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

DATE: Thursday, July 11, 1996               TAG: 9607110417
SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                          LENGTH:   38 lines

VIRGINIA COLLECTED MORE REVENUE THAN EXPECTED MONEY TAKEN IN DURING THE 1996 FISCAL YEAR EXCEEDED THE ESTIMATE BY $85 MILLION.

The state ended the 1996 fiscal year with about $85 million more revenue than expected, Gov. George Allen said Wednesday.

Allen said tax collections for the year that ended June 30 will exceed the official estimate by about $50 million. The state also earned $17 million more than projected from lottery sales and made $17.1 million on the sale of its student loan portfolio to a private company.

The administration had expected a 6.1 percent increase in tax collections. Preliminary figures for June indicate the increase will be about 6.8 percent.

``For the fifth year out of the last six, our revenue collections were within one percent of the forecast,'' Allen said.

``This commendable accuracy has contributed significantly to Virginia's respected national reputation for sound and responsible fiscal management.''

Allen said $16 million will go into the state's ``rainy day'' fund. Also, the surplus will trigger the release of nearly $10 million for building maintenance, mostly for colleges.

That leaves nearly $60 million available for appropriation in the 1997 legislative session.

``A surplus is always good news,'' said Sen. Stanley Walker, D-Norfolk, and co-chairman of the Senate Finance Committee. ``It's a small cushion, in the range of what we have seen the last two or three years.''

Walker said he is sure the assembly will have no trouble finding a use for the money.

``The requests will be a lot more than what the surplus is,'' he said.

Allen is scheduled to brief the General Assembly's money committees on the state's financial condition Aug. 19.

KEYWORDS: VIRGINIA STATE BUDGET by CNB