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Show itirfihjpffi 6A The Salt Lake Tribune, 21. 1986 Friday, February House, Senate Republicans Steadfast on Budget Stands Continued From l ing to trim budgets no further than they have. Representatives returned to report that some $17 million once counted on had been taken from nearly all state departments and agencies. For covering the balance, they recommended an jrray of adjustments and shifts that could glean enough new money to get everyone home by Wednesdays last call. While willing to support their rank-aj files posture, frustrated GOP House leaders warned that some-thifi- g had to give. $Youve left us in an untenable position to negotiate with Senate leadsaid House Speaker Robert ers), 'Tm telling you it Garff, wiO never hold up." He even suggested that House A-- n members get together with their own home-basestate senators to resolve the impasse They can soften up, and we can soften up, too, the speaker d said. think you all know that at some time well have to compromise on this, said House Assistant Minority Lake City. Whip Olene Walker, But representatives wouldnt waver. They even voted to initiate their own version of the school finance appropriations bill to counter the Senate and governors position for a property tax hike to generate an added $8.2 million for local districts. House leaders were off later Thursday to try to reach an accord with their Senate counterparts. Talk of each chamber forcing a floor vote on their own appropriation bills also arose in Thursdays GOP I lt 0.9-mi- d Continued From l distributed on a bonus basis, should save $1.5 million, he explained. Other cuts recommended include $3.7 million off building maintain-ance- ; $1.7 million for education utility bills; $1 million from the the high-tec- h business finance corporation; $506,000 from the public education incentive program called Centers for Excellence; $800,000 in health insurance savings; $1 million turned over by the housing finance agency, and $2 million lopped off Medicaid support. (Jov. Bangerter said he also backs r' A-- Hospital Amendment To Appear on November Ballot Utah House representatives placed the first constitutional proposition on the states November ballot Thursday, with voters to declare if charitable hospitals and nursing homes should be exempt from property taxes. By a 60-- vote, the House complemented Senate approval of the ballot issue, which would counteract a Utah Supreme Court ruling last year that status of nonplaced the in question. institutions care profit said the Rep. James Moss, court has taken a very narrow view of statutory definitions that have allowed hospitals claiming to be charitable in nature to be free of property taxes for years. Last June, the court held that Utah Valley and American Fork hospitals in Utah County failed to meet charity criteria and ordered them placed on the countys tax rolls. JorRep. Lloyd Frandsen, dan, said medical and health care has become too complex for a simple constitutional reference to sort out, while tax-fre- e exemptions have been granted on an unlevel playing field. He said flexibility was best served by statutory revisions, if necessary. non-prof- it 9 raising court case filing fees to supply the $700,000 needed to start up a new intermediate state appeals court, thus eliminating the need for general state funds. His proposed budgetary revamp d still includes hiking the 0.9 tax mills and by property appropriating nearly $10 million for the career-ladde- r pay bonus program for teachers, both of which have been viewed dimly so far by the House of Representatives. A Public Education Appropriation Committee already has recommended only half of what the governor suggested for career ladders. Gov. Bangerter said he also is recommending about a $40 million bond issue to pay for a variety of capital developments and land purchases, almost $6 million more than his initial proposal. This, too, has been given short shrift so far in the Legislature. With his suggested budget cuts, and reserve tapping more revenue, there would still be left $35 million in reserve, plus the ability to h use the resources of a percent sales tax up to June 30 if needto pay off tax anticipation notes ed to deal with any flooding, the governor explained. This method can realize a total of $65 million for flood mitigation, he said. The sales tax is due to be turned over to local governments if not needed. Concerns over an adequate flood reserve have risen in light of heavy rain and snow this week, prompting a revised forecast for the Great Salt Lake rising about an inch higher than last year. But Gov. Bangerter said if reasonably normal spring precipitation is forthcoming, the lakes water level can be handled without major diking. The wet weather spawning flooding and slides in the upstream areas of northern Utah, if held to the dam- By Peter Scarlet Tribune Education Editor Alarmed over proposed new budget cuts as the 1986 