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mreck observed, “It recognizes the need to deal with increased services . . . But beyond that, it also recognizes you can’t take a lot of money and throw it to the recipients who need the services. You have to have effective management.”

He called the governor’s humanresources proposals a “very balanced package.” The human services proposal also includes an additional $145 million for Medicaid, $54 million of which would be used to maintain nursing homes.

Mr. Timmreck said Medicaid represents “the single most challenging program facing the state at the present time.” In other health-related matters, the proposed spending plan allocates money for AIDS-education programs and home-care assistance for those with Alzheimer’s disease.

The AIDS program would cost $4.9 million and fund 49 new positions. The start-up costs for the Alzheimer’s respite-care plan would run $100,000.

Gov. Baliles also wants to spend $10 million on day-care programs for “working poor,” Mr. Tjmmreck explained. “This is not mainstream daycare for everybody.”

Housing

Gov. Baliles has suggested- a modest $8.5 million low-interest housing fund. Developers could get the loans, provided they set aside a certain number of units in a given project for low- to moderate-income people.

The governor’s program, nonetheless, iryects $45 million in new money for affordable-housing programs, which mostly emphasize rehabilitation of existing structures.

His program does not include mortgage or rental assistance to low- and moderate-income workers.

The following highlights other major spending proposals and programs contained in the governor’s budget.

Education

Gov. Baliles has budgeted aboirt $9.5 billion for education during the next two fiscal years.

Specifically, the educatiert-djudget calls for the appropriations to achieve an “actual” yearly pay raise of 7.3 percent for teachers.

Currently, teacher’s salaries in Virginia are comparable to the na

93.7%