Waterloo Courier (Newspaper) - February 18, 1988, Waterloo, Iowa r Taking it to the feds Two unions allege Home Shopping Network engages in unfair labor practices A4 IOWA FEATURES SPORTS DARE taken Cedar Falls police join area schools in new program A4 Spreading the word Belinda Creighton is the new minority AIDS education consultant for the local American Red Cross B1 Out of running The Soviets flatten any hope of an American hockey miracle jn Calgary C1 Waterloo Friday's Continued mild high in the 40s A2 C 1988 Waterloo Courier Inc 38 pages 5 sections 35 cents Reagan sends trillion budget to Congress XXIA C A J ii 11 c WASHINGTON AP President Reagan today sent Congress a trillion conciliatory budget combining his most restrained military request ever with proposals for more spending on education science and the fight against AIDS presenting this budget I am keeping my end of the bargain I call upon Congress to uphold its Reagan said in the eighth and for practical purposes final budget of his presidency Unlike earlier Reagan budgets the new document embodies an ment on spending priorities already reached with Congress Reagan's 1989 budget calls for re- ducing the federal deficit from billion last year and the billion estimated for 1988 to billion in the fiscal year that begins next Oct 1 That's even the target of Babbitt drops out WASHINGTON AP Former Arizona Gov Bruce Babbitt his campaign flattened by poor showings in Iowa and New Hampshire declared today I am free and an- he was withdrawing from the Democratic presidential race but not from the cause that brought me into this political arena After finishing fifth in Iowa and sixth in New Hampshire Babbitt's campaign for the Democratic nomination clearly had no place to go At a news conference the former governor whose wit had drawn pathetic from the media said I don't know why we fared no better I'll for others to ponder Babbitt Democrat be- to Babbitt comes the first withdraw from the race in 1988 Babbitt drew chuckles from his audience when he said people had told him You fought a good fight you were in it right up to the ning Addressing his party which has lost four of the last five presidential elections Babbitt said It is up to us to give our country a compelling reason to elect us to power Looking back on his campaign Babbitt said I can't say I loved every minute of it but I loved most of it A campaign is more than a and a cause is more than a he said This candidate is withdrawing this campaign is closing down but the cause we stood for is just beginning He said he was not ready to en- dorse any of the six Democrats re- maining in the race I'm going to wait and watch and do everything I can to insure the success of our he said The former Arizona governor spent Tuesday and day consulting friends supporters and family members about his de- He said his two children urged him to stay in it as long as you've got half a while Hattie contended conversely that timing and grace are a big part of life and politics There's a point at which you just don't emulate Harold Stassen for- he added in reference to the perennial Republican presidential candidate from Minnesota Babbitt finished sixth out of a field on Tuesday in the New Hampshire primary garnering 5 percent of the vote Only former Sen Gary Hart of Colorado received less He said he would not endorse any of the other Democrats right away billion called for in the Rudman law When Reagan took office in 1981 with a promise to balance the budget within three years the annual deficit stood at billion In today's budget message Re- agan conceded the new document does not fully reflect my priorities nor presumably those of any particular member of Congress BUT CITING give and take on all Reagan told The goal of deficit reduction through spending reduction must be para- mount The two-year budget pact struck with Congress last November in the wake of the stock market collapse sets limits for both military in- creases and social program cuts and restricts new taxes to the billion already passed for 1989 by Congress Because of this prior agreement Reagan's fiscal 1989 budget was ex- to generate few fireworks on arrival at Capitol Hill And budget leaders played down prospects of a major budget fracas The new Reagan budget contends that the economy has shown few signs of serious damage from last October's stock market plunge and that the recent boom in exports holds out the promise of continued expansion In fact the new Reagan budget assumes a declining rate of inflation falling interest rates and economic growth of 2.4 percent this year and 3.5 percent next year This projection is more optimistic than forecasts by congressional budget analysts and private forecasters but closer to their predictions than in previous years HOWEVER IF growth is even one percentage point less than Reagan's forecast the deficit would rise an additional billion in 1989 and billion in 1990 the budget report conceded Reagan's new budget proposed military spending authority of billion in fiscal 1989 and actual outlays for the year of billion up from billion in 1988 in budget authority and billion in outlays That increase which doesn't even keep pace with last year's 4.4 percent increase in inflation represents the smallest military spending increase ever sent to Congress by Reagan It is likely to result in reductions in some of the military forces and weapons programs that have grown substantially since he became dent Anything less would jeopardize not only our security but would See BUDGET Continued on page A2 col 3 Courier photo by DAN On the lookout This squirrel appears ready to defend the last few been lately he may find getting through an Iowa kernels of corn on the cob left out for him on a tree winter easier than usual The mild weather is ex- in Cedar Falls If the weather continues as it has to continue through the weekend Islamic group claims responsibility for abducting Marine CIA TYRE Lebanon AP A caller claiming to represent a previously unknown group the Islamic Brigades today claimed re- sponsibility for kidnapping a U.S Marine officer and accused him of being a CIA agent The man in a telephone call to a Western news agency also said Marine Lt Col William R Higgins had