standards. While preferring five tests, he could live with the Senate's plan for four, he said.

But the governor said he would not compromise on a House directive to accept $6.7 million in federal Goals 2000 money to help pay for the testing. Allen has repeatedly refused to accept the money, arguing that federal strings are likely to be attached.

In other budget comments, Allen warned that plans to issue various types of bonds totalling more than $200 million is risky policy. Most of the money would be used to fund higher education needs. If the budget negotiators go forward with those plans, careful oversight will be needed to make sure that Virginia's AAA bond rating is not impaired, Allen said. ILLUSTRATION: Photo

Gov. Allen warned that jobs and academics would suffer unless his

priorities are followed.

KEYWORDS: BUDGET GENERAL ASSEMBLY by CNB