Virginia's chief environmental agency laid off nine workers yesterday and eliminated five vacant positions.

The state Department of Environmental Quality made the changes to help cope with a $1.2 million budget shortfall in the fiscal year that begins July 1, officials said.

Eight of those laid off are eligible to retire with enhanced benefits, said DEQ spokesman Bill Hayden. They include Thomas Henderson, the director of DEQ's Lynchburg regional office, and Terry Wagner, director of water resources.

The ninth person may take another job in the agency, which faces shortfalls in state and federal funding, Hayden said.

The DEQ has more than 800 employees and an annual budget of about $160 million.

To further cope with the shortfall, the DEQ will combine some operations and, among other changes, eliminate a program that helps small businesses meet environmental regulations.

Hayden said the shifts should not hurt the agency's efforts to protect the environment.

-- Rex Springston