Great Falls Tribune from Great Falls, Montana • Page 1

i Ice skating KatarinaWitt coming out of retirement. Sports 3C i fmrnmrnum EMfliBjiBaaa 7 IK Sty ir dta! PPrEQJD11 Racicot sworn in as 20th governor if The Associated Press Lawmakers officially get the bad news that the state faces a $337 million deficit in its general fund, school financing account, workers' compensation program and highway construction fund. Budget Director Dave Lewis explains Racicot administration proposals for cutting money from higher education and offering some state workers early retirement. Republican Marc Racicot is sworn in as Montana's 20th governor, pledging to build on opportunities for change presented by the state's financial problems. The 53rd Legislature convenes at noon amid pleas from House and Senate leaders for lawmakers to avoid partisan maneuvers in their efforts to solve the state's financial crisis.

By SHIRLEY SALEMY Tribune Capitol Bureau HELENA Republican Marc Racicot became Montana's 20th governor Monday amidst pomp, pageantry and a lot of talk about change and the many problems facing the state. A flurry of flashes from cameras and scores of camcorders greeted the Racicot as he stood in a dark suit to take the oath of office in the rotunda of the state capitol. "We stand at the threshold of a difficult yet historic time in Montana," the new governor said. "Within the adversity that confronts us there is tremendous opportunity for change and new growth," Racicot continued. "Never before has there been a greater need for people of good will and honest purpose to work together for the best interests of Montana." The overflow crowd hugged the balconies overlooking the capitol rotunda and youngsters packed the stairs leading to the second floor.

Racicot said the state's leaders "cannot lose this opportunity to set a new course." "It will take patience, hard work, humility, dispassionate judgment and respect for the well-spring of ideas that rests within each of us," of office before Jean Turnage, Gov. Marc Racicot takes the oath the Montana Supreme Court, in the Capitol rotunda Monday morning. How the budget breaks down Tribune photo by Stuart S. White back to camera, chief justice of revenue Hastj fa million sfe'- fef 29.5 $100 million Work-comp payroll tax adjustments 10.5 $35 million Undecided 24.5 $83 Cudcjct cuts I I Leaders: Tax hikes inevitable By MIKE DENNISON Tribune Capitol Bureau HELENA With the state facing a $338 million mountain of debt, even the most conservative of lawmakers conceded Monday that a tax increase is all but inevitable. But as to what form that tax increase will take, legislative leaders say it's far too early to tell.

"I think it would be counterproductive to say what I'm for at this point," said House Speaker John Mercer, R-Polson. "The way I see it, everything's negotiable." Other leaders were just as reluctant to reveal on this first day of the Legislature what they might support in the way of a tax increase. They said they need more information on the scope of the deficit and how much can be erased by budget-cutting. Legislative Fiscal Analyst Terry Cohea offered her grim assessment of the state budget Monday, showing how drastic increases in "human-service" programs have far outstripped tax revenue in recent years. Costs for Medicaid, the state-federal program that pays medical bills for the needy, have increased at 20 percent a year since 1989, while tax revenues have increased at a mere 3 percent, she said.

"The overriding problem facing the state budget is the growth in human-service programs," she said. "Human services" also includes welfare spending, state prisons and institutions, public education and the state university system. If the state funded all programs at current levels with no increase for inflation it would be $338 million in the hole by mid-1995, Cohea said. That debt includes about $100 million from the state workers' compensation program, which insures employers against on-the-job injuries. Gov.

Marc Racicot wants to close the gap with $83 million in spending cuts and $120 million in net revenue from his tax-reform plan, which includes a 4 percent sales tax. Another $100 million or so might be raised by payroll or fuel taxes, which would go toward paying off debts in the work-comp fund and the state highway fund. Racicot's budget director, Dave Lewis, said the long-term solution is to increase Montana's per-capita income, which will lead to more tax revenue. Racicot's tax-reform plan will help spur economic development and thus increase long-term revenue, he said. But whatever the long term holds for Montana, the 1993 Legislature's immediate job is to close the budget gap for the next two years.

Mercer and other Republican leaders appear to support Racicot's tax-reform plan, but say budget-cutting is their first priority. Budget subcommittees will start their work this week, examining program budgets and looking for ways to cut 35.5 $120 million Net sales tax $68 The calculated Analyst, programs with 20 Two agencies seek increases in budgets projected budget deficit for 1994-95 is by the Legislative Fiscal government will be funded at current levels, no increase. 47 0 million i $158 million School State general fund equalization account By SHIRLEY SALEMY Tribune Capitol Bureau HELENA Two state departments have asked for more money to cover costs that they were supposed to reduce this year including the Justice Department under then-Attorney General Marc Racicot. The Justice Department is asking the Legislature to approve $430,000 in additional spending to cover costs of transporting prisoners and for Highway Patrol officers' retirement. Mick Robinson, Racicot's new state revenue director and the former administrator of the Centralized Services Division at Justice, said Monday that the agency tried to coordinate cost-saving methods with ex-Gov.

