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Abilene Reporter News (Newspaper) - July 11, 1970, Abilene, Texas IRS 'Threatens' rivate Schools iiiiiiiUiimUiiUiil Wyt Kfatlme Reporter EiiiliiUHiililtll "WITHOUT OR WITH OFFENSE TO FRIENDS OR FOES WE SKETCH YOUR WORLD EXACTLY AS IT GOES"—Byron SOTH YEAR, NO, 25 PHONE 673-4271 ABILENE, TEXAS, 79604, SATURDAY MORNING, JULY ll, 1970—THIRTY PAGES IN TWO SECTIONS 10c DAILY—20c SUNDAY Associated Press (JP) Self-portrait Sally Blakemore, an art graduate of Texas University, shows her painting which she calls “Self-Portrait.” It is currently being shown in a traveling ex hibit sponsored by Southwestern Bell. She is the daughter of Mr. and Mrs. W. S. Blakemore, 2019 Westview. 'NO CONSENSUS' Council to Eye Tax Hike By BOB ARMISTEAD Repnrter-News Staff Writer The Abilene City Council Friday couldn’t agrpe on a budget for fiscal 1970-71 and set another session for July 21. But the council did ask the staff to draw up a proposal based on a five-cent tax increase, based on adding about $494,000 to the $10.5 million proposal for roughly a IO per cent salary increase for city employes and taking $50,000 more from the shop fund and using it for general operations to make it balance. The council also asked that the revised proposal delete $45,000 more in alley rebuilding and maintenance, $25,000 in library books and equipment, $6,950 in airport beautification, and $10,887 from the parks division. Thev added the budget proposal $18,480 for animal control, $653 for health unit equipment, and $2,100 for the street department. TF THE ANIMAL shelter and street department funds had been cut the pound would not have picked up any stray dogs except those which had actually bitten somebody and would not have mowed the parkway along certain major streets. In requesting a revised proposal the council indicated they did not plan to budget a human relations counselor, suggested by the Community Relations Committee; funds for the county mental health center, requested by its parent organization; or equipment wanted to increase police department use of the computer. On these and other items there were about as many opinions as there were councilmen. —Bob Hunter supported the tax increase and the pay raises firmly. (See separate story.) --Scott Taliafeiro and Tom I/Highrey expressed opposition to the tax increase. Taliaferro spoke not for the $494,000, but for a $340,000 proposal which would mean a 7 or 7% per cent salary raise. —Bob Childress said he’d rather see $50,000 more cut from proposed spending than transfer a total of $250,000 from the shop fund. The council had been considering a transfer of $200.00-0 to make the budget balance, but increased discussion lo $250,000 late Friday afternoon. —Mayor J. C. Hum cr .lr. said he thought the bigger raises wore needed “desperately” and that he didn’t think a five - cent tax increase (from $1 50 to $1.55) would hurt. But he noted the $250,000 transfer from shop funds was a one-time source of revenue and said, ‘‘I wonder what in the world we’ll do next year (the fiscal 1971-72 budget) if we don’t get a windfall from the sales tax or something.” THE SHOP FUND is the one in which a por-mile or per-hnur charge is levied against all city vehicles and some equipment to have money to replace the items when necessary. The mayor later, however, moderated his pessimism and said that “maybe we need to be more optimistic of the future.” The seven members decided to let the slaff prepare a budget based on the decisions just mentioned, although the mayor was Turn to CITY, Pg. 3-A Budget Disagreement Comes Over Salary, Tax Increases WEATHER U.S. DEPARTMENT OP COMMERCE ESSA WEATHER BUREAU (Weather Map, Pg. 3-A) ABILENE AND VICINITY (40-mil« radius) — Fair and hot Saturday, Saturday night and Sunday High both days IOO. low Saturday night 78. Winds will be southerly at 10-15 m.p.h. TEMPEATURES Prt. a.m. Prl. p.m. ,. K ...    .    98  99 .... IOO .....99 .....98  ..96  93  87 86 ............. 1C:00      — It ............•. 11:00 ............ — ♦3    ........ . 12:00    .......    — High and low for 24-hours ending 9 p m.; IOO and 78. High and low same date last year: 101 end 78. Sunset last niqht; 8:49 p.m.; sunrise today: 6:40 a.m.; sunset tonight: 8:48 p.m. Barometer reading 9 p.m.: 28.07. ’tumidity at 9 p.m.: 32 per cent. Salaries and taxes brought by far the most discus,sion, and probably the widest opinions expressed, in Abilene City Council budget hearings Friday. The council couldn’t agree on a budget, mainly because of these two items, and set another hearing July 21. (See separate story'.) The council star ted deliberations Friday with a budget proposal with $176,928 in surplus funds in the general fund. That’s the fund from which salary raises for most city employes would come. After cutting the library, airport, street and alley, and parks budget and putting back some street mowing funds and animal control service, the council had cut another $67,370, giving $244,298 surplus. That’s the point at which salary discussion started. City Manager H. P. Clifton said * that the personnel committee had recommended that $494,080 be budgeted for roughly a IO per cent raise. Of that $92,260 would come from the water and sewer funds. The .surplus in the water and sewer accounts is sufficient to handle that part of the raise. In the general fund the surplus was still $157,522 short of the amount needed for the $401,820 for salary increases to be located in the general fund. The five-cent tax increase to $1 55 was suggested. Abilene had that rate in 1967-68 after the 1967 bond election was passed. The council cut the rate a nickle the next year after the city sales tax was levied. The five-cent raise would increase revenue $118,750, Clifton asked if the council would approve a five-cent increase and an additional transfer of $50,000 from the shop fund used to replace equipment. As an alternative to the $50,000 transfer he asked if they^vould rather raise refuse disposal rates enough to make the department self-supporting, No one ever replied on the refuse idea. Mayor J. C. Hunter Jr. had asked Clifton Friday about the refuse department’s financial standing. * Clifton said the department loses about $95,400 when overhead factor’s like legal work, billing and computer use are included. The Abilene personnel committee survey of 16 cities and local positions like secretary which the city must compete for here found that Abilene city salaries were about IO per cent lower than others surveyed. The committee also found that the city turnover here averaged in 40 per cent overall except pollee and fire departments. Clifton quoted from a Lubbock survey of Texas cities which was mailed here Thursday. The Lubbock survey found Abilene employes were more out of line than the Abilene survey. Clifton said the average for a laborer under the Lubbock survey was $349 monthly, going from an average minimum of $322 to an average maximum of $377. He said even with the $494,000 in raises “We’re only asking you to go to $330 in this category.” He said the .Lubbock survey showed an average of $378 for a clerk - stenographer. Abilene Turn to BUDGET, Pg. 3 A WASHINGTON (AP) - The Nixon administration said Friday it will revoke the tax-exempt status of private schools that do not have nondiscriminatory racial admissions policies. The decision climaxed a yearlong intensive debate within the government. An Internal Revenue Service statement said the IRS had decided “it can no longer legally justify allowing tax-exempt status to private schools which practice racial discrimination nor can it treat gifts to such schools as chantable deductions for income tax purposes.” IRS Commissioner Randolph W. Thrower said the 10.000 schools with exemptions will he asked to show that they have nondiscriminatory admission policies. The charge has frequently been made that manv of ihe schools, particularly in the Deep South, were set up with the in- Teachers May Get $700 Hike in Pay By MERLE WATSON Rcporter-News Staff Writer Abilene public school teachers might be in for a raise in salary for the 1970-71 school year. Friday afternoon in a budget workshop session, the Abilene Board of Education requested that adminstration compute the cost of a pay scale of $700 above the state schedule for budget consideration. Using the state scale as a base plus $700, this would mean, if approved, that a beginning bachelor degree teacher in Abilene would make $6,700 and a beginning master degree teacher $7,300. The Abilene teacher salary schedule for 1969-70 included $6,034 for the beginning bachelor degree teacher graduating to a maximum of $7,638. The master degree schedule began at $6,440 and graduated to $8,746 in 1969-70. If the board