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Show 7 Special Session Is Prelude To Real Thing Early in the fiscal year of Utahs Legislature and Governor recognized that there woud be a 1986-8- serious shortfall in revenue for that year. In September, Gov. Bangerter ordered a $48 million cut in expenditures across the board, including public and higher education. In late October, projections showed that before the fiscal year ended on June 30, 1987 an additional $30 million would impact the budget in a shortfall. The Legislature was called into special session on Nov. 18 to solve the problem of budget, as well as address the bankrupt thrift and loan situation. Meeting on the 18th, 24th and 25th, the Legislature ratified the governors earlier action on cuts of $48 million and approved the plan to rescue the depositors of the five thrift and loans that were in trouble, then went on to solve the additional $30 million shortage. The governor, after considering several plans, identified what he considered to be the most feasible to solve the thrift and loan problem. Plans had been received from at least four larger financial institutions to take over the troubled thrifts and save at least a portion of the depositors funds. With a $5 million amount borrowed from the State Liquor Fund to add stability, Williamsburg savings Bank was picked as the entity to buy the troubled thrifts and consolidate liabilities and assets. Plans are projected that depositors will recover up to 60 percent of their savings and that Williamsburg will apply for federal insurance on the deposits. The state is anticipated to recover its loan within three to five years. The arrived-a- t plan was adopted only after an intense amount of study and discussion on the question of state liability to the depositors. It was finally decided that there were strong . indications that, after legislative action in 1974 when the state thrift and loan insurance plan was adopted, the state could be deemed as liable to some extent for depositors losses. To finalize the states revenue of the additional $30 shortfall million, the Legislature instituted a e 4 percent surtax on the 1986 individual and corporate income taxes, which should raise about $20 million in revenue. They then put ad- one-tim- Uieuiutg THE LEGISLATURE damage to Great Salt Lake industries. These items reflect the shortfall to the state in individual and corporate income taxes, as well as the other affected tax funds based on industry productivity. These problems should demonstrate to some extent what the Legislature and the governor are going to be faced with in the 1987 session which starts in January. It is crystal clear that government is going to have to be forced to either cut some services or find alternative methods of providing services for less cost. To try to solve the problems through added taxation will e because it be will stifle the intitiative of the private sector and we must counter-productiv- SOUTH desired To Host Santa MAGNA. Santa Claus will be at the Magna Library from 5 to 6:30 p.m. on Mondays and Wednesdays until Christmas. He will also be at the facility from 1 to 3 p.m. this Saturday and from 11 a.m. to 1 p.m. on Dec. 13. On Dec. 20, he will visit with his young friends from 10:30 a.m. to 12:30. Thursday, December 4, 1986 Legislative Needs Are On COG Agenda Today remember that productivity of the private sector is the one and only source of revenue to maintain government services. Magna Library THE GREEN SHEET SALT from LAKE. the 1987 Action State Legislature will be the focal point of discussion among members of the Salt Lake County Council of Governments here today (Thursday). Those legislative needs are scheduled to be determined during a monthly session of the Council of Governments, starting a 3 p.m. today at the South Salt Lake City Hall. Members of the County Commission and elected leaders of the county's 12 municipalities hope to arrive at a list of needs that will be presented to local legislators a week later. That session will follow a traditional format, being held as a breakfast session within a month before the regular session of the State Legislature. With cutbacks in federal funding and losses in other sources of revenue, financial matters are expected to dominate the needs list. In addition, COG members are expected to receive officer nominations from a committee comprised Mike of County Commissioner Stewart, Mayor Lee Wanlass of Mayor Jim Davis of South Salt Lake and Mayor Palmer DePaulis of Salt Lake City. Bluf-fdal- By SENATOR Bill BARTON District 12 ditional budget cuts into effect of about $10 million. This brought the total to $78 million in this fiscal years shortages