Monday, April 19, 2004

Warner’s Proposal Could ‘Devastate’ Small Tobacco
Gov. Mark R. Warner Attaches Amendment To HB862 That Some Say Could Cost Hundreds Of Southside Jobs

An amendment proposed by Gov. Mark R. Warner could have "devastating" effects on small cigarette manufacturers and cost Southside Virginia hundreds of jobs, Del. Clarke Hogan, R-Halifax, said yesterday.

Announced Friday, the governor's amendment to House Bill 862 would close what he calls "loopholes" in the way payments are calculated by non-participating manufacturers (NPM) in the national tobacco Master Settlement Agreement (MSA).

"Virginia's payments under the MSA have been less than anticipated partly as a result of an unintended loophole in the agreement," Warner said. "That provision... permits non-participating manufacturers to quickly recover most of the escrow payments they are required to make under Virginia law."

Under the current law, small manufacturers put an amount of money into an escrow account based on the amount of cigarettes sold in each state.

"This loophole has resulted in Virginia receiving tens of millions of dollars less than originally anticipated," Warner continued. "My proposed amendment corrects this problem and will enable Virginia to receive its full share under the MSA."

But to smaller manufacturers, the move is an effort to drive them out of business and "tilt the market toward big tobacco."

"He's calling it a loophole only because Phillip Morris calls it a loophole," Marvin Liggon, co-owner of Virginia Brands in South Boston, said yesterday.

The contract cigarette manufacturer organized as a NPM when it opened its doors last May, and Liggon says if the amendment passes the General Assembly, it will put him out of business.

"Governor Warner came down here, stood out there at Riverstone Industrial Park and told everyone how he's for Southside and wants to create jobs," he said. "What he's doing now will cause Virginia Brands to shut down."

Liggon said yesterday that the company is already feeling the effects of Warner's proposed amendment.

"We had a call Friday where a customer put his contract on hold until all this is sorted out," he said.

Virginia Brands employs 19 people and had planned to add around a dozen more in the near future.

"We have additional equipment scheduled to be here in the second week of May and had plans to hire 10-12 more people," Liggon said. "Those plans are on hold now, of course."

Ironically, the NPM category was set up by Phillip Morris and the states to offer the small manufacturer a choice on how to deal with the MSA, according to S&M Brands General Council Everett Gee.

S&M Brands manufactures Bailey's and Tahoe cigarettes.

"Phillip Morris and the states created the category of NPM that was a legal choice to set up an escrow account to go to the state," Gee said. "Now they're looking around and feigning surprise that there are NPMs."

The attorney said that if the amendment passes, some of the products offered by big tobacco will be less costly to the consumer than those sold by small manufacturers.

"(Passage of the amendment could mean) an eight-to-tenfold increase in our costs which will make our products more expensive than some products offered by Phillip Morris.

"They are changing the laws to make it nearly impossible to be a small domestic manufacturer," he said. "This is just an outsourcing bill, no matter how you look at it.

"What the governor is saying is let's pass this law to put a butt-whipping on small manufacturers and drive the little companies out of business so the smokers have no choice but to smoke a brand from big tobacco," Gee added.

"That's where the state will make it's money.

"If you don't want us to be an NPM, why did you create the category and set up the rules and now want to materially change them? What the governor is trying to do is unheard of."

Hogan agrees.

"This could be devastating for Southside," he said.

"The statute that they're calling a loophole is based on a statute that Phillip Morris created and wrote. "They created the law that Bailey's and Liggon are complying with. Now they don't like it and want to change the rules on them.

"This bill won't keep inexpensive cigarettes off the market, it will just mean they'll be made in foreign countries," he added. "All this bill amounts to is shipping 500 jobs from Southside to foreign countries."

The Southside delegate said the bill was considered during the legislative session, but was set aside for study on how to address the problem fairly.

"What the governor has done is set aside any chance for fairness and denied us due process," Hogan said. "I would expect better from a governor who came down here and took credit for bringing Virginia Brands here."

A spokesman for Warner's office said yesterday that the measure in no way represents a bias toward big tobacco and was recommended by the National Association of Attorneys General.

