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Friday, November 5, 1982
University of Nebraska-Lincoln
Vol, 82, No. 56
Thone. expected to request 5 percent budget cut
Nebraska Gov. Charles Thone is exoected to ask for
a 5 percent cut in funding for state agencies and the
university at the special legislative session beginning
today.
The NU Board of Regent passed a resolution Wed
nesday calling for no cuts at all in the university system.
The anticipated revenue shortfall is expected to be $30
million
William Swanson, NU vice" president for governmental
relations, said the university administration is totally
in agreement with the regents' stand. University lobby
ists will work against any cuts.
"I haven't seen any of the proposed bills yet but our
position is to avoid any cuts," Swanson said.
State Sen. Don Wesely of Lincoln said this year's
problem stems back to last year's special session. The
university and the state agencies were cut by 3 percent,
while state aid to municipalities was not cut at all.
Wesely called for an adjustment in this year's tax
rate but he said that budgets will also have to be cut.
Lest year 'unfair
"What happened in last year's special session was one
of the most unfair things I've ever seen," he said. "Sens,
pave) Landis, (Chris) Beutler.and myself introduced
a bill that would have cut the university, state agencies,
and state aid all by 1 percent."
Wesely said last year the university was coming off of
a, small budget increase while this year's budget increase
was negligible, The university budget is already down to
the bone, he said.
"We dug ourselves into a hole last year and now it's
even worse. The problem is compounded by the economy,
which has cut the revenues back. I think that in the
session beginning in January we'll have to promote the
economy in the state," Wesely said.
Governor-elect Bob Kerrey campaigned on a promise
not to cut state aid to local subdivisions. Wesely disa
grees. "I can understand why Mr. Kerrey said that but I
think the burden has to be shared. The local subdivisions
have already been lobbying me," Wesely said.
Last year the university didn't fight as hard as it
should have against the budget cuts, he said. This .year
the regents and administrators appear more prepared to
fight the cuts.
Wesely said $30 million is too large of a figure to
merely cut wasteful and inefficient spending. The univer
sity will have to accept some cuts, he said.
Protect Jobs
State Sen, Rex Haberman of Imperial said his main
concern is protecting jobs. He said he will look into
"every nook and cranny" to And ways to cut the budget.
He is considering a bill to cut college and university
summer sessions (Town to only one session.
'I'm trying to get the facts and figures on this. It
would be for all the colleges in Nebraska, and I think
that is could save thousands of dollars," he said.
Haberman said he is not against education but that
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. Staff Photo by Craig Andrttan
Reflections of the Lincoln skyline off the surface of Capitol Beach Lake soon will be swallowed by a thick layer
of ice ts local temperatures continue to fall.
Beck urges Social Security reform
By Pat Higgins
Social Security reform is the most pressing economic
issue facing the country, Robert Beck, chief executive
officer of Prudential life Insurance Co., said Thursday.
Beck, t member of the President's Commission on Social
Security Reform, spoke as part of the Faulkner lecture
series in the Nebraska .Union. Beck said the commission's
report will be released later this month and that this is
the right time to reform the Social Security system. He
outlined a number of short- and long-term solutions to
get the system on stronger financial ground.
The Social Security system is in bad shape because of
a variety of factors. Beck said. The trend toward early
retirement, longer life expectancy and I higher percen
tage of the elderly in society have contributed to the
crisis. He said the Social Security program has been
living dangerously beyond its means.
"The public has been led to believe that this is an
insurance program, which it is not. It is an Interveners
tional transfer of funds, Beck said.
There is only a three-month money supply in all the
Social Security accounts, he said, adding that .the elderly
are terrified their benefits will be cut and that younger
workers are skeptical of ever seeing benefits.
"The choice is either to increase taxes or continue
future tenefit growth," Beck said. I don't think that
there is much sentiment to increase payroll taxes.
Beck proposed short-term reforms such as linking
benefit increases to wage increases. In the last three
years, Social Security benefits have Increased by 40
percent while average wages have increased by 30 per
cent. Because benefits are tied to the ILS. Consumer
Price Index, the benefits contribute to inflation, he
said.
Beck said it seems fair that the wage earners who pay
into the system should be able to keep pace with those
collecting benefits..
Another short-term reform that he proposed would
eliminate "double-dipping" by government employees
who receive Civil Service pensions tVaddition to Social
Security.
As far as long-range recommendations, Beck proposed
an increase in the retirement age to 68. He said this
should be phased in gradually over the next two decades.
-People could still retire at age 62 with reduced benefits,
he said, ,
"The time to enact this is now so people would have
the chance to plan for their futures, he said.
Beck's second long-range proposal was that Social
Security participation should be made mandatory for
government employees
The use of savings and private pension plans should be
encouraged more in the future, he said. Individual retire
ment accounts limits should be increased. He uii that
private pensions contribute to capital formation, which
ultimately provides jobs. Favorable regulation and legis
lation by the government should be aimed at the private
pensions.
"I applaud the efforts of the Reagan administration in
this regard," he said.
Beck said the time to act on Social Security reform
is now, because the elections have just concluded. He
said he fayors a bipartisan approach to reforming the
system and an active leadership role by the president.
"These solutions do not require a reduction in bene
fits" he said.
"We can't waste time on political squabbles."
there is not enough money to go around. He said cutting
some summer sessions would be better than an across-the-board
cut. Haberman anticipates that the session
will last longer than the scheduled seven days.
"The universities and colleges are going to have to be
willing to do something. Those that don't want to cooper
ate, I'm going to look at with a callous eye," he said,
Larry Walklin, UNL journalism professor and faculty
senate president, said he strongly supports the regents'
position. He said the regents have demonstrated clear
support of the university.
"I think they've indicated how desperate a position
the university will be in if we're cut anymore," Walkin
said.
New vice president
announced forRHA
The resignation of Tom Mockler, Residence Hall
Association president, was announced at RHA's Thurs
day night's meeting by Melba Petrie, former RHA vice
president.
Petrie said she assumed the presidency on Oct. 24,
when Mockler resigned for "personal reasons."
According to the RHA by-laws, Petrie has three weeks
to appoint a vice president for the RHA representatives
to approve, said RHA adviser Richard McKinnon,
Petrie appointed RHA executive assistant Kathy Mach
as RHA vice president, and asked for the representatives'
approval.
Bob Wolz, RHA representative, made a motion to
delay vice presidential appointment for one week. How
ever, the motion did no, carry,
Schramm President Patrick Edwards made a motion
to i appoint Mach as RHA vice president. The mptfon .
wastpproved. v
"Kathy has three-and-one-half years of experience
in RHA and the department of housing' Petrie said.
"She has a wealth of information and would be a valu
able resource."
Dan Wedekind, ASUN president, spoke to RyA
about proposed budget cuts before the Legislature in
the Nov. 5 special session.
If a 5 percent budget cut was made, $7.5 million
would be cut from the UNL budget, he said.
Wedekind said 70 percent of the UNL budget is salaries
for faculty members. He noted that UNL faculty members
are to receive a 2.5 percent salary increase, compared to
the 7 percent to 13 percent increases of other Big Eight
schools.
In order to avoid cuts, Wedekind said the most sig
nificant action students and their parents can take is to
write or telephone their state senators.
i
ittnit f rtoto by Craig AndrtMn
Robert Beck