ROANOKE TIMES 
                      Copyright (c) 1995, Roanoke Times

DATE: Friday, December 15, 1995              TAG: 9512150102
SECTION: VIRGINIA                 PAGE: B-4  EDITION: METRO 
DATELINE: RICHMOND
SOURCE: Associated Press 


BONUSES, RAISES IN ALLEN BUDGET PROPOSAL INCLUDES NO TAX INCREASES

State workers would receive a bonus and a pay increase under Gov. George Allen's proposed 1996-98 budget, according to a published report.

The Richmond Times-Dispatch, quoting sources it did not identify, said in today's early editions that Allen's budget includes a 4.2 percent bonus for all permanent employees and college faculty on Dec. 15, 1996. That will cost $50 million.

Additionally, Allen proposes to give a 3 percent across-the-board raise in base salary to permanent employees, school teachers and constitutional officers and their employees on Dec. 1, 1997. That will cost more than $67 million.

The Virginia Governmental Employees Association is seeking 5 percent raises in each of the budget's two years.

There would be no bonus for public school teachers, but localities could use some of their state education aid for that, sources told the newspaper.

Also for late 1997, Allen has included enough money so that college faculty and administrators would receive merit raises averaging 5 percent.

The budget does not include any tax increases. The administration has increased state tax collection projections for the next budget period. It expects to collect $995.5 million more than in the previous two years. Last month, the administration projected additional revenue of $741 million.

Allen also will revive his proposal to return lottery profits to localities. This time around, he recommends sending back $15 million of the profits to localities beginning July 1, 1997. The return would permit localities to use the money for education, including teacher raises, reduced class size and improved technology.

During the last assembly session, Democrats defeated the Republican governor's proposal to return all lottery profits, totaling about $650 million in the biennium, to localities to spend on education, law enforcement or local tax relief.

Allen will present the $33 billion budget Monday to the General Assembly money committees.

The governor also offers additional state money for education.

He advised college presidents Thursday that they would see higher education spending rise by more than $200 million. They had hoped for a $415.2 million increase.

He also proposes to fund a preschool program for at-risk 4-year-olds by postponing the removal of a state sales tax on nonprescription drugs. The removal, passed in 1990 under Democratic Gov. Douglas Wilder, is scheduled to take effect July 1. Delaying its removal would mean an extra $20 million for the state.

The budget also will contain at least $17 million for a special juvenile prison. Allen has called for reforming the troubled juvenile justice system, emphasizing, among other things, a get-tough policy toward violent youths.


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