Friday April 8,1988
THE UNIVERSITY DAILY KANSAN
Published since 1889 by the students of the University of Kansas
Vol. 98, No. 130 (USPS 650-640)
School retirees may be eligible for tax refunds
By Kevin Dilmore
Kansan staff writer
Retired employees of Board of Regents schools who contributed to certain retirement funds might be eligible for tax refunds that could amount to several thousand dollars, a state legislative committee member said yesterday.
Oscar Haugh, secretary of the state legislative committee on the American Association of Retired People, said he had received word from his organization's legal counsel that two state statutes could make him paid from two Board of Regents retirement funds tax exempt.
The funds are the Teachers Insurance and Annuity Association and the College Retirement Equities Fund.
The statutes are numbered K.S.A.
74-4923b and K.S.A. 74-4925d.
If the money is ruled tax exempt, employees that contributed to those funds could receive a refund on the amount of state taxes they paid on money in those accounts in the last four years.
John Lutj Johann, director of the Kansas Department of Taxation, said his department's legal staff today would finish reviewing the statutes and determine whether refunds could be received at the state level.
Haugh said that TIAA paid money based on a constant annuity program and that CREF payments varied with the stock market.
"The program gives retirees an opportunity to invest in something stable or something that fluctuates with the market." he said.
The benefits still would be fully taxable at the federal level, Luttjo hann said.
Haugh said the program allowed Board of Regents employees to invest in one or both of the programs. Kansas Board of Regents institu-
invest in one of God's programs Kansas Board of Regents institu
tions include the University of Kansas, Kansas State University, Wichita State University, Emporia State University, Fort Hays State University, Pittsburg State University and the Kansas Institute of Technology in Salina.
Should the tax exempt claim be determined legitimate, Luttjohann said that Kansas' four-year statute of limitations would allow retirees to file amended tax returns dating back to 1984 to receive a refund and that if retirees were speedy enough to beat the April 15 tax deadline, their 1983 returns also would be eligible.
Haugh said that he and the AARP had been working toward the refund for more than a month, after the discovery of the statute.
"Our group researched the program and found out something that never should have happened," he said. "I have lost thousands of dollars, and I wouldn't be surprised if the refund ran into several million
"Our job is to protect retired people; and this time, I think we have uncovered a real flasco."
Lutjohmann said that the taxation problem was not altogether new to him and that it was a top priority in the department.
Leland Pritchard, professor emeritus of economics, said he was excited about the possibility of getting a refund.
"There is only one opinion among the retired," he said. "It means more money in our pockets. If I didn't have to pay this tax, it would reduce my taxes by 40 percent."
Pritchard said he had already sent in his amended tax forms, anticipating a favorable ruling.
"Oscar got the ball rolling, so I sent in my forms," he said. "But one lawyer says one thing and one says exactly the opposite, so I'll just let the chips fall where they may."
State's tax revenue could help Margin Projected increase highest in 9 years
By Elaine Woodford
Kansan staff writer
Full financing of the Margin of Excellence plan might be more likely in light of a projection that the state might earn an extra $89.4 million in tax revenue during the next two years, state officials said.
The projection, made by the state Consensus Estimating Group, anticipates an increase of $61.8 million for fiscal year 1988 and an increase of $27.6 million for 1989. That amounts to a two-year total of $69.4 million.
The group, which is made up of 12 state government budget experts, met Monday in Topeka and forecast the state's expected tax income. The estimate is the largest projected increase in nine years.
State Rep. Jessie Branson, D-Lawrence, said the available money
But of the $61.8 million for 1988, $39.5 million will be nonrecurring revenue. Nonrecurring revenue, which will bring in additional money to the state for only one fiscal year, is a result of changes in federal and state laws.
Concerns had been raised over full financing for the Margin of Excellence in light of a school finance bill that would increase the amount of money allocated to school districts.
But Branson said that areas of the Margin that were in danger of being cut from the Board of Regents
budget, such as pay increases for nonteaching faculty and mission-related enhancements, could possibly be financed from the $2.3 million that would be recurring revenue in fiscal year 1988.
"I would highly favor using part of the money for full funding of the Margin of Excellence," she said. "I think it would be a valid use of the money."
But Gov. Mike Hayden on Monday told a news conference that he wanted to take about $70 million of the two-year projected revenue increase and put it into a "shock-absorber" fund that would help soft en the impact that property reappraisal is expected to have next year on school districts.
