The Salina Journal from Salina, Kansas • Page 19

Governor plots strategy for next year details budget blueprint for highway, education funding I Kan. (UPI) Gov. John SarUn, who this year lobbied for a severance tax on minerals to bolster highway and education funding, says next year he will be pushing the tax to support public schools but not highway financing. At his Friday news conference, Carlin said his plan to prevent a "crisis" in. the state's deteriorating highway system in fiscal 1983 will be to shift $85 million from the state's taxied general fund to the highway fund.

fat money will come from taxes tram automotive sources, such as car Mies, plan Carlin aatd should lawmakers who that those who use Kansas roads should pay their upkeep. "What I am saying is I am trying to accommodate some of the concerns and certainly respond to the points that liavp been made," Carlin said. Sen. Paul Hess, a Wichita Republican who is chairman of the Senate Ways and Means Committee, said he did not "particularly like" Car- Un's approach. Although Hess endorsed the user concept, he balked at the size The stock market Gov.

John Carlin of the transfer. "That's a massive shift," Hess said. At his news conference, the Democratic governor outlined figures that will be used in the state's new budget system. This week, the state budget division sent figures to state agencies to work within their budgeting. The agencies must turn in their budgets in September.

July 1 is the start of fiscal year 1982. The 1982 Legislature will work on the fiscal year 1983 budget. Growth in revenues In total, the governor estimated the state's general fund will collect $1.52 billion in fiscal 1983, compared to $1.35 billion for fiscal 1982 a $170 million difference. Part of the $85 million transfer to highways will come from that growth in revenues, Carlin said. Usually, growth for an upcoming fiscal year is figured at 10 percent, said Legislative Research Director Richard Ryan.

Using that rule, the revenues for fiscal 1983 would increase by only $135 million and not the $170 million on which Carlin is banking. Carlin praised the new budget system, devised by Budget Director Lynn Muchmore. Under the plan, agencies receive a "base allocation" figure stemming from the estimate of how much money the state will take in. But the agencies receive two other figures to work with. One is lower than the base allocation and the other higher.

The agencies must submit budgets for all three plans, and figure out how they would conduct programs with the three budget allowances. Muchmore, appointed by Carlin in February, is the state's second budget director. He replaced James Bibb. Under the old system, agencies handed in proposals to the state describing what they wanted for the next year and the state took the process from there. The new system puts more pressure on the agencies to define how they would spend available dollars and the governor has more flexibility, Carlin said.

Although in his statement Carlin said that federal cuts would make Kansas "cut back the size and scope of state government," he said he had proposed no significant cutbacks to agencies. The state will haw a better idea of how it will need to treat programs once tt learns about federal cuts and gets more definite revenue estimates, he At the beginning of his conference, Carlin read a prepared statement saying that out of 4,600 bridges in Kansas, more than 1,800, or 40 percent, need major rehabilitation or replacement. Also, about 4,000 miles of the state's highway system has deteriorated to the same point, he said. On education, Carlin said the state can either increase property taxes to support schools or enact a severance tax, which was defeated by the 1981 Legislature. The governor said he had made no decision on what percentage of a severance tax to impose.

Last meeting for KWR board TOPEKA, Kan. (UPI) Francine Neubauer, executive director of the state's chief water policy board that will be abolished July 1, has ruled out the possibility that she will apply for the top staff post once a new board is created. The quarter-century-old Kansas Water Resources Board met for its last time Friday. Under a law passed by the 1981 Legislature, the board will be dissolved at the first of next month and replaced by a new, consolidated Kansas Water Office whose executive director is appointed by the governor instead of hired by board members. "I do not say that I do not want to continue," said Mrs.

Neubauer, who earlier had considered applying for the job. She said indications are the governor wants to hire someone with more engineering experience. Her expertise has been in administration and communications. "I feel the appointing authority would consider applicants with a different background," she said, pointing out she was the first woman and the first non-engineering administrator to head up the Water Resources Board. She declined to comment on whether she thinks her sex also worked against her chances of being reappointed.

Democratic Gov. John Carlin Friday told a news conference that applicants for the job are being considered. Under the new law, functions of the Water Resources Office and the water planning division of the state Department of Health and Enviro- ment will be merged into the Kansas Water Office. A 16-member Kansas Water Authority, an advisory board, will replace the current seven-member Water Resources Board. The governor will appoint those members from nominations submitted by organizations with various water interests.