that will be hopefully covered. The actual shortage is anticipated to be closer to $92 million, but an increase in state income tax withholdings starting in 1987 due to federal tax reform is projected to increase by $16 million by June 30, 1987, and will cover the balance needed for this fiscal year. The chief reasons for the revenue shortfall are: mineral lease funds, severance taxes and salaries that have been lost due to the large decrease in oil and gas activities in the state; the closure of Kennecott Copper and the fact that it has not returned to full production even though it has started; the large decrease in Geneva Steels production; the cutback in production at the Intermountain Power Plant; the losses brought about by high water County Budget Shortfall Continued from page 1 maintenance of county park facilities; Continuing to pay the mortgage but closing down the Capitol Theatre to public use by June 1 to avoid operations costs; While it is obvious that many of the proposed cuts would affect funding for the arts, no final decisions have been made concerning exactly if or where the cuts would be made. Backers of the arts requested have been granted - some time to present proposals of their own to salvage some of the programs suggested for elimination and still stay -- within the proposed county allowance. Other departments, too, are scrambling to keep services at as high a level as possible without actually merging with their Salt Lake counterparts. Try and salvage as much service as possible, recommended lame duck commissioner Tom Shimizu recommended. We have to tighten up in all areas. Shimizu will leave office Jan. 4 . public hearing is scheduled at 9 a.m. Friday, Dec. 12 in the commission chambers at the Building to allow the public to give input into the proposed county budget. A City-Coun- West Valley City Bond Refund all but the most controversial of the lengthy list of proposals could be settled tonight. A resolution authorizing an agreement between the city and the Utah Dept, of Social Services will also be brought to the councils attention. The agreement would allow the city to receive some state-funde- d borrowing climate, though, lot a for the cost of training makes at time this employees refinancing and supervision. of sense. The council will also decide Acceptance of the plan, however, whether to hear an appeal of a planIs in the hands of the City Council. It seems to me to be very unlikening commission decision denying an 7 (7,000 square foot lot) rezonthat they wont accept the proly posal, but you never can tell, he ing on property on 4700 South near 5000 West for Holmes & Perry, Inc. A observed. what request by Dan C. Simons to rehear I never try to second-gues- s the council will do, but I really doubt a rezoning request for a corner lot at they will turn it down, he said. If 5600 W. 4700 South which was they do, theyll be dumping $3 withdrawn in April will also be considered. million down the drain." Final subdivision approval for In addition to the bond refunding resolution, the council is also Deerfield Meadows A and B will also scheduled to hold a public hearing be considered, as will some capital concerlng the citys participation in improvement projects and other retirement budget directinos. states A resolution authorizing a $5.5 system for city employees. Decisions are also anticipated on a million development bond for Sterlseries of 21 ordinances dealing with ing Medical Devices will also be considered in conjunction with a changes in the master plan. on 20 Nov. a hearing meeting of the citys Redevelopment public During the changes which lasted nearly Agency. The Housing Authority is three hours, about two dozen citizens also scheduled to convene following addressed the council on the propos- the regular council session. The council will meet tonight ed changes. on this discussion its (Thursday) in City Council Basing testimony, the council debated thor- chambers at City Hall, 2740 So. Redny issues at length during its study wood Road. The meeting is schedulsession Tuesday. It is expected that ed to begin at 6 oclock. Continued from page 1 this, he said. There was a call provision written into the contract to allow us to call in the notes this year, but interest rates and the market have a lot to do with that kind of thing. Because of the current favorable Rill EXTRA BONUS BAR STOOLS 30" Swivel Mates Pine or Oak Other Styles Similar Savings Thousands In stock Extra Bonus ...20 CASH 'N SATELLITE Thursday Friday Saturday EXTRA BONUS 20 OFFJ-I 1395 Assorted Compare at Our Sale Price Extra Bonus OR 38 I I CLOCKS Quartz Movements Pay Only s39 19 7 M2 Per Mo. 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