Legislature draws to a close, educators Thursday announced that local districts would be forced to raise class sizes next fall. Utahs class sizes now are the largest in the nation while the money Utah spends on each student in school is the lowest throughout the country. Proposed funding levels are not sufficient to maintain the present basic school programs and current levels of the Legislatures educational reforms, said Clark Puffer, executive director of the Utah Society of School Superintendents. Local school districts will be forced into further deficit spending this year and increased class sizes next year to maintain minimal education programs. This deplorable situation cannot continue, he said. Aside from legislative trimming to cover budget short falls, Mr. Puffer said this years revenues for local school districts have dropped some $4 million because of Kennecott Coppers closing, tax adjustments to homeowners and tax reductions for the Intermountain Power Project near Delta. The possibility of a rise in class sizes represented a compromise posi- state-mandate- Sen. John Holmgren, River City, is the newest member of the Utah Senate but his col- leagues have made him feel quite at home. one-eight- age experienced to this point, shouldnt represent a significant cost to the state, the governor added. A preliminary estimate indicates local claims for state aid probably shouldnt reach more than of million dollars, a couple he advised. fellow Senators have treated me with nothing but kind- ness and have given me the courtesy, despite my junior position, said the northern Utah farmer and farm equipment dealer. Sen. Holmgren was appointed last year by Gov. Norm Bangerter to replace former Senate President Miles Ferry, who is now the state agriculture commissioner. Sen. Holmgren, a former Box Elder County commissioner and past chairman of the State Board of Water Resources, said one of his top priorities this year is to keep the designated flood fund intact. The fund, which started out at $76 million, is being chipped away at by legislators attempting to find ways to balance the belea-gure- d budget. But Sen. Holmgren said his concern is that many of the programs being funded by the e flood money are ongoing programs. So if we fund them now with flood money, we will have to find new money next year to keep funding them, he said. up-mo- tion among the superintendents, some educators said. Earlier the educators reportedly toyed with the possibility of announcing that kindergarten would be rea move that duced to a half-yeacould free about $13 million for programs faced with legislative-budge- t cutbacks. But some superintendents later balked, fearing such a threat could backfire with lawmakers as well as citizens. The educators, representing the Utah School Boards Association as well as the superintendents, urged lawmakers to restore the 1984-8- 5 property tax levy required for local school districts to collect, so they can get state aid, sell bonds for some capital projects and to use some of the states flood reserve funds as recommended by Gov. Norm Bangerter. r, one-tim- The change in the tax levy would a require a tax rise of 0 9 of a mill move supported by the governor as well as educators as a restoration rather than a tax rise. Lawmakers last year reduced the levy by 0.9 mills school year because for the 1985-8they feared, at the time, it would produce a windfall of revenue for the schools. The increase would amount to $8 more in property taxes on a $100,000 house. It would raise about $8.2 million. Gov. Bangerters latest proposal to 6 Local school districts will he forced into fur- ther deficit spending this car and increased class sizes next year to maintain minimal education programs. This deplorable situation cannot continue. m the poor. The other two bills dealt specifically with property taxes. The Senate voted to delay action on the bills for at least a year after Sen. Warren Pugh, Lake, said the measures were so complicated they may take longer than the six days left in this years legislative session to discuss adequately. Sen. Pugh was sponsor of one of the measures, which would have done 22 d away with the lt state-mandate- property tax mills counties must levy for the state Uniform School Fund. The $194 million that would be lost to the school fund by eliminating that portion of the property tax would be made up by hiking the corporate franchise tax by 1.25 percent, hiking personal income tax by 1.25 percent and eliminating the federal income tax deductions now allowed on state income tax returns. The other property tax bill that Federal Attempt to Curb Bond Benefits Galled Outrageously Unconstitutional By Conrad Walters Tribune Staff Writer A federal attempt to curb bonding benefits for state and local governments is outrageously unconstitutional, three elected officials charged Thursday. Their solution is to fight the measure and back an equally absurd bill at the Utah Legislature that would retaliate