Banner Graphic, Volume 22, Number 109, Greencastle, Putnam County, 10 January 1992 — Page 2
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THE BANNERGRAPHIC January 10,1992
Bayh gives prescription for tough times
INDIANAPOLIS (AP) Declaring Indiana faces “a time of tremendous challenge,” Gov. Evan Bayh has announced a $l2O million spending reduction plan to get the state through the national recession. In his fourth annual State of the State address, the Democratic governor told a joint session of the Indiana House and Senate that “times are tough.” BUT HE SAID Indiana government also has the opportunity to prove to 5.5 million Hoosiers that government can tighten its belt, just as families do in tough times, instead of resorting to tax increases. “Let us restore the faith of the people of Indiana in our state government,” Bayh said in a 29minute speech televised statewide. “Together, let us seize the opportunity to prove to the people we represent that government can do what they must do each and every day: get through these hard times with less.” Bayh’s speech was warmly received by Democratic legislators and administration department heads who helped pack the House chamber. But in an election year, in which Bayh plans to stand for reelection, Republicans rarely applauded the governor who ended
Banner Graphic (USPS 142-020) Consolidation ol The Daily Banner Established 1850 The Herald The Daily Graphic Establiahedloß3 Telephone 853-5151 Published daily except Sunday and Holidays by Banner Graphic, Inc. at 100 North Jackson St., Greencastle, 1N.46135. Second-class postage paid at Greencastle, IN. POSTMASTER: Send address changes to the Banner Graphic, P. O. Box 509, Greencastle IN 48135. Subscription Rates Per Week, by carrier 81.40 Per Week, by motor route .31.45 Mall Subscription Rates R.R. IN Rest nf Rest of Putnam Co. Indiana U.S.A. 3 Months 821.00 $23.00 825.00 6 Months $40.00 845.00 $50.00 1 Tear $78.00 SBB.OO $95.00 Mail subscriptions payable in advance ... not accepted in town and where motor route service is available. Member ol the Associated Preue The Associated Press ie entitled exclusively to the use for republication of all the local newa ' printed in this newspaper. - Steve Hendershot General Manager/ Marketing Director Eric Bernsee Editor Wilbur C. Kendall Production Manager Gib Farmer Business Manager June Leer Circulation Manager
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GOV. EVAN BAYH Tightening the belt
their 20-year hold on the AMONG THE GOP leaders attending the address were the party’s three gubernatorial candidates Attorney General Linley E. Pearson, Superintendent of Public Instruction H. Dean Evans and Valparaiso businessman John A. Johnson. Bayh devoted the first half of his speech to describing how the recession has ravaged the state economy
Bayh only talks good game: GOP
INDIANAPOLIS (AP) Gov. Evan Bayh’s proposed spending cuts will only postpone inevitable layoffs and tax increases, according to leading Republican lawmakers. “His old philosophy of ‘Don’t worry, be happy’ has ignored reality and postponed our dealing with the dilemma,” said Senate President Pro Tern Robert D. Garton, R-Columbus. “IT WAS, AGAIN, well-written, well-rehearsed and well-presented, but then again, so was the ‘Sound of Music. The real question is can the people of Indiana take the governor at his word?” As usual, Democrats praised the governor’s speech Thursday night, but social service advocates warned that the spending cuts proposed by Bayh would hurt Hoosiers who are the
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Bill MARVIN CLIFFORD DALLAS SUTHERUN MARILYN KIDWELL ROB YORK
and to explaining how he plans to adjust in a time of declining revenues. His cost-cutting plan would go two-thirds of the way toward closing a projected sl6l million budget gap by mid-1993. Other economy measures could be required later, he said. BAYH SAID HE has ordered state departments to cut $lO5 million in spending and he also will not permit state employee pay raises, which had been budgeted at sls million. The spending cuts will be achieved by imposing 3 percent across-the-board reductions on state agencies, a partial hiring freeze and controls on one-time expenses such as equipment purchases. There also will be an increased use of federal and dedicated funds, especially in social services, Bayh said. While state employees won’t get raises, there won’t be employee layoffs that some administration officials had threatened. “WHILE THE CHOICE between layoffs and pay raises is unpleasant, the choice is clear,” said Bayh. “We can avoid large-scale layoffs of state workers, but to achieve this we cannot afford a pay raise at this time.”
