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Monday, November 8, 1982
University of Nebraska-Lincoln .
Vol. 82, No. 57
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Senators oppose 3o5 budget cut Roskens: No more
By Pat Higgins
State Sen. Don Wesely of Lincoln predicted that this
week's special session of the Nebraska Legislature is
"going to be crazy" trying to decide on how to balance
the state budget.
Gov. Charles Thone opened the session Friday by
proposing a 3.5 percent across-the-board cut that includes
state aid programs to local governments. Thone also re
commended allowing about $5 million in state agency
cash and revolving funds to lapse into the state general
fund. His planned budget cuts and recommendation
would avoid raising taxes when the State Board of Equal
ization meets next Monday, he said.
Unlike last year's special session, when Thone's budget
cuts were adopted with only a few votes in opposition,
some state senators demonstrated little support for
Thone's plan.
Tax hike unavailable
Wesely said that he sees no way to avoid a tax hike
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Staff Photo by Craig Andresen
Nebraska I-back Mike Rozier sets a single-season
rushing record in the Huskers 48-10 win against OSU.
Door-to-door c
By Rebecca Stingley
Using a door-to-door campaign strategy and calling
himself a representative instead of a politician, 26-year-old
Chris Abboud last Tuesday defeated incumbent
state Sen. Gerald Koch for a spot in the Nebraska Legis
lature. Abboud, a 1982 graduate of the NU College of Law,
said in a recent interview that he visited each household
in the 12th District, which includes Ralston and Millard,
two or three times during the campaign.
I got to know the people, and they got to meet me.
By taking time to see the people, I demonstrated my
concern for the real problems facing the people in my
district - high utilities costs, high health care costs and
high taxes," he said.
Abboud's victory came at the expense of a formid
able opponent. Koch had served two four-year terms
and is the chairman of the Legislature's Education Com
mittee. In his campaign, Abboud proposed the creation of a
citizens' utility board to check profits made by utility
companies as a means of monitoring utility costs.
He also advocated the development of Health Main
tenance Organizations in order to provide health care
competition and thus reduce health care costs.
Abboud's biggest campaign pledge was to reduce
state taxes and spending.
-When the private sector is prospering, the state
government will be able to prosper. In economic times
like these, the private sector has been forced to cut
back. Therefore, state government must be cut back
also," he said. "The solution, to Nebraska's biggest pro
blems is to spur economic development."
along with the budget cuts. The expected revenue
shortfall through December will be $30 million, and
Wesely said he expects more shortfalls through the end of
fiscal year on June 30.
Some tax loopholes can be closed to gain additional
revenue, including tax breaks for cigarette wholesalers,
he said.
The Appropriations Committee chairman, state Sen.
Jerome Warner of Waverly, will exert great influence
during the special session, Wesely said.
Warner said he plans on amending Thone's proposals,
since the state is facing a deficit of $55 million for 'the
fiscal year. Warner proposes a 1 percent increase in indi
vidual state income tax, which would raise $20 million
for the state.
, Warner also proposed budget cuts of not more than 2
percent across the board. Other selective cuts could be
made in areas such as capital construction projects, he
said. Some of the selective cuts could be restored at a
later date.
Warner's across-the-board cuts also would include
state aid to local government, he said. A 2 percent across-the-board
cut would not be as tough on state agencies
a Thone's 3.5 percent cut, Warner said.
Proposal disappointing
State Sen. Dave Newell of Omaha said that he was
disappointed with Thone's proposals. The proposal
offered solutions that would last only through the calen
dar year, not the fiscal year, Newell said. The fiscal year
deficit could reach $70 million.
9
"This would leave the new governor and the
Legislature that meets in January with serious fiscal
problems. How do you cut $70 million out of the
budget?" Newell said.
State Sen. Dave Landis of Lincoln said that he would
like to seracrosthe-board cuts of 2 percent or' less.
Landis said that there is not enough time to prioritize
budget cuts, and that a tax increase is likely.
Landis said he doesn't expect Thone to play as large
a role as he had in the past.
"From what I read in the papers. Gov. Thone expects
to spend less time on this. He expects us to react to his
proposals, and he's not going to try to muscle his way
around," Landis said.