for federal invasions into local government authority. State Treasurer Ed Alter, Mayor Palmer DePaulis and County Commission Chairman Bart Barker all blasted U.S. House of Representatives Bill 3838. e measure would reThe quire state and local governments to remit interest earned from bond issues and would severely limit when bonds can be issued at all. The bill has been passed by the House and has gone to the Senate. Its outrageously unconstitutional," Mr. Alter said. His response was to endorse a bill filed by Sen. Fred Finlinson, The local bill theoretically would let the state tax federal securities and land within Utah, and Mr. Alter said the Finlinson bill is as illegal as he considers the federal measure. Asked why a State Treasurer would encourage the Utah Legislature to waste time with an outra- 1,400-pag- i x. l geously unconstitutional" bill, Mr. A- pointed back to the federal legislation. He said he believes it is an "appropriate response to a federal measure he considers flawed. Although Mr. Alter predicted doom for the federal bill, he said that is little consolation. State and local governments would suffer for years while the issue is litigated, Mr. Alter said He said he would ask Utahs congressional delegation to preclude legal battles by defeating a Senate version of HB 3838 and blocking a subsequent compromise bill. Getting opposition to the federal bill may be difficult, however, because its other more popular provisions simplify the tax code and reduce income taxes for most people. As an example of problems the measure could create locally, Commissioner Barker noted the county's new office complex will cost about $55 million, but because of interest income, the county issued $50 million in bonds. With the federal bill in place, county taxpayers would have had to finance the gap. Commissioner Barker also said the legislation would cut county revenues every year when it issues tax anticipation notes. The notes give the county money while property taxes are collected The notes are sold and the lter i proceeds are invested for interest revenue. Commissioner Barker said the $225,000 generated by that could finance treatment of 1,667 patients for three days each at the county's De- toxification Center, serve 54,000 meals for the Meals on Wheels Program or buy 22,500 library books. County Commissioner Michael Stewart also noted the legislation hurts well-rugovernments the hardest. Salt Lake City, for example, with a AAA bond rating which entitles it to better interest rates would be penalized harder than cities with lower ratings. Mayor DePaulis complained the federal move hurts cities at the worst time possible, just when they are compensating for federal cutbacks. n "This bill takes away the tools," Mayor DePaulis said. The mayor estimated HB 3838 would cost a Salt Lake City resident with a $100,000 home an extra $43 a year in property taxes. Mr. Alter also said HR 3838 has a provision limiting the amount of bonds a state can issue. Utahs cap would be $250 million. Last year at least $750 million in bonds were issued in Utah, Mr. Alter said. tax-fre- e legislators that they fully fund his $10 million request for teacher career ladders and reduce the funding increase of the weighted pupil unit from 2 percent to 1.5 percent caused the educators more discomfort. The WPU, now valued at $1,180, is the basic ingredient of the states complicated formula for subsidizing local schools. It represents the amount of state aid provided schools for the education of each child. A 2 percent increase in the WPU will raise about $16.2 million. Gov. Bangerter earlier requested a 2 percent boost in the WPU as well as $10 million for career ladders. Lawmakers on the appropriations subcommittee, however, have allocated A will now be studied for a year was sponsored by Sen. Kay Cornaby, legislative; calendar lt Lake. That bill would have exempted 45 percent of the value of residential property for tax assessment purposes. Currently, 25 percent of the value of residential properties are exempted, and Sen. Cornaby said his additional 20 percent exemption would reduce the amount of revenue to county governments by about $66 million. My bill would force county governments to their need for the revenues, Sen. Cornaby said. "Mine is the only bill that does not have an alternative revenue source." He said if the counties determined they could not get along with the reduction in revenues, they could raise taxes, but only after the proper public hearings and public advertisements." Sen. Cornaby said his bill was a "truth in taxation bill, and was in response to the recent increase in assessed property values around the state that resulted in dramatic property tax hikes. The other tax reform bills that will now have to wait until next year were sponsored by Sen. Karl Swan, and were designed to shift some of the income tax burden from e to the higher-incom- e the people in the state. lower-incom- One bill would eliminate the federal