most in need. Republicans reviewed Bayh’s previous reports on Indiana’s condition and pointed out what they believed were broken promises. House Minority Leader Paul S. Mannweiler, R-Indianapolis, said Bayh has cautioned against deficit spending, but now Indiana spends a million dollars more than it takes in each day. The governor talks about a hiring freeze, Mannweiler said, but the Department of Commerce advertised last Sunday for three new positions that pay $50,000 each. “INDIANA HAS not had a balanced budget since Gov. Bayh came to office,” Mannweiler said. The GOP leadership said Bayh’s cuts would merely postpone inevitable tax increases and layoffs of
During the time of austerity, the state will not resort to tax increases and it will not reduce its expenditures for education, Bayh said. He said raising taxes during the recession “would be like throwing gasoline on a fire.” Schools already face tight budgets, and “this is not the time to add to their burdens,” the governor said. ALTHOUGH MUCH of the speech was a lament about hard times, Bayh said the state has much to be proud of in its management of its finances. Twenty-six states raised major taxes last year and 30 will do so this year, but Indiana won’t, he said. Nineteen other states have had to lay off state employees, and 16 states cut aid to education, he said. Also, Indiana still has a surplus of more than SSOO million in the bank, he said. Bayh didn’t mention that the current two-year budget will spend much of that surplus next year. UNLIKE PAST State of the State speeches, this year’s address was short on legislative initiatives, a limitation dictated by the state’s lack of money. But Bayh did use the speech to campaign and seek bipartisan support for his workforce development
state employees until after the November elections. “When the ship crashes is in 1993 when all the reserves are gone,” said Sen. Morris H. Mills, an Indianapolis Republican who is a key member of the Senate Finance Committee. JAN LINDEMANN, a lobbyist for the Indiana Coalition for Human Services, said Bayh’s cuts would be borne on the backs of Hoosiers who are in dire need. “I am outraged that he would think the cuts he’s taking will not affect state services,” she said. “It is an upper class mentality to call this belt-tightening.” But Democratic leaders praised the first-term Democratic governor for avoiding state employee layoffs and challenging the General Assembly to work together. “WE’VE GOT SOME real economic problems and he faced up to them,” said Senate Minority Leader Dennis P. Neary, DMichigan City. “One good thing is he probably won’t have any layoffs for state employees.” House Speaker Michael K. Phil-
Teach critical thinking, IU profs say
BLOOMINGTON, Ind. (AP) When it comes to basic skills such as reading, writing and arithmetic, Indiana schools are doing an average job, but curricula also should inspire critical thinking, two Indiana University researchers say. Teaching basics is not going to increase economic development in Indiana or any other state, said Eugene B. McGregor Jr., a public policy professor in Indiana University’s School of Public and Environmental Affairs. “It is only when you get to complex thinking that we do see an impact.” McGREGOR AND another IU professor, Robert G. Lehnen, studied the link between public education and economic development in all 50 states. The study was commissioned by the Indiana Education Policy Center, an IU research center. The researchers are scheduled to
Matheney death sentence is upheld
INDIANAPOLIS (AP) Alan L. Matheney, found guilty of murdering his ex-wife while he was out of prison on a pass, lost an appeal to the Indiana Supreme Court. M © HOOSIER LOTTERY. Lotto America Lottery Line INDIANAPOLIS (AP) Here are the winning numbers selected Thursday in the Hoosier Lottery: Daily Three 7-9-8 Daily Four 3-4-8-6 Lotto Cash jackpot Estimated at $2 million Lotto America jackpot Estimated at sl6 million
package. That proposal would require Hoosier students to pass an exit exam before graduating from high school and would raise the mandatory age for school attendance from 16 to 18. To emphasize the importance of workforce training, Bayh called Mike Hien of Crothersville to the podium and told the story of how Hien was laid off for two years, went through job training and is now back working at Cummins Engine’s Walesboro plant THE GOVERNOR shook Hien’s hand and embraced him as the audience applauded loudly. “Mike, I’m proud of you,” said Bayh. “You’re an example of the government I want one that works by helping people work. You’re why we must act and act now.” In another section of the speech, Bayh also went to great lengths to criticize the federal government for imposing new mandates and costs on states like Indiana. He cited the savings and loan bailout and the acid rain bill, which hits Indiana utilities hard. “THE NAME OF this nation is the United States of America, and it’s about time that the federal government started giving to the state of Indiana its due,” he said.