"These smaller companies have been getting those funds back if they aren't facing (health-related legal) claims," Kevin Hall said. "They have benefited from the loophole in the MSA. The governor simply wants to close it."

Hall added that Virginia was perhaps the only state that dedicates a large percentage of the MSA payments to economic development in tobacco-dependent regions.

"Virginia was wise enough to designate a portion of these funds to go back to those regions to help them with economic development challenges," the spokesman said.

"It's my understanding that the total impact of this amendment is in the neighborhood of $10 million, spread across all the NPMs that do business in Virginia," he added. "The impact on how it affects each company will be based on business decisions inside that company."

Liggon said yesterday that he knew how it would affect his company and its 19 employees.

"If you want to see us in operation, you'd better come down next week," he said, looking around his manufacturing floor. "We might not be here after that."

Supes To Crunch Numbers
County Supervisors Will Get To Work On Next Year’s Budget At Meeting Today

Seven agency officials receiving money from the county will appear before the Supervisor's Finance Committee to request funding for next year today as supervisors get to work on the county's budget for next year.

The meeting will get underway at 2 p.m. in the County Administration Building in Halifax.

Following the agency budget requests, the committee is expected to review the format of the upcoming budget and make a recommendation on a proposed school budget advertisement.

With no state budget on which to base their figures, school system officials have based their funding requests on the lowest funding possibilities being considered by the House of Delegates.

Included in the school's proposed operating budget for Fiscal Year 2004-2005 is a request for $14,532,555 from the county.

The school system is asking for budget for next year totalling $53,381,535.
This is an increase of $2,661,424 in local funding over the current year's budget.

Committee members are also expected to review revenue estimates for next year and consider suggested reductions in the projections from County Treasurer Linda Foster.

At 7 p.m. in the public meeting room of the Mary Bethune Complex, the Board of Supervisors will convene to consider advertising the school budget for a May 3 public hearing.

Supervisors will also review the county's general fund revenue estimates.

This year's budget projected receiving $21,237,284 in local income.

The county is projecting $22,367,700 in general fund revenue in FY 04-05.

During the meeting, Tom Smith, a representative from the county's accounting firm, will present supervisors with the audit report for FY 2002-2003.

According to the report as of June 30, 2003, the county had total assets of $36,559,810 and liabilities of $18,621,958 for total net assets of $17,937,852.

The accountants also reported an undesignated General Fund balance of $7,122,269.

Public Hearing On Proposed School Budget Is Set Tonight
Budget Impasse Makes It Difficult To Make Concrete Budget Decisions, Witt Says

A public hearing on the proposed $53,381,535 county school budget is one of the top items on a lengthy agenda facing the Halifax County School Board tonight.

Tonight's public hearing is the first item on the agenda for the 7 p.m. meeting at the Mary M. Bethune Office Complex in Halifax.

A public hearing on the proposed school budget is required before the School Board formally adopts a budget to pass along to the Board of Supervisors for that body's consideration.

Witt pointed out that this year is different from most in that the ongoing impasse over the state budget makes it impossible for local school boards and governing bodies to make concrete budget decisions.

"We're still in the dark on the budget situation," Witt said.

"This year is different because we don't know what the amount of state funds is going to be at this time.

"This public hearing is more like taking care of housekeeping," he added.

"The likely scenario is that the School Board will adopt the budget and send it on to the Board of Supervisors to give them a working document."

The proposed school budget will require $14,532,555 in local dollars, an increase of $2,661,424 over the current year.

Overall, the $53,381,535 budget package represents an increase of $4,943,715 over the current year's budget.

Major items fueling the budget increase include a dramatic state-mandated increase in Virginia Retirement System payments that could reach as high as $750,000, pay hikes for personnel and a new budget item of $822,549 for school roof maintenance and repairs.

The budget includes a 10 percent pay hike for custodial and cafeteria workers and an average seven percent increase for classified personnel.

Teachers and elementary school principals are targeted for an average five percent pay hike and administrative personnel are slated for an average three percent pay raise.

In addition, the budget includes funding for six additional positions including three reading specialists to serve the county's K-3 elementary schools.

The three other positions are classroom teacher positions, one for the Middle School, one in Special Education and one to be placed where needed to handle enrollment adjustments.

