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Show oca January 31, 1086 Friday Morning Section II Page 1 Senate Panel OKs Surplus Stash For Rainy Days Lawmakers View Fund as a Way To Let Good Times Pay for Bad By Douglas L. Parker Tribune Political Editor With the experience of gnawing at the budgetary bone to overcome a projected revenue shortfall this fiscal year, state legislators appear more inclined to set up a "rainy day" fund for the future that might avoid midyear budget cuts. The Senate Revenue and Taxation Committee unanimously endorsed bill to creThursday a House-passe- d account in ate a budget-reserv- e which any surplus funds generated in forthcoming years would be held for a fiscal emergency in effect, trying to have the good times pay for the bad. The measure, which failed last session, was passed last week by the House and requires only approval by the full Senate. The bill is sponsored by Rep. Olene Walker, Lake City. It has something of a Gramm-Rud-maconcept to it, suggested Sen Omar Bunnell, in that it strives to tuck away money automatically to get around lawmakers tendency to spend it in meeting service demands of the public and state agen 61-- 4 n Tribune Stott It wasnt quite warm enough for a swim on Thursday, but these three boys found the unseasonably warm weather i i C , A'noitrronn comfortable, as they paused on a footbridge at Riverside Park. The mercury rose to 51 degress in Salt Lake City. It Wasnt Hawaii , But 51 Degrees Felt Nice It wasnt quite the weather for Hawaiian shirts and shorts, but Thursday was the warmest day in just about two months in northern Utah. A mild westerly flow of air from south central California blew the inversion out of valley regions early Thursday and brought a record 51 degrees Fahrenheit at Salt Lake City International Airport. It hasn't been that warm since Dec. 4, when the mercury climbed to 52 degrees, said National Weather Service meteorologist William Alder. That's a far sight different than this time a year ago when, instead of relatively warm California air, the frigid "Yukon Express air mass roared through the area. Last Jan. 31, the low reached 6 degrees at the Tax-Refor- m By Mike Gorrell Tribune Staff Writer Attempts to reform the federal tax system are far from finalized, but already theyre taking a toll on Salt Lake Countys coffers. high climbed to only 20. Feb. 1 was even colder, with the mercury inching back and forth between 17 and 9. That was also the day it was 69 degrees at Peter Sink above Logan, the coldest temperature ever registered in the state. This year, by contrast, the Weather Service is predicting a high of 49 and low of 36 on Friday. Saturday's high should reach 45, Mr. Alder said. Those relatively comfortable temperatures will be accompanied by intermittent rain showers, not unlike the few sprinkles that fell Thursday in the Salt Lake Valley. Another moist air flow will move into northern Utah Friday and Saturday, followed by yet another front on Sunday. airport and the -- higner-than-desire- d said D. Kent Michie, vice president of Securities, the countys financial Pruden-tial-Bach- one-tent- y schools. Dr. Bell said that 10 years ago Utah ranked among the top five states in many educational accomplishments. rankToday the states only h educational in is attainment ing of the adult population. Currently, Utah spends the least per pupil in the nation and has the largest class sizes in the U S. Ten years ago the state income spent more of its top-fiv- per-capit- m a e cur, any subsequent Legislature could simply repeal the law to get at the money if it deemed the need important enough. Sen. Bunnell pointed out. Hep. Walker acknowledged a constitutional surplus-reserv- e account, requiring a public vote to repeal, could stiffen the law, but I think we should first see how it works out as now proposed. Sen. Lowell Peterson, suggested the law might hold up against ri6tust Salt Lake County but all counWe re caught on the ties, cities and school districts horns of a very serious dilemma." because weve placed ours. A lot of others wont be able to place their papers. If that happened here, it would be devastating to our county, he said. The The problem, as related to the commission by Mr. Michie, is that the House of Representatives approved a tax reform package that had an effective date of Jan. 1. Although the Senate has yet to endorse a program of its own, and months of haggling will pass before its final package meshes with the House version, the existence of the House plan prompted investors to shy away from 1986 bond issuances because of fears they might have to pay taxes on those previously bonds. treasurer agreed with Mr. Michies assessment that the current flaky nature of the bond market should be blamed on Congress, not Wall Street. "Theres no real villain on Wall Street. Theyre assuming a risk in buying bonds because of the possibility that Congress ultimately will approve legislation ending the longstanding status of those bonds. Consequently, many institutional buyers usually eager to purchase these issuances are completely out of the market this year, Mr. Monson said. I think our congressional delegation should be aware how difficult the situation is, he said. Those purchasers willing to enter the market have attached a risk premium to their offers, resulting in higher interest rates for bond issues. City Hopes Racial Tensions Will Also Ease Bell Asks Dose of Reality In Funding Utah Schools n e con- sultant. Commissioners delayed final action on the issuance until late in the day to allow the underEhrlich-Bobe- r & Co. and Marine Midwriters to try to obtain a better interest land Bank h of a percent rate. They did, chopping off the final rate, Mr. Michie noted. W'hile conceding it was the most difficult bond issuance he has experienced in 12 