A daily dose of online news from beyond the Beltway.

By Ryan Thornburg and Mark Stencel
Washingtonpost.com Staff
Friday, September 25, 1998

Budget surpluses in almost every state are leaving state candidates with a nice problem: How to dole out all the extra cash. Many candidates are following the lead of Virginia Gov. James Gilmore (R), who won last year's race largely by promising to eliminate the state's car tax.

"We've got a country to run, embassies exploding and we're dealing with dresses!" – Haim Saban of Fox Family Worldwide Inc., who hosts a dinner for President Clinton in Beverly Hills this weekend. (Los Angeles Times, Sept. 25)

The South Carolina Senate foiled plans by Gov. David Beasley (R) to pass a similar tax break during the last legislative session, and now it is part of his reelection platform. Beasley's Democratic challenger, Jim Hodges, also supports the plan.
• Beasley Wants to Dump Car Taxes – Again (The State, Sept. 23)
• Elections Guide: South Carolina Races (washingtonpost.com)

Oklahoma lawmakers, including Democratic gubernatorial candidate Laura Boyd, said that they want to repeal or reduce the state's motor vehicle tax, which is the largest in the nation.
• Vehicle Tax Cut No. 1 on GOP List (The Oklahoman, Sept. 22)
• Elections Guide: Oklahoma Races (washingtonpost.com)

Term-limited Colorado Gov. Roy Romer (D) on Tuesday launched a campaign supporting a November ballot initiative that would allow the state to spend $1 billion over five years on state roads and education. Hecklers at the rally called on Romer to return more of the money in the form of tax cuts.
• Romer Kicks Off 'Investment' Rally (Rocky Mountain News, Denver, Sept. 23)
• Governors Guide: Gov. Roy Romer (washingtonpost.com)

The federal government is also expected to show a surplus when the new fiscal year begins on Oct. 1. But Ohio Gov. George V. Voinovich, the Republican Senate nominee, is not as eager to cut taxes as many of his GOP counterparts.
• Voinovich Has Doubts About Surplus (The Plain Dealer, Cleveland, Sept. 22)
• Special Report: The Budget (washingtonpost.com)

Scandal Strains Clinton's Ties in California
President Clinton's admissions about his relationship with Monica S. Lewinsky have strained the loyalty of some longtime supporters in California. By and large, members of the Hollywood chapter of the Clinton fan club, such as Barbra Streisand and TriStar Pictures President Mike Medavoy, stand by their man.
• Hollywood's Loyalty to Clinton Put to Test (Los Angeles Times, Sept. 25)

In Silicon Valley, however, high-tech executives who have supported the president are pulling the plug on their contributions to Democrats. Clinton headlines a Democratic National Committee fund-raiser tonight in northern California. One political operative told the Los Angeles Times that organizers offered to give away some tickets to the $25,000-per-couple event to help fill tables.
• Silicon Valley Supporters Rethink Links to Clinton (Los Angeles Times, Sept. 25)
• Silicon Valley Subdued at Clinton Visit (San Francisco Chronicle, Sept. 25)

While scandal is hampering the president's fund-raising powers, his wife can still bring in the money for Democrats. First Lady Hillary Rodham Clinton was in Colorado Thursday for a $194,00 luncheon for Senate candidate Dottie Lamm and gubernatorial candidate Gail Schoettler. Clinton finished the second day of her fund-raising trip in Seattle, where she attended a dinner sponsored by the Democratic Congressional Campaign Committee.
• First Lady Rips Congress (San Francisco Chronicle, Sept. 25)
• Key Races: Colorado Governor | Colorado Senate (washingtonpost.com)
• Elections Guide: Washington State Races (washingtonpost.com)

'Character' the Issue at California Gubernatorial Debate
In their third face-off in the race for California governor, Republican Dan Lungren and Democrat Gray Davis poked and jabbed each other over their records in office and as campaigners. "When you want to apply the character test, you better be able to pass the character test," Davis told his rival during the 55-minute debate in Sacramento. Lungren, chiding Davis for interrupting his closing remarks, said, "If you want to give an example to children, you ought to give a good example . . . and play by the rules."

Lungren said he was prepared for questions from the panel of three reporters about the White House scandal, but the questions never came. The candidates plan to spar twice more before Election Day, although their campaigns have not agreed on dates and details.
• Davis, Lungren Seek to Define Differences (Los Angeles Times, Sept. 24)
• Character Issue Takes the Stage, but Not From Expected Corner (Los Angeles Times, Sept. 24)
• Debaters Spar Over Integrity (The Sacramento Bee, Sept 24)
• Clinton an Issue in Governor's Race (The Sacramento Bee, Sept 23)
• Key Race: California Governor (washingtonpost.com)

Colo. Governor Says Regulating Hog Farms Would Help Environment
A week after North Carolina's hog farming industry banded together to defeat one of its political opponents, Colorado Gov. Roy Romer (D) is taking on corporate pork producers. He announced his support Wednesday for a ballot initiative that would allow the state to impose environmental controls on large hog farms.
• Romer Backs Hog-Farm Initiative (The Denver Post, Sept. 24)

S.C. Republicans Call 'Republican' Group a Front for Gambling
South Carolina Republicans have filed a complaint with the State Ethics Commission alleging that the group "Republicans for Hodges" is a front for the gaming industry's support of Democratic gubernatorial candidate Jim Hodges.
• GOP Group for Hodges Challenged (The State, Columbia, S.C., Sept. 23)
• Elections Guide: South Carolina Races (washingtonpost.com)

Beasley Moves to Avert New Battle Flag Blunder
After going through a disastrous 1996 attempt to remove the Confederate battle flag from the South Carolina Capitol, Gov. David Beasley is assuring voters that he will not try the same thing if reelected in November. His Democratic opponent, Jim Hodges, supported Beasley's maneuver to get rid of the flag. He, too, now favors keeping it.
• Beasley Reassures Battle-Flag Supporters (The State, Columbia, S.C., Sept. 23)

Ryan Thornburg can be reached at ryan.thornburg@washingtonpost.com