deduction on state income taxes, which would favor the poor, Sen. Swan said, because higher-incom- e Utahns pay a higher portion of federal income tax than the poor. But be- cause Utah's tax rate structure tops out at the $7,500 annual income level, high and low income people pay the same state tax rate. The higher income people then pay the same rate as their poorer neighbors, but get a larger deduction for their federal income tax payments, Sen. Swan said. The other Swan bill would have changed the taxing brackets to put more of the burden on the higher income groups. ( Clark Puffer, executive director of the Utah Society of School Superintendents. Senate Sends Tax BiBs to Study Committee By Paul Roily Tribune Staff Writer In one fell swoop, the Utah Senate Thursday did away with four bills designed to create a more equitable system by assigning the measures to a study committee for a year. All four bills were designed to ease the burden on certain classes of taxpayers, with two of the measures aimed at lessening the pressure on In caucus, they decided they could finance a new appellate-cour- t system by raising court filing fees to cover the estimated $750,000 cost. But they said some $500,000 worth contracts computer-maintenanc- e could be canceled, banking instead that state staff would in time learn how to fix them themselves. of They considered a measure that would jump $299 Class B misdemeanor fines to $1,000 as a potential resource for another $2 million in revenue. And some $2.4 million that numerous other bills would cost if they became law were scrapped. In summary, the House perspective was that the necessary cuts and necessary new money are there to balance the budget, if only the Senate and governor will consent. Educators Say New Budget Cuts Will Cause Even Bigger Classes The Spotlight My g 7 Legislator In flood-contr- n like-mind- mini-hatchet- Bangerter Cuts Budget By Nearly $13 Million Vernal, wonder at one point Thursday if the state should adopt a Gramm-Rudmathing" to resolve the mess. Before House Majority Leader could finish Glen Brown, detailing Gov. Bangerters plan for repelling the revenue shortfall, many GOP representatives railed the ideas for the slight tax hike and a slight cut in basic pupil instruction funding with chants of no and never. Among the extra $17 million in cuts the scattered, House subcommittees ordered were $7 2 million from public education and $3.5 million in higher education. refused to Yet representatives abandon a commitment to give a 2 percent teachers salary raise, retaining some $5 million for "career ladders, and still figured on at least a 1 percent pay hike for state government workers and college faculty. budget as a way to avoid further suba position stantial budget cutting Gov. Bangerter rejects. Democrats said their bloc is united for using flood reserve money rather than further budget cuts to cover dwindling revenues, and suggested their party might be able to forge a majority coalition amongst divided Republicans in pushing a budget through. As it is, Democrats hold only 6 of 29 Senate seats and 14 of 75 House positions. And with adjournment looming, hallway conjecture coaxed the first talk of no compromise by Wednea situation that sdays deadline would force the governor to call lawmakers back into special session later to approve spending for the start of the 1986-8fiscal year on July 1. The whole ordeal made House Majority Whip Gayle McKeachnie, R- - Senate caucus, which also hosted Democratic members There, a consensus still held fast to backing the school tax increase and thwarting use of more flood reserve money in shoring up the proposed budget. There was no mood, either, to join effort to slice out more the House-lethan $20 million to meet lower revenue estimates. The package of potential cuts circulated by the House was dismissed without comment, and senators ignored the announcement that the " appropriation subcommittees were forming at House instigation to offer programs from the budgetary chopping block. Senate leaders were left with a caucus consensus to negotiate with the House a transfer of about $7.5 million out the road building and maintenance fund to support the general 39th Day SENATE Bills Passed SB20 (Hlllyard) Allow Board of Regents to grant scholarships for partial waiver ol nonresident portion of tuition. By Senate 19-- SB 109 (Cornaby) Insurance Subcommittee Amendments. By Senate 20-SB 149 (Sandberg) Permit dental hygienists to administer local anesthesia. By Senate 20-SB161 (Barton) Impose penalties for makers of a fraudulent check, draft, order or other Instrument. By Senate 20-SB 181 (McMullln) When adopting rules ond standards, a local board of health Is not required to file a record of finding or fact and conclusions of law. By Senate 23-HB 43 (Stephens) Provide for safety Inspections of private school buses and clarify scope of Inspections of school-relatevehicles. By Senate 22-HB198 (Reber) Prohibit an Individual