Cedar Rapids Gazette, July 11, 1974, Page 5

Publication: Cedar Rapids Gazette July 11, 1974

Cedar Rapids Gazette (Newspaper) - July 11, 1974, Cedar Rapids, Iowa $225 Million Surplus Combinationof Income, Sales Taxes, Investments By Harrison Weber DES MOINES (I DP A) -This has almost been an unbelievable year for state tax collections. To illustrate, a year ago legislative Fiscal Director Gerry D Rankin was predicting an unencumbered balance in the state treasury of $100 million on June 30 of this year. His critics said he was overestimating — that the economy was going to level off. So what happened? The state winds up with a balance of $225 million. Rankin, who had been upping his revenue estimates periodically throughout the year, says revenue for the 12-month period just ended totaled $898 Harrison Weber million, an increase on 22.2 percent over a year ago. Growth Rate Political observers and economists find this hard to believe. After all, for years the state’s economic growth rate was only 5 to 6 percent. The bubble really burst a year ago when individual in come tax collections skyrocketed by 23.5 percent. That trend has continued. Gross individual income tax collections this year are up another 26 6 percent. Individual income tax collections for the year ended June :m, 1974, totaled $354 8 million compared to $288.1 million the previous year. Sales tax collections have also been on the up-swing, $254.3 million this year compared to $218 million last year, an increase of 16.fi percent. Highest Interest A third major reason for the sizable increase in revenue can be traced to the state's investment of idle funds. Inter est earned last year came to $26 3 million, the highest ever. A year ago, the state only earned $9 million in interest. on its investments. One reason for the big increase, Rankin said, is because the state is getting 14 percent interest on some of its money through “repurchase agreements.” Rankin, like so many of today’s fiscal exports, doesn’t know what tomorrow will bring. He’s fearful that farmers, especially those feeding livestock, may be on the verge of a depression. “You hear so many horror stories about farmers feeding cattle and hogs. At today’s livestock prices there is no way a farmer feeding $3-a-bushel corn can come out on top,” Rankin said. “We’re already six months into the year and a lot of farmers have lost a ton.” This prompts Rankin to speculate that refunds on individual income tax are going to be up this year, maybe as much as $20 million, from $40-to-$fi0 million. He looks for a great many farmers to file loss-earry backs against their 1973 tax year. The state school foundation aid formula is pegged to state revenue; with revenue up, Rankin predicts there will be an additional $15 million available for schools this year. Mainly because of these two items, Rankin anticipates that for the first time in history the state will spend over $1 billion this current fiscal year. The state’s unencumbered balance, that’s operating funds plus surplus, has grown by $104 million this past year, from $121-to-$225 million. Why? “Inflation,” said Rankin, “obviously is the key reason.” But the state’s fiscal director says it is impossible to say how much of this increase can be attributed to inflation. What about next year? There are so many unknown factors at this time that Rankin is reticent about making a projection. He wants a few more days to think it over, which means he’ll probably have an estimate in a report, scheduled to be released next week to legislators. Stanley Woman In Hospital After Three-Car Crash WATERL(X) — One person was hospitalized following a three-car accident Tuesday at the junction of highways 20 and 57. Sylvia Zabrieskv, 81, Stanley, suffered a broken ankle and lacerations after the car in which she was riding turned in front of a car traveling in the opposite direction. The car, driven by Mariam Eugiene James, 60. Stanley, turned into the path of the vehicle driven by Sally Jo Connor, 32, Waterloo. The collision forced the James car into a third car driven by Lois Jean Martin. 