Also included in the budget is $578,647 to cover the cost of purchasing 10 new buses and the payment on the lease-purchase of 10 buses during the 2001-2002 school year.

Other highlighted increases in the budget included a total of $87,000 in instructional costs.

That included a $65,000 expenditure for new band uniforms for the Halifax County High School Marching Band and $22,000 for supplies and student travel.

Three individuals, Mrs. Ruth Owen, former Delegate W.W. "Ted" Bennett and William Long, have asked for time to address the School Board.

Bennett, who served as chairman of the Halifax County Advisory Committee on Educational Improvement, is expected to review findings and recommendations of the committee report aired February 9 and emphasize the need for the School Board to move forward with a recommendation for Phase II school capital improvements.

The School Board has set a special meeting at 12 noon on Thursday, April 28, to discuss capital improvements issues and to attempt to hammer out philosophical differences dividing the board regarding capital improvements.

Long, Witt said, is expected to address the School Board on a policy issue relating to athletic participation at Halifax County Middle School.

Witt said he did not know what issue Owen, a Virgilina area parent with children attending Cluster Springs Elementary School, was bringing before the School Board.

Under the heading of reports, Nancy Poole, president of the Halifax County Chamber of Commerce will make a pitch to implement a new leadership program at Halifax County High School.

Witt said the program, which is aimed at juniors and seniors, is a microcosm of the Chamber's adult leadership program.

"It gives students an opportunity to learn about leadership and the different roles of leadership in the community."

The school superintendent said that at this point the school system is not expected to incur any cost in implementing the program.

He added that if there is any cost involved it would be nominal.

A faculty member at Halifax County High School would be needed to serve as a sponsor, he said.

Also under the heading of reports, a Governor's Award for Outstanding Improvement will be presented to Turbeville Elementary School.

That award will recognize the school for significant improvement in student achievement toward the goal of reaching full state accreditation under the Standards of Learning.

In addition, Dick Harmon, a representative of the State Fair of Virginia, will present scholarship award certificates to Halifax County High School students Jamie Crews and Cassie Vaughan who placed third in the FFA Horticulture Demonstration.

Dr. Debi Kipps-Vaughan, Supervisor of Psychological Services for the school system, will ask the School Board to allow the school system to participate in a new program entitled Healthy Families of Halifax.

Witt said the state program is designed to assist young pregnant women toward the goal of having healthy children and assisting them in making sure their children stay healthy.

The program would be a joint venture involving the school system and local agencies.

A state grant is associated with the program, Witt said.

"We have some folks that could benefit from it," Witt said.

Assistant Superintendent for Human Resources Larry Clark will air a report on the impending phaseout of the school system's Local Option Retirement Program.

School system officials recently received notification from the IRS and the Virginia Retirement System that the program does not meet requirements of those two agencies and that it will have to be disbanded at the end of the school year.

Under the program, a teacher can retire and work one more year and have their income spread out over a period of three to four years.

Witt said persons currently involved in the program will be grandfathered in.
He also noted that any teachers or employees wishing to take advantage of the program must sign up for it before the final day of this school year.

"If people want to take advantage of it, they have to do it right now," Witt said.
Also tonight, the School Board will consider proposed revisions to the school system's policy manual, proposed revisions to the school system's Code of Student Conduct and hear a report on the Special Education annual plan.

Witt said the policy manual revisions are routine - a matter of minor editorial revisions to bring local policies in line with the Code of Virginia.

The school superintendent said he did not see the revisions to the Code of Student Conduct as being major revisions.

"It's more of tweaking them," Witt said, "nothing I would consider to be major changes."

Also tonight, the school Board will decide the location for its May meeting.
The School Board voted earlier this year to hold its meetings at different school sites on alternating months.

After concluding its regular business, the School Board will convene in a closed session to discuss discipline cases and personnel matters.

A FAMILY TRADITION
Lindley Takes South Boston Win In Hooters Pro Cup Saturday

By DOUG FORD | G-V Staff Writer

A drive down memory lane Saturday night at South Boston Speedway ended in victory lane for Mardy Lindley as he took home a win in the Hooters Pro Cup Series Lucas Oil 250 presented by Virginia Is For Lovers.