years, County Treasurer Arthur Monson was relieved that Salt Lake County could find a buyer. Many other local governments, school districts and special-servic- e districts around the country arent going to be as fortunate. Its hard to explain just how anxious bond issuers are out there. We can breathe easier He Calls for Increased Taxation well-know- Snow fell in the mountains, with depths ranging from 4 inches at Park Citys Jupiter Bow, to 2 inches at the base of Snowbird. The latter resorts summit didnt receive that much because the wind was blowing too hard to allow any precipitation to remain in place. A gust of 110 miles per hour was recorded at Hidden Peak at 7:30 a m., Mr. Alder pointed out. cies There also may be some pie in the sky to the legislation since surpluses arent expected next year nor in the near future, and, even if they did oc- Fears Taking Toll on S.L. County Coffers Because eastern financiers who purchase municipal bonds are worried that a reform packstatus of age will terminate the those bonds, the Salt Lake County Commission had to settle for a interest rate on the $51.4 million it borrowed to finance operations until 1986 property taxes are collected in November. That means the county will have to pay $478,000 more in interest on the tax anticipation notes issued Wednesday (at a rate of 6.06 percent) than it did in 1985 when the interest rate was 5.22 percent on an issuance of $55 9 million. By Dawn Tracy Tribune Education Writer Utahns need a strong dose of reality to come up with funding to offset the state's downward trend in educational accomplishments, according to one of Utah's most educators. Former U.S. Secretary of Education Terrell H. Bell, who described himself as I a conservative Re- publican, said he will go against his own political party in calling for increased taxation to support Utah's public schools. The future belongs to the intelligent," Dr. Bell told more than 400 parents and educators meeting at a Utah State PTA critical issues conference. "If Utah earns the reputation of being down with the lowest in education spending it will hurt our economy and our capacity to pull ourselves up. The one-daconference, conducted at the Salt Lake Radisson Hotel Thursday, featured workshops and experts who discussed community and family involvement in the Each one will be a tad cooler than its predecessor, Mr. Alder said, forecasting l.ght rain in the valleys and light snow in the mountains above the 7,500-folevel. Thursdays storm dropped only a trace of rain at the Salt Lake airport, and heavier amounts from Davis County on north. " e, education and was nationally ranked in the middle in terms of class size and funding. Since 1976 our position has been slipping, said Dr. Bell. We need a strong dose of reality for a stronger commitment to education. Dr. Bell said the much publicized national report, "A Nation At Risk" has spurred many other states to instigate education reform movements and appropriate funding to back up the needed changes. Utah, on the other hand, has only studied the problem. We still need to act We must join the rest of the national in providing major educational reform," he said. The Utah Legislature has enacted a fine career ladder program that has potential but we still have much unfinished business ahead. on Legislators and citizens must examine the state's sales, income and property taxes, none of which are low, to see if taxes in some way can be "notched up a bit. When the state See Column 5 Ethnic Murals May Reduce Graffiti The kickoff for a program aimed at reducing graffiti marring Salt Lake Citys ethnic neighborhoods will pit racial groups against each other as competing artists. Although organizers of the citys project anti-graffi- ti they have heard complaints that the contest encourages racism, they believe it could actually ease racial tensions. It will start Friday morning at Glendale Intermediate School, 1430 Andrew Ave. (1515 sa. South). The program is a citywide effort to reduce graffiti, but its emphasis is on the citys western neighborhoods where turf is sometimes defined by the graffiti of gangs. Glendale Intermediate was chosen for the initial effort because it has many minority students and is the school for that age group from citys only west-sid- e South Temple to 2100 South. A poster contest at the school will divide students by race, and the winning entries will later be painted as a wall inside the school to depict the mural on a various cultures. The decision to split students by cultural background was made by the school, said Principal Ivan Cendese. Students wiH be categorized into six groups: Asian, black, Caucasian, Hispanics, Native Americans and Pacific Islanders. Mr. Cendese said the school wanted the divisions because a previous mural stressing Hispanic history six-pan- was considered unfair to other ethnic groups More than half of Glendale Intermediates students aie minorities, me principal noted. He and others associated with the campaign see the contest as a means of building respect for other cultures. The poster contest and subsequent mural would be a "blend of the six major racial groups working in harmony," explained Pete Suazo, a Mayors Office coordinator on the effort. He said identical efforts in Los Angeles, San Jose and San Francisco have reduced, not intensified, racial unrest. Additionally, murals in those cities have remained unscathed by vandalism. d The participation apparently resulted in a "dont touch" respect on the streets, Mr Suazo said Mr Suazo said project organizers are downplaying the racial nature of the kickoff effort, but he said he has heard worries about encouraging competition by race. "I've had some people mention that to me, he said. Despite that, he said, "We are trying to address a problem with something positive. If you can envision