KENTUCKY REPORT

erecudve vlce pre:ldent

by oon A. Campb€ll

where they learned that interest rates will not decline until the budget is balanced.

their own business office. Not a bad job for the average type ofreprescntatives we have in Frankfort.

Three months ago, when the General Assembly convened, their main objective was a no frills, hold the line budget. This intention never materialized although the battle cry was we must "live within our means." However overall, some $ZX) million in new revenue went into the final budget.

Heavy trucks will be taxed 85c for each mile traveled on our highways. Cab card fees increased from 32 to tZ). An omnibus fees bill would raise the rates for Frling law suits, bank examhations, loan company certificates, sccurity registrations and strip mining pcrmits. Alcoholic beverages were increascd at both the wholesale and retail levels. Insurance premiums on property and castnlty were increased and workman's compensation as well had a going over.

There was quite a bit of conflict between the Governor and the lrgislature although Governor Brown said that his program had come out on top. Many disagree with this and cited the number of bills he promotd which did not pass. All I can say after the smoke cleared away, was "a blight on both your hous€s."

B.E. Miller, 3l years an executive with the Southern SupplyC.o., kxington, has retired. I would like to add my own personal congratulations to this fine gentleman whose high ethical standards and integrity truly deserve the plaudits of all those who have known him.

l?gNrucKY

dealers met with our IlCongressmen in Washington recently. Attending were pres. Jay Jenkins, Jenkins-Essex Co., Elizabethtown; v.p. and past pres. Bob Powell, Powell Lumber Co., Sebree, with his wife Bettye; national director "Hack" Arterburn, Square Deal Lumber Co., Cave City; national representative, 3rd district, Bill Morton, Home Lumber Co., Hazardi and executive v.p. Bill Thompson, Lebanon.

Every state was represented and the opening address was by Hon. James Watt. Sec. of the Interior. National board meetings followed and then all delegates visited members of Congress

Annual spring meaing of the directors was held at RouSh River State Resort Park on May 7. Summer session is scheduled for Lexington on Aug. 10. Our convention will be held on Nov. 7-9 at the Marriott Resort in Lexington. Our frrst annual Kentucky Lumbermens Golf Tournament was held on May 8.

They did not keep a record but your State Representatives and Senators just gave themselves a raise of roughly $2,fiX) a year. By a thundering voice vote, they approved an amendment to increase their own expense allowances by $2fi) a month when the legislature is not in session. Incidentally, while the law makers are in session, they are paid $50 salary and $75 expenses for each day. In the current session theywill receive $12,625 according to vlce precldent the courts consider them as a group, but, generally, the more the employer's involvement or benefit, the more likely the courts will allow worker's compensation benefits for injured team members.

President Reagan's complaint that some subsidies are going to thosc who don't descrve them is more than just political rhetoric. He cites section "8" as an example, where subsidies as high as $5,0fl) to $7,fr)0 a year to single families are cornmonplace. Many of these projects have swimming pools, tennis courts, security service, billiard rooms, underground 8tra86, ac., all of which would be the envy of any working class taJ(payer.

Although luxury apartments in urban ileras rent for 32,ffi a month and uP, a qualifying tenant under Section 8 may be paying as little as $2(X). The basic trouble of any subsidy is that too many pcople can qualify. The result is that the middle class, which pays the bulk of the tax burden, is in some cases paying for houses of other middle class families.

Unfortunately, HUD has failed to get adequate verification for thosc renters who claim a subsidy. Only t7 HUD offices bothered to check on possible duplications. The program eventually may fail and they all will suffer, those who deserve it and those who got it.

Fllnrar

STRIDES for the future of -the building material industry in our state are being made by the Young Executives organization. Numbering 33 strong, they are taking charge of many responsibilities including the educational programs and seminars conducted by the association.

Their first annual convention is scheduled for May 14-16 in Columbus, Ms. It has been designated an open convention with those in the industry between the ages of2l and 40 encouraged to attend and find out what the Young Executives is all about. For those interested, but not able to attend, information is available from the TBMA office. Annual membership fee is $40.

Fred Stephens has taken over as chairman of the convention committee since Scooter Clippard has another commitment which will keep him from attending. Headquarters will be the Hilton Inn. An all day tour of the Weyerhaeuser stud mill, plywood plant and treating plant is scheduled for Saturday. Lunch will be served with a visit to the nursery and logging operations concluding the day.

In addition to business sessions, the convention will include a golf tournament at the Columbus Country Club and a poolside cookout.

Employers who sponsor employee bowling, softball teams and the like should be aware that they are leaving themselves open for increased risk management costs if employees are injured on the field of athletic battle.

These employees may turn to their workers' compensation insurer for medical benefit payments. This, in turn, may have a significant impact on the employer's insurance premiums, either because benefits will have to be paid or because the insurer may have to defend law suits brought by employees claiming benefits.

Courts will generally look at four factors in deciding whether an employee injured while playing on an employersponsored sports team is entitled to workers' compensation benefits: (1) whether the sports activity takes place on the employer's property during working hours; (2) the role of the employer played in initiating the sports or recreational activity; (3) whether the employer had furnished the team with money or equipment; (4) the amount of benefit the employer receives from the activity. These factors don't form hard and fast rules for figuring out when workers'compensation will pay for an injury. Instead, llEYgR4I- Arkansas and Oklaho- ttsma dealers and staff members from the Mid-America Lumbermens Association (MLA) were Ermong the nearly 300 who participated in the National Lumber and Building Material Dealer Association's "Conference with Congress" on March 24 and 25. The first day's briefing sessions were highly informative, with the highlight of the day being a presentation by Secretary of the Interior James Watt. He substantiated our belief that he is in tune with our country's needs and is dedicated to meeting these needs (intelligently) from our own inventorv of natural resources.

The point to be made here is not that employers should never sponsor sports or recreational teams, but that companies be aware of what sponsoring a team may do to their insurance costs. One way employers can begin to estimate the risk in sponsoring teams is to use the same criteria the courts use. Management can then decide whether an increase in workers' compensation liability is likely to result and whether that outweighs expected benefits.

One point surfaced time and again during the briefing sessions. Interest rates cannot be legitimately or significantly reduced until the Federal debt is lowered. In 1983, interest on this debt will represent about l29o ofthe Federal budget! It would appear that Federal Reserve Chairman Volker is not just picking on business, he's trying to get the government to control its deficit spending too. One of the most credible comments heard was that the Federal Government must: (l) establish a balanced budget requirement in conjunction with (2) an account specifically earmarked for deficit reduction.

Dealer visits to Capitol Hill left the delegation with mixed feelings. We were pleased to find that Congress is well aware of the plight of our industry. The Republicans have already introduced legislation which could provide some immediate relief. The Lugar bill (5. 2226) calls for 490 Federal subsidy of mortgage rates, down to a "net" of ll.59o, which would be "recaptured" when the property is re-sold or refinanced. It would qualify 7.8 million more families to buy a new home and would provide more Federal "payback" than it costs. The Democrats must have heard that the lumber deaiers were coming to town because the ink was still wet on a party policy statement related to housing! This policy parallels the Lugar bill, but goes on to include farm relief, mortgage default relief and 50,000 public housing units. It is difficult to accept the Democrats' contention that this legislation would also pay back more than its cost to the government.

The Arkansas and Oklahoma Congressmen are impressed by those who care enough to take their issues to Washington. MLA thanks the dealers for their willingness to give of their time and money to attend the Conference! These people are to be complimented for recognizing the importance of this activity and doing something about it!