By Michael D. Shear and Jo Becker
Washington Post Staff Writers
Friday, April 2, 2004; Page A01

RICHMOND, April 1 -- More than a dozen House Republicans are defying their anti-tax leadership by signaling support for a compromise package of tax increases, opening the door for a resolution to the Virginia legislature's budget deadlock.

The GOP lawmakers, many of whom have opposed broad-based tax increases for weeks, said in interviews Thursday that pressure from constituents to pass a budget has moved them to favor a half-cent increase in the sales tax, a modest increase in the cigarette tax and some relief on grocery taxes and income taxes.

The maverick Republicans have not settled on a final proposal. But through phone calls and meetings, they said, they have identified a total of 15 to 20 GOP members willing to support the concept. That number, combined with most of the House's 37 Democrats, may be enough to pass a tax plan through the 100-member House of Delegates that raises close to $1 billion over two years and looks similar to the proposal of Gov. Mark R. Warner (D).

"I don't like the sales tax because it's regressive. That being said, something's got to give," said Del. Robert D. "Bobby" Orrock Sr. (R-Spotsylvania), who plans to introduce a bill next week to raise the tax a half-cent to 5 cents per dollar and dedicate the revenue to education. "I'm willing to swallow the toad and take my lumps."

Warner and leaders in the Republican-controlled Senate said they are encouraged that the shift in the House could lead to a breakthrough. The governor's plan and the Senate plan include a 1-cent sales tax increase to meet the state's long-term needs and end chronic budget shortfalls. House leaders have steadfastly opposed raising taxes on sales and incomes.

"This could be good news," Warner said. "I continue to believe that reasonable people can reach an acceptable compromise."

House Republican leaders, who have spent months working to keep their members in line, acknowledged the rapidly changing dynamic. Majority Leader H. Morgan Griffith (R-Salem) said that although he would "never retreat" from his belief that a sales tax increase is a bad idea, there may well be 15 to 20 members willing to go along with it.

"If we can find something that's not horrible, but merely bad policy, we may have to vote for something that we don't think is good," he said. But he added he suspects that the Senate will be unwilling to accept anything less than its $2.2 billion tax plan.

One of the Senate's lead budget negotiators, Walter A. Stosch (R-Henrico), said it was difficult to comment without knowing more specifics. But, he said, "this could be the door opener that could allow for a compromise."

Del. Vincent F. Callahan Jr. (R-Fairfax), the chief House negotiator, who has been quietly supportive of adding revenue, would not say where he stands but said, "I'm very aware of that sentiment out there."

In interviews, the Republican delegates said they no longer can abide the firm anti-tax position expressed by Speaker William J. Howell (R-Stafford) and other House leaders.

Howell said he thinks "a vast majority of my caucus is still opposed to broad-based tax increases." If enough delegates break ranks and support a half-cent increase, he said, "I have no dilemma. I vote no. I don't think we need to generate that kind of money."

But Del. G. Glenn Oder (R-Newport News) wrote in his local newspaper, the Daily Press, that "it is obvious" the state needs to increase the sales, cigarette and other taxes. "I, for one, am ready to make that decision," he wrote.

Del. David A. Nutter (R-Montgomery) said he also supports a half-penny increase. "I've been very open with the speaker. I've told him that my Republican base out here is telling me get a deal," he said. "We can't go on like this."

Frustration among moderate Republicans, and even some conservatives, has been building over the last several weeks. Legislators have completed Day 16 of a special session after the House and Senate deadlocked over a budget for the next two years.

House leaders had hoped that a coordinated campaign to reach out to voters in town meetings and in direct mail would stiffen members' anti-tax resolve, but some delegates said the strategy backfired.

"Everybody I'm talking to in my district is saying get it together and compromise," said Del. Riley E. Ingram (R-Hopewell), who supports a half-penny compromise.

Several delegates said senators need to understand that the half-cent increase is a ceiling for many delegates.

"If it were part of a final compromise, a half-cent is certainly something I would give strong consideration to and probably could support as long as it included reform," said Del. S. Chris Jones (R-Suffolk).

Del. L. Preston Bryant Jr. (R-Lynchburg) agreed: "I am willing to support a half-penny sales tax increase as long as we can reduce the sales tax on food and have no personal income tax increase."

But others said they could also support giving local governments the ability to add an additional half-cent to the sales tax to relieve the pressure on property taxes.

Del. Harry J. Parrish (R-Manassas), who chairs a key House committee that has blocked general tax increases, said he believes the House must do "something to get both parties off dead center."

Del. Thomas Davis Rust (R-Fairfax) said "momentum is building" for a half-cent increase. "I am more optimistic than I've been for 77 days," he said.

Delegates said their proposal could emerge Tuesday, when lawmakers are scheduled to return to Richmond. But Del. James H. Dillard II (R-Fairfax) said any deal could still fall apart. "It's a step from concept to reality," he said.