PAGE-1U
HERALD AND NEWS, Klamath Falli. OrrBon
Thursday, Dewmber 5. IMS
Economy Moves May Bring $40 Million Fiscal Hangover
SALEM UPI -The special
session of the legislature enact
ed the economy moves demand
ed by the voters' Oct. 15 tax
referendum.
The result could he a MO mil
lion fiscal hangover.
That may be the amount of
new revenue needed during the
l5-67 biennium just to main
tain the austerity level of state
services now in effect
Even if you eliminate all cap
ital construction for state insti
tutions and higher education
that has been planned for, or
postponed to the next biennium.
revenues may be $20 million
short of what will be needed.
By junking capital construc
tion, chopping basic school aid
and trimming general fund
agency budgets, the legislature
during the special session en
dorsed the governor's program
to slice the state's $404 million
general fund budget to about
$360 million.
Lawmakers also had to dip
into next biennium's income for
an additional $12 million to keep
the reduced budget in (lie black.
The $12 million, added to $8
million of one-shot revenues ap
proved during the regular ses
sion, means that through book
keeping changes, $20 million of
income Uiat normally would
have been collected during the
1956-67 biennium has been move
ahead to help ease the bite this
biennium.
This "rob Peter to pay Paul''
move simply means the state's
income will be $20 million short
next biennium.
Legislative Fiscal Officer Ken
neth Bragg estimated the state's
revenues next biennium may be
about $370 million.
He estimated a $411 million
general fund budget would be
needed just to maintain cut-back
This means the 13 legisla
ture will start off more than
$40 million short of what it
needs to help keep the state's
books in the black.
Bragg is quick to point out
there are many variables that
could change this picture. Fed
eral income tax cuts could "in
crease the state's tax revenues.
Further delay of building pro
jects could ease spending re
quirements. But the inescapable fact re
mains tliat normal increases in
population at state institutions,
schools, colleges and universi
ties will demand more spending.
Lawmakers will be spending
much of their time between now
and the next legislative session
trying to find an answer.
It seems there may be no
way to avoid having to raise
additional revenue.
Taxpayers are going to have
to begin thinking now about
such unhappy possibilities as
sales and cigarette taxes, and
revision of the state's personal
income tax laws.
While the Oct 15 referendum
resulted in economy, another
tax referendum in quick ordjr
could result in fiscal disaster
for Oregon.
CALIFORNIA FARMERS
SA FRANCISCO (L'PI) -California
farmers produced
$3.3 billion worth of farm prod
ucts last year more than the
value of all the gold mined in
the state since the gold rush of
1849.
SUCCESSFUL MEETING One of the most successful report meetings of this year's
United Fund campaign was held this week with over 30 campaign workers in attend-
.... r.iL-t;..... r - ts nnn u,... rrt,4 t u At:r,n uu -i u. w:
nema Hotel. Most of the money came from small firms and individuals. Here, cam
paign chairmen and workers are shown at the meeting. They are (left to rightl Bob
Davies, solicitor for the Downtown II Division; Keith Cobo, chairman of Downtown
II; Dick Green, president of the United Fund; Leonard Jones, chairman of Downtown
I; Mai. Curtiss Gruye, chairman of the Kingsley Field Division; Julia Brown, chairman
of Public Employes; Paul Meier, general campaign chairman, and Loren Palmerton,
chairman of the County Division.
Khrushchev's Common Market Program
Folds Due To Friction With Satellites
LONDON (VPS) Soviet
Premier Nikila S, Klirushchev's
plans for a satellite Common
Market have collapsed because
of friction between his East Eu
ropean allies and Moscow, a
Western analysis showed today,
Tlie royal Institute for inter
national affairs said in its pub
lication "Tlie World Today"
that Klirusholiev's plan for close
economic Integration of the sat
ellites was defeated by "a mo
mentous conflict over economic
relations which began in mid
1902." Khrushcliev's plan was to
force a "Socialist division of
labor" on the satellites,
creating a single economic unit
out of the entire bloc and hav
ing each nation produce what
it was best equipped to do,
But this would have meant
Hint backward nations like Bul
garia and Romania would have
been condemned to continued
agricultural production, while
the moro doveloped rations like
Czechoslovakia and East Cer
: many would have their indus
; try built up even more.
' - Romania, which had been try
ing to develop its Industry, was
the leader of opposition to tho
plan. Tlie rebellion in Romania
and the other satellites shows
that (Jicre is now "primacy of The satellites could not have
nationalism over communism" carried off their opposition
in tlie area, the royal institute without the unwitting aid of
said. Communist China. When
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