New Braunfels Herald Zeitung (Newspaper) - March 10, 1983, New Braunfels, Texas
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Vol. 92 - No. 49 16 Pages
THURSDAY March 10,1983 25 cents
White budget offers 'red ink/ 3 solutions
AUSTIN (AFi — Smokers, drinkers and arcade Kame players might have to foot the bill for a balanced state budget, said Gov Mark White as he presented a 1329 billion, two-year fiscal plan to Texas legislators.
White, who previously had predicted no tax hikes, delivered the budget to a joint session of the legislature on Wednesday, one day after state Comptroller Bob Bullock again reduced his estimate of how much monev legislators can spend in 1984-1985
Bullock said dropping oil prices mean $867.1 million less in state revenues
The White budget comes up $1.4 billion short of revenue — a difference he said could be made up by adopting
two of three "alternatives” — increasing "luxury taxes," selling bonds to finance highway construction or live with reduced programs.
Although he avoided a flat recommendation to increase taxes, White said the "luxury tax” increase could raise $800 million. The highway bond proposal would save up to $700 million.
If White s budget can be reconciled with revenues, teachers would get an overall pay raise of 24 percent, with a September 1983 raise for new teachers of 36 percent
The total increase in teacher salaries would be $1.6 billion — part of a $3 billion total education budget increase that includes $170 million in
equalization aid to poor school districts.
"Who can blame today’s college students for turning away from life in a profession whose only certain guarantee seems to be that they will be treated as second-class citizens?" said White, who called for a starting teacher salary of $14,500 a year, instead of the current $11,100.
He also included a $125 million-a-year dedicated fund for smaller Texas colleges that do not share in the Permanent University Fund.
Other state employees, including higher education workers, should get 6 percent pay hikes in each of the two years, White said.
See BUDGET, Page 16 Hand gestures help Edmund Kuempel outline his legislative
Reception, conference ready to take stage
A tradition that started 17 years ago will continue tonight when the Texas legislative Conference kicks off with a reception to honor Sen Lloyd Benison.
The reception to honor Bentsen — named this year’s texan of the Year — will begin at 7 30 p in at the Civic Center
Tickets for the reception and the conference itself, which gets underway Friday morning will be available until 5 p m. today at the Chamber office. Tom Purdum, Chamber executive vice president, said
This is the 17th annual Legislative Conference, co-sponsored by the Texas Stale Chamber and the new Braunfels Chamber of Commerce.
Ben Ivove, president of Texas Commere Bancshares in Houston and this year’s conference advisory
committee chairman will present Bentsen iD-Houstom with his award tonight.
As usual, this year’s conference will consist of an opening address, a national and state panel and a noon luncheon.
Registration for the conference wil begin at 8 a m. at the Civic Center At 8 45 a m opening remarks will be made by Bentsen, Chamber president Donnie Seay and Mayor G A. "Skip” Stratemann Jr.
The national issues panel, presided over by Love, will begin at 9:30 a m. Charles W Duncan Jr , former U S Secretary of Energy, and Ray Marshall, former U.S. Secretary of l^ibor. will be on this panel.
U S Congressman Tom Ixieffler was also to be included, but he will be
See CONFERENCE, Page 16
Kuempel says White's proposal way too much
Bill Hobby — Friday's luncheon speaker
Bv JACQUELINE SMITH Staff writer
State Representative Edmund Kuempel had but one reaction to I overncr Mur White’s proposed 1984-8.) budget — shock.
The amount of the budget — which Kuempel pointed out "is an increase of anywhere from 22 to 35 percent" over the 1982-83 state budget — overwhelmed him.
What really bothered and displeased the freshman Republican legislator, however, was that White’s proposed budget is approximately $13 billion more than expected state revenue for those two years.
"As far as I’m concerned, the state of Texas has got to learn to live within its means and budget," Kuempel, who represents Comal, Guadalupe and
Kendall Counties, said Wednesday.
"We have $24 to $3 billion more to -pend OH the 1984-85 budget > than this year," he noted. We can ask you to cut back and go without things but we're being hypocritical when we (legislators' spend every nickel we can get our hands on. That bothers me.”
According to the 334-page state budget released Wednesday, White proposes that the additional the $1.3 billion needed for his budget be obtained by borrowing money through revenue bonds to finance highways.
The Democratic governor also proposed obtaining additional revenue by increasing taxes on such things as alcohol, tobacco and video games.
Speaking before the New Braunfels Business and Professional Women's
organization, Kuempel spoke out strongly against W'hite's idea to borrow money for his budget.
"It’s unfortunate that Texas is on a pay-as-you-go basis. We never seem to savour anything." he added. "A billion un debt! Here and a billion there starts to add up to big money somewhere down the line.
"And coming from a conservative German family I was always taught to save ..so that there would always be something there to fall back on."
Texas is "not recession proof as many people have thought over the last eight to IO years." the legislator said. "But while many other states are going broke...Texas is still looking to grow."
Unfortunately, Texas’ unem-
See KUEMPEL, Page 16
OPEC prices may drop below $30Inside
LONDON (API — OPEC ministers determined to avert an international oil price war say they have reached a "general understanding" on a price cut and could wrap up an agreement today.
"We made very big progress,” Venezuelan Oil Minister Humberto Calderon Berti said Wednesday night in announcing tile consensus to cut the official OPEC price of $34 a barrel Calderon refused to disclose the size of the cut. but OPEC sources said earlier the 13 ministers of the Organization of Petroleum Exporting Countries were close to setting a
new benchmark price in the range of $29 to $29.50 a barrel for Saudi light crude.
