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University Daily Kansan; February 2. 1983
Revenue projections called 'unrealistic Hayden doubts tax revenues
By JEFF TAYLOR Staff Reporter
Staff Reporter
Revenue projections from a proposed severance tax are unrealistic, and the state will have to find other sources of money or make budget reductions, Kansas House Speaker Mike Hayden said yesterday.
Hayden, R-Atwood, said the $138 million anticipated from Gov. John Carlson proposed 7 percent tax on the oil and oil industries was an overestimate.
"We have always felt the governor's projections on the severance tax are too high," he said. "The amount of money it will generate is going to be significantly different than the governor expects."
Carlin anticipated that a severance tax would pass the Legislature and allowed for those expected revenues in his fiscal year 1984 budget proposal.
IF THAT MONEY falls through, Hayden said, the Legislature will probably have to look for budget reductions in 1984. He said it was too early to determine what kinds of reductions would be made.
A group of House lawmakers yesterday introduced a severance tax proposal almost identical to Carlin's. But the House bill would refund 5 percent of the tax proceeds to oil- and gas-producing counties to help offset losses in property values caused by the proposed tax.
A 7 percent severance tax has already been proposed in the Senate.
Hayden said he expected some form of severance tax bill to pass the Legislature, although it might be lower than Carlin's 7 percent tax.
Some legislators who favor the severance税 said it might not bring in as much money as expected, because oil prices are dropping.
THE ANTICIPATED oil revenues are based on a crude oil price of $32 a barrel.
State Sen. Billy McCray, D-Wichita,
said the amount of money the severance
tax could generate was not the
same as the eight senators who proposed the tax.
"The real issue is whether we should have an equitable form of taxation across the state of Kansas," he said. "For years and years, the oil and gas industries have been able to lobby their way out of the tax."
McCray said property owners had carried for too long the tax burden that allowed him to earn more.
"There is some money out there that's a source of taxation that I think is a fair and equitable tax that should be assessed," he said.
Because of falling oil prices, McCray
said, the state would have to come up with money that might not be generated through a severance tax. He said the Legislature would probably turn to sales on gasoline, alcohol and cigarettes, rather than higher sales tax, to raise that revenue.
"We are going to need some extra money," he said. "I don't think you can cut it out of the hides of faculty school teachers and state employees."
McCray also predicted that a severance tax would pass this session. He
Rep. Mike Hayden
said he expected the tax to be reduced from the proposed 7 percent to 4 or 5 percent.
The state budget director's office reported that a 7 percent severance tax on oil-producing industries would account for $22.1 million. A tax on natural gas would provide $25 million. And a 4 percent processing tax on natural gas liquids, such as ethane and butane, would produce $20.4 million.
Hayden said a tax on natural gas liquids was not a severance tax, but a production tax. He said that kind of tax was not assessed in other states.
"NOBODY DOES it," he said. "When you investigate it, you'll find it's not very feasible because it runs business off to other states."
Richard Smith, president of the
Kansas Independent Oil and Gas Association, said oil production in Kansas had been declining for the past two weeks. He said the price of oil had dropped from $32 to $30 a barrel and it could drop as much as another $31.
"There is nothing on the horizon that would make you think the price of oil is going up."
SMALL OIL AND gas producers across the state have complained that a severance tax would squeeze them out of business.
Oil drilling in 1982 dropped 30 percent, Smith said, which he thought was the reason production had declined. He said the barrels a day to 197,000 barrels a day.
John Jennings, owner of Jennings Drilling Co., 16 E, 13th St, said the severance tax plan did not consider small companies in Kansas.
"They're trying to break us, so they're trying to do," he said. "Carlin keeps talking about the big oil company, and they don't have anything to do with Kansas."
Jennings said large oil companies such as Mobil Oil Corp, and Exxon Corp. drilled only about 10 percent of the oil in the state.
"THEY'RE PICKING on one industry because it's visible. The governor's talking about big oil. I don't like big oil, and it's not what we're looking at." he said.
Jennings said 80 percent of the oil drilled in Kansas was done by strippers, companies that drill less than 10 barrels a day.
"It itches just as mucu to lift eight barrels day as it does to lift 80," he added.
The federal government had just retracted a windfall profits tax, he said, instituted during the Carter administration, which had taxed oil drillers as much as 30 percent for the oil they produced. A 10 percent windfall profits tax is still administered to large corporations.
Despite the retraction of the tax, Jennings said the future looked grim for him.
"I don't hold much hope for
anthing but said, "I figures we're
able to do it."
University-Community Service Scholarship Award
As a result of the efforts of many students on the evening of April 20, 1970 in the saving of furniture, art objects and invaluable service to firefighters during the Kansas Union fire, some insurance carriers decided to present to the Kansas Union a cash gift. After presentation of the gift, it was suggested that the Student Union Activities Board seek those students deserving of being awarded scholarship/awards from the interest on the gift. It will be awarded at the Higher Education Week Banquet, Feb. 26.
*Regularly enrolled students at the University of Kansas at the time of application (spring term) and at the time of the receipt of the award (fall term).
the university and/or the Lawrence community.
*Scholarship, financial aid, and references will be of minimal consideration in application review.
Applications
Qualifications
- Applications must be received by 5:00 p.m., Friday, Feb. 11 in the SUA office, Kansas Union. Interviews to be held February 17.
* More information and applications available in the SUA office, Kansas Union, 864-3477.
