The Nome Nugget

Budget, Taxes and Organization Await Alaska's Lawmakers Come Monday

By Ward Sims

JUNEAU (AP) - Budget, taxes and organization were the two main topics of conversation in the State Capital Building today as Alaska's lawmakers awaited the Monday opening of the 1961 Legislature.

The state's senators and representatives will find out in joint session next Wednesday morning how much money Gov. Wm. Egan proposes Alaska spend during fiscal 1962.

He is expected to ask for legislative approval of a spending budget of some $56 million, an increase of some $9 1/2 million over the fiscal 1961 budget. The $9 1/2 million would have to be raised by new taxes.

Rep. Frank Chapados (D-Fairbanks), House Finance Committee Chairman in the First State Legislature and a virtual certainty to repeat in the role during the coming session, said:

"We're going to take a hard-nosed, realistic look at any requests for new revenue. We are going to make absolutely certain that the money is needed and that it can't be obtained by other means."

Rep. Warren Taylor (D-Fairbanks), House Speaker in 1959 and 1960 and a strong candidate for the Speakership again this session, echoed Chapados' warning.

Egan is believed to be thinking in terms of a raise in teachers' salaries to total about $2 million a year. About half of that would be borne by the federal government.

Normal increases in the cost of government are expected to add some $3 million to the budget and costs of the highway program will up the ante another $3,200,000.

Egan has already indicated he will seek a $165,000 increase in funds devoted to Tourism and Economic Development and that the new Personnel Code added upwards of $750,000 to the State's Labor Bill.

If the governor goes ahead with his announced intention of covering state employees with Employment Security benefits, and if the state assesses employment security taxes against itself, it will boost the budget by another $500,000.

$9 1/2 Million Increase

Those increases alone tally out to $9,615,000 and the money would have to be raised by new taxes if the Legislature sees eye to eye with Egan on his proposed budget.

The spadework for organization of both the House and the Senate was still underway in capital corridors today. The actual decisions will be made in closed Democratic Party caucuses tomorrow.

Leading Candidates

As the time for actual organization of the two chambers approached these were generally considered to be the leading candidates for the major assignments in the House:

Speaker -- Taylor, although a late, strong move for Rep. Dora Sweeney (D-Juneau) was developing.

Majority Leader -- Rep. Morgan Reed (D-Skagway) or Rep. Pete Deveau (D-Kodiak).

Finance Committee Chairman -- Chapados.

Judiciary Committee Chairman -- Rep. Hellenthal (D-Anchorage).

In the Senate, the assignments appeared to be shaping up this way:

President -- Sen. Frank Petrovich (D-Klawock).

Majority Leader -- Sen. George McNabb (D-Fairbanks).

Rules Committee Chairman -- W. O. Smith (D-Ketchikan).

Finance Committee Chairman -- Sen. Al Owen (D-Uganik Bay).

Judiciary Committee Chairman -- Sen. R. J. McNealy (D-Fairbanks).