Banner Graphic, Volume 13, Number 102, Greencastle, Putnam County, 6 January 1983 — Page 3

Add $39 million to block grants. Democrats urge

INDIANAPOLIS (API - Two Democratic legislators say Indiana should add $lB to $39.3 million in block grant funds for social services, heating, and health services in the next two years to respond to New Federalism’s block grant challenge. Rep. William A. Crawford of Indianapolis says one means of funding the proposals would be to impose a 20 percent tax on arcade games, bringing in $23 million. As the General Assembly began its 1983 working session Wednesday, Crawford and Rep. James Jontz, D-Williamsport, told reporters Indiana has not yet responded adequately to New Federalism’s block grant challenge, but can try to do so this year. New' Federalism and the block grant program allocate federal funds to the states and allow the states to determine the distribution priorities. Jontz and Crawford said Gov. Robert D. Orr has proposed allocating sl6 million for social service block grants in the twoyear budget proposal expected to be presented to the Indiana General Assembly. Crawford said in 1981 the state planned to appropriate $lB million but only provided sl6 million. The two lawmakers told a Statehouse news conference Indiana should add sl4 million for social service block grants and

First workday uneventful

'B3 Legislature gets under way

INDIANAPOLIS <AP> - The Indiana General Assembly has begun its 1983 session with the task of putting together the budget for the next two years already weighing on its mind. The House Judiciary Committee was the first to schedule any meeting, with a 10 a.m. discussion scheduled on three bills dealing with divorce and punitive damages. The Senate was scheduled to convene at 1:30 p.m. today and the House at 2 p.m., after meeting briefly Wednesday to handle the routine affairs that mark the beginning of any session. Until legislative committees begin meeting and screening the hundreds of bills that are

rate reaches 14%

INDIANAPOLIS (AP) - Indiana’s unemployment rolled climbed by 26,900 in November and reached its highest seasonally adjusted rate of 1982 at 14 percent, according to figures released by the Indiana Employment Security Division. In its report released Wednesday, the division said November's rate represents 340,000 unemployed Hoosiers from a labor force of 2,614,700. The figures are the latest available from the state agency. The rate was the highest of the year. However, total unemployment was higher in the first two months of 1982 when the labor force was larger. In January, Indiana had 354,400 unemployed and a seasonallyadjusted rate of 12.6. The only pther month when Indiana had more people unemployed than in . November was Febuary when a rate of 12.1 was reported with 342,500 unemployed. Harry McFarland, the division’s director, said the November rate exceeded October’s figure by nine-tenths of a percentage point and was produced by a larger than normal drop in employment. Of the state's 12 metropolitan areas, McFarland said only Lafayette had a lower unemployment figure in November than in November. More than 75 percent of Indiana’s 58 rural counties also had higher unemployment in November, he added. Kokomo had the state’s top unemployment rate for Novem-

$4.8 million in community service block grant programs in the upcoming budget, which they say would restore funding of services to 1981 levels. Crawford wants to add an additional $20.5 million for preventive health and emergency heating money. Crawford wants to add $5.5 million it* preventive health block grants and sls million for low-income energy assistance. But state Sen. Ernest Niemeyer, R-Lowell. the chairman of the legislative Study Committee on Block Grants, believes its too soon to act. without seeing how much the state gets in federal funds, without an updated revenue forecast, and without a better reading of what programs need more funding. Jontz disagrees. “The governor and Republicann legislative leaders have enthusiastically embraced the idea of New Federalism, but they have shunned the respon-

being filed for consideration, sessions of the full House and Senate will be occupied with congratulatory resolutions, the introduction of high school sports teams, and routine business. Lawmakers will be able to introduce bills until late January. In the Senate, the deadline is the 12th session day; in the House, the cut-off point is the 15th session day. The big job facing the Legislature this year is the passage of a two-year budget to chart the course of state spending for the coming two years. The House Ways and Means Committee will start budget hearings next week and hopes to wrap up by mid-February, said committee chairman Rep.

ber at 22.4, with 9,600 unemployed in the central Indiana city which is heavily dependent on the auto industry. Anderson, another central Indiana city deeply involved with auto production, was next at 19.4, and was followed by Muncie at 18.6. Muncie, which had 9,600 unemployed, recorded the biggest percentage jump in the state since October with a climb of 3.2 percent from last month. The Calumet region of Gary-Hammond-East Chicago was next at 13.5 with 54,300 unemployed. Only Indianapolis had more unemployed with 64,800 and an adjusted rate of 11.0. One reason the rate low in Indianapolis is its reporting area includes the suburban counties of Hamilton, Hancock and Hendricks which recorded the state’s lowest unemployment rate for the month. Fountain County had the highest unemployment rate of Indiana’s 92 counties at 26.9 with 2,150 residents out of work. Ohio County was second at 23.1. Perry and Scott counties w.ere also high at 22.6. Nearly 100,000 of the state’s unemployed live in Marion or Lake County. Marion County reported 471,000 unemployed from a labor force of 409,100. Lake County, hard-hit by problems in the steel industry, had an unemployment rate of 18.8 percent with 46,100 unemployed from a labor force of 245,500.

state

sibilities it places on the doorsttep of state government,” Jontz said. “Saying that the New Federalism is a good thing for Hoosiers does not make it so. We in Indiana are going to have to get busy and assume some new responsibility if the New Federalism is to be more than a hollow promise to the people of our state,” Jontz said. Both expressed disappointment in the work of the legislative Study Committee on Block Grants, chaired at its final meeting last month by Niemeyer. Niemeyer, the former vice-chairman, replaced Rep. Bob Pruett, R-Madison, who was defeated in November. “Testimony presented to the Block Grant Study Committee this summer outlined numerous areas where cuts in federal money coming to Indiana have meant hardship and lost opportunities,” Jontz said. “In spite of efforts by state agencies and local service

Patrick Kiely, R-Anderson. Kielv said there is little sentiment among Republicans to provide more than a 5 percent increase in funding levels, as recommended by the State Budget Committee. There will be money for raises for state employees, but the committee chairman declined to say how high. “Whether a lot of people want to believe it or not, it’s still an employer’s market,” Kiely said. “We re going to be fair to our employees, but in a lot of ways, being employed is fair.” Senate President Pro Tern Robert D. Garton, R-Columbus, told reporters the Legislature may adjourn the first week in April. By law, the Legislature

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providers to stretch remaining dollars, the New Federalism in Indiana has meant longer waiting lines for services for the mentally retarded, fewer mental health services for children,and elimination of outreach and educational services at many family planning clinics,” he said. Jontz said the committee spent last summer and fall traveling around the state and wound up making “no recommendations as a committee at all —not one.” Jontz said he expected Democrats would file bills and make budget suggestions during the 1983 General Assembly to add to the block grant program. Niemeyer said a committee report was being prepared this week which would include the suggestions of individual committee members, but no full committee recommendations.

must adjourn by April 30. Although the state is awaiting later revenue forecasts, Garton said the tax increase package passed in a special session in December has laid the groundwork for a budget frame. “Your parameters are reallyset for your budget,” Garton said. "I think it will change the pressures but I don’t know how.” The Legislature raised the state sales tax from 4 to 5 percent and the state income tax from 1.9 to 3 percent in an effort to overcome a deficit projected to top $450 million by June 30. “There’s no guidelines for this session because the tax bills are out of the way,” Garton said.

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