
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 3, 1991                   TAG: 9102030155
SECTION: VIRGINIA                    PAGE: B-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

SCHOOL BONDS BACKED

Administration bills to sell bonds backed by the Literary Fund for school construction, establish an early retirement program for state workers and allow the state retirement system to sell its RF&P Corp. stock won approval Saturday in the House of Delegates.

The House also advanced legislation regulating beer keg rentals, prohibiting leases that ban guns in public housing and exempting unenclosed elevators from the Virginia Indoor Clean Air Act.

Gov. Douglas Wilder has proposed financing $162 million in school construction by selling bonds backed by the Literary Fund. A like amount would be transferred from the Literary Fund to the General Fund to help the state cope with a $2.1 billion revenue shortfall.

Court fines are the primary source of revenue for the Literary Fund, which ordinarily is used for school building projects. Montgomery County, for example, plans to use a $2.5 million Literary Fund loan to help pay for a new Christiansburg elementary school.

Del. Alan A. Diamonstein, D-Newport News, said about 116 projects in more than 40 localities would be built with money generated by the bond sale.

"This is to address local school construction needs," Diamonstein said. "The practical effect of not passing this is to prevent further construction for two years."

But Del. Arthur "Pete" Giesen Jr., R-Waynesboro, called the plan "a shell game" in which the state is borrowing money to meet operating expenses.

"This is not a prudent use of our borrowing power," he said.

Also gaining preliminary approval was a bill allowing state employees with at least 25 years of service to retire at age 50.

Del. Thomas Moss, D-Norfolk, said about half of the more than 5,000 employees who would be eligible are expected to retire early. Only about half of those employees would be replaced.

Moss said the move would save the state about $47 million a year.

Del. M. Kirkland Cox's bill requiring registration of rented beer kegs won preliminary approval despite some lawmakers' contention that it would accomplish nothing.

Cox, R-Chesterfield, said the bill is intended to discourage keg parties attended by teen-agers. Registration of the keg would make it easier for police to find out who is responsible for serving beer to minors, he said.

The House also gave preliminary approval to a bill by Del. Vance Wilkins, R-Amherst, prohibiting gun bans in public housing leases. The bill was a result of a judge's ruling upholding such leases in Richmond.

"It's important for these people to be able to keep a weapon in their own homes," Wilkins said. "I thought it [the Richmond lease] was very discriminatory."

The bill will expire on Feb. 1, 1992. The "sunset clause" was added in committee to encourage the parties in the Richmond controversy to settle their differences.

Keywords:
GENERAL ASSEMBLY

by CNB