Richmond Times-Dispatch from Richmond, Virginia • A1

101137DCA01A FINAL a1 113 cmyk 1011 3TDCA01 A ZALLCALL 66 232:00 011202 $1.75 VIRGINIA'S NEWS LEADER a media gbhsal newbpapbi RICHMOND, VIRGINIA SUNDAY JANUARY 13, 2002 FINAL SUNDAY IHfcBjfl httpwwlinwadispatdixoni Today's weather Mostly gunny. High: 50. law: 29. B10 Extremists banned Pakistan's president says his nation win not be a base for terrorism and bans two extremist groups. World AS Cyrus Vance dies Cyrus R.

Vance, who resigned as secretary of state over an ill-fated attempt to save American hostages from ban, has died. Nation A3 College basket ba BRUCE PAIBBmiB-DBPAlCH The Virginia Capitol glows in the sunlight as cadets from Virginia Military Institute march around the grounds in the inaugural parade. Warner teogairated. vf No. 7 Virginia 71 UNC 67 No.

23 Miami 77 Va. lech 68 92 VCU 81 Xavler 72 Richmond 62 New governor vows to rebuild state finances BY JEFF E. CHAP IRQ Times-Dispatch Staff Wetter ark Robert Warner was sworn in yesterday as the 69th governor of Virginia, a youthful symbol of the commonwealth's prosperity charged with leading it during a period of economic uncertainty. Standing on the white-cohimned south portico of the Jefferson-designed state-house, the 47-year-old telecommunications multimillionaire from Alexandria finished his oath at 12:24 p.m. to a thunderous, 19-gun salute by camouflage-suited cannoneers from the Virginia National Guard.

As die boom of howitzers echoed across a sun-splashed Capitol Square, Warner's Republican predecessor, Jim Gilmore, quietly slipped from the platform, signaling the completion of the transfer of power to the state's first Democratic governor in eight years. Moments later, Warner, in an occasionally urgent cadence, delivered his inaugural address, during which he under-scored his oft-stated appeal for bipartisanship to repair Virginia's tattered finances. The 18-minute speech, interrupted 34 times by applause, included a dramatic flourish: Warner briefly stepping away from the lectern to extend his hand in friendship and cooperation to the top leaders of the Republican-controlled General Assembly, House Speaker S. Vance Wilkins Jr. of Amherst and Senate President Pro Tempore John H.

Chichester of Stafford. To those who expect an easy remedy to our current fiscal circumstances, we will offer a long-term vision, not short-term fixes," Warner said. "We will rebuild the financial structure of state government with openness, accountability, vision and plain old straight talk." Wilkins and Chichester, principals in the budget standoff last year that continues to sour House-Senate relations, said later they welcomed Warner's gesture. State i new leader offers friendship and cooperation BY MICHAEL HARDY Times-Dispatch Staff Wettee Gov. Mark R.

Warner called for "a little revolution" to solve the state's budget crisis and modernize Virginia's government for the 21st century. "My fellow Virginians, it is time once again, for a little revolution not a revolution based upon a desire to separate or tear apart, but upon the need to unite and come together." Warner fired the "first shot" of his revolution yesterday in pleading to "let us begin by changing the way we do business in Richmond." The raucous budget impasse last year between the governor and the state Senate over car-tax relief was unconscionable, he said. "Our citizens have suffered the inevitable he said of the denial of raises to the state work force, a construction freeze on college campuses and no cash for local cultural attractions. "We can do better. And, my fellow Virginians, we will do better," he said to loud applause.

The crowd, warmed by the unusually mild weather, interrupted Warner with boisterous applause to approve of his vision for the state. As in most gubernatorial inaugurals, the new chief executive sketched broad philosophical themes and emphasized his can-do style. Reaction was enthusiastic to Warner's promise to stop the bickering and bitter partisanship that marked much of the term of Gov. Jim Gilmore. The Democrat, whose success or failure depends on his relationship with the GOP-dominated legislature, made a dramatic gesture.

He stopped his speech to shake hands with the assembly's two most powerful Republicans House Speaker S. Vance Wilkins Jr. of Amherst and Sen. John H. Chichester of Stafford.

"Mr. Speaker and Mr. President Pro Tern of the Senate, on behalf of all Vir- SEE COOP ER ATION, PAGE Al 0 Eagles, Raiders win Philadelphia beats Tampa Bay 3 1-9. Oakland stops the N.Y. Jets 38-24.

