Albuquerque Journal from Albuquerque, New Mexico • Page 1

ALBUQUERQUE JOURNAL 106th Year No. 43 110 Pages In 10 Sections Wednesday Morning, February 12, 1986 Copyright 1986, Journal Publishing Co. Daily 250 Sunday 750 House Passes $150 Million Tax Boost would increase from 3.75 cents to 4.75 cents, cities that already impose at least a half-cent would get a "credit" for that half-cent, meaning that amount wouldn't be passed on to buyers. In Albuquerque, for example, where combined state and local sales taxes total 4.375 percent, the new total would be 4.875 percent. Statewide, the sales-tax increase alone would generate nearly $98 tee.

Those bills total about $1.3 billion. But a supplemental appropriations bill is now being prepared in the House to spend the extra $150 million. That bill would specify how much would go for educational reform. The tax bill was sponsored by Rep. Robert Corn, R-Chaves, one of the House's most conservative members.

The bill would raise sales, or gross-receipts, taxes a penny in unincorporated areas of counties and a half-cent in cities. Although the official statewide sales tax favor," said Ho'use Speaker C. Gene Samberson, D-Lea, head of the House's ruling conservative "It's a reasonable compromise." Legislative leaders and administration officials agree a tax increase is needed to finance state government at a time when revenues from oil and gas, investments, and other sources are declining. Spending bills aimed at financing state government without the tax increase already have passed the House and Senate and await the outcome of a conference commit By David Staats OF THE JOURNAL'S CAPITOL BUREAU SANTA FE t- The House overwhelmingly approved a $150 million tax increase Tuesday the largest tax increase in New Mexico history, according to its sponsor. With just a half-hour of debate, House members voted 63-3 to raise income, gross-receipts and corporate taxes effective July 1.

The measure now heads to the Senate. The amount is a compromise between legislative conservatives, who originally sought about $104 "We've indicated to the Legislature that $210 million is the least we felt we could live with without making deeper cuts, but if $150 million is all we get, then we'd be forced to find $60 million more in cuts from an already bare-bones budget," Anaya said through a spokesman. "I think it's a bill we can live with at least for the year," said Rep. Dick Minzner, D-Bernalillo, the House Democratic leader. "It probably is well above what I would personally favor, but it's well below what many others would The House Education Committee passed an amended public school reform bill that gives teachers broad rights to appeal being fired.

Page A8. million for the general and road funds, and Gov. Toney Anaya, who initially requested $225 million. MORE: See HOUSE on PAGE A3 w-1 II I I I II. I Ml pilMMMpgaapilllll III IHII I I HlHlllill 10 Drop Expected In Home Gas Prices Lack of Money Forces Closing Plan For UofA College Committee Will Study Ways To Continue With Smaller Institution 4 ite'if By Mary Engel JOURNAL STAFF WRITER 1 Av 'fW 4 The UofA campus was deserted and quiet Tuesday night a scene that will become all too familiar soon.

Page Bl. In many ways, UofA has come full circle since its beginnings in 1920 as the St. Francis Summer College. Page Bl. 7 vv LOS ANGELES TIMES WASHINGTON POST SERVICE WASHINGTON Plunging worldwide oil prices will force the price of natural gas down 10 percent or more this year and save millions of dollars for residential and commercial customers, industry observers say.

"We are looking at another 10 percent decline in natural gas prices for residential consumers if oil holds at the currently depressed price," said Mike German, vice president of planning and analysis at the American Gas Association, which represents 300 utilities and pipelines. Benjamin Schlesinger of Benjamin Schlesinger Associates, a natural gas consulting firm, said falling oil prices should drive the "spot" price or price paid by pipeline companies and utilities when no long-term contract is involved for natural gas down by between 15 and 20 percent by this summer. Gas follows the rise and fall of oil prices because many of the largest energy customers can use either fuel. And, if oil prices fall far enough, those customers can threaten to switch fuels unless natural gas utilities lower their rates. Thus, there is intense competition for lucrative large commercial and industrial customers that can choose between natural gas and low-grade residual fuel oil, AGA's German said.

"As competition between natural gas and oil intensifies, that drives down the wholesale cost of natural MORE: See DROP on PAGE A3 7 Ten mouths ago, University of Albuquerque President Alfred McBride called for hard work and prayers to keep the financially troubled college open in the face of dwindling enrollments and mounting deficits. On Tuesday, a somber McBride acknowledged that hard work and prayers weren't enough. In spite of a bare-bones budget this past year, and even in spite of the beginning of what appears to be a successful fund-raiser, the UofA as it currently exists will close at the end of the spring semester. A UofA committee will work over the next week to develop a "contingency plan" for keeping the 66-year-old college open in some reduced form. McBride said Tuesday that he didn't know what shape that could take.

"Can it continue in any form? I'd like to think that it can," McBride said. "We'll just have to see." But, he added, "There is no question the institution, as it is presently configurated cannot go on." The Catholic, liberal arts college currenty offers four-year degrees in 31 fields, and associate degrees in nine fields. The decision was reached last week in a joint meeting between the UofA Board of Trustees and the finance committee of the Archdiocese of Santa Fe. The archdiocese has sponsored the school for three years. McBride said the UofA simply does not pull in enough money from tuition to meet the expenses of operating the 68-acre, 17-building campus.