William Swanson, chief lobbyist for the university,
said that the university is opposed to any cuts in its
budget. Hearings on the university budget begin at 9 a.m.
today.
Gov. Thone, in his last address to the Legislature,
thanked his department heads and his staff. He also paid
tribute to the Legislature.
"I'm ending my administration as I began it, with a
pledge to cooperate with you in the best interests of
Nebraska."
Governor-elect Bob Kerrey has said that he has no
Staff Photo by Dava Banu
Chris Abboud
Abboud said he began to consider running for the
Legislature while attending law classes at the university.
(He received an undergraduate degree from Creighton
Univerty in 1979.)
"In law school, I saw how wrongly the system is
really working, though it is set up to work properly
and help people," he said. "Law school unlocked every
thing in terms of ideas and inspired me to push ahead
with this race."
cuts can be made
without damage
The following is a letter, sent by NU President Ronald
Roskens, to each of the state senators on Nov. 3 en
couraging them not to vote for the proposed budget cut
for UNL. Roskens has worked on a personal basis with
senators on other issues, but this is his first formal,
senate-wide attempt at persuading the Legislature.
Dear Senator:
As you move into the special legislative session to
consider possible budget reductions, we feel it imperative
that the position of NU be clearly stated. The NU Board
of Regents strongly opposes any reduction in our 1982-83
appropriation.
The record will indicate that the university has been
most cooperative in the past when confronted by state
cash flow and revenue shortfall problems. We have gone
as far as we can go. There are simply no more reductions
to be made without seriously damaging the quality of
our instructional, research, and public service programs.
While we are fully aware of the severity of the present
economic crisis and the financial problems faced by
many Nebraska citizens, we would fail in our role as
managers if we did not alert you to the serious ramifi
cations of a midyear reduction in the budget of the
university.
For purposes of illustration, let us assume a budget
reduction of 5 percent as the result of action taken by
your body. For NU that would be a reduction of nearly
$7.5 million. When you consider that the increase in
our 1982-83 appropriation granted earlier this year
was about 4 percent, and that we have since notified
.faculty and staff of salary increases effective January 1 ,
1983, our problem is evident.
Our salary situation is of grave concern. Other Ne
braska public employees of cities, counties and school
districts have received increases considerably higher than
the 2 percent that you previously authorized for state
employees, as well as those of NU. Although surround
ing states are also feeling the effects of the lagging
economy and have faced budget reductions, our infor
mation indicates that all other Big Eight institutions, with
whom we compete for faculty, have given 1982-83
increases ranging from 7 percent to 13 percent. Failure
to proceed with the minimal 2 percent salary increase
would have a most adverse effect on our faculty and
staff.
Continued on.Page 7
plans to influence the special session. But next year's
presiding officer of the Legislature, Lt. Governor-elect
Don McGinley, was in attendance Friday.
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The senator-elect spoke highly of the education he
received from the university, although he said he is
concerned about many aspects of the university's opera
tion. "The university system is too much of an administra
tive bureaucracy," he said. "When you've got 240 admini
stators averaging over $50,000 annually and only 2
percent of the UNL budget being spent on instructional
activity, the cuts that have to be made should come at
the administrative level."
In addition to budget concerns, Abboud is bothered
by the lack of jobs available in Nebraska for college
graduates.
"I find it interesting that 46 percent of state taxes go
into education, and then huge numbers of students have
to leave the state to find jobs," he said. "We need busi
ness incentives in Nebraska to spur economic develop
ment so that we can employ these people."
Abboud is cautiously optimistic about working with
Governor-elect Bob Kerrey.
"Governor-elect Kerrey has pledged to reduce taxes
and spending. The people in my district voted for him,
and hopefully, he will carry through on his promise not
to increase taxes," he said.
Politics are not new to the Abboud family. Abboud's
father served as a city councilman for Ralston in 1974,
and his mother was one of the city's mayoral candidates
in 1980.
Abboud said he hopes his election to the Legislature
will inspire other young people to become more involved
in politics and not to be afraid to approach government
and powerful organizations.
"People need to learn early to fight for what they
know is right," he said.