Driving the familiar No. 16 made famous here by his father, Butch, Lindley led a race-high 221 laps to fend off challenges by Hooters Pro Cup rookie Gary St. Amant (second-place) and pole-sitter Johnny Rumley (third-place) to win the first Hooter's Pro Cup Series North Division race of the season.

The win was Lindley's eighth in the Hooters Pro Cup Series and the first since switching to the No. 16 that his father drove to Grand National Titles in 1977-78.

Jeff Agnew finished fourth and another Pro Cup rookie, D.J. Kennington, finished fifth in Saturday's race, which was interrupted 10 times for cautions, one a red flag stoppage for a 10-car pileup on lap 163.

Danny Sammons took home sixth place, followed by last year's winner Mart Nesbitt, while Joel Kauffman and Kertus Davis rounded out the top ten.

Another rookie, Greg Van Alst, won the hard charger award, coming from last in the field to finish 17th.

Lindley recalled watching his father race from the grandstands as a child.
"I was about his age," Lindley said, pointing to his young son, also named Butch.

"I sat here in South Boston and Hickory and just watched that car, and I know if I got No. 16 back on my car..."

Lindley took a steady and cautious approach to Saturday's race, moving carefully through lapped traffic in order to save his tires for the duration of the 250-lap event.

He took little time to move past Rumley, who set a track record in qualifying with a time of 15.993, slipping to the outside past the pole sitter on the first lap.

Lindley held the lead through the first 121 laps and five cautions, with leads of up to two seconds over Rumley, Agnew and Kauffman, before losing the lead to Rumley while he was involved with lapped cars on lap 121.

"The car got a little tight about halfway and I was being real cautious with lapped traffic ," said Lindley.

"I've led some of these races before and got knocked into the wall by slower cars."

Lindley slipped to third behind Rumley and Agnew at the halfway point, and was third before Rumley drew a stop-and-go penalty on lap 141 for making contact with Sammons.

Benny Gordon inherited the lead after the incident, with most of the lead-lap cars coming in for service during the caution.

Lindley, third on the restart behind Gordon and St. Amant, immediately passed St. Amant and then Gordon on lap 15, with St. Amant right behind.

"I lost the lead and the $1,000 halfway money, but once we got in, got tires and made an adjustment it was just cruise control after that," said Lindley, who changed four tires, took gas, and made air pressure adjustment to his tires during the pit stop.

Two challengers to Lindley took a step back after a 10-car pileup on lap 163, which brought a 16-minute red flag stoppage.

Davis, running fourth tangled with Gordon while the two were racing for position in turn three, causing the caution.

Lindley pulled away when racing resumed, with St. Amant and Rumley running second and third, but a slip after the final caution of the race, gave St. Amant one last chance at the leader.

That came after lap 220, with St. Amant coming as close as Lindley's bumper, but Lindley recovered to pull away for the win.

"I went down off the corner and thought I hit grease," said Lindley. The left front wheel slid up the race track a little bit.

"After we got going, and got into rhythm, I could click off some laps. I tried to run a certain speed as long as we could run that speed, we could continue to pull away."

Both St. Amant and Rumley felt track position was a key in Saturday's race, particularly at a small track as South Boston, where bent fenders and sometimes hurt feelings occur almost on a weekly basis.

St. Amant, for all the damage his car incurred, was happy with his finish.
"To be honest with you, we were hoping for a top-five finish, but a runner up finish with a beat up race car is actually better than what I expected.

St. Amant battled an unbalanced steering wheel for much of the race, the result of one of the on-track incidents, which made his car harder to handle.

A two-tire pit stop played into his team's strategy, according to St. Amant.

"Track position was key, and the pit stop played into our favor...we put on two tires, everyone else put on four tires, and we beat everyone out."

"I'm pretty lucky we opened the season at this track," added St. Amant, who has raced at South Boson before in other series.

"I have quite a few laps here, having raced a couple of ASA races and have run a few tests...that definitely helped.

Rumley thought he did well to finish third despite the stop-and-go penalty and damage to his car from at least one of the on-track incidents.

"Anytime you come to South Boston, there's going to be action, the tracks' so tight," he began.

"Some people are going to get turned around, there are going to be bump ups and fenders turned out."