Interest rate uncertainties stymie list NEW YORK (UPI) Stocks soared at the beginning of the week with investor hopes high that interest rates would peak but issues wound up little changed when the Federal Reserve indicated it didn't want a reduction in charges. The Dow Jones industrial average, which soared through the 1,000 level briefly early in the week, managed to gain 2.04 to 993.79. It climbed 20.03 points the previous week. Analysts said the market historically has encountered profit-taking problems when the Dow industrial average gets 0 the 1,000 level. Some investors have automatic selling programs at that barrier.

Dow penetrated the 1,000 level stye-times earlier this year, but retreat- time. The last tune it closed abpvje the mark was on April 29, when itjHnJshed at 1,004.32. New York Stock Exchange index shea; 0.26 to 76.73 and Standard Poor's 500-stock index eased 0.37 to 132JB. Declines topped advances fJGllmong the 2,128 issues traded. Board volume totaled 266,933,083 shfares, compared with 212,583,280 traded a week earlier and 196,353,000 traded during the sam week a year ago.

Analysts believe the market is poised for a major rally, but are uncertain when it will start as long as there is confusion about interest rates. Fed keeps lid on -The Federal Reserve reported little oqpige in the nation's money supply Friday after two decreases. Nor- that news would mean the Fed wduld loosen its reins on credit and in- tirjast rates might fall. was the thinking earlier this wfek and the market soared early Monday, but traders were jolted when indicated it wanted fees to remain high when it allowed federal funds rates banks charge one another for overnight loans to soar as high at 21 percent. Although Girard Bank of Philadelphia raised its prime lending rate a point to 21 percent early Friday, other short-term rates were falling late in the day after the Fed issued the money supply figures.

Investors, noting no other bank followed Girard in the prime-rate move, are hoping charges will continue falling next week. Bolstering those hopes was the government's report that producer prices rose only 0.4 percent in May after jumping 0.8 percent in April and 1.3 percent in March. Further, durable goods orders and housing starts eased. Also, observers believe OPEC's decision to freeze oil prices for the rest of 1981 and actual declines in some prices will aid in the battle against inflation. This is something both Washington and Wall Street want.

Airline issued were strong because investors believe that falling oil prices will benefit the carriers. Oils fluctuated. The tax cut Meanwhile, President Reagan accepted a tax cut of 25 percent over a 33-month period. He initially had proposed a 30 percent reduction over three years. Reagan said he would deliver a national television address to push for the plan.

Composite volume of NYSE issues listed on all U.S. exchanges and over the counter totaled 306,506,753 shares, compared with 241,930,890 traded last week. On the trading floor, IBM was the most active NYSE-listed issue, off to The stock scored well early in the week after the company asked the Justice Department for talks to resolve a 12-year-old antitrust suit. Both sides in the case rested their cases Monday. Sears Portrait Studio rx I Children Adults Family Croups Family Group Portrait Special yw." 1 10x13 Wall Portrait and 2 8x10 with mats plus 10 wallet size color portraits onlyttf OC including deposit I at time of sitting Bring your entire family to Scan for this Sunday portrait special and receive enough photographic portraits to save as treasured family keepsakes and to share with loved ones, relatives and friends as unique, personal gifts.

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Offer good Sunday, June 7th only Sunday hours 1-5 p.m You can count on Satisfaction Guaranteed or Money lack HAM. MMUCK AW CO Atlantic Richfield was the second most active issue, up to Other oils were mixed. They fell early in the week and then rebounded. Sony a big winner in recent weeks following recommendations by several analysts, was third on the active list, off IMi to Kennecott rose to in active trading after the Federal Trade Commission cleared the way for it to merge into Ohio Standard. The stock has been removed from the Big Board list now that the merger has occurred.

Mary Kay Cosmetics, a which declared a 2-for-l sock split, gained 9 to Some analysts have recommended the stock. Texas Instruments plunged 8 points to 100V4. The company last week said its is laying off 2,800 workers permanently because of weakness in the semiconductor business. Federal Paper Board skidded 6V4 to The company said Thursday it plans to repurchase a block of 1,835,000 of its own shares from Reliance Group at $40 a share. rose to The company said the activity has been tied to its report that its second-quarter orders were the highest in its history.

On the American Stock Exchange, the market value index lost 6.99 to 370.01. Declines topped advances 479359 among the 931 issues traded. Volume totaled 35,835,420 shares, compared with 27,366,915 the previous week and 27,725,140 traded during the same period a year ago. International Banknote was the most active Amex issue, up to Houston Oil Trust followed, up to 27V 4 Champion Home Builders was third, up to 3V4. The National Association of Securities Dealers' NASDAQ composite OTC index slipped 2.17 to 221.30.

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