46, Waterloo. Another passenger in the James car, Belle Morgan, 73, Oelwein, was treated and at Allen’s hospital and released. All three drivers and two other passengers in the James car were also taken to the hospital, with minor lacerations and bruises, but were not admitted. Waterloo police officials charged Mrs. James with failure to yield the right of way. Blaze Destroys Vacant School HILLS — An old schoolhouse west of here on the Paul Neuzil j farm burned to the ground Wednesday night. Hills firemen received the alarm about midnight and fought the blaze in the abandoned structure for several hours. A barn fire earlier this week on the Felton farm near Hills j remains under investigation. Arson is suspected in both cases, fire department spokes-! men reported. . Cf tint l\t\puU “Islab'ished in TMI bv the Gazette Co. I ana published doilv ond Sunday at SOO Third ave SE, Cedar Rapids, !o*a 52*06 Second class postage paid at Cedar Rapids. Iowa. Subscription rotes bv carrier 95 cents a week Bv mail: Night Edition and Sunday 6 Issues 13.75 a month, $39 OO a year: Af- j ternoon Editions ond Sunday 7 issues $3.85 a month, $40.00 a year. Other stoles and U S. territories $60 OO a year No Mall Subscriptions accepted in areas having Gazette carrier service. The Associated Press is entitled exclusively to the use for republication of all the local news printed in this newspaper as well as all AP news dispatches. Smulekoffs Mid-Summer Sale on Ridgeway Floor Clocks SAVE *30 lo *50 in -I.. - Save $50 JCPenney July White Sale * ■XX*- w-    «nr WW ■eP' rn    rn    rn    rn    rn    rn    \ rn    rn    rn    rn    rn    rn    ^ MS* "tm W ^ rn    rn    rn    rn    rn    rn    I %    %    rn    rn    rn    rn • • • • Lady Lexington sale $399 Granada sale $429 'I’he only thing nicer than owning a Ridgeway Floor (Jock in hosing one at a staving* of #36 to #">0. During our Mid-Summer Sale on Ridgeway Floor (Jock* son can pick a htyle, pick a tmi-h. pick a color and pick a price that is sure to please. Hurry in and feast your eye* on our entire Mijterh collection of Ridgeway*. (tor Mid-Summer Sale is for a limited time univ, *o see our collection today. Open Tonight (Thurs.) ‘iii 9 SMULEKOFF’S Jewelry Department, Main Hiwr • SBK, rn m U . rn   m _ All our sheets are on sale at big, big savings. Sale 3.47 Twin size Reg. 4.99 Full size, reg. 5.99 Sale    4.47 Queen size, reg. 9.49 Sale    6.97 King size, reg. 11.49 Sale    8.97 Package of 2 pillow cases, reg. 4.19................Sale    3.37 Printed percales of polyester/cotton. ‘Dimity’ has prints and stripes. 'Romance' has a rose print. ‘Dots’ has decorative dots. Plat and fitted sheets are the same price. Sale 2.68 Twin size Reg. 3.79 Full size, reg. 4.79 Sale    3.68 Queen size, reg. 7.99 Sale    6.28 King size, reg. 9.99 Sale    7.98 Package of 2 pillow cases, reg. 3.29............«...    Sale    2.58 Muslin prints of polyester/cotton. Popular ‘Gingham Check' comes in bright, bold colors. Parisienne is bordured with roses. Hat and hued sheets are the same price. Save $50 T SMULEKOFFS 2'/j acres of everything for the home ' *4 Small Appliance Dept., Main Floor Open Tonight (Thurs.) ’til 9 FREE PARKING for our customers. Use the Park & Shop Plan or in our new lot behind the store. 20% off all our bed pillows *■1 20% off all ready-made drapes Breeze through a Hot,Humid Summer with a Toastmaster Electric Fan—now on Sale! 2-speed, 20-Inch Portable, Window Fan now SI £88 ONLY *16' Perfect for any room in your home. Provide$ instant cool. Has manually reversible, 20-inch blades, 2-speed motor and safety grill. 3-speed, 20-Inch Portable Window Fan NOW SOA88 ONLY Has 12-Inch Breeze Box Window Fan NOW ONLY 517“ 3 speeds to provide greater circulation, is manually reversible for intake or exhaust. Safety grill, 20-inch blades. Lifetime motor lubrication. 8-lnch Table Fan NOW ONLY 77 Small enough to use In window or on table . . . tremendous portability. Ideal for any room in the house, apartment or dorm room. Has 12-inch blades and a safety grill. Quiet running table fan that moves where you move and pleasantly cools you with only one speed. Breeze thru summer at this incredibly low price. SMULFKOFF’S 'N 20% off sonically quilted mattress pads bi— —    ................................................................ 20% off towels J Bath towels Reg. 2.50......Sale    $2 Hand towels Reg. 1.50 .... Sale 1.20 Wash cloths Reg. 90c Sale 204 20% off all quilted bedspreads Last 3 Days! All bras and girdles 20% off j 'N Charge it at JCPenney, 109-second st. S.E., Open 5 Nights A Week Monday thru Friday 9:30-9, Saturday 9-5. Sunday 12-5 ;

  • Gerry D Rankin
  • Harrison Weber
  • Lois Jean Martin
  • Mariam Eugiene James
  • Paul Neuzil
  • Sally Jo Connor
  • Sylvia Zabrieskv

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Publication: Cedar Rapids Gazette

Location: Cedar Rapids, Iowa

Issue Date: July 11, 1974

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