Rumley also though track position was key to staying out of trouble.

"Halfway in the race, I could get off the corner a little better than Mardy, but he still had a good car.

"Whoever was out front was going to be in good position."

Rumley was realistic about the penalty that may have cost him a shot at the win.

"My feelings aren't hurt, I disagree with the call, but there's nothing I can do about it, so we'll live with it.

"If you give me the outside, give it to me and let me go. If you give me the inside, don't pull down," said Rumley.

"It's pretty simple...he slipped a little bit and I took advantage of it."

Rumley gave the Lions share of the credit for his car's performance to Pro Cup veteran Bobby Gill, who helped with his car.

"Bobby gill helped me get the pole today and he gets a lot of credit. He helped me with the setup, and if he hadn't we wouldn't have run as well."

Lindley admitted Rumley might have challenged him if not for the black flag.

"If Rumley hadn't gotten a black flag, I would have probably had to race him," began Lindley.

"He was ahead of me before my pit stop, but we got better after that. It just worked out for us.

"This has been a good race track for me...this win just sets the tone for the year. The way this series is designed, everything is based on five races the end of the year, and points going into those five races is so important.

Obituaries

Attorney W.M. Lewis Dies At 87

Halifax attorney Wilbur Marsh "Mickey" Lewis, who practiced law here 61 years, died Sunday.

He was 87.

A former mayor of Halifax, Lewis also served 22 years as Commissioner of Accounts for the Halifax Circuit Court, an appointment he held until his May 1, 2000, retirement.

A memorial service for Mr. Lewis will be held at 2 p.m. Wednesday at St. John's Episcopal Church in Halifax with the Rev. David Booher officiating.
A private interment will take place in the church cemetery at a later date.
The family will receive friends at the home in Halifax from 7-9 p.m. Tuesday.
A Mecklenburg County native, Mr. Lewis was born Nov. 17, 1916, the son of the late John Taylor Lewis and Elizabeth Uzelle Wardwell Lewis and was married to the late Blanche Campbell Lewis.

He was a member of St. John's Episcopal Church in Halifax, where he had served as Sunday School superintendent and as a lay reader.

Mr. Lewis was a trustee for the Chastain Home for Gentlewomen, and had served as an officer in the Halifax Sportsmen's Club, the Halifax Lions Club and the Halifax Volunteer Fire Department.

Mr. Lewis is survived by two daughters, Catherine Lewis Maxwell and husband William L. of Charlotte, N.C., and Dorothy Lewis Dabney and husband Bill of Deland, Fla, and two sons, Richard Fielding Lewis of Fredericksburg and William Wardwell Lewis of Houston, Texas, and one sister, Ellen Lewis Brooks of Closter, N.J.

Also surviving are seven grandchildren, Amy Lewis Roberts of Bristow, Elizabeth Wiseman Lewis of Kill Devil Hills, N.C., Jet Lewis of Houston, Texas, Mary Catherine Platt of Lexington, Ky., Jane Meriwether Maxwell of Charlottesville, Ann Taylor Maxwell of Charlotte, N.C., and Lucy Smith Dabney of Deland, Fla.

For memorials, please consider St. John's Episcopal Church, 197 Mountain Road, Halifax, Va. 24558, the Halifax Volunteer Fire Department, 375 N. Main Street, Halifax, Va. 24558, or the Halifax County Rescue Squad, 700 Hamilton Blvd., South Boston, Va. 24592.

Earl Louis Carr

Earl Louis Carr, 64, of Halifax died Friday, April 16, at Halifax Regional Hospital.

He was born in Halifax County on September 19, 1939, the son of the late Herman Carr and Hattie Dance Carr.

He served in the U.S. Army and retired from the Virginia National Guard after 23 years of service and was a member of Banister Hill Baptist Church.
Mr. Carr is survived by three sisters, Elnora Hogan and husband Taft of Fayetteville, N.C., Dorothy Coleman and husband Curtis of Dover, Del., and Vivian Lee Graves of Halifax, three brothers, Herman Carr Jr. and wife Mae of Lexington. N.C., Frank Carr and wife Mattie and the Rev. Dr. William Carr and wife Betty, all of Halifax, seven aunts, Rosa Lyons, Millie Carr, Cecil Dance, Harriett Dance, Eva Dance, Florine Dance and Leola Dance, two uncles, Charles Lyons and Herman Wilson Sr., and a host of nieces, nephews, cousins, other relatives and friends.