Progressive Pitcher Night Tonight At GENERAL*S QUARTERS
11-member student bus board tries to solve money problems
By SARA KEMPIN
Recent reorganization of the KU transportation system has improved bus service and greatly decreased the possibility of further misuse of student money, two Student Senate Transportation Board leaders said recently.
Buskirk said that on the back of the bus pass was a statement which relieved the Senate from responsibility for lost or stolen passes.
Staff Reporter
"We are simply enforcing an old rule," he said. "The board has been trying to reconstruct from a difficult situation."
Paul Buskirk, chairman of the board,
said responsibility for making and
enforcing transportation policy had
been cut off because a person did not
have complete control.
Before the reorganization, Steve McMurray, former director of the transportation system, had been responsible for both, Buskirk said.
McMurry was arrested Sept. 15, and charged with stealing $20,425 from the sale of bus passes at the Kansas Union.
ALL CHANGES in bus system policy are now made by the 11-member Transportation Board, which is part of the city's transportation agency. Buskirk said. And the transportation
David Adkins, former student body president, appointed himself acting transportation coordinator after McMurry was arrested.
coordinator is in charge of implementing that policy.
Every day, a representative from the Lawrence Bus Co. counts money made from individual lares. The company then transfers the money to its system's monthly bill, Bushkirk said.
Buskirk said the board had also changed the way bus money was handled. Members of the Student Senate or the Transportation Board never directly handle bus money, he said.
Adkins said the Transportation Board had also eliminated its replacement bus pass policy, which allowed students to buy a new bus pass at a reduced rate if they could prove they had lost their original pass.
When bus passes are sold on the buses, that money is taken directly to the Office of the Comptroller by a bus driver, the employee, and deposited into the Senate account.
EMPLOYEES DEPOSIT funds directly into the Senate account when bus passes are sold at the Kansas Union, he said.
When McMurry's trial comes up in March, a lot of old concerns will resurface, he said.
"The board didn't want replacement bus pass money being handled in the Senate office any more," he said.
Buskirk said he hoped people would realize that the board had made many improvements in the bus system and have faith in the board's integrity.
ADKINS SAID publicity from the trial might make people question whether students should be allowed to control the large transportation budget.
The University of Kansas Black History Month February 1983
The U.S. Constitution and the Black American
CALENDAR OF EVEMTS
Thursday, February 3
Saturday, February 5
"A Jazzy Evening with Ron McCurdy" Ron McCurdy directs the K.U. Jazz Ensemble and Jazz Choir. 8:00 p.m. Satellite Union, Party Room. Sponsored by the Office of Minority Affairs. NO $$$
Sunday, February 6
"Histories and Cultural Roles of the Black Church in Lawrence"A presentation by Dr. Dorthy Pennington. 2:00 p.m.Watkins Community Museum. Sponsored by the Kansas Committee for the Humanities through the African Studies Department. NO $$$
Wednesday, February 9
"Beauty Extravaganza" 2:00 p.m. in Lewis Hall, 3rd Floor. Co-sponsored by Sigma Gamma Rho, Lewis Hall Black Caucus and the Office of Minority Affairs. NO $$$
Tony Brown, noted television personality, television and film producer, writer, lecturer, and educator will speak in a public lecture. 8:00 p.m. Alderson Auditorium, Kansas Union. Co-sponsored by Student Union Activities and the Office of Minority Affairs. NO $$$
Friday, February 11
"Black Faculty and Staff Recognition Dinner." 7:00 p.m. McCollum Hall Cafeteria. Sponsored by the McCollum Hall Black Caucus.
February 14-16
Dr. Margaret Walker, author, will present a public reading from her works. Tuesday, February 15 at 8:00 p.m. in Alderson Auditorium, and speak on her upcoming book "The Daemonic Genius of Richard Wright" at the University Forum Wednesday, Noon, Ecumenical Christian Ministries Center, 1204 Oread. Co-sponsored by the Office of Minority Affairs and the English Department. NO $$$
Thursday, February 17
Templin Hall lobby, 8:00 p.m. Barbara Sabel, Secretary of Health and Environment, State of Kansas, guest speaker. Darrell Matthews recreating the "I've been to the mountain top" speech by Dr. Martin Luther King, Virginia Smith and Company. Sponsored by the Templin Hall Block Caucus, NO $$$.
Saturday, February 19
African Night, 5:30 p.m. Ecumenical Ministries Center, 1204 Oread. Sponsored by African Students Association. $$$
Sundav..February 20
"Marian Brown in Concert" 2:00 p.m. Big Eight Room, Kansas Union. Sponsored by the Office of Minority Affairs. NO $$$
Monday, February 21
Roger Wilkins, author, will speak in public lecture 8:00 p.m. Alderson Auditorium, Kansas Union. Co-sponsored by the Office of Minority Affairs and the School of Journalism. NO $$$
Friday, February 25
"The Inspirational Gospel Voices" 8:00 p.m. in the Ballroom, Kansas Union. Sponsored by the Black Student Union and the Office of Minority Affairs. NO $$$$
Saturday, February 26
"Soul Food Dinner" 7:00 p.m., Ellsworth Hall Cafeteria, Sponsored by the
Ellsworth Hall Black Caucus. $$$
FOR MORE INFORMATION, CONTACT THE KU OFFICE OF MINORITY AFFAIRS, 324 STRONG, 864-4351 (All events are on the University of Kansas Lawrence campus, Lawrence, Kansas)
Funded by the Student Activity Fee