Casper Star-Tribune from Casper, Wyoming • 4

star Legislature Saturday, February 25, 1 989 A4 Star-Tribune. Casper, Wyo A -A A 1 Stroock, Zimmer say they've 'lost faith' in loan program Sullivan says he's disappointed Legislature 'running' from Amendment 4 program i i is 7 i I JS He 'aid the program has only cost the taxpayers' money so "how can you really stand here and be enthusiastic?" Senate Vice President Tom Stroock, R-Nairona, said "rotten loans" were made through the Amendment 4 program. The state examiner's audit found two-thirds of the $10.4 million in outstanding loans made through the program would be classified as poor if judged by commercial banking standards. 'T think we made some horrible loans and we're going to have to pay for them," Stroock said. "It's going to be a cost on the taxpayers and that's very distressing.

That's why people in the Legislature from both sides of the aisle are reluctant to pump more money into that particular program." Although Sullivan and Economic Development and Stabilization Board Director Steve Schmitz said some failures are to be expected when starting a new program, Stroock said that was not jusiifica-tion to put more money into the program. "I'm sorry, I don't buy into the argument that just because other states have made bad loans it's okay for us to make bad loans," Stroock said. By SCOTT I ARRIS Star-Tribune capital bureau CHEYENNE Hie two top-ranking Senate Republicans Friday said the Legislature has "lost faith" in the state's "Amendment 4" business loan program. Gov. Mike Sullivan.

hoeer, said Friday he is disappointed the I egislature has "chosen to run from the program at a time when, in my view, we need it most." Sullivan had asked the egislature to put another $5 million into the revoking loan fund this year, but a Senate committee earlier this week killed the bill providing half that amount for Amendment 4 funding. The action by the Senate Minerals, Business and Economic Development Committee followed its review of an audit of the Amendment 4 loans by the State Examiner Stan Hunt which criticized the program for making poor loans. "We have lost faith in it," Senate President Russell Zimmer said the Amendment 4 program. "It hasn't rendered any results at this point." Zimmer, R-Goshen, said low-interest state loans do not offer enough savings to the borrower to be of real benefit. he added.

Sullivan said the examiner's audit is not a fair criticism of the program because it applies commercial banking standards to a program that "is not a banking program as such." "If it had been intended to have been a banking program, we wouldn't have needed it in the first place," the governor said. "Those were loans that everybody understood would be risky. They would be loans that weren't capable of being made through a bank in the first place." Sullivan said he wouldn't defend every loan made through the program, but said many loans "are in the interests of economic development and expansion in the state of Wyoming. It's unfortunate that everybody runs from the program at a time when, in my view, we need it most." Zimmer, however, said he felt government should generally stay out of economic development, except for such actions as creating tax incentives. Stroock also said the Legislature has not abandoned all economic development programs.

The Legislature has supported the link deposit loan program, funding for the Science, Technology and Energy Authority and funding for promotion of the state by the EDSB and the Travel Commission, Stroock said. Stroock and the governor did agree that the best economic development for Wyoming is to ensure Wyoming has something worth promoting. "The best economic development tool we have is to run an efficient, effective, non-hassling, highly-motivated state government which RUSSELL ZIMMKR No results rendered TOM STROOCK 'Rotten loans' made But Sullivan said the senators were being too hard on the program, and had never really been enthusiastic about the program since its inception. Sullivan said he believes a majority of Wyoming residents still support the Amendment 4 program, and that has been backed up by high attendance at public meetings held by the Economic Development and Stabilization Board around the state. "Nobody said it would be easy in economic development," Sullivan said.

"When the people passed the Amendment 4 program, nobody guaranteed immediate success." "Economic development is very competitive, very difficult, a long-term and it's a frustrating process," offers excellent education efficient and effective officers businesses can come in an deal with and as low as possible a tax burden. Stroock said. Sullivan agreed, "and it's shared throughout the state, we have something to sell. What we need to do is get the wot out." Even without additional legislative funding, about $1.7 million in remaining or incoming funds should be available for loans through the Amendment 4 program next year. A total of $15 million is authorized for Amendment 4 loans.

