A van driven by Charles
W. Arnold struck a parked
motorcycle at 14th and R
streets Tuesday afternoon
when Arnold fell asleep, ac
cording to Lincoln police.
According to Sgt. Ken
Cauble, the westbound van
dragged the motorcycle ap
proximately 30 feet, stop
ping after hitting the curb.
Cauble said that Arnold
had been taking medication
at the prescribed doses prior
to the accident, but the pre
scription was too strong for
his body.
Arnold was released
Tuesday night from Lincoln
General Hospital. Cauble
said that Arnold did not
recall the accident.
Photo by Ann Owens
doilu
Wednesday, October 22, 1975
volume 99 number 33 lincoln, nebraska
Varner to ask Legislature
to leave NU budget uncut
NU President D.B. Varner said he will
ask the Legislature to make no cuts in the
university's budget during the special ses
sion scheduled to convene today at 3 p.m.
Gov. J. J. Exon has asked for a three per
cent reduction in state spending to avoid
a cash flow problem which he said could
cause a $10 million deficit in January.
William Swanson, NU vice president for
governmental relations, said a three per
cent reduction in the university's budget is
"tantamount to five or six per cent because
the cut would be taken from what remains
of our total budget."
Contract obligations
Varner said he did not see how the bud
get could be cut that much without viola
ting contractual obligations.
"About 75 to 80 per cent of our budget
is spent on people," he said. "We can
hardly be called upon to void contracts.
I don't think we can do it without
personnel cuts.
"There must be ways to cope with a
cash flow problem without seriously im
pairing the university," he continued.
Varner said now is an inappropriate
time to cut the university's budget, refer
ring to the search for a UNL chancellor and
a vice chancellor for the Institute for Agri
culture and Natural Resources.
Other alternatives
He said the Legislature should exhaust
all other alternatives before cutting the NU
budget.
He, the chancellors of UNL, the Univer
sity of Nfbrssks. st Omshs, and ths
Medical Center and several vice presidents
met last week to discuss the matter, he
said, but made no decisions.
Varner said if the budget is cut, he
hoped it would be by individual campus,
allowing maximum latitude to determine
where spending could be reduced.
He said Exon told him that Atty. Gen.
Paul Douglas stated that giving each
campus freedom to decide where spending
would be cut may be illegal. If that is. true,
the Legislature would be given the power
to decide what specific programs or salaries
might be reduced.
High priority
Swanson said salary increases of five
per cent plus $468 mandated for all state
employes, including university faculty and
staff, would be given highest priority in
convincing the Legislature not to make
cuts.
Varner said costs other than salaries
would be cut if the decision is given to
university administration.
He said possibilities include capital con
struction reductions, leaving new buildings
unopened, and reduction or suspension of
summer sessions.
Swanson said it will be his and others
responsibility to present the university's
case to the governor and Legislature.
He said they will attempt to give the
university maximum flexibility in deciding
where spending cuts will be made if they
are required.
Varner said he would be in Washington
D.C. for a meeting of the Association of
American Universities when the special
c re inn Anant Ki im1I rit 1 4 ,
HWw W A V fcW A A ( VUUVdUttjl
night.
Legislators to wait, see
for Exon special session
By Dick Piersol
State senators are maintaining a wait-and-see
attitude about possibilities of the
Legislature's special session scheduled to
convene at 3 p.m. today.
After much speculation about Gov. J J.
Exon's motives in calling the session, pro
ponents of the "he wouldn't do it if he
didn't want to run for the Senate" theory
had the rug pulled from beneath them
when Exon announced he wouldn't seek
the U.S. Senate seat being vacated next
year by Sen. Roman Hruska.
Exon announced that the session was
called to reconsider appropriation laws
passed by the first session of the 84th
Legislature and to reconsider revenue laws
relating to sales and income tax rates.
Exon has said appropriations for fiscal
1975-76 need to be cut by three per cent
to avoid a $10 million state treasury deficit
in January, but some state senators
disagree.
Cash flow problem
Sen. Jerome Warner of Waverly admit
ted the cash flow problem, the amount of
state tax money available in the general
fund, would be tight, but said he doubted
that it required a special session.
Warner said that as of Sept. 30, $12.8
million more than the normal 25 per cent
that is drawn out of the general fund
during the first quarter of the fiscal year
had been removed from the fund.
About half of that $12.8 million went
toward post-secondary education, which he
said is normal because schools have yet to
collect their total tuition receipts.
Warner said part of what he called the
cash flow problem resulted from the State
Board of Equalization's failure to consider
express obligations, which are state finan
cial commitments made when setting sales
and income tax rates that continue beyond
a given fiscal year.
The Board of Equalization includes
Exon, Secretary of State Alien Beermann,
State Auditor Ray. A. C. Johnson, State
Treasurer Frank Marsh and State Tax
Commissioner William Peters.
Among express obligations, Warner
listed Homestead exemptions, increases in
personal property tax exemptions and cap
ital construction planned beyond a 12
month appropriation.
