Banner Graphic, Volume 17, Number 27, Greencastle, Putnam County, 2 October 1986 — Page 3
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A silent oil-pumping rig is mute testimony to the fiscal emergency in Texas, where the legislature completed stop-gap measures to keep the state
Texas hikes taxes, makes cuts to offset oil revenue loss
c. 1986 N.Y. Times News Service AUSTIN, Texas After nearly eight tumultuous weeks, two back-to-back special sessions of the Texas Legislature have finally come up with a compromise plan to keep the state treasury solvent. Before adjourning Tuesday night, the Senate passed a package of higher sales and gasoline taxes, spending reductions and bookkeeping devices that will not erase Texas’s deficit but will provide enough cash flow to get the state through Aug. 31, 1987, the end of the fiscal year. Gov. Mark White quickly signed the tax bill before midnight after returning from a campaign trip. But nobody pretended the plan was anything more than a patch repair, what Lt. Gov. William P. Hobby called a “small Band-Aid.” The same battles will be fought again when the Legislature reconvenes Jan. 13 to draft its next budget. Slumping prices for oil, a main source of revenue, have thrown Texas into what White has called the largest state budget deficit in American history. The outcome of the sessions was widely considered to be a victory for White, a Democrat who last August called for higher taxes despite stiff political opposition ata time when he was embarking on an underdog race for re-election against a former Republican governor, Bill Clements. White’s standing in the polls has risen steadily, and he appears to have altered the widespread sentiment that he lacked the capacity for leadership. The end of the session was marked by all the political animosities, philosophical conflicts and antics that have characterized the Legislature since it began to struggle with the reality that this on-ce-booming state was passing from an era of wealth into one of scarcity. The final gavel was delayed by a five-hour filibuster by a Republican senator, J.E. “Buster” Brown, who opposed the higher taxes. And the leadership of the House of Representatives had to twist every arm in sight to find the 100 votes needed to delay the state’s contribution to teacher and state employee pension funds until next year, a bookkeeping device essential to keeping the state solvent through December. Under the compromise plan, Texans will begin paying an extra cents on the dollar in sales taxes Jan. 1, raising the rate from 4% to 5V4 percent. They will also pay an extra nickel a gallon in gasoline taxes,
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solvent. Plunging oil prices created an estimated $2.8 billion deficit in Texas' two-year budget of $37.2 billion. (N.Y. Times photo)
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GOV. MARK WHITE Band-Air repair
or 15 cents a gallon. These taxes, to expire at the end of the fiscal year, are estimated to raise about $875 million. Texas, which ranks 43d among the states in per capita tax burden, has no income tax. Another $582 million is to come from budget cuts, including the cancelation of a 3 percent pay increase for state employees. ’Die heaviest burden falls on higher education, cut $lB9 million, or about 10 percent over the two-year 1986-87 budget. Public education, which has benefited from substantial increases in recent years, was left largely untouched. Other major cuts include SB6 million from welfare services and SSO million from state health services. About 1,980 jobs will be cut from the state work force.
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Even after such devices, which also include delaying the state payroll by one day, the plan still falls $953 million short of covering an estimated $2.8 billion deficit for the two-year budget of $37.2 billion. That money will be borrowed from various state funds, but will have to be repaid when the next budget is drawn. The Texas Legislature meets only once every two years and writes a two-year budget. The compromise plan cameafter an impasse between the House and the Senate. For weeks the Speaker of the House, Gib Lewis of Fort Worth, resisted higher taxes. But the House finally yielded to the Senate, which had refused to accept deep budget cuts, arguing that state services, already among the sparest in the country, had to be maintained as an investment in the future. Neither side was very happy with the outcome. In an interview, Hobby, who had wanted a permanent solution, called the compromise plan the “best available under the circumstances.” But he said the plan would damage the state, particularly in higher education, which he considers essential to transforming the Texas economy from a resource-based past to a high-technology future. “This session has been a damage control session,” he said. “The next has to be damage repair. ” White is expected to appoint a special commission to recommend permanent changes in Texas’ tax structure.
Carter library dedicated c. 1986 N.Y. Times News Service ATLANTA President Reagan came to Atlanta Wednesday to help dedicate Jimmy Carter’s new presidential library and museum, and he celebrated the man he defeated in 1980 as a President whose life and career “is distinctively and gloriously American.” Speaking before former members of Carter’s administration and an estimated 5,000 spectators arrayed on a grassy hillside beside the complex, Reagan acknowledged his political differences with the former president but said they came together Wednesday in “mutual respect.” “For myself, I can pay no higher honor than to say simply this,” said Reagan. “You gave of yourself to your country, gracing the White House with your passion and intellect and commitment.” The president observed, “This celebration is in a sense a celebration of the South the new South that Jimmy Carter helped to build.” The president’s generous remarks Wednesday contrasted with his often sharp criticism, even in recent months, of Carter’s performance as president. But after Reagan’s remarks Wednesday, in which he praised Carter’s faith and family and concluded by wishing his predecessor a happy birthday, Carter, who turned 62 years old Wednesday, rose to thank the president for his generosity and grace. The ceremonies Wednesday marked the public opening of the Carter Presidential Center, which was built with $25 million in private donations and is the nation’s eighth library complex dedicated to a former president. In addition to Reagan and his wife, Nancy, those attending Wednesday included former Vice President Walter F. Mondale, Mayor Andrew Young of Atlanta, Gov. Joe Frank Harris of Georgia, Sen. Sam Nunn of Georgia and Roberto Goizueta, chairman of the Coca-Cola Co., which is based in Atlanta.
Presenting Your Candidates VOTE REPUBLICAN November 4th, 1986
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Gerald E. Ensor for Sheriff
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John Carton for County Commissioner
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David Penturf for Surveyor
Michael Owen—Jackson Dennis O’Hair—Clinton Eugene McFarland—Monroe John Ballard—Floyd
•(Paid Political Ad)* Paid for by Putnam County Republican Womens Club
Pre-teen ban urged for three-wheelers
WASHINGTON (AP) Those three-wheel buggies that youngsters love to zoom across fields and beaches would be barred to pre-teens under regulations sent to the Consumer Product Safety Commission. An agency staff report recommends that the makers of allterrain vehicles be asked to stop producing vehicles designed for riders younger than age 12. The request is backed up with the threat of a legal ban on such vehicles. The proposal also calls for warnings that most of these vehicles are not intended for riders younger than age 16, improved safety standards and warnings for the vehicles, and an education
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Marilyn Clearwaters for Clerk of Circuit Court
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Cecil K. Turpin for County Council
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Hon. William C. Vaughn 111 for Judge Putnam Circuit Court
TOWNSHIP TRUSTEES
October 2,1986 THE BANNERGRAPHIC,
campaign for buyers. The recommendations, the result of an 18-month study of allterrain vehicles, are in the hands of safety commission members, but no public announcement has been made about possible action. Looking like motorized tricycles, the vehicles have become increasingly popular and are widely used on woodlands, wilderness areas and on beaches. However, driving them demands special skills and training, and the accident toll has mounted steadily. There have been 559 deaths reported in accidents involving the vehicles since 1982, and more than 50,000 injuries were reported in the first half of this year alone.
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Jean Foxx for County Assessor
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George W. Sandors Jr. for County Council
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Robert J. Lowe for Putnam County Prosecutor
Kenneth E. Inman—Madison Thelma Bumgardner—Greencastle Charles D. Hendrich—Marion Juanita Owen—Washington
Be’ 9 Both Sutherlin Woodard for Recorder
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Richard Asbell for County Council
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Eleanor L. Delp for Qraencaatie Townahlp Assessor
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