The program was created by voter approval of a constitutional amendment in 1986. 3 mineral taxation, royalty bills heading to governor By ANNE MacKlNNON Star-Tribune capital bureau CHEYENNE Three bills related to mineral taxes or royalties are on their way to the governor's office for his review after final legislative action Friday. The Senate Friday accepted a House version of a bill providing for further legislative study of mineral tax valuation. House amends seat belt legislation Insurance boss authority bill OK'd CHEYENNE (AP) Perceived problems in the affordability of health insurance led the House on Friday to accept a Senate measure that would give the state insurance commissioner authority over health insurance. Representatives concurred with a Senate amendment calling for the insurance commissioner to oversee the industry in the face of arguments that many people cannot afford coverage.

The amendment added to a bill giving the commissioner jurisdiction over types of insurance not otherwise regulated would specify he is also to have authority over health insurance. The amendment is essentially a Senate measure that died in a House committee. Representatives approved the amendment despite arguments that the House did not have enough in-f formation on its possible impact. "We do need to get facts from both sides on this issue," said Rep, Rick Tempest, R-Natrona, in a losing cause. "The issue needs to be taken care of, but not with a' shotgun approach when we don't know what will happen." Senate lets 2 bills die on general file CHEYENNE (AP)-The Senate let two bills die on general' file this session two measures, that the passage of time had made unneccesary.

One bill would have sent a message to Congress saying the Wyoming Legislature doesn't think the federal body should give itself a more than 50 percent pay Since Congress voted not to take a pay increase, that bill has become outdated. The second bill to die on general file was similar to one signed by the governor this week. The measure would have allowed people to serve both on a joint powers board and certain other boards. The bill signed by the goveror eliminates the maximum number of members on a joint powers board and allows officers of governmental agencies creating a joint powers board to serve on the board. Yellowstone fire toll booths nixed CHEYENNE -A group of legislators Thursday failed on a tie vote to win House approval of a new way to deal with the federal government's plans for forcing states to share the cost of fighting last summer's Yellowstone fires.

Thirteen House members joined in proposing that the Wyoming Recreation Commission spend $5,000 to build and man toll booths on state highways entering Yellowstone. They proposed that each park visitor be charged an entrance fee of $i0 to pay yoming's share of 1988 firefighting costs, and provided that the toll operations stop when the fees collected reach $30 million. The Bush Administration has proposed that states help pay for the firefighting costs via cuts in mineral royalties, a plan expected to cost Wyoming $30 million in royalty income. The legislators' counterproposal, offered as an amendment to a bill authorizing spending on "tourism enhancement projects," failed on a vote of 29-29, according to amendment sponsor Rep. Jim Perkins, D-Sheridan.

A taxes on all uranium production from 5.5 percent to 4 percent and allows uranium produced under new contracts won by mid-1991 a further tax break down to 2 percent. That tax cut is slightly less than the one originally approved by the House. And the Senate, in the separate area of mineral royalties, accepted a House version of a controversial bill setting standards for the calculation of royalties paid to private or state royalty holders. The original bill was controversial because of the scope of deductions it would have outlawed and a requirement for a single agent to account for and remit royalty payments. But the I louse cut back the list of outlawed deductions and substituted lor the single agent a requirement for an itemized explanation of royalty calculations.

That compromise eliminated much of the most heated opposition to the bill, and it has now been accepted by both chambers. A minority of senators protested that the bill would allow a two-year "freeze" to old valuation standards, but a majority agreed that CHEYENNE (AP) If the state is to have a law requiring the use of seat belts, the law should apply to all passengers in a vehicle, the House agreed Friday. Representatives amended a bill that would require the use of seat belts to make it apply to all passengers in a vehicle rather than just the driver and front seat passengers as the measure had originally called for. "I think this makes the vehicle safer," said Rep. Eli Bebout, D-Fremont.