Stan Stephens' office, but to no avail. 3.5 Gov, Racicot's proposed tax-reform package has a net revenue gain of $120 million from a 4 percent sales tax, after paying for reductions in property tax and income taxes. A proposal to adjust the current .28 percent payroll tax to pay off the work-comp debt is preliminary, and has not been outlined in detail. $12 million Highway maintenance account he said. The 44-year-old Racicot, fresh from four years as attorney general, See Racicot, 6A "I don't think we received good cooperation with Gov.

Stephens' office," he said. Also, the state Department of Transportation is asking for $593,000 to replace 53 vehicles in the motor pool. Gary Gilmore, assistant administrator of the Highways Division, said the fleet currently stands at 197, with 70 vehicles leased to other agencies outside Helena. The request is not to increase the number of vehicles in the motor pool, but instead to maintain the current number. High mileage and irreparable problems with the vehicles are expected to put a number of them out of service.

Last year, the Legislature directed both agencies to cut a combined $268,000 to meet budget constraints, i early this morning. In doing so, the justices rejected a motion brought by 26 Washington residents that had argued that hanging was cruel and unusual punishment banned by the state and U.S. constitutions. Dodd, who killed three children, has waived all appeals. He has said he chose hanging over lethal injection because he hanged his youngest victim's body in a closet after killing him.

He has said he must die because "1 know I will kill again." It would be Washington's first execution since 1963 and the first U.S. execution by hanging since 1965. Source: Legislative Fiscal Analyst's office; governor's costs. House Majority Leader Larry Hal Grinde, R-Lewistown, said legislators must agree on how much spending can be cut from the budget, and then they'll talk taxes. "In the spirit of compromise, I'm going to have to consider some other taxes," he says.

"And I'm one of the most fiscally conservative on the House floor." House Minority Leader Ted More legislative coverage inside: Legislature open for business 5A Notebook: Three ex-governors in attendance 5A Work-comp data ordered released 5A Calendar of upcoming hearings 5A Quote of the Day 5A Deep freeze: Round Two 29.5 $100 million Workers' Compensation debt Chris SykesTribune the Democrats might support. Of course, not everyone is willing to say that higher taxes are a foregone conclusion. Sen. Tom Keating, R-Billings, said the state must reform its entire tax structure to encourage economic growth, which would lead to increased revenue. "I'm not supporting a large tax increase as a way to get out of this thing," he said Monday.

Trlbum photo or Jeret Morris Travis Howard, 5, enjoys the new snowfall Monday at Broadwater Overlook. i Hanging execution set in Washington budget office Schye, D-Glasgow, a traditional opponent of a sales tax, said he has no doubt the Legislature will approve a tax increase. But he's not willing to say what type of increase he'll support. "We will discuss that when we see the governor's budget," he said. "This will have to play itself out." Senate President Fred Van Val-kenburg, D-Missoula, also said it's too early to say what tax increases substantially below normal.

They may be cold, but the next few days aren't much of a threat to break any records. The record low for Jan. 5 was set in 1982 at 26 below zero; the record low for Jan. 6 is 30 below. "The snow is pretty much done with," Kumm said, noting that moisture levels are decreasing and the cold air mass is thickening.

The bulkier mass of frigid air means that higher elevations which escaped most of last week's thermal indignity are just as cold as the valleys. Inclement conditions led to a rash of traffic accidents in Great Falls Monday. "We've definitely had a lot more accidents than we would on a normal day," said Police Sgt. Ed Sin-nott. The Montana Highway Patrol reported a four-vehicle accident on 13th Avenue S.W.

at 3:28 Monday afternoon, but no one was hurt Nippy Partly cloudy by afternoon. High zero, low-156A Advertiser Index 2A Classified 4-6B Comics, Crossword 3D Entertainment 2D Legals Marketplace 3-4B Montana 1-2B Montana Parade Section National, world 2-6A Obituaries, records 2B Opinion, letters 4A Sports 1-3C TV listings 2D e1 993 Great Falls Tribune A Gannett Newspaper By WILLIAM BROCK Tribune Staff Writer A new blast of arctic air with a sub-zero punch swept into Montana Monday, dusting Great Falls with an inch of new snow, icing up the streets and colliding with rising hot air mass over the state capitol in Helena. Great Falls notched a high temperature of six degrees on Monday and by 9 p.m. the temperature had dropped to 1 1 below zero. Today's high is expected to top out at an even zero degrees, said Phil Kumm, meteorological technician with the National Weather Service in Great Falls.

Tonight's low is predicted to sink to 15 below zero, he added. The warm spot in Montana on Monday was Hamilton at 31 degrees, while Plentywood was the coldest at 2 1 degrees below zero. The extended forecast through Jan. 14 calls for temperatures to be The Associated Press OLYMPIA, Wash. The state Supreme Court on Monday re fused to nait the execution of Westley Allan Dodd, apparently clearing the last obstacle in the convicted child killer's quest to be hanged Dodd for his crimes.

In a one-sentence order, the court upheld Dodd's death sentence, which was to be carried out frMHiMvnimvnrit.