The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Thursday, January 9, 1997             TAG: 9701090336
SECTION: FRONT                   PAGE: A1   EDITION: FINAL 
SOURCE: BY WARREN FISKE, STAFF WRITER 
DATELINE: RICHMOND                          LENGTH:  152 lines

ALLEN PROPOSES MODEST AGENDA HIS ONE NEW PROGRAM CALLS FOR REDUCTION IN JOBLESS TAX

Studiously avoiding controversy at the start of a crucial election year, Gov. George F. Allen presented a modest agenda to the General Assembly on Wednesday night and called for bipartisan support to refine a number of economic, educational and social programs.

The sole new initiative proposed by the Republican governor during his 40-minute State of the Commonwealth address to the legislature was a proposal to reduce over the next six years the unemployment taxes Virginia charges businesses.

Allen also sought support for a number of small initiatives he has announced over the past month, including remedial reading help for first-graders, tougher trial procedures for drug dealers, and increased financial disclosure for legislators and lobbyists.

Allen's often self-congratulatory speech capped the opening day of this winter's six-week General Assembly session and officially launched a political year when Virginians will elect a new governor, lieutenant governor and attorney general. In addition, all 100 members of House of Delegates are up for re-election, and Republicans need to gain only three seats to capture their first majority in more than a century.

Allen, 44, has entered the final year of his four-year term and is not permitted by the state Constitution to succeed himself.

The speech stood in stark contrast to Allen's State of the Commonwealth address in 1995 - the last time the legislature faced elections. Then, the governor was sharply partisan and proposed a controversial agenda of cuts to taxes and popular programs that bitterly divided Democrats and Republicans for the year.

This time, Allen was quick to share credit with Democrats for many of his successes, and was unreserved in seeking their support for his agenda.

``We've risen above partisan differences and regional jealousies,'' Allen said. ``And we've worked constructively as Virginians questing to be the best.''

The governor spent much of the speech giving his policies credit for reduced crime rates, low unemployment and an expanding economy in Virginia.

Allen said he is urging a cut in unemployment taxes because the state has in reserve $880 million from the levy - enough to pay the current load of benefits for four years. The average reserve in other state is 19 months, according to the Virginia Institute for Public Policy, a think tank of conservative academics.

Virginia businesses are taxed between $8 and $496 per employee each year. The rate depends on the company's history of layoffs over a four-year period.

Allen said a cut in the tax would help economic development in Virginia. ``We should not be unnecessarily collecting taxes from businesses when they could better use that money to make additional investments and create more jobs,'' he said.

Allen did not propose an exact amount for the tax cut, saying he hoped to develop a specific plan with legislators this year. The legislators were generally supporting the plan, although many said they are eager to see more details.

Virginia's unemployment rate is 3.8 percent - the lowest in seven years and considerably below the national average of 5 percent.

``It's worth looking into,'' said Sen. John H. Chichester, R-Fredericksburg, co-chairman of the Senate Budget Committee. But Chichester added a note of caution, saying, ``Who knows whether (the reserve) will be overfunded or not, if unemployment every starts to rise.''

Allen also urged the legislators to support:

$30 million in new funding for public education. His plan includes money for a new diagnostic exam to help identify first-graders with reading difficulties and furnish them with remedial help. Also, Allen is seeking textbooks and supplies to help teachers impart new back-to-basic learning standards.

Longer prison sentences for drug dealers. Allen proposed legislation to allow the state to prosecute members of drug gangs together, instead of at separate trials as is now required.

$19 million to improve drinking water and clean up the Chesapeake Bay.

A law requiring physicians to notify parents before performing abortions on minors. For more than a decade, Democrats have defeated the legislation. ``The people of Virginia are patient, but on this issue their will has been too long delayed and too long denied,'' Allen said.

Increased financial disclosure for legislators and lobbyists. ``Our commonwealth has some of the weakest disclosure laws in the country,'' Allen said. ``We can certainly do better. In fact, we have an obligation to do so.'' MEMO: The full text of Allen's State of the Commonwealth speech is on

the News page at http://www.pilotonline.com

REACTIONS TO ALLEN'S SPEECH

Sen. Kenneth W. Stolle, R-Virginia Beach:

``I think he's laid out an agenda for us, not just for this session

but into the 21st century that will have broad appeal all over Virginia.

He's focusing on things that can only make the state better.''

Albert Pollard, lobbyist for the Sierra Club of Virginia:

``We're glad to see the governor's tactical retreat from his

environmental blitzkrieg. However, Virginia's air and water are still

under siege. If George Allen hadn't declared war on Virginia's

environment, we wouldn't be stuck negotiating for peace.''

Patricia West, Public Safety Director:

``The abolition of parole, truth in sentencing, the parole grant

rates - have all been significant contributors to the decrease in

violent crime. . . . It's common sense. If you keep violent criminals

locked up for a long time, you're going to see a drop in the crime rate.

It's common sense.''

Sen. Joseph Gartlan, D-Fairfax:

``I love the way he's taken credit for this 12 percent decline in

crime. It's also declined 12 percent in the District of Columbia, and

they haven't abolished parole.

``The major reason for those declines has been changes in the

demographics of the country. . . . The drop in welfare caseloads. With

the rising economic prosperity we've experienced in recent years, it's

been characteristic for the welfare caseload to decline.

``He makes the logical error of so many people. He claims credit for

one thing because it followed another.''

Sen. Stanley Walker, D-Norfolk:

``I don't mean to be critical of the governor, but we've kind of been

on a roll in the entire country, with jobs and the decrease in crime.

And there's not a state in the Union that isn't doing well in economic

development. And we've always had the ability to manage our affairs

rightly and properly. We have a Triple A bond rating. . . . All of

that's been going on for years, and all of that's been encouragement for

business to come in our state. . . . I don't want to take anything away

from (the governor) but the credit goes way back and belongs to many

people.'' ILLUSTRATION: [Color Photo]

IAN MARTIN

The Virginian-Pilot

In his State of the Commonwealth address, Gov. George F. Allen

called for bipartisan support.

GRAPHIC

IN HIS FINAL COMMONWEALTH ADDRESS, ALLEN CALLED FOR:

Much longer prison sentences for big-time drug dealers and

legislation to make it easier to try jointly drug gang members.

Creating the Chesapeake Bay Tributaries Restoration Trust Fund.

Increasing funding to help more localities across Virginia

improve their wastewater and sewage treatment plants.

Accelerating the timetable for ``Workfare'' so that it will be

implemented statewide by Oct. 1 of this year.

Notifying parents or guardians if their minor daughter wants an

abortion.

Improving lobbying and financial disclosure laws.

Providing liability insurance for all of Virginia's public school

teachers.

IAN MARTIN

The Virginian-Pilot

Norfolk Del. Thomas Moss Jr., speaker of the House of Delegates,

presided Wednesday over the opening-day joint session of the 1997

General Assembly in Richmond.

KEYWORDS: GENERAL ASSEMBLY STATE OF THE COMMONWEALTH ADDRESS


by CNB