approved the proposal then the schedule would range from $6,700 to a maximum of $8,570 for bachelor degree teacher. For master degree teachers the schedule would graduate from $7,300 to a maximum of $9,780. After teacher salaries are decided on, another major budget 11 em to be considered would be the salaries of administrators. After these items have been considered, then the hoard will be ready to examine the budget as a whole, either cutting or adding to series which have already been considered. Many categories are up over the 1969-70 year because of the longer school term this next school year. Teachers will be going to work August 17 while students will begin classes August 26. The board also examined the proposed capital outlay budget which show an increase of $13,350 over last year’s budget, lite proposed $107,250 includes increase in sites ($2,000), transportation    equipment ($14,350), furniture and equipment ($ 5,000 ), and maintenance equipment ($2,000). A decrease was shown in the audio visual equipment (from $25,000 in 1969-70 to $15,000). The total estimated revenue for the 1970-71 budget is $11,573,059 as compared to $10,101,627 for 1969 70. Board members had requested that administration prepare a list of requests from teachers which have not as yet been incorporated into the proposed budget. Assistant superintendent 'George Stowe reported that $40,909 in capital outlay requested by various teachers and department heads, and not in the budget at this time, included $24,579 for homemaking equipment for both high schools and three junior highs, new classroom furniture and library furniture for Lincoln Junior High, typewriters for Madison and Abilene High. A total of $15,820 requested for musical instruments has also not been included in the budget at this point. Proposed for musical instruments is $6,(KH). Board members expect to hold another budget workshop next week. NEWS INDEX Amusement* ......... MA Astrology ............ 8    A Bridge .............8A Church Newt ........ 6A Clots-, tied ........... 9-13B Comics ............ 4,    5B Editorials ............. 8B Farm ............... ISA Markets ........... 6.    ?B Obituaries ........ AA Oil ............ MA Sports ............ 10-13A TV Log .............. 138 Tv Scout ............ 13B Women Newt ...    3B tention of keeping them all-white. The new policy will he Implement a1 over the “next few months,” Thrower said, hut he said he doubted all 10.000 could be reviewed by the time school begins in the fall. Those that keep their exempt status, he said, will be checked through the agency’s normal examination procedures for tax-exempt organizations, but “we would assume that a statement is in good faith and will be complied with.” Thrower told a news conference. He said the procedure will be this: Exempt private schools will receive written inquiries from its district directors and it is anticipated that, in most instances evidence of a nondiscriminatory' policy can he supplied by reference to published statements of policy or to the racial constituency of the student body. “Where a school fails to establish that it has a racially nondiscriminatory admission policy, an outstanding ruling of exemption will he withdrawn. However, a school seeking to clarify or change its policies and practices will be given a reasonable opportunity to do so in order to retain its ruling of federal tax exemption.” One requirement, he said, win he that the pledge of nondiscrimination be made publicly. Thrower said he assumed the government would urge a federal district court in Washington to set aside a lawsuit filed bv parents of Negro public school children in Mississippi because the new ruling in effect gives them what they asked for. Thrower said the issue of segregated private schools—which arose nrimariiy in the South as a result of Supreme Court acton and the civil rights laws— has been an issue before the executive branch “since at least the late 1950 ” He pointed out that the Johnson administration suspended all new exemptioas for segregated private schools for two years beginning in 1965, and said the Nixon administration took up the question in late spnng or early summer of 1969. Since then, he said, “there may have been one or two rulings issued which might be questionable. Oil Boom Bond Debt Plagues Ranger Dads By JIM DUBLIN Rcporter-News Staff Writer RANGER—1The city of Ranger is attempting to refund for the third time since 1933 bonds originally Issued during the city’s oil boom days, city Financial Commissioner Glyn Gilliam said. He said that the city defaulted on $436,300 worth of refunding bond payments due on March I, 1970. 