Education aid
Sen. Richard Marvel of Hastings said
another express obligation that con
tributes to the cash flow shortage was
state aid to education. He said originally,
$20 million in federal revenue sharing
money was used. A year later $15
million was available and the difference
was taken from the general fund. He said
the state now must provide all $20 mil
lion because of revenue sharing losses.
General fund money pays the entire $55
million in state aid to education since
federal revenue sharing money is commit
ted elsewhere, Warner saidt
Another contributing factor, according
to Warner, was the transfer of $14 million
by Marsh. Warner said $9 million of that
inside
Peter: ineptitude rewarded
Volunteers: A new look, this week's
Third Dimension p.7
High: State tax support for NU,
according to a university
' funding report p.5
Also Find:
Editorials p. 4
Arts and Entertainment p.l 2
Sports ..p. 14
Crossword ............... p. 16
Short Stuff p.3
Weather
Wednesday: Partly cloudy and cooler.
Temperatures in the mid to upper 60s.
Wednesday night: Clear to partly cloudy.
Temperatures in the mid40s.
Thursday: Increasing cloudiness, with
temperatures ranging from the low to
mid-60s.
Every employe is promoted to his level
of incompetence in a hierarchy, says
Laurence Peter, author of The Peter
Principle.
Peter addressed an audience of about
550 Tuesday at the Union Program Council
Talks and Topics program.
"The cream rises until it sours," Peter
said.
Peter said the rise to incompetency ap
plies to all fields. ,
"Once people are promoted to their
level of incompetence they stay there,"
Peter said. "By firing them their superiors
would be admitting their own
incompetency."
Peter said society is based on upward
mobility, and people are taught that suc
cess is being promoted to the top.
Peter added that often what he calls
truly successful people haven't been
promoted to the top.
"My serious solution to the problem
is to strive for forward movement rather
than upward movement and to gain
satisfaction through love of others and
yourself," Peter said.
Zech condition improving
David Zech, who fell from Iiis tenth
floor Abel Hall window August 26, is now
responding to relatives, according to a
Lincoln General Hospital spokeswoman.
He remains in fair condition and is im
proving "very slowly," the spokeswoman
said. ' . v
"He recognb.es his parents and family
and can call them by name," she said. "He
has reached a level of consciousness."
Zech, 18, from Douglas, was registered
as a freshman at UNL at the time of his
fall. He" suffered several broken bones and
head injuries in the fall, and remained in a
coma and in critical condition for several
weeks.
amount had never been transferred this
early in the fiscal year and these transfers
could and should have been deferred to
protect cash flow.
- Warner said the cash flow reserve never
had been jeopardized before because infla
tion caused sales and income tax revenues
to rise more than anticipated. However, he
said the economy slowed down, inflation
was eating away at reserves, there were sub
stantial appropriation increases with no
change in tax rates and the "day cf
reckoning finally came."
Postponing issue
Warner said LE589, dealing with ex
press obligation commitments, has been
considered before, but Exon has been post
poning the issue for four years.
Warner said if express obligation com
mitments are continuously ignored the
cash flow problem could be 50 per cent
worse next year.
' Warner said he thinks Exon has recon
sidered appropriations passed by the 1975
Legislative session and wants to further re
duce those appropriations to keep tax rates
down. He said the difference in what the
governor wanted and what the Legislature
appropriated is insignificant-about $5
million.
Exon also may present legislation to
eliminate the requirement that sales tax
and income tax revenues be equal he said.
Warner said he isn't sure the Legislature
i will agree that appropriations must be cut
and suggested alternatives to relieve the
projected cash flow shortage.
Stagger dates
Warner and Marvel both said the gover
nor has the power to stagger dates for pay
ment to governmental subdivisions, but
Warner said it should be done with care
since it could simply transfer the cash flow
problem to counties, cities and school
boards.
The bulk of state aid to political subdi
visions is state aid to education, Warner
said. The rest, about $12.6 million each
year, is paid to counties and municipalities
to compensate for their loss of revenue
since the repeal of the household goods tax
and the tax on intangibles.
Warner said payment of $23 million in
food sales tax credits and state income tax
refunds could be delayed and paid as the
money becomes available.
He said most citizens probably could
accept such a delay if they know their tax
rates would not be increased.
Capital construction reduction
Warner also suggested appropriations
and capital construction reductions before
necessary operating costs.
Some state construction projects are
"authorized but not under contract" and
authorization could be deferred, he said.
Wamer said speculation is that the ses
sion will last from 30 minutes to 10 legis
lative days. Constitutionally, seven days
must elapse before the Legislature may
vote on Exon's proposals. Any bills pre-
w4 tv AAnwijr V AAA nuv puuitw tVttAA.4y UW
fore the Revenue and Budget Committees.
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1 .
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Pheto by Kevin Hlykry
Laurence Peter, author of The
Peter Principle