a mural that gives you pride, thats what were trying to achieve The decision on how to handle the first element of the program was made by the school, said See Column 1 anti-graffi- li across-the-boar- anti-graffi- B-- B-- e d d d . School Aide Defends Volunteers Educators Too Quick To Criticize, She Says By Peter Scarlet Tribune Education Editor Utah educators seem to have jumped too quickly to the defensive on the use of volunteers in local schools, said a Utah volunteer coordinator. Gene Berry, who oversees volunteer services in Salt Lake said teacher sniping about Gov. Norm Rangerters call for more school volunteers is misplaced and largely invalid. As part of a much larger plan designed to make citizens aware of a looming educational crisis spawned by but geoning enrollments and limited ux dollars, the governor last month called for greater reliance upon volunteers to help in the schools. He lias asked the Legislature for $1 million to finance the training of both volunteers and educators and school officials dealing with them so volunteers can be put to the most effective City-school- use. My concern is that educators have jumped too quickly to the defensive. In the process, theyre discounting tne work of millions of volunteers," said Ms Berry, who is also serving a r term as president of the 4 3 million member National School Volunteer Program. Volunteers have no desire to take oer the classrooms; to take over the teaching positions. They want to assist," she sahi. I think that what the governor was talking about and what we see is an opportunity to put programs in place that would allow teachers to be in their proper role -m but to plug charge of instruction volunteers into educational objectives and to make the best use of their time and talents, said Ms. Berry. "Im concerned ti.ey would spurn th-moroy and rail it a hilarious plan, she said. Hespc nding to a concern expressed by Ut-- h Education Association officials, the volunteer coordinator said of undesirable individthe probl-'rr- . uals getting into programs is largely in well organized programs. "In a carefully organized program ea. dully planned with coordination anu management, you dont get but the cream of the crop, said Ms. Berry. "Problems only occur where volunteer programs are mismanaged. In all the tiire Ive been heie in Salt two-yea- t Accused Killer to Get Out of Jail to Seek Transient Witnesses A man accused of the August murder of a transient will get a chance to help his lawyers find defense witnesses who may be living on Salt Lake Citvs streets. third District Judge Scott Daniels ruled Thursday that James R. Howland, 29, can be released to the custody of a Legal Defenders Association investigator or his lawyers to find witnesses who may homicide help acquit him of a second-degrecharge. He is accused of killing Thomas Freeman, whose decomposed body was found Sept. 13 between a garage wall and a retaining wall near 220 S. 700 East pressuies to use the money for other than budget balancing because legislators could face political risks in ' "raiding the fund. The Legislature last week approved nearly $27 million in budget reductions for this fiscal year ending June 30 because tax revenue is estimated to be lower than projected when approving the budget a year ago But in earlier years, budget surpluses were generated and the Legislature has frequently budgeted for projects ahead of time contingent on anticipated surplus showing up Rep Walkers bill provides that any future year-ensurplus up to 3 percent of the general-funbudget would be stashed away in the reserve account prior to any contingency appropriation. The amount held in reserve couldn't total more than 6 percent. Based on this year's general-funbudget, this formula would allow $20 million surplus to be reserved in a single year, up to a maximum of $40 million. Because of surpluses previous "to this fiscal year, had the reserve account been in place this year, the projected shortfall could have been handled out of such an account without resorting to midyear budget cuts, "which are devastating, Rep. Walker said. About half the states have such reserve accounts, she added. State Treasurer Edward T. Alter account said such a surplus-reserv- e "is one of the most fiscally intelligent things we could do to guarantee the future stability of state government operations. "It could help avoid emergency tax increases in the deptns of a recession when our citizens and businesses can least afford the added burden . . and it is very much liked by bondrating agencies as an enhancement of a state's financial position and credit standing, Mr. Alter said. Investigators later determined Mr. Freeman had been shot in the head with a .22 caliber weapon about Aug. 18. Mr. Howland is being held in the Salt Lake County Jail on $25,000 bond while he awaits trial. Judge Daniels accepted Salt Lake County Deputy Attorney Richard Shepherds suggestion that Mr. Howland at times be released from the jail into the custody of a defenders association investigator or his lawyers to seek defense witnesses. Defense lawyer Nancy Bergeson had sought an release to the county's pretrioutright or part-tim- e al services division, but Judge Dpniels said he wouldn't allow that. She contended that she and colleague Manny Garcia had problems contacting defense witnesses because several of them lived on the streets. Because Mr. Howland also lived on the streets most of the time, he was uniquely situated to find witnesses where we cant," Ms. Bergeson said She said Mr. Howland had lived in Salt Lake C ity about 10 years and was unlikely to leave the area before his trial began. In a related matter, Judge Daniels said he hadnt ruled on a motion by defense lawyers to have the witness turned mental history of a prosecution ' over to them for study unde-sirall- See 1 r |
