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cent," Exon said. He said he supported the
increase, which had been contained in two bills
vetoed by the Legislature last session. The current
rate is 11 per cent.
Figuring taxes
The governor said the tax rate is determined by
considering the total appropriations made by the
LegisJ&ture, figuring how much money is on hand
to -meat these appropriations and estimating how
much money will come in from the tax. The state
tax rate represents a percentage of the federal
income tax.
With increased costs because ofdnf lation,. more
money svas collected through the sales and state
income taxes than had been predicted by the State
Department of Revenue, Exon said.
Department estimates placed sales tax growth
at 8 per cent and income tax growth at 9-10 per
cegt, according to Exon. Tax growth is
determined by the amount of money collected by
those taxes that is over the amount collected the
year before.
Had the Board been able to predict the tax rate
growth and the additional money brought in, Exon
said he would have supported the 11 per cent tax
rate.
' Still not enough
But the amount of money in the general fund
still is not enough to match legislature
appropriations, Exon said.
'The way we're sitting right now, we haven't had
any cash-flow problems" in the general fund,
Exon said. What affects cash flow is that tax rates
are set on a calendar year basis but the money
from these taxes is paid out on a fiscal year basis,
Exon said.
Although Marvel has criticized Exon for initially
supporting the 13 per cent income tax rate, Exon
said Marvel supported even higher tax rates by
backing LB 772, providing state aid to schools.
Exon said he opposes LB 772 because it would
increase the state sales and income taxes.
Aid increase
LB, 772 requires the state to pay half the
operational costs of schools and would raise the
level of state aid from $55 million to $155 million
over a two-year period.
u is on the ballot because of a successful
petition drive co-sponsored by State Sens. Rainey
Whitney of Chapped and David Stahmer of
Omaha.
The governor said the state aid to education
amendment unfairly shifts the tax burden by
hitting hardest at the finances of those least able
to rpay, and favors some school districts over
others.
Exon said his plan for property tax relief and
increased state aid Involves direct property
taxpayer rebates or credits. He said his plan
wouldf use revenues from state sales and income
taxes to offset local property taxes and increase
school support.
conditional support
Exon's support of education on the college level
alb was conditional.
"Education is not a sacred cow and must be
responsible for the money expense it has and the
job it does in teaching," he said.
"We are getting away, finally, from the
prevalent thing in the 19003. The Soviet's satellite
Sputnik and President Kennedy's pledge to put a
. (continued pg. 11)
Pardon me, Mr. Ford- . c X- :
By Randy Gordon
One candidate for governor in the Nov. 5
election is running his campaign from three
different offices: a barbershop that he owns in
Omaha, his legislative office in the state capitol
and a Volkswagon station wagon that carries
the words "Chambers for Governor" on two
stickers.
And many UNL students will pay more. for
tuition this year than Ernest Chambers will
spend on his campaign ($846.90 was the total
filed with the secretary of state's office on Oct.
23,: 1.- '
Chambers,- an Omaha state Senator since
1970 Islhe first black Nebraskan'lh fhestate's
107-year history to file and run for governor.
Chambers said he thinks the major issues in
the gubernatorial race are the three candidates:
Democratic Gov. J. James Exon, Republican
State Sen. Richard Marvel and himself, an
Independent.
Integrity important
"With what Watergate has shown you about
politicians, you have to look at the character
and integrity of the individual running for the
office.
"Anyone can make a promise in a campaign.
You have to find out, based on the character of
the individual candidate, whether or not he is
willing to carry out and deliver on the promise
that is made," Chambers said.
The governor's character and integrity also
can bean example of what public morality is or
should be, Chambers said.
"As governor I'm going to be so active that a
lot of people are not going to like what I'm
doing. You have to sting people or they won't
do anything, and I'd stinp a lot more as
governor than I have in the Legislature,"- he
said.
"Everytime we have a (verbal) encounter, I
come away winning. He doesn't know much
about very many things.
"Exon refers to himself as 'your governor'.
That's what happens to people when they have
a god-like complex."
About State Sen. Richard Marvel Chambers
says:
"Hs's a nice man, thy say. He's aot some
aood ideas but it takes him too long to get them
out."
Self-evauiation
And finally, in reviewing his own character:
"I have an internalized ethical system that is
personal for me. It determines what I'm going
to do, and as a start, I try to treat people the
way I want to be treated myself." .
His list of priorities, if elected governor,
begins with changing the attitudes of
Nebraskans.
"The first thing I would have to do is turn
around some of the thinking of people in this
state. I would start with the fundamentals and
explain what my concept of government is."
That concept includes "embroiling myself in
many, many local situations that I think violate
the law," he said.
Top priority
Chambers said tax reform is one of his first
priorities. He said reform would include
eliminating the sales tax and introducing a tax
on intangibles (stocks and bonds, paramutual
betting and other investments).
"Intangibles are where a lot of wealth is tied
up," Chambers said. "I look at investments as
being legalized gambling."
The Omaha state senator said he would favor
a graduated income tax investigating all
possible resources of the state that might be
taxed, if it is decided that it is needed.
He also said he favors increasing corporate
taxes. Now, federal tax loopholes allow
Nebraska corporations to escape paying taxes.
The deficit created in this way is passed on to
the state, Chambers said. . , A
'ChaVrtbeYs km m opposes'the State 'ATtf' to1
Education Amendment because it is a "thinly
disguised tax bill and is a school, not an
education bill."
The amendment, LB 772, would increase
state sales and income taxes, but provide
property tax relief. It would raise the level of
state aid from $55 million to 155 million over a
two-year period.
"What is the primary purpose of the schools,
to employ teachers and administrators, or to
give education to the students?" Chambers
asked.
"Until they come up with a bill that will help
children learn, read and write better, I won't
support it." .
New education
Chambers said the state should develop a
different type of educational system. "We
should make classrooms as much like outdoors
as possible," he said, "and let kids talk among
themselves about things the instructor teaches
them. They (the teachers) should stay out of
the way as much as possible."
Chambers said teachers should iead and help
formulate public opinions on social issues and
should make themselves conspicuous by
marching on the state capitol and protesting in
"a not so orderly way."
Federal-state relations suffer, Chambers
said, because "there are some corrupt people in
the federal government who don't properly
administer the laws."
"i have little confidence in the way local
government operates. It does not represent the
interests of the people, is beholden to special
interest groups, and is not primarily concerned
with the people's welfare."
People programs
Chambers said before additional state funds
are made available to local governments, he
would request a study to see how local
governments are spending the money they
already have received. He said future state
dollars should be appropriated to "people
oriented" programs.
"I am very concerned about the assistance
?iven families who are poor and have children,
here are some state programs, like the
fieldhouse, that I don't care about. That's not
going to benefit any substantial portion of the
populace," he said.
About penal reform, Chambers said that
because no prison is escape-proof, he would
erect buildings that "look as much like places
that people live in as possible."
uch prisons would have a security fence
i (continued pg. 11)
daily nebraskan
election special
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