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SEN. ROBERT GARTON ‘Don’t worry, be happy’
lips, D-Boonville, said he was certain the governor would do all he could to avoid layoffs. “It’s certainly within his power. I think he can do that I think he understands and has a vision that’s important for the people of this state,” he said.
talk about some of their conclusions during a seminar today at the policy center. The conclusions echo some of the warnings from various business executives* in recent years. “ON THE BASIC-skills yardstick, we don’t look too bad. But that’s missing the forest for the trees,” Lehnen said Thursday. McGregor and Lehnen believe a second set of skills what McGregor calls complex thinking or critical thinking will be necessary for the work force of the 19905. “That’s the stuff that makes a modem production system go,” he said. THOSE SKILLS include creative thinking, decision making, problem solving, visualization and knowing how to acquire knowledge. On the production line of the fu-
The court voted unanimously Thursday to uphold Matheney’s murder conviction for the March 3, 1989, beating death of Lisa Marie Bianco in her Mishawaka home. The court voted 4-1 to uphold his death sentence. HAVING LOST his initial appeal, Matheney could ask the state’s highest court to reconsider. He also can pursue an appeal through the federal courts. Matheney, 40, committed the crime while on an eight-hour pass from the Correctional Industrial Complex at Pendleton where he was serving seven years for battery and confinement. Those convictions came after a previous attack on Bianco. After the 29-year-old Ms. Bianco’s death, the state closed the release program that allowed Matheney to leave prison, fired two correctional employees and wrote new guidelines for screening inmates for other release programs.
Highlights of the speech INDIANAPOLIS (AP) Here are highlights of Gov. Evan Bayh’s State of the State address Thursday: SPENDING CUTS Bayh proposed reducing state spending by $l2O million to make up for most of a projected sl6l million revenue shortfall. He imposed 3 percent across-the-board cuts on most agencies, a partial hiring freeze and limits on equipment purchases. The largest single contribution to the savings plan will be $65 million from the Family and Social Services Administration. Increased federal aid for hospital services accounts for S2B million of that and Medicaid cost containment is expected to save $12.2 million. The Department of Correction is expected to save $lB million. Those savings will come because prisons now under construction won’t be in operation as soon as expected. ECONOMIC DEVELOPMENT Bayh urged bipartisan support for his workforce development and job training proposal pending before the Legislature. The program would require a student to pass an exit exam on essential skills before graduating from college and would raise the mandatory age for school attendance to 18 from 16. FEDERAL GOVERNMENT Bayh denounced the federal government for treating Indiana unfairly. He cited as examples Indiana citizens’ contribution to the savings and loan bailout, and the hard impact on the state of the acid rain bill. HEALTH CARE The governor said the Department of Insurance is working on a program to expand Medicaid so senior citizens can get affordable long-term insurance. He said he also asked the Indiana Commission on State Health Policy to recommend a new program to cover the treatment of catastrophic and chronic illnesses. ENVIRONMENT Bayh said his administration will continue its efforts to curb the flow of out-of-state waste into Indiana. He said his staff has met with Ontario officials to discuss stopping Canadian trash shipments, and he has signed a compact with New York.
ture, workers will have to be able to find and fix a problem without the traditional, straight-line supervision of past production lines, according to the researchers. In that kind of system, the critical thinker becomes one of the company’s most important assets, McGregor said. “You don’t get to that valued position without a lot of training,” he said. When compared with the rest of the nation, Indiana schools fall in the middle in teaching critical skills, he said. Improving critical-thinking education may include changing teaching methods and school curriculums, according to McGregor. If that second set of skills isn’t mastered, the researchers said, Indiana and the nation face a gloomy future.
IN HIS APPEAL, Matheney’s lawyers argued that he committed a crime of passion, acting in sudden heat after he became enraged at the sight of his ex-wife. A voluntary manslaughter conviction and a lesser sentence would have been appropriate for a crime committed out of sudden heat, the attorneys argued. The court disagreed. “There was no evidence to indicate Bianco provoked (Matheney) either by words or actions,” Justice Richard M. Givan wrote for the court. “There is no evidence from which the jury logically could find sudden heat.” MATHENEY ALSO argued that he was impeded in presenting an insanity defense by the trial court’s decision not to allow defense attorneys to call St. Joseph County Prosecutor Michael Barnes as a witness. Barnes had written a letter in which he referred to Matheney as troubled and very sick.