MA^CHESTER U.S./WORLD SPORTS Weiss lacks data President seeks Whalers in tie on code inspector Senaw support against Bruins ... page 3 L page 4 ... page 11 Mmxtimtn ) Manchester - A City ol Village Charm IferalJi day, March 22, Monday, March 24,1986 .; -f ? Aid plan Senate panel 2 backed won’t accept in town By Susan Vaughn tax on bonds Htrald Reporter 4 WASHINGTON (UPI) - The would require wealthy people who Some $2S3,157 Manchester would have to pay an alternative min­ receive under the governor’s latest Senate Finance Committee de­ feated Chairman Bob Packwood imum tax to include as taxable proposal to use the state surplus to income the interest they receive offset federal spending cuts would today on the first test of his tax reform plan, rejecting a bond from normally tax-exempt munici­ slash almost half a mill from the pal bonds, no matter when the tax rate in the coming fiscal year, proposal he said was essential to having a strong minimum tax. bonds were issued. the town budget analyst said The tax plan that the House today. The Republican-led panel, in its passed last year would include as The proposal, released Friday first vote on Packwood’s tax income only the interest on newly by Ck»v. William O’Neill, drew overhaul blueprint, decided by issued municipal bonds used to pay support from two Manchester voice vote not to make existing, for private . projects such as legislators, one a Democrat and tax-exempt municipal bonds sub­ hospitals and factories. the other a Republican, in inter­ ject to a minimum tax, which Other municipal bonds used for views today. A third. Sen. Carl' would be paid by extremely public purposes such as schools Zinsser, said he wanted to study wealthy people. and highways would be tax- the situation further. The committee left undecided exempt. I Town Manager Robert Weiss whether it would eventually vote to In response to the market last week proposed a tax rate of make any newly issued municipal upheaval, 10 of the committee’s 20 48.76 mills — a 4.28-mill increase bonds subject to a minimum tax. members told Packwood in a letter over the current rate — to support Packwood, R-Ore., had wanted last week they wanted the provi­ his recommended General Fund to make sure that no wealthy sion immediately reversed. Other budget of $50,697,748. The funding people would avoid paying taxes. senators who did not sign the letter proposed by O’Neill could reduce However, when the idea of a also opposed the provision, aides that rate by two-fifths of a mill, minimum tax became known last said. Budget Analyst Robert Huestis week, it caused chaos on the tax The critics charged it was unfair said. exempt bond market. to pass a law that would change the The funding provided under the Before the committee voted, tax treatment of existing bonds governor’s proposal would come in Packwood made a last defense of and speculated that the alterations addition to about $316,000 the town his proposal, even though he had could make it more difficult for expects in the fiscal year starting admitted that he would lose. state and local governments to pay July 1 from the state revenue “ We’re not talking about taxing for projects. sharing fund approved by the the poor,” Packwood said. “ We’re However, outside of agreeing to Le^slature last May. That amount not even talking about taxing the bring the matter up, Packwood was intended to offset a $390,000 upper-middle income. We’re talk­ refused to try to meet the lawmak­ loss in federal revenue sharing ing about taxing the rich — the ers’ objections. funds. very rich.” Friday, he conceded that he While the governor’s one-shot He said by excluding the existing expected to lose the vote today, but proposal for fiscal 1986-87 has been bonds from the minimum tax, he tried to paint the other senators criticized by some legislators, it lawmakers should not complain as being too concerned with was backed by the town delega­ when they read future stories of wanting tax loopholes for the tion. It would use $24.8 million of “ very wealthy people ... paying no wealthy. the state budget surplus to offset tax.” The proposed tax change, he the revenue sharing losses, with The bond provision, which sur­ said, would not bother middle- $18.8 million of that amount going faced only when complete details class investors because they are to help cities and towns. of Packwood’s tax plan were not subjected to the alternative R Huestis said today that the town released last ’Tuesday night, had minimum tax. would “ obviously like to have the by Wednesday paralyzed the tax- “ I would say there is a pretty E additional funds,’ ’ which would