"If we are going to have a seat belt law, let's have one that protects all the people in a vehicle." The amendment, approved as the bill was sent on for a final reading Monday, was adopted despite arguments that the use of seat belts in the rear seat of a vehicle is often responsible for causing more injuries to the pelvic area of the body than it prevents. "It is a proven fact that many times in the back seat, because there is no shoulder strap, injuries are often due to seat belts and not accidents," said Rep. Barbara Cubin, R-Natrona. Another amendment adopted Friday would require the use of seat belts in school buses, an amendment that representatives rejected Thursday. Rep.

Scott Ratliff, D-Fremont, said the devices are needed in buses to protect children when buses are involved in accidents and added most people opposed to the requirement are concerned about the cost of the requirement. -f i I. a House com promise pushing for a one-year study and freeze but allowing a two-year study should be accepted. The House, meanwhile, Friday accepted a Senate version of a bill providing a severance tax cut for uranium. The final version cuts severance ELI BEBOUT Law makes vehicles safer Tank bill OK'd for 3rd reading Clianges in tribal pact participation bill OK'd can revive this turkey, I'd be happy to give him the weekend." The bill would take $2.5 million out of one of the state's water development accounts and put it in the Amendment 4 program to lend out to "mom and pop" service station owners.

The loans could be used to replace or retrofit underground storage tanks or to clean up pollution not caused bv the current station owner. The bill puts a $100,000 limit on the loans. The bill comes up for a third reading Monday. The Senate also discussed the underground storage tank bill that would set up tank clean-up accounts and an insurance account for station owners who need to meet federal requirements for financial responsibility. The body approved two page-s of technical amendments to the bill.

CHEYENNE (AP) An at-, tempt in the Senate to kill a bill that would offer loans to underground storage tank owners was withdrawn just before a vote Friday. The amendment, which would have removed the enacting clause from the bill, would have effectively killed the measure. Sen. Tom Stroock, R-Natrona, said he could find no other way to fix the bill "for a program that's bound to fail." He said he didn't think the loans were a good idea because it is unlikely they would ever be repaid. However, Stroock agreed to withdraw his amendment at the request of Sen.

John Vinieh, D-Fremont, who asked for the weekend to work out a compromise. "1 think 1 have an idea, a shot at this thing," Vinieh said. Stroock replied, "If he thinks he equivalent of $2 million in foregoing most severance tax collections for one year. The bill also provides, as an indication of "good faith" by the state, a seat on the Wyoming Water Development Commission for a member of the tribes. Court cases have awarded the Shoshone and Arapahoe tribes rights to valuable water rights to substantial volumes of water in the Wind River Basin, and in other states have cast serious doubt on state power to tax reservation minerals.

The one-year agreement does not affect those cases but should set the stage for a longterm agreement between the state and the tribes on water and tax issues, officials from both sides have said. ual tribal members also must still ratify the agreement. The bill provides the equivalent of $5.3 million in state funds or in foregone collection of severance taxes on the reservation. That is provided in return for agreement from the tribes on a one-year water allocation system among Indian and non-Indian irrigators on the reservation and a commitment from the tribes not to challenge for one year state collection of a 1.5 percent severance tax on reservation oil and gas production. Bebout pointed out that $1.3 million of the state's contribution to the agreement will come from state water funds, $2 million will come from taxes on reservation oil and gas already paid but protested, and the state will give up an CHEYENNE The House on Friday approved changes made to a bill providing for state pariicipation in a one-year agreement with the Shoshone and Northern Arapaho Indian tribes regarding water and tax issues on the Wind River Reservation.

The bill now goes to the governor for review. The changes made in the bill match the final terms of the one-year agreement signed by the governor and the chairmen of the business council of each tribe last week. Those officials said last week that legislative approval of the bill, along with federal approval, are key to implementation of the agreement. Rep. Eli Bebout, D-Fremont, told the House Friday that individ UW trustee appointees tell JAC quality, not quantity, important Vinieh, D-Fremont, said some of his constituents have complained that UW professors focus too much attention on research instead of teaching.