from using fraudulent education credentials. By Senate 23-Bills Killed SB74 (Cornaby) Exempt 45 percent of residential property value from property taxation. Killed by Senate on a voice vote. SB75 (Puph) Reduce by 10 mills the basic property tax levied by locol school districts; offset with InIn crease corporate franchise, Individual Income, and stale sales toxes. Killed by Senate on a voice vote. SB79 (Swan) Eliminate the federal tax deduction on state Income tax returns. Killed by Senate on a voice vote. SB80 (Swan) Raise additional state revenues through restructured Income tax only about $5 million in new money for career ladders next year. This appropriation is years career-ladde- r about $30 million. The WPU is absolutely necessary for the basic education program, said Bernarr Furse, the state superintendent. He said the teacher career-ladde- r program was equally vital to Utah's educational reform move- ment. But if funding was available to only one of the two, Mr. Furse said his recommendation would be to keep the WPU at 2 percent the increase previously approved by the Legislatures Joint Public Education Appropria- tions Subcommittee. Even if the WPU increase stays at 2 percent, he said it isnt enough to keep educational quality at the same level as it is this year because of rising utility costs and expenses for instructional materials. Im disappointed that he would suggest this. Public education cant absorb it, said Mr. Furse. Mr. Puffer expressed similar sentiments. He said a 2 percent increase in the WPU only provides for increments pay increases based on se- niority already built into teacher contracts. All the districts are committed to increments each year. If the state lowers the WPU increase, districts would have to raise class sizes to fisaid John nance the increments, Reed Call, superintendent of the Granite School District. This problem would be compounded in the Jordan School District, said its superintendent, Raymond Increasing class size isnt feasible in Jordan, he said, because its already too high. Whit-tenbur- But rejection of further funding of teacher career ladders is almost as ominous for educations future in Utah, said Mr. Furse. It would send out the wrong signal if we stopped reform at a time when there is going to be a major need for new teachers and administrators, he said. rates to offset New Federalism shifts. Killed by Senate on a voice vote. Resolutions Killed Ask Congress to repeal the nationwide 55 mile an hour speed limit. Killed by Senate 13-(Need 15 votes to pass.) HJR6 (Maxfleld) HOUSE Bills Passed HB169 (Cromar) Require registration of In based county and Implement a aircraft uniform tax. By House 60-HB215 (Knowlton) Redevelopment amendment concerning election due to protest. By House 60-HB254 (Moody) Revise the requirement for bringing bees Into the state. By House 57-SB21 (Barton) Provide amendments to facilitate restitution claims by victims of drunken drivers. By House 49-SB47 (Block) Provide landlord notice In all unlawful detainer ond abandonment circumstances. By House SB49 (Carling) Increase the amount of service charge that may be Imposed by the holder of a fraudulent check, draft, order or other Instrument. By House 42-1SB70 (Sowords) Exempt telephone cooperatives from Public Service Commission rate hearing requirements. By House 50-1- . SB95 (Flnllnson) Provide for retirement benefits to surviving spouse of state system member who has 25 years of service. By House 58-SB 115 (Hlllyard) Clarify procedures for In House criminal cases. By 58-- SB 1 8 (Carling) Clarify offenses Included In one element of second degree murder. By House 65-SB 119 (Carling) Amendments to the probate code. By House 60-Resolutions Passed SJR4 (Pugh) Amend the Utah Constitution to extend property tax exemption to hospitals. By House 60-Bills Killed SB8 (Overson) Provide for parental notice and approval for after school activities of children. Killed by House Peace March to End at Capitol Four members of the Bahai faith walking from St. George to the State Capitol with a message of peace will deliver it Monday to state officials. They have delivered the message to city councils and county commissioners along the way overthe past three weeks. On Monday the group will deliver "The Promise of World Peace," to Lt. Gov. Val Oveson, Senate President Arnold Christensen, and Speaker of the House Robert H. at about 12.30 p.m. Garff. The group is encouraging anyone interested in the cause of peace to join them along the route during the last few days of the walk. On Saturday the group will travel Highway 73, leaving from the junction with Highway 68 outside of Lehi at 9 a m. On Sunday, they will begin walking from 9000 South along Redwood Road to 3300 South, where they will turn east to State Street. On Monday. the walk begins at 9 a.m. from 3300 South. The walkers plan on ar- riving at the Federal Building, 125 S. State, about 11.30 a.m. and from there walking to the State Capitol. t i '4 'i y |