Waterloo Courier Cedar Falls (Newspaper) - January 6, 1987, Waterloo, Iowa TUESDAY JANUARY 6 1986 GOOD EVENING Credit card interest rate The Iowa Hawkeyes record win No 14 and move up to No 2 in The AP poll B1 Wednesday's Parly cloudy high near 30 A2 o utter Students with crazy often have crazy eating habits to match C1 Cedar 1 35 CENTS 36 PAGES 5 SECTIONS Reagan mending very well WASHINGTON AP President Reagan is recovering very well from his prostate surgery and the final laboratory tests of the tissue taken during the operation showed no signs of any malignancy his spokesman said today Reagan was scheduled to undergo another test later today a com- puterized three-dimensional X-ray of his internal organs to check for recurrence of cancer White House spokesman Larry Speakes said Speakes said Reagan's physicians had told him the president was ing no of infection following the hour-long surgery Monday The president is recovering very well from the surgical Speakes said The final results of the tissue removed yesterday are in and they show the tissue to be benign Speakes said the president had read the morning papers and had watched some television today Re- agan had a full breakfast of bran cereal fruit toast with honey apple juice and coffee after dining last evening on bouillon gelatin and water his spokesman said Reagan planned to meet with his new adviser Frank Carlucci and with Chief of Staff Donald T Regan later in the ing the spokesman added Speakes said the X-ray exam was scheduled for early evening and that the results might not be available until Wednesday The X-ray exam is the final procedure in what is expected to be Reagan's nearly week-long hospital stay and comes one day after Reagan had surgery to relieve discomfort caused by an enlarged prostate The prostate operation procedure went very re- ported Army Col John Button the presidential physician following the hour-long surgery Monday There was nothing out of the ordinary Hutton also reported that the in- examination of tissue taken from Reagan's prostate had shown no suspicions of cancer No complications were en- countered in The dent's general condition is ex- Speakes quoted Dr Oliver T Beahrs one of the physicians in attendance as saying Hutton said the operation began at EST and took about an hour It was a very routine trans- urethral resection A spinal anesthetic was ad- ministered in advance of the tion leaving Reagan numb in the lower body but still conscious First lady Nancy Reagan had ner with Reagan on Monday night although it was not clear whether the president had solid food During the surgery the first lady took calls from family and friends and wrote thank you notes for Christmas gifts There were a lot of hugs and kisses and hand-holding by the first couple before and after the surgery her press secretary Elaine Crispen said He was in fine spirits through it all The spokeswoman said Mrs Re- agan spoke with the physicians and they told her Reagan had been ing jokes a lot of urological jokes during the procedure Mrs Reagan had spent Sunday night with the president at Bethesda Naval Hospital in a Maryland suburb of Washington INSIDE B4 Daily Record A7 Northeast WATERLOO IOWA Collision aftermath Rescue workers and a police officer walk past the remains of one of the cars of an Amtrak passenger train that derailed Sunday after hitting three Conrail AP diesel engines in Chase Md Fifteen people died in the crash Story on page A2 Barrage of criticism greets budget WASHINGTON AP Senate Republican Leader Bob Dole said today he doesn't think President Re- agan's trillion fiscal 1988 budget has a prayer of being by Congress The president's budget plan also was being dismissed as unworkable by congressional Democratic ers I don't think the budget itself has a Dole said on the CBS Morning News He added I think it's a starting point that's about all that can be said for it Dole said the administration de- served credit for its effort but he added to reach their numbers they probably used some smoke and Arek residents and officials react to budget proposals concerning job training education and agriculture A5 rors just as Congress does from time to time We ought to stop the rain dance about all the little figures in the budget and move on in see what we can do and do it as quickly as we Dole said The administration wants to work with Congress We want Con- gress to take us Budget Director James C Miller III said as Reagan's new budget calling for further increases in defense spending and another round of deep cuts in domestic programs was delivered to lawmakers Monday I'm tired of hearing statements that the budget is dead on Miller added The budget will be dead on arrival only if somebody on Capitol Hill kills it It was alive when it left our quarters Early indications were that the new budget might be headed the way of the past two Reagan budgets which were largely ignored Senate Budget Committee man Lawton Chiles who will open congressional hearings on the budget Wednesday It looks to See CRITICS Continued on page A7 col 1 Winners losers in Reagan's budget Howard News Service WASHINGTON There are clear winners and even clearer losers in President Reagan's budget plan for fiscal 1988 Defense spending would rise by 3 percent over what Congress gave the Pentagon in the current fiscal year Foreign aid would increase billion this year and billion in fiscal 88 Spending on radio station construction for Voice of America and other such outlets would rise from million to million by fiscal 1989 to ensure that the U.S message gets through to a ing audience Spending by the White House National Security Council would increase from million to million next year The CIA's budget would rise from million to million NASA would get a 22 percent boost for basic research Money is provided to continue plans for a space station to be orbiting by 1995 The Federal Aviation Ad- ministration would see its budget rise from billion to billion to modernize the air traffic control system AIDS research and education would rise to more than million a 28 percent rise over current spending The initiative enacted last year could spend up to billion in fiscal 88 some billion of it for law enforcement The National Science support for academic re- search would double over five years The focus is on training future scientists and engineers A billion initiative to help displaced workers would replace a million program Spending to combat adult illiteracy would rise 20 percent to million Other federal funds for adult and vocational totaling million would be eliminated however Compensatory education for about 4.8 million disadvantaged