THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, February 9, 1995 TAG: 9502090439
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY BETTY MITCHELL GRAY, STAFF WRITER
DATELINE: RALEIGH LENGTH: Medium: 74 lines
Gov. James B. Hunt Jr. will ask the General Assembly for tax cuts, a crackdown on crime and more money for children when he delivers his State of the State address to a joint House and Senate session today.
But the specifics of his agenda - including details on how Hunt proposes to pay for the largest tax cut in state history - won't be presented to lawmakers until next week when state budget director Marvin Dorman meets with House and Senate budget writers.
Hunt's speech will have the ring of history: For the first time in nearly three terms as governor, Hunt, a Democrat, will speak to a state legislature dominated by Republicans.
On Nov. 8, Republicans gained control of the House of Representatives and captured about a dozen seats in the Senate, where Democrats now hold a three-vote margin.
Since the election, Hunt has met regularly with reporters, business leaders and political groups across the state to outline the major proposals he will present to lawmakers.
Hunt has signaled he will continue to focus on three major themes - ``Cutting taxes, fighting crime and, most importantly, helping children.''
He has been criticized in recent weeks by some Democrats who say he sounds like his Republican opponents.
Hunt rejects this criticism.
``I'm not thinking about what's right or what's left,'' Hunt said. ``I'm thinking about moving forward.
``Helping families and children . . . that's what I'm about. I think that's what people want us to do.''
But despite Republican gains in the legislature and some differences of opinion between Hunt and new GOP leaders, his reception today is expected to be considerably more cordial than Virginia's legislature gave Gov. George F. Allen in January.
Allen, a Republican, delivered his State of the Commonwealth speech in a conference room because that state's Democratic-controlled assembly was too
mired in bickering to hold a joint session.
Hunt has told business leaders and others that he plans to cut taxes and probably will eliminate the Department of Crime Control and Public Safety - which he founded almost 20 years ago - to help pay for these cuts.
Most of Hunt's tax cuts - $373 million - would go to individuals, including an increase in the standard income tax deduction for individuals, new tax credits to help working families with children and a larger homestead exemption for the elderly. Hunt also proposes $110 million in tax cuts for business, including cuts in the corporate income tax and elimination of the intangibles tax on stocks and bonds.
Hunt also has called for a 23 percent cut in unemployment insurance taxes paid by employers.
Hunt told reporters he had found only about $200 million in savings so far to pay for his proposed tax cut. But Hunt said he was confident that continued growth in the state's economy and increased government efficiency would make the full tax cut possible.
``Our job is to make our government as efficient as we can,'' Hunt said. ``We can find those cuts.''
Hunt also is expected to ask the General Assembly for $100 million this year to build space for about 1,600 prison beds as the first phase of a 3,800-bed, $200-million prison construction program over next four years. MEMO: STATE OF THE STATE ADDRESS
Gov. James B. Hunt Jr. will deliver the State of the State address at
noon before a joint session of the state House and Senate.
The address will be carried live on public television stations across
the state and on some radio stations via the N.C. News Network.
Television stations carrying the address include WUND-TV, Columbia;
WUNK-TV, Greenville and WUNP-TV, Roanoke Rapids. N.C. News Network radio
affiliates include WELS in Kinston and WNHW in Nags Head.
by CNB