The group's estimates have not held true every time, so Branson and other legislators are cautious of spending money that is not yet in the state's coffers.
"There was a fair amount of uncertainty last November," he said. "But most economic forecasts out there don't show a recession coming."
Harley Duncan, state secretary of revenue, was confident that the group's forecast was on target.
Legislators are scheduled to adjourn tomorrow. They will take a two-week recess before returning near the end of the month to finish their work for 1988.
Bill Broeker. Leavenworth freshman, and Howie Erenberg, Iowa City, Iowa, freshman, show their wall of KU basketball clippings.
Dave Niebergall/KANSA
'Hawks photos adorn wall
By Davana Yochim
Kansan staff writer
When the KU men's basketball team was 12-8, Bill Broker's and Howie Erenberg's fourth-floor room in Naisim Hall had a common freshman problem
Rare walls.
Broker said that he expected the Jayhawks to be successful at the beginning of the season.
"We had some empty space over our deks, and we thought it would be interesting to see how many pictures we could put up." Erren Dunn said.
Broeker, Leavenworth freshman, and Erenberg, Iowa City, Iowa, freshman, started clipping pictures of the men's basketball team after the season opening practice, Late Night with Larry Brown, on Oct. 15.
"But then they started losing their players," Broker said. "They lost Archie and Marvin. I was just hoping for a winning season by that time."
But Erenberg had more than the 55-game homecourt winning streak on his mind.
"I was kind of nervous. I knew we had some wall space to fill up," he said.
And fill it up they did.
And in it they did.
Erenberg estimated that more than 100 pictures were hanging on their wall.
At first, their collection consisted mainly of pictures of Kansas forward Danny Manning.
"We got溺 of Milt, Archie, and after that we just cut out the pictures that were really good," Broker said.
When the team made it to the
finals of the NCAA tournament,
Erenberg said he wondered how much space would be needed for the photographs.
"This was just something we started doing, but now it dominates the room." he said.
After Monday's National Championship victory, Broker knew he had a big day ahead of him.
"Tuesday morning, we got up really early and got the Kansan, USA Today, the Kansas City papers, the Journal-World and the Wichita paper," Broeker said.
The roommates spent two hours cutting out and tacking up pictures from the Final Four tournament.
While Erenberg clipped, Broeker posted the day's work with thumbbacks. They even had to sacrifice a few posters to make
NCAA FINAL FOOTBALL
Special Edition
NCAA Champions
see B section
room for all the pictures
fourth of all the pleas. "We had to make a decision after this week if we wanted to continue." Erenberg said.
"It is time consuming," Broeker said. "But it's just like taking a roll of film and getting it developed. It's memories."
Broker and Erenberg decided to save the pictures for the apartment they are sharing next year by gluing them to a big piece of paper.
"It will be a lot easier taking the tacks out than it was putting them in." Broeker said.
But Broeker and Erenberg are saving room for one more picture in their vast collage.
"If Larry Brown comes back, the biggest picture will be for Dick Vitale washing the floor," Erenberg said.
By a Kansan reporter
3 more arrests made in local trafficking bust
Three Lawrence men were arrested late Wednesday night and yesterday on drug trafficking charges.
The arrests brought to 11 the number of people who have been arrested this spring in the largest drug bust operation in Lawrence since July 1986. Arrested yesterday on drug trafficking
■ James D. Spitzer, 22, 1509 Vermont St. He appeared yesterday in Douglas County District Court on a felony charge of sale of marijuana and was released on $5,000 recognition bond.
■ Terry E. Kerr, 30, 2029 Rhode Island St. He appeared yesterday in Douglas County District Court on a charge of possession of cocaine with
- Terry E. Kerr, 30, 2029 Rhode Island St. He appeared yesterday in Douglas County District Court on a charge of possession of cocaine with intent to sell and was released on $4,000 recogniz-
The arrests were made as a result of undercover investigations carried out by the Douglas County Drug Enforcement Unit and the Kansas Bureau of Investigation. Douglas County District Attorney Jim Flory said the investigations had been conducted intermittently in 1986 and 1987.
Monte R. Dolan, 25, 1109 Pennsylvania St. He was arrested on two felony charges of sale of marijuana and was released on $10,000 bond.
The Associated Press
Honduran students storm U.S. Embassy
TEGUCIGALPA, Honduras — Students last night set fire to a U.S. Embassy and burned 20 automobiles before being turned back by gunfire and tear gas. Police said at least one demonstrator was killed.