But the three appointees defended the role of research in university life. Involvement in such inquiry keeps professors on the "cutting edge" of their professions, Updike said. And research money provides an infusion of capital into Wyoming, while the research itself often concerns issues of direct relevance to the state, Bonner noted. Stroock said that Thursday's confirmation hearing represents an effort by the Legislature to play a more active role in assessing gubernatorial appointments that it has played in the past. The decision to have Joint Appropriations instead of the Education Committee interview the trustee candidates reflects a belief that the trustees have historically had more interaction with JAC, Stroock said.

Legislature pays tribute to Robinson CHEYENNE (AP)-The Wyoming Legislature paid tribute on Friday to the departing director of the Division of Public Assistance and Social Services. Julia Robinson is leaving her job this month to take a cabinet-level position in Montana. "If I do well here and if I do well in Montana, it's because I'm from here," Robinson told the Senate after thanking the Legislature for the tribute. Senate President Russell Zimmer, R-Torrington, read a proclamation and then Sen. Win Hickey, D-Laramie, spoke.

"In my opinion she is today the best administrator in this state," Mickey said. "Our loss is certainly Montana's gain." Hickey spoke of Robinson's contribution to state programming in social services and welfare. ministration and trustees, he said. Hammons said that while she has been impressed with the manner UW has dealt with its financial constraints so far, there has been a lack of consistent planning and support for the university from the state. "Every year we seem to be reacting to a crisis I don't like this management by one year at a time," she said.

Perhaps more than simply a matter of making less than their peers at other institutions, faculty retention problems at UW may be a result of low morale stemming from a "willy-nilly" budgeting process that results in uncertainty about state support, she said. Joint Appropriations Committee Chairman Tom Stroock said that UW can expect "at best very stable, and at worst a decrease" in state support and asked hether reducing employment at the university would allow more budgeting flexibility. Senate Minority Leader John hearing. Asked whether UW should continue to have as many colleges as possible, Bonner said "that's a difficult problem should we concentrate, consolidate into fewer programs and offer the very best that we can in those areas and not be everything to everyone?" The answer, he said, will be to "offer the very best possible in at least some areas." Mader said he felt encouraged by the appointees recognition that they must take an active role with the Legislature in deciding where to reduce and where to place priorities. The coming budget session will be "excruciating," Mader said, "and you're going to be part of that." The next two biennia will continue to force painful decisions about what the state can afford, and the "Legislature cannot and will not micromanage the university," instead leaving that job to the ad future for the children of this state and that if we all have that goal we will find the means to fulfill it," Mammons said.

In response to a question from Sen. Kelly Mader, R-Campbell-Johnson, current UW Trustee David "Bud" Updike of Newcastle said that there remain "very few areas in which we can truly cut costs." The only way any additional savings can be realized at UW is to continue a process that has already begun to eliminate unused or under-used programs while continuing to exercise "good stewardship" to maintain overall quality, he said. Updike, who with six years as a trustee is the only holdover among Gov. Mike Sullivan's five recent UW board appointments, owns an oil field service company. Two other new trustees appointed by Sullivan Dick Brown of Casper and Peter Jorsensen of Jackson appeared at a later confirmation By MATT WINTERS Star-Tribune capital bureau CHEYENNE Three University of Wyoming trustee appointees told members of the Joint Appropriations Committee Thursday that they will cooperate with the Legislature in downscaling university programs.

But Powell newspaper publisher Dave Bonner said UW trustees should act as advocates for the university and help ensure that when the Legislature yells "whoa" to programs, it does so appropriately. Another new trustee, Worland writer Deborah Healy Mammons, said "how do you deal with all of the demands that are placed on the university? And I guess what I have to say is that I've always felt that what you do should be to the best of your ability." "In terms of our relationship with the Legislature I come into it with the hope that we all are after the best possible education and.