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

DATE: TUESDAY, November 21, 1995                   TAG: 9511210069
SECTION: VIRGINIA                    PAGE: C-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

EXPENSES TO EAT UP NEW STATE INCOME

State expenditures that are required by law will devour most of Virginia's expected $1 billion in new revenue over the next biennium, leaving little money for new programs, a legislative committee was told Monday.

Rebecca Covey, director of the House Appropriations Committee staff, said mandatory funding for public education, prison operations, welfare reform and several other programs will cost the state at least $900 million.

On top of that are what she called ``traditional high priority'' programs, including an estimated $240 million increase in Medicaid and salary raises for state employees, teachers and college faculty.

It is not yet known how much of a raise will be proposed for government workers. Each 1 percent increase would cost $133.8 million the first year.

Del. Lacey Putney, I-Bedford, said the Appropriations Committee faces a difficult job. ``It's going to call for probably the most careful review and prioritizing of the entire budget we've had in years,'' he said. ``I don't know how free of pain it will be, but we will do it.''

The two-year state budget will be one of the major items on the General Assembly's agenda when it convenes Jan. 10.

Republican Gov. George Allen will submit his proposed spending plan to the assembly's money committees Dec. 18, but the Democratic-controlled legislature is expected to press for its own priorities - particularly more money for public schools and colleges.

by CNB