An embassy spokesman reported extensive damage but said that no U.S. citizens were injured.
The crowd of more than 1,000 university students was protesting the forced extradition of a man charged with trafficking drugs in Iran, a drug agent and President Reagan's sending of additional U.S. troops to Honduras last month.
Honduran riot police lobbed tear-gas grenades and fired at demonstrators who stormed the U.S. Embassy grounds and set fire to the annex and about 20 automobiles belonging to embassy personnel, said embassy spokesman Marian O'Brien.
Local news reports said that as many as four people were killed by riot police who moved in to break up the demonstration. Police sources could confirm only the death of a woman, Betty Molina, but gave no further details.
It was not immediately known how many people were inured.
"There was a lot of damage," he said. "They burned a number of goods."
O'Brien, in a telephone interview, said demonstrators had surged into an annex of the embassy that was across the street from the main building
O'Brien would not say what goods or documents
The crowd of more than 1,000 university students was protesting the forced extradition of a man suspected of involvement in the killing of a U.S. drug agent and President Reagan's sending of additional U.S. troops to Honduras last month.
were stored in the annex. He did say that Honduran police riot police had fired on the crowd.
On Tuesday, Honduran officials took Juan Ramon Matta Ballasteros from his Tegucigalpa home in a pre-dawn raid and hustled him without a passport onto a plane to the Dominican Republic.
Dominican Republic officials put Matta on a New York-bound flight and he was arrested aboard the jetter by U.S. marshals, according to U.S. law enforcement officials.
Matta, lodged at the maximum-security federal prison in Marion, Ill., was wanted by U.S. officials for questioning in the 1985 slaying of a U.S. Drug Enforcement Administration agent in Mexico.
The protesters also were demonstrating against
month's presence of 3,200 U.S. troops in Haiti.
Reagan dispatched the troops at the request of President Jose Azona Hoyo after Nicaraguan troops pursuing reportedly entered Honduras. The U.S. troops later returned home.
Kansan staff writer
By Jeff Suggs
Forum addresses problem of Lawrence's hungry, homeless
Lawrence has a problem with its citizens going hungry, palefalms at a hunger forum said last night.
"I see the need everyday," said Sue Beers, director of social services with the Lawrence Salvation Army. "It proves that it is a growing problem. It is a problem that is going away."
The panel discussion, which included Lawrence Mayor Bob Schumm, two KU professors and four experts on hunger issues, took place at Plymouth Congregational Church, 925 Vermont St. Each panelist tried to offer solutions to the problem.
solutions for Beers said that 100-200 families a month used the Lawrence Salvation Army's food services. Beers said the numbers had been growing, especially with households
that had two parents who worked at minimum wage
(if there were sufficient workers available for the family).
Rosemary Kromer, board member of the Lawrence Interdenominational Nutrition Kitchen (LINK) Soup Kitchen, said her group served meals to an average of 90-100 people a day. She said that all kinds of people, from transients to elderly citizens to children, used the kitchen's services, which are offered at First Christian Church, 100 Kentucky St.
"They cannot afford to provide for their families the basic necessities and feed them, too." Beers said.
"If you've ever seen the people, they're just like you and me," Kromer said. "They're just hungry."
Beers said many people weren't aware of a problem with hunger and homelessness in Lawrence. But with the opening of the LINK soup kitchen and a shelter at the Salvation Army, some eyes have begun to open.
"These people, they were invisible in this community." Beers said. "When these services became available, these people, who were invisible, became visible."
Beers said there was a definite need for services for the hungry and homeless people in Lawrence.
"We opened the shelter because we saw there was a need in this community to keep people warm in the winter." she said.
Many people on the panel said there was enough food to feed all the hungry people in the world.
Forrest Swail, assistant professor of social welfare, said it would be possible to end hunger in Lawrence in five years and world hunger by the year 2000. All that's needed is commitment by people who believe that such a
go there to do that.
"There's no reason for the condition to exist." Swall said.
goal can be achieved.
Schumm said that people shouldn't depend on government to fight the war on hunger alone. It takes everyone, especially groups such as LINK, to help and make people aware of the situation, he said.
"Making people aware in the fight against hunger is the solution." Schumm said.
The forum, which was part of KU's War on Hunger Week, was moderated by Don Johnston, president of the Lawrence Chamber of Commerce. The panelists took questions from Jasak Krawk, KU student body president, Geoff Martin, president of the Lawrence High School Student Council, and members of the audience.