Sports CI Final report card Albert J. Williams gets high marks as Richmond's school superintendent. Metro B1 1 pi Perfect, pink lips That's the dream of a 5-year-old Chinese girL Her adoptive parents in Richmond hope surgeons can make it come true. Metro B1 Parallels Josephine Abady finds personal meaning in "Wit" 'I Democrat Mark R. Warner takes the oath with his wife, Lisa Collis, standing proudly MOTION to associhto rams of office as Virginia's 69th governor at his side.

A time for celebration Savoring the day: Virginians come from for and wide to welcome the new governor, filling Capitol Square for the ceremony and sticking around to party into the night. Pag A12. only works for a while." Also taking office yesterday: Lt Gov. Timothy M. Kaine, a Democrat and former Richmond mayor, and Attorney General Jerry W.

Kilgore, a Republican former Cabinet member and former state and federal prosecutor who moved to Henrico County from his native Southwest Virginia. Potential rivals for governor in 2005, Kaine and Kilgore were sworn in shortly SEE WARNER, PAGE A10 1 flexibility beyond that to account "This is long overdue," said Four pages of coverage In the Spotlight: lieutenant Gov. Timothy H. Kaine kiiiei the judge who swore him in and Attorney General Jerry W. Ifilgoie ends a political drought for Southwest Virginia.

Page MB. Other lawmakers said they weren't sure how long the atmosphere of good will would last even with the departure of Gilmore, whose intransigence on car-tax relief ignited the budget impasse. "Obviously, there are some very significant trigger issues out there," said Senate Republican Floor Leader Thomas K. Norment Jr. of James City County.

But Senate Democratic Minority Leader Richard L. Saslaw of Fairfax said Warner learned from Gilmore's perceived high-handedness with legislators that ruling by "threats and intimidation years kicked in Jan. ft v20u2 at Theatre Virginia. Arts G1 A National World News LOTTERIES AS Metro Ylrtfnla NEWS VIEWS. B2 OBITUARIES B8 Sports SUNDAY PUNCH C4 BualiwM Commentary EDITORIALS.

E2 Hair HOROSCOPE F2 WEDDINGS F5 Arts Entsrtslnmsrrt TELEVISION 04 BRIDGE. OS Travel Resl EststsCtsssHlsd Americans getting real tax breaks Biggest U.S. cut in 20 and transportation combined," Mannen said. "If people even began to become aware of that, it would really wake them up." The Economic Growth and Tax Reconciliation Act of 2001 represents the largest federal tax cut in 20 for inflation. Christopher Harris, certified financial analyst and investment specialist with Charles Schwab Co.

Inc. in Richmond. The old tax laws did not keep pace with inflation, Harris said. Also, "the tax cut is across the board for everyone." Most notably, income taxes will drop gradually between now and 2010. The top four income tax brackets will decline to 35 percent from 39.6 percent, to 33 percent from 36 percent, to 28 percent from 31 percent and to 25 percent from 28 percent Also, a sixth income tax bracket of 10 percent will be added this year on the first $6,000 SEE TAXES PAGE A8 Tax highlights Provide! 1 .35 trillion in tax relief during the next decade.

Create! a 10 percent income bracket that coven a portion of taxable income previously subject to a IS percent rate. Include! $49.6 billion in pension reforms and retirement savings incentives. Contribution limits to traditional and Roth individual retirement accounts increase from $2,000 last year to as much as $6,000 in 2008. Phaiei out and repeal! estate transfer taxes by increasing the credit exemption amount to $3.5 million by 2009. BY CAROL HAZARD Times-Dispatch Staff Wettee Last year's $300 rebate to most working Amwirana waa nire hilt it jiiaf alrimmpH the surface.

The good stuff in the new tax laws took effect Jan. Americans finally are getting some real tax breaks, said Daniel J. Mannen senior financial adviser and certified financial planner with Mannen Williamson Associates, a branch of American Express in Richmond. The typical American family pays more in taxes than it spends on food, clothing, shelter TOMORROW Bright and early Does starting school earlier mean teens get less sleep and learn less efficiently? Copyrigit 2002, 152nd Year, No. 13 I The legislation includes provisions related to income taxes, saving for retirement and education, and estate planning.

Most tax benefits Mannen are phased in over the next several years, with.