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About The daily Nebraskan. ([Lincoln, Neb.) 1901-current | View Entire Issue (April 9, 1975)
Four of six regents favor lump-sum budgeting By Gina Hills To lump-sum or not to lump-sum, that is one of the unanswered questions about the University of Nebraska budget. Along with Governor J. James Exon's proposed $71.6 nv'llion University budget is the recommendation to lump-sum appropriate this money to the Board of Regents, letting them set their own spending priorities for the university. Each campus would have to make its case for its share of the final sum. The Regents are, in effect, the" referees dividing up the appropriated money to the three campuses. Four of six regents interviewed favor the lump-sum approach. Regents Kermit Hansen from Omaha and Kermit Wagner from Schuyler were not available for comment. Omaha Regent James H. Moylan said Saturday he is against lump-summing because he is satisfied with the present procedure. Conservative this year "I'm quite satisfied with the budgeting process of the Legislature," he said. "I'm sure in their minds they're doing the right thing." He added that the governor and Legislature are "pretty conservative this year. I'm convinced they're doing the best with what they've got to work with," he said. Moylan also said he doesn't think the university will have to close its doors if it receives the amount proposed by the governor. "If anything, it may be a good cause for re-evaluating some of the programs of the university," he added. Regent Robert Prokop from Omaha said earlier he had "mixed feelings" about the recommendation making the budget a lump-sum appropriation. Trademen hurt Prokop had said he was concerned about the trade craft employes and said they might get hurt if the administration were allowed to appropriate the budget. "It's the people on the bottom of the scale who are most affected by the inflationary scale," he had said. "If you give a 10 per cent raise across the board, for example, the people making $50,000 a year would get $5,000, but those making $5,000 would only get $500 " he said. In addition, even though the board would be primarily responsible for appropriating the budget, the administration would probably do the greatest share of appropriating, he said. "When you lump-sum appropriate, many regents don't take or have the time to do it, so they trust the administrative team. The administration has pressure points under them in the faculty," he added. Prokop said he was afraid the administration might overlook the trade craft workers and give more consideration to the administrative branch. Flexibility added But Regent Robert Simmons from Scottsbluff said Friday he thinks the lump-sum appropriation would add flexibility to the university's budget. "The nniversitv could make better cuts in the budget than the Legislature or governor could," he said. "It is easier to live with a cut budget that is lump-sum appropriated because you have more flexibility." In addition, the money might be allocated to programs rather than to campuses like it would be if the budget were itemized, he said. But Simmons also said "it is only wise to plan now for the amount of money the governor has proposed, then if there is some left over, the university will be better off." Regents Ed Schwartzkopf from Lincoln and Robert Koefoot from Grand Island said earlierthat the budget resented by the university was best for the system and that Exon's proposed budget would create a hardship. In addition, both agreed appropriation was a good idea. that lump-sum NU handcuffed Unlike Prokop, Koefoot has said the university administration would not have the power to appropriate the money becar.se it would be the duty of the Board of Regents. Schwartzkopf added that he felt the regents could best allocate the money to the university because they understood which programs needed financing. If the regents had the power to set a budget, he said, money could be transferred from one budgeting item to another. This system would be more flexible than an itemized budget, he added. "The university is handcuffed when the regents do not have the power to set the budget," Schwartzkopf had said. Marvel; budget projection Friday One battle in the war over the University of Nebraska budget dollar should be over this week. According to State Sen. Richard Marvel, chairman of the Appropriation Committe, the Legislature's budget recommendations for the university system should be completed Friday. After hearings on budget requests from all colleges and NU, the Appropriations Committee will present its recommendations to the Legislature. The University dollar has been tightly contested among the Appropriations Committee, Gov. J. J. Exon's office and the administrative staff of the University of Nebraska. , Exon said he will veto any budget recommendations exceeding the $71.6 million he has recommended for the University of Nebraska. Ridiculous, says Exon University requests for a 25 per cent increase over last year totaled about $10 million above Exon's proposals. The Legislative Fiscal Office, the Unicammeral's budget arm, has recomrrended a 16 per cent increase in the university budget. Marvel could not say which combination of recommendations he thought the committee would agree upon. Exon has said it is ridiculous for the university to get a 25 per cent budget increase over last year when enrollment is either static or declining. When he presented his budget proposals, Exon suggested that $71.6 million be given to the University of Nebraska in a lump-sum, letting university administrators hammer out ways the funds would be used. Lumped-sum Marvel at first opposed the lump-sum budgeting saying, "If it isn't unconstitutional, it is rank responsibility." Later, during the budget hearings, he said he was beginning to support the lump-sum concept, so NU officials could "fight it out." The enactment of Exon's proposals would "create serious problems for us simply in maintaining our present programs," NU President Durward B. Varner said. He divided the university budget into two parts, continuation and enrichment. To continue current activities, Varner said the university would require at least $2 million more than Exon's proposals, and that would not include enrichment areas for the university. The governor said his recommendation of $71.6 million, coupled with a projected income of $33.7 million in tuition and, $22.8 million in federal funds provides more than SI 28 million for1 the unirersity system. "This is a reasonable budget by any standards," Exon said, "and the university administrators and the NU Board of Regents have not been reasonable in their requests." A Big-8 study compiled for the Legislature shows NU ranks below average in spending. Big-8 study "I don't believe university administrators have the proper compassion for the overall economic picture," Exon said. "The University of Nebraska has to realize that the state has the resources to run a top-flight university, but these resources are not unlimited." A large increase in spending for institutions of higher education in Nebraska could require an increase in taxes, he said. Marvel before Easter vacation, said he would look for budget cuts that would prevent any cause for an increase in taxes. Exon said the 25 per cent increase the university received last year was the largest in the Big-8. He added that it was "ridiculous" for the University of Nebraska to come back and asj for another 25 per cent increase for next year. The legislative fiscal analysist's recommendations call for $743 million university budget. Varner said he was disappointed with both Exon's and the analyst's proposals. "It's obvious that some things will have to be eliminated if we don't receive the budget we requested," he said. Documentary Films RE66AE Produced and Directed by Horace Ove 69 minutes 1970 Croat Britain plus Produced and Directed by Lionel P.ogosin 0 minutes 1970 USA Screenings today at 3, 7 & 9 p.i Admission $1.25 Sheldon Art Gal'ary 12 th & R Sts. 0. - A. Vi r A 1a LL-I PRESENTS Newport (ir-t3iiva 1 V- - I V t T- Y r tui if if, L 1. plus special guest The Charlie Daniels Band in Concert Thursday, April 17 8:00 at Pershing Auditorium Tickets $5.00 in advance and $G.0Q day of concert. Tickets available at Union South Desk, Dirt Cheap, Ben Simons, Miller & Paine, The Daisy and Pershing Box Office. A contemporary Production 1 Quintet Gemy Mulligan Quarlet A LM-U,J quintet MAIN PERFORMawrr SATURDAY APRIL 17. nnn . r,.. V I TICKETS: $2 (with current UNL in) V r S3 (aeneral nuhhrl X I Tickets availabls at Union South Desk, East Union f - V SPONSORS: Nebraska Union Concerts Union Program Council mid-amenta U !lunce brjniif Intf rnational page 8 daily nebraskan Wednesday, april 9, 1975