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Tax Advocates Pressure House
Va.'s Needs Don't Require Increases, GOP Delegates Respond
By Chris L. Jenkins and Jo Becker
Washington Post Staff Writers
Tuesday, February 10, 2004; Page B01
RICHMOND, Feb. 9 -- Hundreds of Virginia teachers, students and labor leaders gathered at the state Capitol Monday, heeding the call from an organization closely aligned with Gov. Mark R. Warner's plan to raise state revenue to support education and health care.
The rally, sponsored by the Foundation for Virginia, was meant to pressure Republican delegates, whose leaders oppose plans offered by Warner (D) and state Sen. John H. Chichester (R-Stafford). Both have suggested funding state initiatives by raising cigarette, gas and income taxes while cutting estate and personal property taxes.
"We can't say to Virginia's students, 'We expect more from you, but we're going to invest less,' " Warner told nearly 800 cheering people waving signs that read "Not a Penny Less!" and "Budget Cuts = Higher Tuition."
House Republicans, however, immediately countered that they will be able to meet the state's core responsibilities without the governor's tax increases. Del. R. Steven Landes (Augusta) criticized the foundation as Warner's creation, saying that the "governor's mail-in campaign" is spreading "mistruths and maybe a little bit of fear."
Landes said that between 1993 and 2003, education funds for kindergarten through grade 12 increased 74 percent, five times as fast as student enrollment. House leaders said the chamber plans to come close to matching Warner on K-12 funding and higher education without a large tax increase.
"We're doing what they want us to do without raising taxes," House Speaker William J. Howell (R-Stafford) said, referring to the foundation's goals. "They're not getting a lot of traction."
Last fall, Warner talked openly about the creation of the foundation, which is modeled after one he organized to persuade voters to approve a plan to borrow $1 billion to upgrade college campuses -- even promising to contribute money.
House Republicans called on the foundation to make its fundraising records public immediately. The organization, which hopes to raise at least $1 million by next month, has not yet done so, although Warner initially said he thought it should. Current law does not require the release of its records until well after the session is over.
"We don't need secret money to produce a secret tax increase," said Del. Robert G. Marshall (R-Prince William), chief sponsor of a bill that would require financial disclosure twice a month. "There is an obligation for disclosure here."
Del. Vincent F. Callahan Jr. (R-Fairfax), who sits on the foundation's steering committee, agreed. "It is a campaign," he said. "People should be able to see where the money is coming from."
But foundation head Judy Peachee Ford would not say whether the records would be made public before the session ends. "We'll see if this legislation passes first," she said.
On Tuesday, a coalition of anti-tax groups that has been waging its own battle for lawmakers' and voters' support plans to rally near the spot where pro-tax advocates stood today. Both sides are expected to testify before Chichester's Senate Finance Committee on Tuesday as it takes up the two tax plans during its weekly meeting.
Also Monday, House Republicans gave preliminary approval to a bill eliminating the estate tax. The bill, estimated to cost the state $108 million in revenue each year, would affect about 1,276 filers yearly but not take effect until January 2005.
Republicans argued that repealing the estate tax would prevent people and businesses that contribute to the economy from leaving Virginia for states where there is no "death tax." Howell said, "This is a pro-growth, pro-jobs bill."
Warner has paired an estate-tax cut with tax increases, and spokeswoman Ellen Qualls said the House action was fiscally irresponsible. "They want to dig the hole deeper, to benefit a handful of multimillionaires when they're not keeping their core commitments," she said.
Qualls also challenged House leaders' contention that they could meet the state's needs without a tax increase.
She said the House plan falls short of the governor's aims for education, public safety and transportation as well as tax relief. "Show me the comprehensive plan and we'll sit down and have a deal," she said.
Since its creation last fall, the foundation has assembled a bipartisan executive committee, held an enormous fundraiser attended by business executives and state university leaders and drawn several organizations into its fold -- all part of an effort to pressure lawmakers to support investment through more revenue. On Friday, its newest affiliate, Business Leaders for Virginia's Future, held a news conference featuring U.S. Sen. John W. Warner (R-Va.), who supported tax increases.
Last month, the organization mailed nearly 700,000 brochures across the state, emblazoned with "Protect Virginia's schools, Protect our children's future" across the front. Thousands of those cards were returned to lawmakers Monday.
"We've got the help of the Senate and the governor -- that's two out of three," Glenn DuBois, chancellor of the Virginia Community College system, said at the rally.
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