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By MARY K. BLEWITT
Arundel Newspapers Richmond Bureau
RICHMOND — The Virginia General Assembly ended its 1990 session Saturday with the approval of a $26 billion budget plan for the next two years that includes salary increases for state employees and teachers and returns a portion of the recordation tax promised localities last year.
During the 60-day session, in which revenue forecasts went from bad to worse, the state spending plan for 1990-92 dominated the issues at the Capitol. But despite fiscal constraints, the Assembly was able to grant Gov. L. Douglas Wilder his requested $200 million revenue reserve fund.
In addition, the legislature removed the sales tax on non-prescription drugs — a longtime aim of Wilder’s — in a strategic political maneuver made by the new governor.
More than 80,000 state employees will receive a three percent raise on July 1 and a t>yo percent raise on Dec. 1. Virginia teachers, numbering about 60,000, will also receive a raise in the first year of the biennium, starting July 1.
Though no money is budgeted for salary raises for 1991-92, funds from the reserve are earmarked for that purpose. Nevertheless, state teacher salaries continue to fall below the national average.
Localities will receive $60 million of the original $80 million in taxes collected from real estate transactions pledged to them last session. A total of $20 million will be distributed to localities during fiscal year 1991 beginning Oct.l and $40 million in fiscal year 1992.
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