Statesman Journal from Salem, Oregon • 1

DJIZDCLER piiAins TllE LAIGZHS, 129-03 Clyde plays just three quarters and scores 31 points, including six of sexen sad fob TODAY Rainy, windy HIGH: LOW: 52 42 Details: Back Page Such programs sap production but ease stress, employers say. 'Star Trek: Voyager' is amone the new shows designed to Nj Pu 'n younger viewers. 1 I' ir 60 Business from 3-point range. 1 Sports Life IV' 5 QUHial luCLLiJL JL JLolJL i Tuesday, January 10, 1995 35 Cents Ci cur Linn? 4 1 rttis Salem, Oregon Insidethe Legislature "This day offers a breathing space before our real work begins. Gov.

John Kitzhaber Charter question may go to voters OA new Salem City Council member could lose his post unless action is taken. Li By John Henrikson The Statesman Journal Salem voters are likely to have the final say on changing a city charter provision that threatens to force new city Councilor Tom DeSouza from office. At its Monday meeting, the Salem City Council was prepared to refer to voters the 1857 charter language that forbids council members from having an interest in contracts with the city, a situation that DeSouza easily could fall into because of his ties to a road paving -i) 1 The Legislature opens with the governor's inauguration, followed by a trademark speech in trademark attire. By David Steves The Statesman Journal John Kitzhaber turned to two of his most reliable themes during his inauguration as Oregon's 35th governor Monday. After wearing dark, conservative suits to a year's worth of formal campaign events, Kitzhaber returned to the Capitol in the same unconventional attire blue jeans and cowboy boots along with a blazer, dress shirt and silk tie that became his trademark during 14 years in the Legislature.

The theme of his inaugural address was just as familiar as his jeans and boots. Kitzhaber, a 47-year-old Democrat, called on Or-egonians and the newly convened Legislature to rise above the bickering and division that has clouded the state's political environment. "Our success depends -on our willingness to respect our differences, on our willingness to strive to understand other points of view, and on our willingness to recognize that our most critical challenges have nothing to do with partisan politics and everything to do with the future of Oregon our future," he said. Kitzhaber's speech came moments after he took the oath of office. Please see Session, Page 2A company.

The council had not acted on the referral as of press time Monday, but Council President Loren Collins said there was support to meet the Jan. 17 deadline to put a measure on the March 28 ballot. The revised language under consideration by the council would forbid a council member "A number of councilors feel that we should take a small step, rather than a big step." Loren Collins President, Salem City Council Timothy J. GonxalezStatesman Journal NEW LEADER: Gov. John Kitzhaber takes the oath of office Mon- Kitzhaber (left), his mother, and Sharon Kitzhaber, his wife, look on as day during the opening of the 1995 Oregon Legislature.

Annabel Kitzhaber becomes Oregon's 35th governor. Senate president pushes education trust fund Full page of coverage4A from participating in any decision about a contract in which he or she is interested. Rather than ask voters to simply repeal the ordinance, councilors favored substituting language that would require business people on the council to abstain from voting or influencing the city's decision on a contract, Collins said. "A number of councilors feel that we should take a small step, rather than a big step," he said. "We wanted to be as conservative as possible putting something in front of voters this quickly." The charter crisis started after DeSouza asked the city's lawyers for clarification about possible conflicts of interest because of his employment with River Bend Sand and Gravel.

The owners of the gravel company also own a paving company that frequently bids on city road projects. Please see Charter, Page 2A But the Legislature could vote to keep the money. Smith said the surplus tax dollars were unlikely to be kept by the state unless businesses were willing to go along. "I believe it's an investment in Oregon at a time of great need for Oregon," Smith said. He said investment returns from the fund might be available to schools, from kindergarten to colleges, by 1997.

Only interest from the fund would be spent. If the fund reaches its full $3 billion by 2000, as Smith has proposed, it could result in $300 this session. That money would come from three sources: Extra lottery proceeds beyond the $722 million projected for 1995-97. The sale of state assets deemed no longer essential to state government's primary missions. Smith declined to identify which assets might be sold off.

Retaining surplus corporate income taxes from 1993-95. That money, estimated at $130 million, is supposed to be returned to corporations because it exceeds the 1993 Legislature's projection by more than 2 percent. million a year going to schools, based on investment returns of 10 percent. That amounts to about 7 percent of the $4.1 billion from the general fund that Gov. John Kitzhaber has proposed for education in 1995-97.

