CBS Evening News for Wednesday, Jun 21, 1978
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(Studio) California legislature's dilemma over distribution of state's surplus funds to local govts. when Prop. 13 takes effect reported.
REPORTER: Walter Cronkite
(Sacramento, California) California state legislature's award to Benny Goodman, in midst of debate and decision-making about use of budget surplus, noted; songs "Brother, Can You Spare A Dime" and "Dinah" mentioned. Details given about legislature's apparent view of funding splits, that of Governor Jerry Brown, action of lobbyists at capitol and messages from citizens to legislature about cutting off essential services. [State senate John GARAMENDI - tells people he hears message.] Conflict in legislature committee over welfare outlined. [State senate Albert RODDA - describes welfare conflict.] Committee hopes to send money bill to Brown next week noted. Hospitalization due to chest pains of Assembly Speaker Leo McCarthy mentioned.
REPORTER: Terry Drinkwater
(Studio) Prop. 13's cut in property taxes noted. 1871 theory forwarded by Henry George and which gained substantial public support, that property tax be sole source for government revenue, stated. Upcoming report on troubles that would be found if this theory followed outlined.
REPORTER: Walter Cronkite
(Boston, Massachusetts) NYC's situation with tax exempt property like Chrysler Building, owned by Cooper Union College, Saint Patrick's Cathedral and Olympic Tower office and apt. building given as example of reasons that tax exempt status of many properties is becoming central issue in taxpayers' revolt across country Estimate of amount of tax exempt property in United States and its cost to taxpayers listed. [Boston Mayor Kevin WHITE - guesses that 75% of city is Roman Catholic. Says 20 years ago one couldn't consider taxing church property, but thinks that now many Catholics would tax own churches.] Situation in Boston described. Actions of Reverend Thomas Corrigan in becoming involved in Massachusetts Fair Share taxpayers organization and his beliefs with regard to need for church-related hospitals and schools as well as nonreligious insts. to help out taxpayer noted. [CORRIGAN - discusses in-lieu-of-tax payments, for instance by Harvard University and by government] Taxpayers' objections to way Logan International Airport is run by quasi-government agency, Boston Port Authority, detailed; results stated. Connecticut state payments to cities with exempt hospitals and university cited. Growing pressures for in-lieu-of-tax payments by churches, hospitals and univs. and against tax abatements for large corps. reported Upcoming report outlined.
REPORTER: Ray Brady
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