RICHMOND -- It won't help homeowners this winter, but Democratic gubernatorial candidate Tim Kaine wants to give Virginia homeowners a bit of a break on a new furnace.

Kaine said last week he will seek to exempt purchases of energy-efficient furnaces from half of the state's 5 percent sales tax. That reflects the amount of the sales tax that flows into the state's general operating fund. The remainder goes to schools, transportation and local governments.

Kaine said the tax cut would provide a "powerful incentive" for homeowners to purchase energy-efficient furnaces and reduce their consumption of oil and natural gas. Analysts expect home heating costs to soar this winter because of supply problems associated with hurricanes Katrina and Rita.

"More energy-efficient heaters can save Virginia families up to $26 for every $100 they spend on fuel costs," said Kaine, who announced his proposal Tuesday from the front stoop of a supporter's home in Richmond's Fan District. "This is one way the state can create an incentive for Virginians to take advantage of those savings."

Bolling calls for Medicaid reform

Republican lieutenant governor candidate Bill Bolling said last week that he would lead a state government effort to reform Medicaid if he and GOP gubernatorial nominee Jerry Kilgore win the November election.

Bolling, a state senator from Hanover County, said Kilgore has agreed to put him in charge of a Medicaid reform panel if the two Republicans prevail. Bolling made the announcement during a conference call in which he outlined a series of health care reform proposals.

Among other things, Bolling vowed to push for tax incentives to encourage the purchase of long-term care insurance; promote programs to allow seniors to receive long-term care at home rather than nursing homes; and revamp asset-transfer guidelines to prevent people from circumventing state laws governing Medicaid eligibility.

Bolling said he also wants to make insurance more affordable for small businesses by expanding group purchasing pools, granting tax credits to employers that provide health insurance to low-income workers, and allowing insurance companies to provide "bare-bones" policies to small groups and sole proprietors.

Bolling said removing many current state benefits mandates can reduce the cost of health care and health insurance, particularly in the government-run Medicaid program for low-income patients.

Democratic candidate Leslie Byrne took a dim view of Bolling's plan. Byrne spokesman Joe Shafer said the Republican's proposal would "allow the insurance industry to line their pockets by selling those bare-bones plans that don't really work."

Bolling said the state must take immediate steps to curtail increases in Medicaid costs, which are growing at a rate of 10 percent annually.

"We do not have the resource to sustain that growth," Bolling said.

Ferguson touts change in campaign tactics

With election season in high gear, 9^th House District challenger Eric Ferguson went to his big guns Wednesday, staging a campaign rally in conjunction with a concert by Ralph Stanley and his Clinch Mountain Boys.

About 500 people attended the concert at Franklin County High School, where Stanley and his bandmates proclaimed themselves to be "Old-Timey Democrats" hoping to help spur Ferguson to victory against 12-year incumbent Allen Dudley, R-Rocky Mount.

"I've been an old-timey Democrat for 78 years," Stanley said.

At intermission, Ferguson said the event marked a transition for the campaign.

"We've taken very seriously some comments that our campaign has been negative," Ferguson said. "We've told the truth. My opponent has not denied or disputed one thing I've said."

In past months, Ferguson has attacked Dudley for accepting a General Assembly stipend for an office, which he runs out of his home; for allegedly arguing for his son to be appointed as a circuit court judge; and for housing illegal immigrants in a mobile home park he runs near Doe Run.

Ferguson said he will continue to "tell the truth" about Dudley but will change his focus and start talking more about issues, including transportation, boating safety on Smith Mountain Lake, economic development and law enforcement.

Dave "Mudcat" Saunders, a Roanoke political operative volunteering for Ferguson, said a new wave of radio advertisements will be released to reflect the change in the campaign.

Before and after the speech, Stanley and the Clinch Mountain Boys played two sets of bluegrass tunes, peppered with occasional endorsements of Ferguson. Stanley also complained about the price of gasoline.

"When I go to fill up the bus now it takes about $800," Stanley said, resulting in laughter from the audience. "I don't now how much longer I can continue to run that bus."

This weekend, Ferguson hosted another celebrity, as Ben "Cooter" Jones was set to appear at Triple Creek Park in Rocky Mount on Saturday. He is scheduled to appear at Ray's Restaurant in Floyd at 2 p.m. today.

Your chance to ask debate questions

Have a question for Tim Kaine or Jerry Kilgore? You could get it answered during their televised debate next weekend.

The University of Virginia Center for Politics is soliciting e-mail questions for the Oct. 9 debate between the major-party candidates for governor. As time permits during the hour-long debate, a representative sample of those questions will be asked of the candidates. The program also will feature questions from a media panel.

Questions may be sent to the Center for Politics site, www.centerforpolitics.org, through noon Friday.

Staff writer Mason Adams contributed to this report.