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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Jan 19, 1979
Page
5
Des Moines analysis shows the two main taxes income and sales dominate state revenue, with income tax rising to 42 percent and sales tax falling to 24 percent by 1981. Projections note growing corporate income tax and static use tax, plus fiscal bureau estimates of 1979 major-source revenues.
Iowa lawmakers react to Governor Ray's budget message with mixed views. Rep. Philip Davitt objects that the plan reuses old programs and misses farming needs, while others praise parts of the proposal. Some legislators want more funding for Area Schools and smaller towns, and others call the budget progressive with few disagreements.
Education still dominates Iowa's state budget but its share has fallen from 55.5 percent in 1974 to 51.75 percent as two other areas surge. Welfare spending especially Title XIX medical assistance, and property tax relief drive the rise, while education remains the largest single expenditure with 466 million in basic aid this year.
The budget chart shows education dropping four percentage points while social services rise three and regulatory and finance two. In the current year education spends remains high at $749 million with social services at $262 million and regulatory and finance at $343 million. other areas like human resources $10 million, natural resources $28 million, state government $30 million, and transportation and law enforcement $29 million.
The proposed plan by Ray aims for a $1.722 billion receipts level with about $34 million for contract costs under collective bargaining. Ending balance would be near $59 million, about half the biennial start, as the administration pledges no tax increases. The package boosts school aid, shifts tax mechanics, and introduces a negative referendum option to fund school needs without voter approval. It retains property tax rollbacks, adds a renter's credit, boosts private college aid, and increases nursing home reimbursements.
Washington reports the United States has reached agreements with South Korea and Taiwan to sharply cut televisions sold in the United States. The pacts, set to take effect February 1, were announced by Special U.S. Trade Negotiator Robert Strauss.
Universal announces a remake of Little Miss Marker with Walter Matthau as the salty bookie Sorrowful Jones who takes a girl as a marker for her father’s gambling debt. The original film made Shirley Temple a star. Today Dolly Parton is 33, Victor Mature 63, Guy Madison 57.
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