steffl friday, november 13, 1981 lincoln, nebraska vol. 107 no. 57 Copyright Daily Nebraskan 1981 u Equalization board holds taxes at present rates By Patty Pryor The State Board of Equalization voted unanimously Thursday to retain the current sales tax rate of 3 percent and the current income tax rate of 15 percent of the fed eral tax liability. At the hearing, Gov. Charles Thone also announced State Tax Commissioner Fred Herrington will resign effec tive Nov. 15. Herrington, 71 , submitted his letter of resig nation Oct. 15 because of poor health, Thone said. State Budget Director Don Leuenberger, who has been with the budget office since 1968, will replace Herrington. Leuenberger, in testimony before the board, said bud get cuts approved last week by the special session of the Nebraska Legislature reduced state appropriations by more than $20 million. Thone said such a reduction was necessary because of low agricultural production, rampant inflation and high interest rates. 'The proposed budget cuts will allow us to meet the state's needs without raising taxes," he said. "The Legis lature did its job in keeping its promise to the people." Nebraska taxpayers have been saved more than $100 Senators defeat requirement that parties not discriminate million in the last two years, he added. John Decker, deputy state tax commissioner, said in testimony that sales tax revenue this year has provided the state with $32 million more than last year. But despite the improved returns, three people spoke in support of an increase in tax rate. Don Norden, legal counsel for Sen. Calvin Carsten of Avoca, presented a letter from Carsten that supports a tax rate increase. In the letter, Carsten, chairman of the Legislature's Revenue Committee, suggests a dual approach, combining a small increase in the tax rate and the accepted budget cuts. That approach would avoid a "dramatic increase all at once" when the changes in federal tax laws begin to take effect, the letter says. New lower federal taxes began Oct. 1, but a further 10 percent decrease is planned to start July 1 . Sen. Vard Johnson of Omaha suDoorted Carsten's view. saying that a 5 percent reduction in federal income tax rates this year and a 10 percent reduction each of the next two years will decrease drastically the state tax base. "A raise in the tax rate to 16 percent now will, in ef fect, create a stand-off to federal tax reductions, which will narrow our own tax base and revenues," he said. "It would be a wise act at this juncture to raise taxes by 1 percent," he added, so there will be money in the basket ready to use when it's needed." In response to Thone 's plan for reduced spending, Johnson said that "with 12 percent to 14 percent infla tion, spending has been cut as far as possible." Bill Harris, a Lincoln businessman, also testified on be half of a rate increase. "It's an uncertain time for individual Nebraskans and for state revenue," he said. "A raise in the tax rate by 1 percent to a total 16 percent is needed as a cushion against error in projection." State Tax Commissioner Herrington, State Treasurer Kay Orr, Thone, who chairs the committee, State Auditor Ray A.C. Johnson and Secretary of State Allen Beermann are the board members. By Melinda Norris New Electoral Commission rules -minus a requirement that political parties not discriminate were approved 24 to four by the ASUN Senate Wednesday. The senate failed to ratify Electoral Commission regulations Oct. 28 and Nov. 4 because the regulations required a party statement of intent showing that "no in dividuals were denied candidacy in the party on the basis of race, creed, or sex. Failure of a party to show that it provided equal opportunity would have made the party ineligible for inclusion on the ballot. The revised rules accepted by the Senate will change the clause from a mandatory statement of intent to a recommendation. Since the senate is a branch of the uni versity, UNL's discrimination rules apply to the senate, David Decoster, dean of stu dents, said. The Electoral Commission is making a non-discriminatory statement that would be hard to enforce when appli ed to a political party, he said. "But, if such a candidate is elected into office, that candidate is accountable to the discriminatory rules of UNL," Decoster said. If the candidate does not comply with the rules after being elected, he could be subject to recourse through the student court or legal action brought on by the administration, he said. Sen. Joel Heim said he opposed the original regulation because people have the right to associate with any political party. "The senate didn't have the right to tell people who should be in a political party," he said. Sen. Jan Deeds opposed the revision. "That person even if they adhere to university policy - . . you cant honestly tell me they will go out of their way to.be. , fair," Deeds said. They are not in the least concerned about equal opportunity. " 'Recommend' has no weight," Deeds said. "We pretend to try to bring in minorities; we pretend to support Affirm ative Action. This (regulation) is real wimpy." Heim said the senate doesn't have the legal authority to do more than make a recommendation. "Put a little faith in the political system," Heim said. "People are smarter than that." Sen. Tim Rinne said racism and sexism issues never come up in elections. "If the candidates themselves don't clarify their platform, how can the voting public?" Rinne asked. V rw V lb fa0 -sr - Photo by Mark Billingsley David Joseph (standing), Gloria Romero, Kim Davila (sitting with face toward cam era) and Alicia Lopez enjoy a fall afternoon talking by Broyhill Fountain. Regents to discuss student fees, street proposal By Laure Perlinger The Fund A student fee allocation issue at UNL and a proposal requesting the Lincoln mayor and City Council to provide an alternative to 16th and 17th streets "as a major thoroughfare through the UNL city campus" will be discussed at today's meeting of the NU Board of Re gents. The student fee issue was tabled at the Oct. 9 meeting because, according to Regent Chairman Robert Prokop of Wilber, the issue had not been fully discussed by board members. The 16th and 17th street proposal is sponsored by John Goebel, UNL interim vice chancellor for business and finance. In 1968, a UNL campus plan adopted by the regents identified city campus land requirements. The plan provided for the elimination of through traffic on city campus on 16th and 17th streets. Radial prospects changed At that time, construction of the Northeast Radial was still a possibility. In November of 1980, the City Council adopted a ho-build alternative for the radial and last May a citizen-initiated referendum to restore the radial was de feated. The recommended resolution is to close the streets to through traffic. Prokop requested last month that the existing student fee policy be rescinded. In effect since May 1980, the pol icy allows students to apply for a refund of their Fund A student fees, which support the ASUN Senate free legal services, the State Student Association, the Daily Nebras kan and the University Program Council, which sponsors speakers, films and dances. Prokop was unavailable for comment on his reasons for wanting to rescind the policy. Regent Edward Schwartzkopf of Lincoln said Wed nesday morning that he thought Prokop had waived his request. But Bill Swanson, corporate secretary for the regents, said the item is still on the agenda and he expects it to be discussed Friday. Approved by regents In April 1980, the student fee Fund A policy was ap proved by a 5-3 vote of the regents. There was some con troversy about whether students should be taxed for something they might not wish to support. In May 1980, the board gave student governments the power to allocate Fund A student fees on the respective campuses, subject only to approval by the appropriate chancellor. The regents then asked that a referendum be placed on the senate ballot concerning student support of the cam pus newspaper, speakers and salaries of student govern ment officers. The voting showed that students favored the use of stu dent fees for such items. The Daily Nebraskan has often been criticized by Pro kop for stories he said were inaccurate. Some regents have also questioned using student fees to pay for controversial speakers on campus. Other items on Friday's agenda include: - Termination of the master of arts program in general science at UNO. This was recommended becauuse no de grees have been awarded since 1968 and no students have been admitted to the program since 1970. By eliminating the program now, no students would be affected. Approval of an amendment about the guidelines for use of the NU logo. This would allow NU to earn income when the seal is used on commercial items. A proposed master of sciencedoctor of philosophy degree program in pharmacology in the NU graduate col lege. - A proposed bachelor of arts and bachelor of science degrees with a major in geology at UNO. - Approval of a program statement update and revi sions for the laboratory science building at UNO. This is included in the approved priority listing for the 1982-83 capital construction budget request approved July 25, 1981. This building would replace temporary facilities at UNO. The multi-million dollar project has been question ed by some regents. - Approval of an increase from $500,000 to $561,944 in the Schulte Field House addition budget, resulting from variances in estimates for the general and mechanical con tracts and utilities connections costs. ; - Approval of the bid of Paciolan Systems, Inc., of Rolling Hills, Calif., for $99,100 in hardware and software purchases for the UNL Athletic Department. Continued on Page 2 live From the Middle East: An ABC correspondent - also a UNL journalism graduate talks about expulsion from Egypt and the changing media Page 7 Td Sooner Watch It In Person: Husker football fans who dont have tickets to the Oklahoma game received some good news Thursday when KETV announced it will produce.its own live broadcast of the game .Page 10 Francois Flick: A review of Truffaut The Last Metro Page 12 ; t '