'Che bonds were issued back in UT System Selects New Chancellor AUSTIN (AP) — The University of Texas Board of Regents named a soft-spoken physician UT System chancellor Friday and chose the recently fired state consumer credit commissioner as his special assistant. Dr. Charles A. LeMaistre, 46, was appointed chancellor, effective Jan. I. He was given the title chancellor-elect for the period between now and that date. Francis A. Miskell, 45, who was consumer credit commissioner between October 1967 and May 1970, was named special assistant to the chancellor-elect, effective Monday. Le Maistre has been deputy chancellor, with the system s main administrative duties, since June 1969. He joined the system administration in 1966 as executive vice-chancellor for health affairs. He will succeed Chancellor Related story, Pg. 7-B Harry Ransom, when Ransom moves over to the newly created post of chancellor emeritus on Jan. I. Miskell’s appointment came as a surprise. About two hours before his election was announced he told newsmen he had rot found a job. Miskell was close to former Gov. John Connally, and there was Capitol speculation that Gov. Preston Smith — a Connally foe — had engineered Mis-kell's dismissal. Smith, however, denied any role in MiskeH’s ouster by the State Finance Commission. Regents Chairman Frank C. Erwin .lr., a close friend of Connally, who appointed him as a regent, was asked about the .likelihood MiskelCs appointment might be interpreted as a slap at Smith. “I hope you think I’ve got more sense than not to consult the governor first,” Erwin told a reporter. Erwin praised Miskell as a “highly competent public servant.” Five other top-level administrative appointments were made Friday: —F. I). Walker, deputy chancellor for administration. Walker was promoted from executive vice chancellor for fiscal affairs. —Dr. Kenneth H. Ashworth, vice chancellor for academic affairs. Since 1969 he has been assistant to the vice chancellor for academic programs. —Dr. William H. Knisely, vice chancellor for health affairs. He comes from Michigan State University, where he had been di rector of biology and medicine since 1963. —Arthur IL Dilly, executive assistant to the chancellor-elect. He has been assistant to the deputy chancellor (LeMaistre) since 1969. —Dr. James W. Wagner, assistant vice chancellor for academic programs. He joins the system from the University of Tennessee in Knoxville, where he had taught since 1968 in the department of curriculum and instruction. LeMaistre, a silver-haired, slender, blue-eyed man, was professor of internal medicine and associate dean of the university’s Southwestern Medical School in Dallas at the time of his appointment to the system staff. An Alabama native, LeMaistre is a graduate of the University of Alabama and the Cornell Umversityvvledical College. the early part of the century when Ranger was an oil boom town with a population of almost 30.000. Gilliam said that when the boom ended most of the people moved away, saddling the little city with a bond debt of over half a million dollars. The bonds were first refunded in 1933 and then refunded again in 1940 with a smaller portion being refunded in 1946. The bulk of the refunding bonds, $648,040 worth, were originally issued in 1940. In 1946 another issue of refunding bonds, totaling $72,840, was sold. The gland total was $720,880 and the interest rate was set at four per cent. The city was to pay the interest on a yearly basis and establish a sinking fund providing money to pay off the bonds on their due date in 1970. This fund was to receive money annually from the city’s revenue sources until enough was accumulated to pay off the bonds. The bonds were issued around the 1920s for the general improvement of a city of some 30,000. The money was used on such projects as streets and sewers. The Ranger city government began retiring some of the refunding bonds in 1943 and continued to do so up to 1946. Then, from 1946 to 1960, city officials failed to retire any more bonds and put no money into the sinking fund, although Turn to OIL BOOM, $5. 3 * ;