By Ellen Nakashima and Spencer S. Hsu
Washington Post Staff Writers
Tuesday, February 10, 1998; Page B01

RICHMOND, Feb. 9—Virginia House Democrats are proposing that local governments be free to raise cigarette taxes by up to a dime a pack to help pay for a two-year, $700 million school construction plan they are casting as an alternative to Gov. James S. Gilmore III's effort to cut the car tax.

It is the latest in a series of ideas Democrats have offered to try to slow the legislative momentum of the popular tax cut that won the governor's race for Gilmore (R). While acknowledging that Gilmore's plan is likely to pass the General Assembly, Democrats, who have seen the GOP dominate the state's political agenda over the last year, say they want to begin establishing campaign themes for the 1999 elections, when all 140 General Assembly seats will be up for grabs.

Since the legislative session began three weeks ago, Democrats have proposed taking $700 million in lottery profits to help build and renovate schools. They also have put forward a $700 million plan to gradually slash the state sales tax on food.

Meanwhile, Democrats have argued that Gilmore's plan would drain money from poorer rural areas of the state and send more to wealthier areas such as Northern Virginia. They also have pointed out that the estimated cost of the first two years of Gilmore's tax cut has nearly doubled -- to almost $500 million -- since he first pitched the idea last year.

Tonight, under questioning by House Democrats, Finance Secretary Ronald L. Tillett acknowledged that the $493 million price tag is just an estimate and that the actual cost could be even higher. At the hearing on the car-tax plan, Democrats raised questions that were aimed more at highlighting the costs and pitfalls of the five-year, $2.8 billion plan than blocking it.

"We're early in the debate," said House Democratic leader C. Richard Cranwell of Roanoke, co-chairman of the Finance Committee, which must act by Feb. 17 on Gilmore's plan to cut the personal property tax on cars and trucks. "We got a bill dropped in a week into the session that was dramatically different than what we thought it would be. We've got to understand the nuts and bolts."

Republicans, meanwhile, are trying to maintain a united front.

"Obviously the partisan strategy here is to stay on message on the Republican side as Democrats try to find ways to oppose it and provide alternatives," said Del. John H. "Jack" Rust Jr. (R-Fairfax). "You're going to see every item of tax relief you can imagine put up against the car tax. There is also an effort to try to create some regional divisions. I don't think either of those will stick in the long run."

Today, Gilmore dismissed the Democratic school construction proposal and ruled out passage of any tax cut before approval of the car-tax cut. Gilmore's bill already has 21 sponsors in the 40-member Senate -- including Minority Leader Richard L. Saslaw (D-Fairfax) -- and 47 sponsors in the 100-member House.

"One priority at a time, if you please," Gilmore said during a news conference at which he announced a $250,000 economic development grant to the state from telecommunications giant GTE Corp.

Gilmore said voters "thoroughly examined" his plan last fall and rejected all alternatives in electing him governor. "Campaigns are useful things," he said. "The important thing at this point is to proceed on with my plan."

Gilmore also rejected a new commitment to Virginia's school construction needs, calling for further study even though a two-year-old General Assembly panel reported in December that $6.2 billion in new construction and renovation is needed.

"We are not ready to go down that road," Gilmore said. "We need some facts; we need to know what localities are doing."

The proposed increase in tobacco taxes, which even bill sponsor Cranwell acknowledges will have a tough time passing the legislature in a state where tobacco is the top cash crop, nonetheless could be politically ticklish for Gilmore, who was criticized during the fall campaign for his ties to Big Tobacco.

Currently, only cities and towns can levy a cigarette tax (although Arlington and Fairfax counties have an exemption to do so), and 36 do, with taxes ranging from 2 cents to 35 cents a pack.

Today, Gilmore spokesman Mark A. Miner said the governor was "not ready to comment until he actually sees the legislation."

Democrats acknowledge that in many ways, they are holding the debate on spending priorities that they should have had during last year's campaign. Sen. Madison E. Marye (D-Montgomery), who held a news conference last week in the Old Senate Chamber to tout his plan to slash the food tax, said he believes that if Democratic gubernatorial candidate Donald S. Beyer Jr. had offered the sales-tax cut in competition with Gilmore's car-tax cut, Beyer's proposal would have resonated more with voters.

"Not everyone owns a car," he said, "but everyone has to eat."

Cranwell said he's hoping to build momentum for some form of food-tax relief along with a car-tax cut.

"More working-class people will get more relief if we take the sales tax off of food," he said. "From Pennington Gap to Nassawadox to the teeming suburbs of Northern Virginia, it will treat everybody alike. Some guy driving a $50,000 Lexus doesn't need $93 of relief while some schmo who has a $1,600 car gets $6.65 back."

Also today, a busload of 20 Centreville residents testified before a House Transportation subcommittee, urging the state to bar commercial trucks from Pleasant Valley Road near Virginia Run Elementary School.

Del. Roger J. McClure (R-Fairfax) and Sen. Warren E. Barry (R-Fairfax) introduced bills after a series of accidents in which trucks have clipped school buses on the narrow road.

No vote was taken, but the measure will go before the full House panel Thursday with a request that the state Department of Transportation come up with a solution.

Meanwhile, the Senate passed a bill today that would expand the state's list of capital crimes in response to a brutal slaying in Prince William County. By a 34 to 4 vote, the Senate voted to make it a crime punishable by death to kill someone to prevent him or her from testifying. The bill now goes to the House.