After nine days of talks, other ministers echoed Calderon’s optimism that an agreement on prices and a production ceiling was finally within grasp Kuwaiti Oil Minister Sheik All Khalifa a1-Sabah said the ministers were working "very hard" to resolve lingering problems and added: "We have a good chance to have a prices and production agreement."
"I'm still optimistic," said Saudi Oil Minister Sheik Ahmed Zaki Yamani, who earlier had told reporters: "I think we will
reach an agreement no matter what you hear."
United Arab Emirates Oil Minister Mana Saeed Oteiba added: "Don’t be surprised if we stay for another two or three or four days."
The key remaining problems appear to center on Nigeria’s refusal to rescind its own price cut and Iran's insistence on keeping the benchmark at $34.
OPEC has been under intense pressure in recent months to cut its base price because the world recession has eroded the demand for oil.
OPEC and non-OPEC producers have been scrambling for scarce customers, and prices the unregulated spot market have tumbled to nearly $27.50 a barrel.
Britain helped trigger the latest price crisis by trimming $3 off the $33.50 pricetag on its high-grade North Sea oil.
Nigeria, a competitor in the top-quality market, slashed its price the next day from $35.50 to $30 a barrel without consulting other OPEC members.
Nigeria has insisted that OPEC obtain some kind of assurance from Britain that it won’t undercut a new lower price.
Judge sets timetable in Herrera lawsuit
By DYANNEFRY Staff writer
Attorneys for Domingo Herrera and the City of New Braunfels have until the first week in July to gather evidence for their respective cases.
A pre-trial order must be submitted to U S. District Judge H F. Garcia in San Antonio by the first week in September.
City Attorney John Chunn, who is defending New Braunfels and Police Chief Burney Boeck in the suit filed by fired police officer Domingo Herrera, said he received a timetable from Judge Garcia on Tuesday.
"You can’t file a suit in federal court and let it just sit, as you can in state court,” Chunn explained. In a federal suit, deadlines are set throughout the trial process, and they must be met.
Attorneys Jose Medina of Houston and Jesse Botello of San Antonio filed suit on Herrera’s behalf Jan. 28. Chunn’s answer, filed late last month, denies that the city or Chief Boeck deprived the policeman of his rights according to the fifth and fourteenth amendments of the United States Constitution, or according to Title VII of the 1964 Civil Rights Act.
The police chief fired Herrera in February 1981, claiming that he had stolen $50 collected by patrolmen in a charity fund drive.
Herrera and his attorneys claim that he was not given due process of law. They are asking for $250,000 in damages, and that Herrera get his old job back with full seniority and benefits.
Chunn’s reply asks for dismissal of the suit, and requests that Herrera be required to reimburse the city for reasonable court and attorney’s fees.
Council can delay or accept request
Robert Jones, district manager of Entex, inc., said that most city governments in the South Texas Division have chosen not to protest the company’s 46-cent rate-increase proposal.
New Braunfels City Manager E N. Delashmutt said he "wouldn’t hazard a guess" as to what the local city council will say Monday night. But he’s drawn up a sample resolution which would suspend the increase for 90 days and ask Entex to justify the new rate.
"The council has adopted such a resolution in past years,” Delashmutt explained
Last year, Entex wanted to add $1.14 to the minimum monthly charge per customer. Council cut that to 85 cents with an ordinance of its own. Irater in the year, Entex applied for an industrial rate increase.
A Feb. 28 letter from the gas company asks for a less hefty hike this year. Currently, the minimum residential charge, which pays for up to 400 cubic feet of natural gas, is $4.95. The 46-cent increase would bring it to $5.41.
The commercial minimum would jump from $5.75 to $6.21 per month.
Delashmutt said the council had four possible courses of action. If it does nothing at all, the rate
hike will go into effect May I. (The City Council of Garden Ridge chose this course last week, calling Entex's proposed increase a "modest” one.)
If council passes a suspending resolution, the higher rates will be delayed until 90 days after the letter was submitted, or May 25. The council may also hire a rate consultant to investigate the company’s new fee structure.
Another thing the council can do is pass an ordinance approving what it considers to be a fair rate, as it did last year.
Jones said the 46 cents would be a cost-of-service increase. With 5,445 customers in New Braunfels, it would generate just over $30,000, which would go to pay salaries, office rent, postage and other everyday expenses
The increase would not cover debt service, or the cost of the gas purchased by Entex. "There’s no profit in here, or anything like that,” Jones added. The cost-of-service increase was figured by comparing 1982 with 1981 operating expenses, dividing the difference by the number of customers in the South Texas Division, and dividing that by 12 for a monthly rate.
See ENTEX, Page 16Today's Weather
Expect a sunny, warm afternoon, with southwest winds blowing IO to 15 miles per hour. Tonight will be fair and cool, with light, variable winds. Friday will be partly cloud> and mild. There is a possibility of rain SundayThe Classic Commences
Monday’s first round was just a prelude — the real Southwest Conference basektball tournament begins tonight in Reunion Arena in Dallas. With the absence of the 45-second shot clock, some coaches feel the games will be slower paced than the regular-season tilts Tonight’s quarterfinals feature SMU taking on Texas Tech and TCU playing the third-place Aggies. See Page 5Spurs Shade Suns
After getting pasted by Denver the previous night, the San Antonio Spurs bounced back to knock off Phoenix, 108-105, Wednesday night at Convention Center Arena. The win keeps Central Division rivals Denver and Kansas City from gaining any more ground on them Sports. Page 6.
DEAR ABBY.................. 9
SPORTS.............. 5 7
Staff photos bf John Septet