Banner Graphic, Volume 21, Number 153, Greencastle, Putnam County, 4 March 1991 — Page 3

Locals pay more under Bayh education plan

INDIANAPOLIS (AP) Cuts in state funding for schools and tax increases aren’t in Gov. Evan Bayh’s vocabulary, but they’re in his budget And the Democratic governor’s critics say he ought to admit that instead of telling public school officials that they need face no reductions in funding under his spending plans. ACCORDING TO fiscal experts of both parties, the complicated budget and school funding plans endorsed by the administration would reduce state support to public schools by about $206 million over the next two years. However, if schools raise their local property taxes as the Democratic plan contemplates, schools could make up the difference, and some might get small increases. Neither Bayh nor his critics substantially question those facts. But the interpretation of them has triggered a disagreement that promises to linger throughout the rest of the legislative session. IN PUBLIC statements and letters to school officials, Republicans contend Bayh and Democrats are misleading the public by maintaining that education funding is being “straight-lined,” the Democrats’ term for keeping funding at current levels. “Our simple point is this: It’s time to start telling the truth,” said Rep. Patrick J. Kiely, an Anderson Republican and one of the Legislature’s fiscal experts. “Don’t say you’re not cutting state aid when you are cutting state aid. “The fact is he’s cutting state support to public education by $206 million, and they’re forcing them (local schools) to raise taxes to make it up,” said Kiely. “That’s tlic issue.** BAYH, IN HIS own letter to school superintendents and in interviews, responds that Republicans are using scare tactics by telling

Sudafed capsules pulled after tampering in Seattle

SEATTLE (AP) The makers of Sudafed 12 Hour capsules pulled the popular cold medication off store shelves across the nation as federal authorities investigated two deaths and an injury involving cyanide-laced capsules. Burroughs Wellcome ordered the recall of about 1 million packages on Sunday. The day before, state and federal officials revealed they were investigating the poisonings, which took place in the Tacoma and Olympia areas. AUTHORITIES said they are still trying to determine if the victims had anything in common other than their separate purchases of the tainted over-the-counter cold remedy. Investigators gave no possible motive for the tampering. Meanwhile, a capsule that showed signs of tampering was returned to a Tacoma-area store as-

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school officials their overall school funding is in jeopardy and portraying the property tax increases in his plan as unusual. The governor points out that his plan would maintain the current amount of overall funding when revenue from state and local sources are combined. “It all depends on what you focus on. If you choose to focus on just the state component, that would be one thing,” said Bayh. “But I think what matters is the bottom line. “WHEN YOU SIT down to run a school, you don’t say, ‘OK, we have this much from here and that much from there.’ What you focus on is the total amount of money, and that’s what we’re trying to make whole.” But Republicans maintain the amount of money that comes from the state is a critical factor to local school corporations whose ability to raise new money is restricted under the state’s property tax control program. In recent years, the state has supplied about two of every three dollars going to local schools; under the Bayh plan, the state share would slip to about 60 percent, Republicans maintain. Bayh says the shift is only about 1.5 percent. GIVEN THOSE facts, the GOP leaders become angry when they hear Democratic rhetoric that indicates that Bayh’ plan would treat local schools substantially the same as in the past. In his letter to superintendents, Bayh said it is not true “the proposed state budget cuts millions of dollars in funding for local schools.” “There’s one thing you can’t put a spin on and that’s the check” a local school receives from the state, said Kiely. Bayh carefully avoids using the word “cut” in describing state funding for education. But, when questioned last week, he acknowledged the state won’t be

ter the recall order was issued Sunday, authorities said. Tests were being conducted to determine whether it contained cyanide. FBI agent Dick Thurston said the four Sudafed packages came from different stores. “DESPITE WHAT appears to be a localized situation, the company has decided to institute a nationwide recall,” said Phil Tracy, president and chief executive officer for Burroughs Wellcome, based in Research Triangle Park, N.C. Local police and federal authorities launched an investigation Feb. 15 after learning that Jennifer Meling, 28, of Tumwater, an Olympia suburb, had become seriously ill after taking Sudafed laced with cyanide two weeks before.

paying as much as it has for public schools. “WHEN WE HAVE the money, the state provides more. When there’s a recession as there is now and we don’t have the money, the state provides less,” he said. “Because of the national recession and the lack of money at the state level, we will not be able to provide the kind of revenue at the state level that we’re accustomed to providing,” he said.

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During the recession, Bayh argues, it only makes sense to shift more of the responsibility for paying for schools to local districts because their source of revenue, the property tax, is much more stable than the state’s principal sources of income, the sales and income taxes. BUT BAYH, WHO has made opposition to tax increases a personal trademark, adamantly maintains he’s not forcing local schools to do anything they haven’t

done before. He’s also not advocating doing away with restrictions on how much property taxes can rise. Under Bayh’s plan, the amount local districts would be expected to raise taxes is about the same as in-

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creases in recent years, he said. Budget experts estimate the average increase would be slightly less than 6 percent although the amount would vary widely by school district.

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