students would rise million to billion next year The over- all budget for the Education De- however would be cut by billion The budget for maintaining the White House as a residence would rise from million in fiscal 1987 to million The Library Of Congress would get million more for books for the blind and capped Federal spending on the Cor- for Public Broadcasting long a target of conservatives would rise from million this year to million by fiscal 89 Child nutrition programs would be cut million to billion As in previous presidential budgets families would be dropped from the school lunch program and the special milk program would evaporate Federal money for food stamps would be cut by about million next year because states that make mistakes in out the program would be docked the amount of the errors Target prices for farm crops would be cut 10 percent a year while individual farmers would be limited to in price ports a year instead of a overall cap on price and income supports The Federal Housing Ad- ministration would be required to charge home-loan insurance premiums on a par with those of private insurers The 1 percent See BUDGET Continued on page A2 col 5 1987 WATERLOO COURIER INC FALLS RECORD Windfall from tax reform tops state legislative agenda By ERIC WOOLSON Courier Staff Writer DBS MOINES It's being called tax reform but what legislators ly hope to do in the General Assembly is take 1175 million from taxpayers before anyone knows it's missing lowans stood to gain more than million under federal tax code changes approved by Congress last year Instead state officials will re- write Iowa's tax laws and in the process haul in a bundle of money The code revision is expected to be the most time-consuming task of the session that begins Monday Economists and lawmakers say there's a practical reason for ing the two tax codes They contend farmers and business people would go through an accounting nightmare if they had to keep two sets of books Simplicity is Iowa State University economist Neil Harl told an interim committee last month But there's another reason state officials intend to eliminate many UPFRONT LEGISLATURE 1987 Third in a series deductions and they say they need the money IN FACT Gov Terry See LEGISLATURE Continued on page A6 col 1 Waterloo tax rate may rise as property values decline McKinley By RON De CHRISTOPHER Courier Staff Writer Keeping Waterloo's property tax rate the same doesn't look Mayor B e r n i e McKinley said after getting his first glimpse of preliminary budget figures for the ing year If the rate doesn't change about million in property tax money will be lost because of citywide property devaluation Ever if the rate rises though it doesn't necessarily mean property owners would pay higher city taxes in fall 1987 and spring 1988 than they're paying now A lot depends upon whether the value of their property rose or fell between January 1985 and January 1986 The owner of a home with taxable value of now pays about toward police and fire protection and the array of other city services The current city tax rate is about per of taxable value Arithmetic used to calculate city taxes on the home 50 x THE FIGURES presented to the City Council Monday by city budget analyst Bruce Meisinger during a budget work session include the lowing bad If the city keeps its tax rate the same about million in property tax money will be lost because of citywide property devaluation Valuation is dropping about million from billion to billion a 9.5 percent decrease City income from sources other than property tax such as state and federal aid and city fees for garbage collection ambulance rides and other services will drop an mated The combination of reduced taxing ability and less money leaves the city with the difficult choice of cutting services to spend less or raising taxes to pay for all budget requests from city departments and community agencies Requests from the city's general fund are up 4.3 percent The combined request of the Police and Fire departments for example is up 3.7 percent to about million Said McKinley I'm just not sure our city can take any cut in services HE SAID POLICE and fire tion can't be reduced even though the city is losing population because the Police and Fire departments have the same geographical area to protect v McKinley said it might be to save money by not buying requested by the Police Department or an ambulance re- quested by the Fire Department We're going to take a hard look at this he said There's cost efficiencies that can be gotten McKinley said agencies have a chance of losing some of that funding for sure Subsidies requested for next year range from for the Martin Luther King Jr Center for Education Vocational Training to for Metropolitan Transit Authority It's a tough time it really McKinley concluded noting thai budgeting city expenses the next two years will be extremely difficult New Allied Stores owner puts chain up for sale By the Associated Press and Courier staff The retail store chain is one of 16 Allied Stores Corp divisions which will be sold by its new owner Campeau Corp Campeau just last week completed its billion acquisition of Allied Stores It plans to use the proceeds from the sales billion in bank loans used to complete the Allied aquisition according to a Dec 31 filing with the Securities and Exchange Commission Allied brought to the merged com- pany 698 stores If the sales go through as planned Campeau will hold 269 stores Besides the two metro stores has 13 others in neapolis and Iowa The company em- ploys 150 to 200 full and part-time employees in the metro area and company-wide spokesman Karen chanan said it would be purely speculation to comment on the sale She said employees at the neapolis headquarters had not been informed of it although more might be known when dent returns from out of town next week IT HAD been expected since early November when Campeau and lied agreed on the takeover that less profitable store divisions would go on the block The Campeau said it would retain the Ann Taylor and Brooks Brothers specialty store chains in addition to Stern's Maas Brothers The Bon and Jordan England department store chains Campeau will merge the Jordan division into Maas Brothers and Read's de- store into Jordan New England These divisions are among strongest Campeau must meet a million loan payment by June 30 another million by Dec 31 and million by Dec for a total of billion Campeau said it also plans to refinance mortgaged real estate to raise a major part of million owed banks by Dec While the 16 store divisions are officially for sale Campeau said it See Continued on page A2 col 3
