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By Gordon Jchascn
Copyright 1979 By: The ; Summer
Nebraskan -
l: If Health .Education; and Welfare of
ficials are correct, the " University of
Nebraska will have to pay back some
money into a federal student loan pro
gram. According to a letter sent to University
t of Nebraska-Lincoln Chancellor Roy,
Young from the Bureau of Student Finan
- cial Assistance of HEW, the University
Inust determine how much money must be
paid back into the National Defense Stu
"dentlibia t QO)SU fundTlThe letter
resulted from a study of UNL accounting
procedures for the funds.
YOung said he would appeal the fin--'dings
':" .
The letter stemmed from charges made
in July 1978 by former director of UNL
student aid, Jack Ritchie.
Ritchie alleged that the university
violated federal regulations regarding the
: - way which NDSL money had been handl
; ed. He said that between $200,000 and
7- NDSL account for future loan use.
,v Federal projraai
NDSL -student -loans are a part of a
iS federal cresram which oavs'90 nercent of
student loans' and the state pays 10 per
cent During ,1978-79 1 UNL received
21.191 ia NDSL funds.
Problems have; occurred' because In
terest made onthe investment of idle cash
fund money from the NDSL funds was not
reinvested into the fund, according to
HEW regulations. Idle cash money is
money which is not presently used, such as
money which.students have paid back.
HEW regulations state that interest
from the idle cash fund is to be placed
, back into the NDSL funds to help produce
more student loan money.
According to NU financial adviser Emi
ly Nelson, the NDSL idle cash funds are
. lumped together with other funds and
then invested. It would not be readily
ascertainable, she said, how much interest
NDSL funcj, money has earned because of
this practice.
Funneled back
The interest from these funds eventual
ly is tunneled back to the University, she
said, it just does not come in the form of
NDSL money.
According to Active Vice Chancellor for
Business and Finance Robert Lovitt, the
state did not begin to invest idle cash until
1968 and 1989. f
Officials do not seem to have a clear pic
ture of how much money is involved,
either on the local level or on the national
level, a check with university and HEW of
ficials found. ?
Lovitt said he did not, know the exact
figure involved and he would not want the
amount to be known.
MI would be reluctant to give a figure
because that may be admitting defeat,"
Lovitt said.
We think what we have been doing is
correct, he added.
' r i
- -.' i! Isi ' " ' ' ' " r v
4 -: V; ? . u V: - r ; ' ?:" v -
Continued en pc?e 3 ASUN President and student regent. Bud Cue.
Photo by Shelley Smitl
Stadium additio
n is uwaremthf dead
By Gordon Johnson
Doubts concerning fuel availability, fan participation,"
and the timeliness of building a $8.4 millions stadium addi-
JL JL
Board of Regents
- -
mm Am 4
'U. '
IJactli revest Ed Sthwartxkept, (left) and NU PresUest
Cesali Eestss. . - . Pkotaby SheHey Sxaltb
tion pervaded last Saturdays NU
' meeting.
The stadium issue apparently died as the board failed to
recommend the sale of revenue bonds to finance the addi
tion. So far $175,000 has been spent on architectural plans
for the addition.
Koskens: NU at
fiscal crossroads
By Gordon Johnson
The family is not the only institution to be hit hard by in
flation, said NU President Ronald Roskens, the University
has also been affected.
In a speech delivered by Roskens Saturday before the
NU Board of Regents, Roskens said the University of
Nebraska "has reached a fiscal crossroads."
To help overcome some of these problems. Regent Ker
mit Wagner of Schuyler suggested to the regents that
Roskens meetwith Gov. Charles Thone to set up what he
called a "blue ribbon panel of citizens to review this whole
matter of university funding.
Wagner said he did not think this was passing the
responsibility off on someone else. -
MI think it would be very helpful to the board of
regents, he said.
The 187930 NU budget totals $313.4 million of which
f 11&9 million comes from the state. This year's legislative
session increased the budget by $9 million.
One reason for fiscal problems, Roskens said, was the
budget decreased from 22 percent of the state's total
budget in 1975-76 to 20 J percent, this year.
Other state's grew
Meanwhile, 18 other state agency budgets grew over
200 percent from 1971-72 to 1978-79.
The 1.7 percent decline, represents $9 million which
could represent the critical difference in school's drive for
excellence, he said. ,'7-x;-"'. r;, , ..
Roskens charged that during the past two years support
in Nebraska for higher education has risen only 15 percent
-compared with a natural growth rato of 22 per cent.
It was Regent Robert Raun of Minden who changed to
make the 44 vote about financing the addition. At
the regent's January meeting, the board voted 5-3 in favor
of the addition.
It was Regent Robert Simmons of Scottsbluff who called
for a reconsideration of the January decision saying the ef
fect of increased costs of the addition needed to be looked
in to.
However, the reconsideration vote was also 4-4, with
regents Raun, Simmons, Robert Prokop and Kermit,
Wagner of Wilbur voting against the addition.
Raun cited the current fuel crisis and lack of unanimity
on the board as reasons for switching his vote to create the
deadlock. That sculttled the project since a 5-3 .majority
would be needed to recommend the sale of the bonds to
finance the addition.
Foolhardy move
"The fuel situation is here to stay. It would be foolhardy
to recommend financing of this project without the
unanimous support of the board," Raun said.
The project has been discussed the past two years and it
is still possible that the project could be given the go ahead
at the next board of regents meeting.
Acting Vice Chancellor for Business and Finance,
Robert Lovitt, said because the project was not approved
Saturday 23rd, the expansion's time table would be put
back and the addition would not be completed before the
1980 football season began.
Since the project was first conceived. Simmons said the
price of the addition has risen $1 million and the number of
years projected for repayment of the bonds has gone from
7 to 14 years.
14 year pay back
"The entire athletic department is subject to pay for the
new stadium addition for the next 14 Tears, Simmons
siad. If the new addition does not tell out each year the
athletic department will have to use ether money than
ticket tales to pay for the addition.
We cannot feel that we have a guaranteed income, he
said. ' '
"I don't think that we can at this time feel confident that
the people of Nebraska are going to drive so far to these
events, he said.
Regent Robert Prokopp of Omaha suggested that a
Continued ea pt 2