As a result of Smith's proposal, Kitzhaber found himself talking about someone else's initiative during his first news conference as governor, rather than dwelling on his own agenda. Kitzhaber, like education and business leaders, said he didn't have enough specifics yet to offer an opinion on Smith's proposal. By David Steves The Statesman Journal Newly appointed Senate President Gordon Smith wasted no time in seizing center stage Monday, proposing the creation of a $3 billion Education Trust Fund. Amid a day of high-minded speeches that dwelt on broad themes, Smith announced that he wanted to establish a trust fund for education, with interest dollars going to schools and colleges. Under his proposal, the Legislature would set aside between $500 million and $800 million BIPARTISANSHIP VOW: Lawmakers say it will last beyond Day One.

JOINT WORK: Highlights of Gov. John Kitzhaber's speech. GOP FLEXES MUSCLES: They dissolve the sexual harassment body. CAPITOL NOTEBOOK: Highlights of Monday's festivities. 7 Gingrich reverses view on welfare for immigrants iA- Storms continue to pummel California Inside today's Statesman Journal CEASE-FIRE Russian President Boris Yeltsin orders a two-day halt to attacks on Chechen secessionists.

Page 3A 4 Index Ann Landers. 4D Business Classified be denied access to 60 federal programs, including Medicaid, housing assistance, free childhood immunization and subsidized school lunches. The only legal immigrants who still would get benefits under the plan would be refugees during their first six years in the United States and those older than 75 who have lived in the country for at least five years. Republicans estimate that ending benefits to legal immigrants would save almost $22 billion during five years. The Republicans have targeted the money saved for work programs for welfare recipients.

Asked if his suggestion to rethink the legal immigration issue represented a change of heart, he snapped: "It's new. It's complex. It changes over time. "We are not going to get trapped into doing something dumb just so you all can say we're consistent." Newsday WASHINGTON Surprising even members of his own party, House Speaker Newt Gingrich on Monday said Republicans should reconsider a portion of their Contract with America that would deny welfare benefits to most legal immigrants. "I think we're going to revisit the question of eliminating legal aliens from ever getting any access to government services after some length of time of being here and paying taxes," Gingrich said.

"I am very pro legal immigration. I think we would be a very, very self-destructive country if we sent negative signals on legal immigration." Gingrich maintained that citizens who sponsor legal immigrants should have a binding three- to five-year commitment to help the people they bring into the country. As part of the Republicans' contract, legal immigrants would The Associated Press FLOODING: A resident of Guerneville, on Monday makes his way through town, one of the hardest hit areas of rain-soaked California. The Los Angeles Times SEBASTOPOL, Calif. Hundreds of Northern Californians fled their homes Monday as the third in a series of warm, moisture-laden Pacific storms barreled into the state, pushing wine-country rivers well beyond their banks, inundating roads throughout the region and killing at least one person.

With weather forecasters watching two more storms gaining strength off the coast, evacuations were under way from north of San Francisco to Eureka. Four more inches of rain were expected Monday night and today across Northern California. Forecasters saw no letup all week. "This has the potential to be a NWStips crossword 399-6677 Editorials To place Horoscope 5D advertising: Lotteries 2B 399-6602 Moyies -2D riaQcifipH- Naton 23A -12ISL Obituaries. 3.4B 399-6789 Sports 1-3C For home Stocks delivery: Weather 8A 399-6622 Worid 3A7A Part of the Statesman Journal is printed on recycled paper.

Vol. 143. No. 292 4 Sections, 26 Pages A Gannett newspaper. 1995 full-blown natural disaster," Santa Rosa meteorologist Steve Newman said.

In the Sierra, winds neared 100 mph Monday morning across the highest ridges, and blizzard conditions were reported as blowing snow reduced visibility in some spots to near zero. The full force of the storm was expected to hit Southern Cali fornia today, producing renewed flooding and mud slides. By late Monday, the Red Cross had opened 14 emergency shelters in six northern counties for about 2,600 displaced families. Sonoma and Napa counties, home to most of California's world-renowned wineries, declared states of emergency. OREGON: Damage.

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