DATE: Saturday, September 13, 1997          TAG: 9709130368

SECTION: FRONT                   PAGE: A1   EDITION: FINAL 

TYPE: DECISION 97 

SOURCE: BY LEDYARD KING, STAFF WRITER 

                                            LENGTH:  153 lines

CANDIDATES PLEDGE TO BOOST JOBS BY 250,000 GILMORE, BEYER LAY OUT FUNDING, TRAINING PLANS

Gubernatorial candidates James S. Gilmore III and Donald S. Beyer Jr. on Friday promised to create 250,000 new jobs over the next four years by beefing up worker training.

Republican Gilmore and Democrat Beyer pledged to meet and exceed that target while speaking before the Virginia Economic Developers Association Conference in Charlottesville.

Gilmore, the former attorney general, and Beyer, the current lieutenant governor, generally agree on economic development issues. They've already endorsed cutting taxes for car owners, hiring more teachers to cut class sizes, and expanding rights for crime victims.

But they differ when it comes to deciding how to parcel out the money to communities.

Gilmore, who laid out his economic development plan Friday, wants to increase funding for George Mason University in Fairfax County by $25 million annually to pay for a high-tech research and development center that will serve as ``an economic catalyst'' for Northern Virginia and its technological corridor.

Beyer, who says the 250,000-job goal should be ``a working minimum,'' had laid out elements of his plan over the preceding months. He has said he'd create a $40 million Virginia Economic Development Grant Fund that would permit counties and cities to apply for $1 million grants for industrial access roads and improved sewerage.

All good ideas, says College of William and Mary economics Professor Roy L. Pearson, and all necessary if the commonwealth hopes to see that kind of ambitious job growth through 2001.

``A quarter of a million jobs would be a desirable goal. Achieving it is going to take hard work,'' Pearson said. ``It would depend on us to do a better job than other states (in creating jobs). We really have to sell Virginia.''

More than 83,000 new jobs were added in Virginia during fiscal year 1997, which ran from July 1, 1996, through June 30, 1997. The previous year, only 47,300 were created.

Virginia is harvesting the fruits of a robust economy. The unemployment rate is about 4 percent, a seven-year low, and last year's 2.7 percent job growth rate exceeds the nation's 2.2 percent average.

But economists and state lawmakers, wary of plans by both candidates to cut taxes, worry that a recession is only a stockmarket tumble away.

A four-year target of 250,000 jobs, an average of 62,500 annually over the next four years, is less than the average over the past 20 years. According to the Virginia Employment Commission, the number of jobs in the state increased by 1.2 million between 1976 and 1996 - an average annual gain of more than 64,000.

Along the way, wild fluctuations have mirrored national economic trends: Under Gov. Gerald L. Baliles, the number of jobs grew by 405,000 from 1986 through 1989, when the go-go '80s were hitting their stride; under Gov. Douglas L. Wilder, only 125,000 jobs were added from 1990 through 1993, when the nation was in a recession.

So how much credit - or blame - does a governor really deserve when it comes to job creation?

More than one might imagine, especially when it comes to landing large corporations that can bring thousands of jobs, Pearson said.

``In terms of getting the jobs, it is a personal sell,'' he said. ``To clinch the deal, you usually need the governor.''

Spokespeople for Beyer and Gilmore bristle at suggestions that the candidates' platforms sound alike. Each campaign says the other is stealing its ideas.

``Once again,'' Gilmore spokesman Mark Miner said, ``the guy doesn't have a new idea in his campaign.''

Gilmore is promising programs like the small business fund and worker retraining that the lieutenant governor already has started, said Page Boinest, spokeswoman for Beyer, who owns car dealerships in Northern Virginia.

``Don has talked a lot about job creation since Day One,'' said Boinest. ``And you know why. It's because he's spent the past 23 years creating jobs.'' MEMO: The Associated Press contributed to this report. ILLUSTRATION: HOW TO CREATE 250,000 JOBS

GRAPHIC

The Virginian-Pilot

In speeches today in Charlottesville at the Virginia Economic

Developers Association, gubernatorial candidates James S. Gilmore

III and Donald S. Beyer Jr. talked about their strategies for

building Virginia's economy.

Gilmore's key points

MORE CAPITAL

Increase state grants available to help small business start up

and meet environmental regulations.

TECHNICAL ASSISTANCE

Create a cabinet-level Chief InformationTechnology Officer who

will help develop ``a pro-technology business climate'' in Virginia.

Boost funding to George Mason University in Fairfax County by $25

million annually to build a hi-tech research and development center.

Create ``technology transfer centers'' in each state college and

university that will serve as research centers for small

technology-based firms and provide businesses advice on

technological issues.

Order all cabinet agencies to develop plans linking regional

economic cooperation efforts to support regional job creation.

TRANSPORTATION

Relieve highway congestion by building: an eastern by-pass around

Washington; a ``Coalfields Expressway'' through southwest Virginia;

and a third crossing in the Hampton Roads area.

EXPANSION OF MARKETS

Expand efforts to increase international exports, including

opening new overseas offices to promote Virginia products.

Open at least four new enterprise zones in the state that offer

tax breaks to businesses locating in those areas.

Increase tourism marketing.

EDUCATION AND TRAINING

Expand worker training efforts for small business and using

Virginia's 23 community colleges to beef up training for technology

jobs. Also spend up to $25 million on technology training centers

across Virginia.

Beyer's key points

MORE CAPITAL

Eliminate the corporate income tax for 95 percent of Virginia's

small businesses.

Expand funding, if possible, to the Small Business Growth Fund to

provide investment capital to small businesses.

Create the Virginia Economic Development Grant Fund to help build

new economic development parts. Local governments could compete for

grants up to $1 million.

TECHNICAL ASSISTANCE

Pay special attention to minority-owned businesses by restoring

funding to the Department of Minority Business Affairs.

Improve our technical assistance programs and opportunities for

non-credit instruction.

Create the Small Business Information Clearinghouse to

consolidate small business information.

TRANSPORTATION

Make sure Virginia receives a fair return on the gas tax dollars

we send to Washington.

Search for creative ways to fund major projects, including

public-private partnerships.

Expand the project 2010 to double the capacity of the Hampton

Roads port over the next decade and a half.

EXPANSION OF MARKETS

Create an Export Loan Guarantee fund to help companies market and

ship their goods overseas.

Expand tourism promotion.

EDUCATION AND TRAINING

Develop targeted worker retraining programs at community

colleges. Beyer helped create the worker retraining tax credit that

provides a 30 percent tax break to business who send employees to

community colleges and other recognized programs.

Put more computers in classrooms, improve ties between schools

and high-tech companies and promote technological literacy for all

Virginians. KEYWORDS: JOBS ECONOMY CANDIDATE GUBERNATORIAL RACE

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