The school has 120 employees, 60 of whom are faculty members. The majority of its 1,180 students are part-time. The chances of substantially boosting enrollment and thus tuition income seem dim, particularly if a community college opens in Albuquerque, McBride said. A bill to make the Albuquerque Technical-Vocational Institute into a community college already has passed the state Senate, and is now before the House. McBride predicted that even if that bill fails, such a measure will probably pass within the next year or two.

About one-third of the UofA's students are enrolled in two-year MORE: See MONEY on PAGE A3 ASSOCIATED PRESS At the Wailing Wall Soviet dissident Anatoly Shcharansky, snsky, 38, was freed on a Berlin bridge and wearing a skull cap, prays at the sacred flown to a tumultuous welcome in Israel. Wailing Wall in Jerusalem Tuesday. Shchar- Story on Page A6. Reagan Envoy Due in Manila 'Neutral' President Says U.S. Won't Takes Sides in Election APS Fires Pair Linked to Alleged Misuse of Funds THE ASSOCIATED PRESS By Jeff Await JOURNAL STAFF WRITER t3 ip I mill II i 1 I in i in ii Twin 111 I i ill Corazon Aquino still in doubt several days after the balloting closed.

Many observers, including a group of Americans dispatched by Reagan, have reported evidence of vote-buying, intimidation and violence on the part of the Marcos forces. Both sides have claimed victory, and the Marcos-controlled National Assembly is preparing a final, official canvass. Sources say the administration expects Marcos to emerge the winner in the election, and despite the allegations already aired, Reagan seemed eager to say nothing to offend the veteran leader. The American naval base at Subic MORE: See REAGAN on PAGE A3 diplomat Philip Habib to Manila to meet with church, government and business leaders in an attempt to "help nurture the hopes and possibilities of democracy." At a question and answer session dominated by foreign policy issues, the president welcomed the release earlier in the day of Anatoly Shcharansky, and said he hoped-other Soviet dissidents would follow him to freedom. He also said any attempt by Soviet leader Mikhail Gorbachev to link the timing of this year's scheduled summit to U.S.

concessions on arms control "wouldn't work." Reagan's comments on the Philippines came with the outcome of the election between President Ferdinand Marcos and challenger WASHINGTON President Reagan expressed concern Tuesday night about violence "and the possibility of fraud" in the Philippines presidential election. He said the United States won't take sides in the contest, noting "one cannot minimize the importance" of American bases on the islands. "We're neutral, and we then hope to have the same relationship with the people of the Philippines that we've had all these years," Reagan told a nationally televised news conferepce. Even before Reagan strode down a red carpet into the White House East Room to open his news conference, he issued a statement announcing he would send veteran U.S. ASSOCIATED PRESS PHOTO President Reagan said he's sending diplomat Philip Habib to Philippines.

Two employees of Albuquerque Public Schools Special Education department have been fired after an internal investigation implicated them in a scheme of misusing department funds that apparently spanned several years, officials said Tuesday. APS Superintendent Lillian Barna said she met Monday with District Attorney Steven Schiff, who will consider possible charges against the former employees. "I indicated to the District Attorney's Office that I want this matter investigated to the fullest," Mrs. Barna said. "The findings of APS security were such that they did indeed constitute a basis for an investigation." Those findings indicated discrepancies in overtime accounts and in accounts used to pay companies and individuals that evaluate and diagnose students for the special education program.

Although officials would release no figures for the amount of money allegedly drawn from those accounts, one source said the figure is about $45,000. Mrs. Barna said numerous transactions could not be substantiated and they "appear to go back several years." A tip in mid-January that funds were being illegally tapped from the administrative offices of special education led to an immediate investigation, Mrs. Barna said. The two employees, whose names were not released, were suspended two weeks ago and were WEDNESDAY told the space shuttle commission.

Page A2. A woman who died of cyanide poisoning after taking Tylenol capsules, leading thousands of stores nationwide to take them off their shelves, was killed by someone who placed the poison inside the package within the last 10 days. Page D10. leading independent natural-gas producer, in a stock swap. Page C9.

Metropolitan The University of New Mexico Faculty Senate warned the Legislature Tuesday that the faculty is prepared to take "some form of job action" if the Legislature does not improve UNM salaries. Page Bl. Nation Cold temperatures adversely affects the rings that formed a critical part of the seal between segments of the ChallengerXbooster rockets, a NASA official Good Morning Another tax increase is on the way. At one time just death and taxes were certain. Now it's death, taxes and increases in taxes.

Weather Mostly fair skies, gradually warmer temperatures. Winds westerly 5 to 15 mph. High low 40s. Low near 18. Page Dll.

Business United States Steel Corp. easily won shareholder approval to Oil Gas Cpn-. a ACTION LINE A2 DAILY RECORD B9 METROPOLITAN B1 BRIDGE All DEAR ABBY B4 MOVIES C6 BUSINESS C9-12 DEATHS Oil NEW MEXICO B3 CLASSIFIED D3-10 EDITORIALS A4 SPORTS C1 COMICS D12 HAPPENINGS B7 TRENDS BS CROSSWORD B4 HOROSCOPE B4 TV All MORE: See APS on PAGE A6 -At-.