ROANOKE TIMES

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

DATE: WEDNESDAY, March 29, 1995                   TAG: 9503290053
SECTION: VIRGINIA                    PAGE: C-1   EDITION: METRO 
SOURCE: JOEL TURNER STAFF WRITER
DATELINE:                                 LENGTH: Long


ALLEN PROMOTES LOTTERY PROFIT PLAN

Gov. George Allen said Tuesday that Democrats in the General Assembly should not have been surprised by his proposal for returning state lottery profits to localities to be used for schools, public safety or tax cuts.

Allen said the measure is nearly identical to legislation that was introduced at his request during the recent session but that the House of Delegates declined to consider.

"This is nothing new. The fact of the matter is that returning lottery profits to the localities is something that has been a concern for years," Allen said at a news conference at Mountain View Elementary School in Roanoke County.

Under Allen's proposal, $15 million in lottery proceeds would be given to localities in the next year. The distribution would be part of a five-year, phased-in plan that would give 100 percent of lottery profits, or $300 million a year, to localities by 2001.

Allen would finance the first-year $15 million installment by cutting the state budget recently approved by the legislature. He has submitted the budget amendments for consideration at the legislature's veto session next week.

"I'm trying to give [the Democrats] another chance. It was a rancorous session, but this will be an opportunity to provide more money for education," the governor said.

Allen said the $300 million installment would be financed by restrained growth in state spending over the next next five years. He turned aside Democrats' suggestions that he might be creating a hole in the state's education budget by giving the lottery profits to localities.

When voters approved the lottery nearly a decade ago, Allen said, they were led to believe the profits would be used for education, law enforcement and other services. He said his proposal would keep faith with the voters.

The General Assembly approved a measure during its recent session that would require that lottery money be spent on education. But because the lottery profits would go into the state's general fund without increasing the $2 billion already spent on education, Allen said the requirement is a shell game.

"It merely applies the 'lottery' label to general-fund revenues already going to education," he said.

Allen said his proposal would provide "more real money" to localities for education.

A group of General Assembly Democrats on a campaign-style swing Tuesday through Western Virginia criticized Allen's lottery proposal.

"It looks like shift and shaft, two," said House Majority Leader Richard Cranwell of Roanoke County.

Del. Clifton "Chip" Woodrum, D-Roanoke, said the governor was being inconsistent. First, Allen tried to take money away from localities by trying to repeal the business license tax, Woodrum said. Now he's trying to give them more money.

"The problem with this governor is he doesn't light in any one place long enough," Woodrum said.

As for Allen's charge that the Democrats' education bill wouldn't provide "new" money for education, Cranwell said, "What we have done is we have locked in $147 million that will be directed primarily on disparity. If that's not new money, I don't know what is."

Alexandria Del. Marian Van Landingham, sponsor of the bill, said the legislation grew out of Southwest Virginia's fight for disparity funding.

Allen said earlier that he would sign the bill, but he would offer amendments that include the proposal to return the lottery money to localities. He would require the money to be spent on education, law enforcement or local tax cuts, but he expects most of the money would be used for education.

At the Democrats' stop in Roanoke, the speakers kept up a steady drumbeat, urging Allen to sign the education bill. They were joined by local Democratic leaders, plus Michael Stovall of the Roanoke County School Board and Babette Cribbs, president of the Roanoke County Council of PTAs.

"We stand together," said Stovall, the Vinton District member. "Leave the money alone; leave the money for education."

When the lottery referendum was held, Cribbs said, "the perception was that the money would go for education."

As Van Landingham spoke, Stovall and Roanoke Mayor David Bowers stood at her side, holding up a sign detailing what the bill would do.

Allen took his campaign on the lottery issue to pupils at the Roanoke County school.

In Karen Denny's second-grade class, Allen used an overhead projector to explain his pizza theory of the state budget. He said Democrats want to put every topping on the budget pizza and require everyone to have the same kind of pizza.

But Allen said he wants each locality to have its own pizza and be able to choose its own toppings. Not everyone likes all toppings, he said. Localities will have a choice in using their share of lottery profits - for education, law enforcement or tax cuts, he said, but he believes most will choose education.

Allen came to Mountain View Elementary for his news conference because he said Denny's pupils recently had written him letters with many questions. He said he thought it would be easier to answer them in person.

Allen first visited Mountain View in 1993 when he was running for governor.

If the General Assembly approves Allen's lottery proposal, these Western Virginia localities would receive the following cumulative amounts over the next five years: Bedford County, $6.5 million; Botetourt County, $3.4 million; Craig County, $583,424; Franklin County, $5.1 million; and Giles County, $2.3 million.

Also, Montgomery County, $6.9 million; Pulaski County, $4.6 million; Roanoke County, $10 million; Radford, $1.2 million; Roanoke, $9.4 million; and Salem, $2.6 million.



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