The Cavalier daily :: Tuesday, September 30, 1969 :: University of Virginia Library

During the last two weeks, the
University has emerged as the
storm enter in a political feud
between the Republican candidate
for lieutenant governor on the one
side, and a state senator and state
delegate from Charlottesville on the
other.

State Senator A. "Buz" Dawbarn
of Waynesboro, the Republican
nominee for the state's second
highest office, opened the verbal
battle on September 16 when he
charged that Virginia Democrats
were guilty of "fiscal mismanagement."

Money To Richmond

Using the University as his
example, he said, "Even though it is
a business of 50 million dollars a
year, the University cannot pay any
of its bills. Everything, including
the University's payroll, must be
paid from Richmond."

Mr. Dawbarn stated that any
money taken in by the University is
"sent to Richmond to become part
of the state's general revenue"
without it being used directly by
the University for its finances,
thereby losing valuable time and
thousands of dollars in the process.

Democratic Reply

"This has the possible advantage
that it makes it appear as if the
state is giving the University more
money from its taxes than is really
the case," the GOP candidate
speculated, adding, "However, I for
one do not believe in trying to fool
the public."

In a joint statement, State
Senator J. Harry Michael and State
Delegate C. Armonde Paxson, both
of Charlottesville, responded, "The
thrust of his (Mr. Dawbarn's)
remarks was to criticize the central
bookkeeping system which the
state established many years ago.

Central Services

"As a businessman, Senator
Dawbarn should be aware of the
economics and increased efficiency
from use of central computerized
services, and particularly in bookkeeping
and accounting systems."

Mr. Michael, an attorney, was
retained by the University as
defense counselor in the litigation
brought against it by a number of
women seeking entrance as regular
students into the College of Arts
and Sciences this session.

Dormitory Funds

To the joint statement, Mr.
Dawbarn retorted, "Senator
Michael was established by the state
many years ago. However, he seems
unaware or willing to ignore the
fact that the University has its own
computers and many thousands of
dollars as well as time could be
saved if the accounting activities
were centralized in Charlottesville."

Mr. Dawbarn's original comment
included a charge that the Democrats
are "misleading" the citizens
of Virginia by declaring the state
was not actually in debt for bonds
sold to finance dormitory construction.

State's Obligation

"We all thought that the room
rents the students paid were put
into a fund from which the
University paid off the principal
and interest on the bonds," he
stated.

"In truth," he continued, "The
rent money is sent to Richmond to
become part of the general revenues
of the Commonwealth. Then the
General Assembly has to appropriate
the necessary funds to cover the
bonds."

Mr. Dawbarn said that is was
"completely wrong" for the state
not to be obligated to pay off the
bonds after all the revenue is sent
into a central office.

Legal Contract

The response to this statement
was based on the legal nature of the
bond contracts. Senator Michael
and Delegate Paxson remarked,
"When revenue bonds are issued,
the issuing authority makes a
contract with the purchaser to use
the revenues brought in by the
facilities built with the bond
proceeds to pay off those bonds.

"Whether the money produced
by these facilities is kept in
Richmond, Blacksburg, Williamsburg
or in Charlottesville, is wholly
immaterial."

Verification Given

In Mr. Dawbarn's answer to this
defense, the Republican candidate
pointed out that the Democrats
have claimed for years that the full
faith and credit is not behind the
bonds. He states that Senator
Michael has verified Mr. Dawbarn's
assertions.

According to Mr. Michael, the
bond buyer has to rely on the
contract, the General Assembly and
the Commonwealth to maintain the
integrity of the funds which are
applied to retirement of the bonds.

Senator Dawbarn's original
charges were made in remarks
prepared for delivery at the American
Institute of Banks in Lynchburg.
Senator Michael and Delegate
Paxson issued their joint retort on
September 22, and Mr. Dawbarn's
second charge came the following
day at the Richmond Association
of Insurance Agents.

Senator Michael and Delegate
Paxson remarked in their joking
defense that Senator Dawbarn was
not suggesting any additional economy
but was, perhaps, proposing
increased spending.