been taken out of Beirut after he was brought out from the south officials and Shiite Moslem militiamen staged a massive search throughout south Lebanon for gins and virtually sealed off the area around Tyre 50 miles south of Beirut Higgins chief of an observer force attached to the peacekeeping force in Lebanon was kidnapped Wednesday near Tyre Abdel Majid Saleh a political leader of Justice Minister Nabih ri's Shiite Amal militia said he met with Higgins in Tyre on Wednesday before the kidnapping The two men talked about efforts to free foreign hostages among other topics Saleh told reporters The caller William Higgins has joined the hostages He will only come out after he is tried on grounds that he is one of the directors of the CIA in south Lebanon Higgins is now out of Beirut after he was brought out from the Lt Col William Higgins the caller concluded The caller said a written ment and a photograph of the captive will be issued soon Then he hung up THERE WAS NO way ly to authenticate the claim helicopters took off at dawn to join the search for Higgins Troops of the Interim Force in non joined Amal militiamen in the search We hope the kidnappers will have no chance of slipping out with their captive That's why all exits have been an Amal spokesman said speaking on condition of anonymity Heavy rain hampered the search however and the helicopters were later grounded by the downpour UNIFIL spokesman Timur Goksel said the search launched Wednesday continued through the night with troops operating in their tional zone and Amal active in non- sectors He said Amal the dominant force in the region has vowed to carry on the search until Higgins is found Higgins a native of Danville Ky was the second American military officer ever abducted in Lebanon The first Col Robert Morgan was kidnapped by Palestinian guerrillas in 1974 as he was driving on Beirut's airport highway and freed later that vear Marrack Goulding arrived in Beirut from Damascus Syria after gins kidnapping and held emergency meetings with President Amin Gemayel and acting Prime Minister Salim Hoss Goulding told reporters he con- Perez de concern for the napped Marine and I'm urging all sides to act quickly for his early release Plainclothes militia security men in cars blocked roads along the Litani River from the Mediterranean coast 25 miles inland to the slopes of Mount Hermon Uniformed militiamen armed with submachine guns and See MARINE Continued on page A2 col 3 BUDGET Fiscal Year Outlay WHERE IT COMES FROM WHERE IT GOES Corporation Income Taxes Excise Taxes ft Borrowing Individual Income Taxes Social Insurance Receipts Grants to States Localities Other Federal Operations Direct Benefit Payments for Individuals Robert Dominguez Iowa Senate OKs cigarette tax hike boost approved on second try By RON De CHRISTOPHER Courier Staff Writer DBS MOINES The Iowa Senate which Wednesday narrowly defeated an cigarette tax hike late this morning reversed its de- and approved the measure The measure which would go into effect March 1 was approved Quick House approval is expected The measure suffered a de- feat Wednesday after between leaders of both parties Key Republican votes needed to help reverse Wednesday's defeat of the higher tax came from Waterloo Sen Jim Lind and Spencer Sen Lee Holt They were among three GOP senators absent Wednesday when 18 Democrats and six Republicans voted for raising the tax from 26 cents to 34 cents a pack Two Northeast Iowa senators op- posing the tax increase were Emil Husak and Dale Tieden Voting yes were Sen Joy Corning Falls John Jensen Plainfield Larry Murphy D- Oelwein and Ray Taylor boat Rock At 34 cents a pack the tax would produce an estimated million through June 30 1989 As a compromise to win Senate approval of the higher tax three cents of the hike would expire July and lower the tax to 29 cents Gov Terry Branstad wants a cent increase which would tie Iowa with Minnesota for the nation's est state cigarette tax of 38 cents THE SENATE Ways and Means Committee before today's action by the full Senate scaled back the in- crease to 10 cents Last year the House approved a tax increase It was snuffed out in a Senate committee Sen George Kinley Moines who wants to raise the sales tax to 5 percent as a solution to the state's budget woes said the te tax is an insult to somebody's intelligence Kinley told his colleagues before today's vote you just won't bite the bullet in here Sen Holt urged approval of the cigarette tax increase although he prefers getting more revenue by ing the sales tax He said it's unfair to place the the backs of the people who happen to use tobacco or cigarettes Tax increase supporters and nents clashed during a relatively short Senate debate Wednesday Calling the measure a middle ground in keeping the state budget balanced Sen Majority Leader Hutchins said We're still going to have serious budget problems It is absolutely essential that we intend to deal with the revenue side of the budget Not raising the cigarette tax would necessitate million in spending cuts according to estimates Raising the tax eight cents still would mean about million in cuts Said There are very few in this chamber who can vote to make the kind of cuts especially in education human resources if we're not able to raise some of this revenue Opponent Jack Rife a Moscow Republican said that although he understands the budget problems his constituents don't want a tax hike I think there's a point where they've had he said I don't care if it's cigarettes it's gas or income tax they feel they're ing enough tax Saying that the Legislature has not always been fiscally Rife added When we start those new programs we better make sure there's bucks there to pay for them Rife whose district is near the border complained that when lowans go to neighboring states to buy cigarettes with a lower tax they make other purchases The state cigarette tax is 20 cents in Illinois 13 cents in Missouri 30 cents in Wisconsin and 27 cents in Nebraska However Illinois and Missouri also have local cigarette taxes Jensen the Plainfield Republican said he supports the tax See CIGARETTE TAX Continued on page A2 col 3 Bridge D6 A7 Celebrity Cipher Iowa Classified Comics AS Crossword D1 Daily Record B4