exempt bond market, but it later strong feeling on the committee 'exceed the expected loss of $80,000 recovered. that they don’t want an escape- for this year. The proposal, which Packwood proof minimum tax,” Packwood The full impact of the revenue said the administration requested. said. sharing cuts on the town will come in 1987-88, when revenue sharing is expected to be gone entirely, he said. The town has been receiving Indian government about $900,000 annually in federal revenue sharing funds in the past several years. The money, which comes with few strings attached, rebuffs settlement has been allocated for varioua General Fund uses. State Rep. Elsie Swensson, R- NEW DELHI. India (AP) - The to file a lawsuit in the United States Manchester. said today she knows government regards Union Car­ on behalf of victims of the the towns need support and would bide’s tentative agreement with December 1984 gas leak that killed like to see the governor’s proposal private lawyers to pay $350 million an estimated 2,000 people and used to offset the projected in­ to individual victims of the Bhopal injured 200,000 more. It was the crease in local taxes. gas disaster as illegitimate, an world’s worst industrial accident. “ I don’t want my taxes going up official spokesman said today. The Danbury-based Union Car­ 9.6 percent." she said. “ Theife cannot be any settlement bide Corp. announced Sunday it State Rep. James McCavanagh, without agreement by government had reached a tentative settlement of India as it represents all the of damage and iiijury claims. Please turn to page 10 victims,” said a spokesman for the Ministry of Chemicals. The agreement “ was worked out “ Only the government of India with some of the most prominent of can represent the victims in view the plaintiffs’ lawyers in the of the ordinance and retainers United States,” said Harvey Co- GOP nears teacher pay agreement bert. Carbide media relations given by the victims to the government.” said the spokesman manager. salaries, it could count on getting argument. Should the state be in a statement read over the But today in New Delhi the By Judd Everhart issue of a minimum starting additional state money to help foot setting any sort of figure, be it spokesman for the Indian Ministry The Associated Press teacher salary. telephone. He spoke on condition O’Neill has embraced the recom­ the bill, under the Republican minimum or targeted? his name not be used. of Chemicals said; “No other ” We have reached agreement on HARTFORD House and Se­ mendation of a bipartisan task proposals. The difference between India enacted special legislation attorney can enter into any agree­ the House and Senate GOP plans is alt the other components of the nate Republicans say they’re very force he set up last year, which Feb. 20, 1985 making the govern­ ment which can bind Bhopal the degree of that help. package,” he said. close to settling their differences called for a mandatory $19,3W ment the sole representative able victims.” House Republicans favor having His counterpart in the upper over teacher pay raises, an issue starting minimum for public 4 the state pick up 100 percent of the chamber. Senate Majority Leader that has sparked heated debate in school teachers. The state would increase. The ^nate GOP favors Reginald J. Smith, R-New Hart- the General Assembly this year. pay the $4.1 million it would take to The legislature’s Education bring all cities and towns to that 75 percent. lord, agrees that money is not the TODAY’S HERALD House Majority Leader Robert Committee was. to hold a public level. m ajor issue. G. Jaekle, R-Stratford. said the Both the House and Senate plans hearing today on three bills on the Republicans oppose the idea of debate is now focusing on the issue call for state money to help pay for subject — one from Democratic mandating anything. They favor of mandatory or permissive raises for teachers already work­ Gov. William A. O’Neill, one from higher salaries, but say it should be ing. The state would pay an The winner is... Index the House Republicans and one left up to the towns to set their own minimums. “ It’s really not the dollars now.” average of SO percent of the cost of from Senate Republicans. rates. The Academy Awards program 2 0 pages, 2 sections However, if a town does raise he said. “ It’s a philospohical those raises. this year is spiced with controv­ The sticking point has been the A r l v i r p 1ft ersy concerning " ’The Color Pur­ ple.” which garnered 11 nomina­ R iif t in p e e 0 tions, and its director Steven niiiAftificM l 17-on Spielberg, who was left off the list, n o m ic .