He was preceded in death by two sisters, Hattie Joann Mangum and Lillian "Tee" Carr Coleman.

Funeral services will be held Tuesday, April 20, at 1 p.m. at Banister Hill Baptist Church with the Rev. Frederick Peele officiating. Burial will follow in the church cemetery.

The family will receive friends Monday, April 19, from 6 to 7 p.m. at the Chapel of Crawford House in Halifax.

John Henry Gayles

John Henry Gayles, 72, of Dover, Del., formerly of Chase City, died Thursday, April 15, at West Minister Health Center in Dover, Del.

He was born in Charlotte County on June 4, 1931, the son of the late Ernest and Mary W. Rawlings Gayles.

He was a member of the First Baptist Church in Wylliesburg and was a former Chase City police officer.

Mr. Gayles is survived by 11 children, Daisy Gayles of Clover, John Gayles and wife Jennifer of Clarksville, Juanita Carr and husband Terrance, Marshall Gayles, Nannie McKinnon and Ray Gayles, all of Dover, Del., Alfred Gayles and wife Michele of Manasass, Mary Martin and husband Patrick of Colorado Springs, Colo., Dorcas Maxwell of Fayetteville, N.C., Rosalind Gayles of Fort Washington, Md., and Sharon Walton of Mebane, N.C., 20 grandchildren, 16 great-grandchildren, one sister, Virginia Dailey and husband Milton of Randolph, one brother, Ned Gayles and wife Eva of Chase City, one aunt, Lizzie Bacon, and a vast number of other relatives and friends.

Funeral Services will be held at 1 p.m. Thursday, April 22, at the First Baptist Church in Wylliesburg with Elder Thomas L. Holsey officiating. Burial with Masonic rites will follow in the church cemetery.

The family will receive friends Wednesday from 7 to 8 p.m. at Giles-Harris Funeral Home in Chase City. Condolences can be sent to harrisfh@kerrlake.com.

Gloria Jackson

Gloria Jackson, 55, of Nathalie, died Thursday, April 15.

She is survived by one son, James Jackson and wife Keisha of Nathalie, one grandson, Devin Jackson, two sisters, Melissa Davis of Hampton and Gladys Tucker of Saxe, one brother, Joseph Wilborn of Saxe, and a host of nieces, nephews, other relatives and friends.

Funeral services will be held at 2 p.m. Tuesday, April 20, at Bethel Grove Baptist Church in Mt. Laurel with interment in the church cemetery.

The family will receive friends from 7-8 p.m. Monday at the chapel of Jeffress Funeral Home and Cremation Service, 304 Lusardi Drive, Brookneal.
Condolences can be emailed to JeffressFH@aol.com.

Barkley Larenza Jones

Barkley Larenza Jones, 74, of Nathalie died Friday, April 16, at Duke University Hospital in Durham.

He was born in Halifax County on June 20, 1929, the son of the late Henry Otey Jones and Annie Sue Arendall Jones.

He was a former T&T Motors employee and was a member of Hunting Creek Baptist Church.

Mr. Jones is survived by two sons, Randy Barkley Jones and wife Kathy of Nathalie and Gary Thomas Jones of Richmond, two sisters, Myrtle J. Warren of South Boston and Della J. Beadles of Mebane, N.C., three brothers, Billy Jones of Liberty, Frank Jones of Nathalie and Ralph Jones of Crystal Hill, three grandsons, Andrew Beverley Jones, Gary Henry Jones and Dale Thomas Jones.

He was preceded in death by three sisters, Lacy Cade, Virginia Short and Shirley Crews and two brothers, Tell Jones and Rayborn Jones.

Funeral services will be held at 2 p.m. Monday, April 19, at Powell Funeral Home Chapel with the Rev. W.D. Mills officiating. Burial will follow at Hunting Creek Baptist Church Cemetery.

Those wishing to give memorials are asked to consider the Halifax County Cancer Association, P.O. Box 875, South Boston, Va. 24592.