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

DATE: Saturday, November 2, 1996            TAG: 9611020328
SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                          LENGTH:   57 lines

GOVERNOR ALLEN LOSES COURT DECISION TO GENERAL ASSEMBLY OVER BUDGET BILL

The latest round in budget fights between Gov. George Allen and the General Assembly ended Friday with a court decision in favor of the legislature.

The unanimous ruling by the Virginia Supreme Court settled a dispute over an amended budget bill approved by the Assembly early this year.

The court rejected the Republican governor's contention that the Democrat-controlled legislature violated the state Constitution by sending him only the amended portions of the budget.

Allen had said the power of the governor's line item veto and authority over state spending were at risk. The court disagreed.

``The bill did not impair the governor's item veto power or his ability to ensure that expenses for the biennium did not exceed revenues,'' said the opinion written by Justice Barbara M. Keenan.

In fact, the court said, sending the governor the entire bill could create more mischief by enabling him to veto provisions that had been in effect for a year or more.

``A governor could veto an appropriation that has already been spent, or an appropriation that has been committed in a contract binding the commonwealth. Such results could adversely affect the commonwealth's financial standing,'' the ruling said.

The disputed bill involved changes for the final months of the 1994-96 budget period, which ended June 30. Allen refused to sign the bill, saying the Assembly's actions made it void. The Constitution allowed the bill to become law without his signature.

In May, Republican Attorney General James S. Gilmore III asked the court whether the Assembly could submit less than the full budget bill as amended.

Gilmore argued that the Constitution requires that the bill be presented in the same form that it passed both houses. While the original bill was 456 pages, the version that came back to the governor's desk with only the amended items was 142 pages.

Both sides insisted they were most concerned with saving taxpayers' money.

``By obtaining this decision, we have made it easier to balance the commonwealth's budget and save the taxpayers dollars,'' Gilmore said.

``The court did exactly the right thing. It was correct but sadly unnecessary. The suit just wasted a lot of taxpayer money and served to increase cynicism among the voters,'' said Lt. Gov. Donald S. Beyer, a Democrat.

Beyer and Gilmore are likely opponents for governor next year.

In other rulings:

The court upheld the dismissal of a lawsuit filed by three former Regent University professors who lost their jobs. The high court agreed with Virginia Beach Circuit Judge Edward W. Hanson that Regent's system of renewable employment contracts was not a tenure system.

The court upheld a ruling by Suffolk Circuit Judge Rodham T. Delk Jr. that Suffolk City Council did nothing wrong in rezoning farm land near Interstate 664 for a stock car race track. A citizens' group had appealed the rezoning.

KEYWORDS: VIRGINIA STATE SUPREME COURT RULING BUDGET by CNB