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Gov. Allen,
Send Lottery
Funds Home
RICHMOND — Rappahannock County could see an additional $8,988 in state revenues from an initiative announced this week by Gov. George Allen.
The governor’s plan, to return 5 percent of state lottery revenues to localities for education, public safety or local tax relief, mirrors one he proposed to the General Assembly during this year’s, session. The legislature refused to consider it! He is asking the members of the General Assembly to reconsider the issue during next Wednesday’s veto session.
Gov. Allen’s plan also calls for all lottery proceeds to be returned to localities after a five-year phased program.
“When the people of Virginia voted for the lottery eight years ago, they believed that lottery profits would be earmarked for schools or other important needs,” Gov. Allen said in his announcement. “Unfortunately, that has not been the case.”
Former Gov. L. Douglas Wilder usurped the lottery' proceeds for the state general fund in the depths of the recent recession. That revenue boost helped the state avoid a tax increase while keeping the budget in balance.
Gov. Allen’s plan would return $15 million to localities during the 1995-96 fiscal year. When all profits are distributed, in fiscal 2000-01, Virginia localities will receive more than $300 million in additional state aid.
Gov, Allen will propose budget amendments cutting $15 million in state expenses, including sale of the yacht Chesapeake and renovations of legislative committee rooms. Those cuts will allow the distribution of the lottery profits without affecting the state budget, he said.
Other cuts Gov. Allen is proposing this year to pay for returning $15 million of lottery proceeds to the localities include a 6pereent reduction in grants for public TV and radio, a $1.5 million in cuts to local Community Services Boards, $3.4 million in cuts to general welfare relief, a 6 percent in funding for the House of Delegates, $3 million in housing assistance and a $3 million reduction in the reserve fund.
Many of those cuts were formerly recommended by the governor as a way to pay for a general income tax cut. The Democrat controlled assembly restored the cuts during the regular session.
Gov. Allen was sharply critical of the Democratic-con-, trolled General Assembly for failing to consider his bill during the session just ended. Their alternative, he saitj, merely restructured existing allocations and added no new money.
“Unlike the legislation sent to me by the General Assembly, our amendments will direct additional money to communities and provide a true and actual increase in funds available at the local level for education,” the governor said.
“In the form in which it was passed, the Van Landingham
See Allen, Page A-6
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