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Thursday, November 11, 1982
University of Nebraska-Lincoln
Vol. 82, No. 60
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Committee approves tax plan
By Pat Higgins
The Appropriations Committee of the
Legislature on Wednesday afternoon
approved a package that would include
raising income taxes by 1 percent. Also
included in the proposal is a 2 percent
across-the-board cut in the budget. Addi
tional selective cuts also will be made.
Under the leadership of the chairman,
Sen. Jerome Warner of Waverly, the com
mittee voted six to one in favor of the
package. The dissenting vote was cast
by Sen. Larry Stoney of Omaha.
The package is based on a projection
that used a report from Data Research
Inc. This report anticipates a slow growth
in the economy that would lead to a
revenue shortfall of S57 million for the
rest of the fiscal year.
Sen. Don Dworak of Columbus said
that he has reservations about the projec
tion because it anticipates some growth
in the economy. State Tax Commissioner
Don Leuenberger predicted a shortfall
of between $50 million and $55 million
on Tuesday afternoon.
Gov. Charles Thone's proposal to the
Legislature would cut the budget by $30
million and accelerate tax collections
on another $10 million.
Warner asked the committee if anyone
agreed with the governor's plan. No one
responded affirmatively.
The committee's package assumes that
the state income tax will be adjusted by
the Board of Equalization in order to
compensate for the July 1 federal tax
cut. If the Board of Equalization does
not act to raise taxes, the shortfall would
be an additional $12 million.
"We have no assurance that the Board
of Equalization will do that other than
the fact that I think that the law says
they have to," Warner said.
The committee plan would trim the
budget by $23 million. That includes
$13 million in the 2 percent across-the-board
cut and $10 million in selected
cuts and lapses.
"The solution everybody has told us
so far is not to cut us, cut somebody else,
and we'll be fine," Warner said.
In addition to the projected $57 million
shortfall, a 3 percent reserve totaling
$7 million will be maintained. The reserve
is currently 2 percent.
'in good times the reserve is 5 per
cent," Warner said. Dworak said that he
would like to see the reserve be 4 per
cent. The Appropriation Committee's
package includes the governor's plan to
accelerate tax collection for $14 million.
4i don't see LB2 having any problems
on the floor of the Legislature," Warner
said in reference to the accelerated tax col
lection. Dworak said he was skeptical of ob
taining the necessary 25 votes to pass the
Appropriation Committee's package on the
floor of the Legislature.
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Staff Photo by Oave Bentz
UNL students walk leisurely to class on East Campus on Wednesday afternoon. The
group is pictured near Ruth Leverton Hall.
R Street merchants question mall consequences
By Vicki Ruhga
Plans to close R Street to construct a
mall met with varying reactions from R
Street merchants.
Roger Leising, owner of Taco Inn,
1245 R St., said he does not know
exactly what the new mall plan entails.
"If there is a possibility of tearing down
the buildings, it would have a dramatic
effect on our business," Leising said.
"The university may eventually use
eminent domain to extend the campus,"
Leising said. "In my understanding, the
university could use eminent domain to
come in and pay a fair price for the buil
dings. They may also pay some consolation
for a business leasing the building like
mine, depending on how long the lease is."
Leising said his current lease runs out in
nine years, when the mall supposedly
would be in its finishing stages.
Leising said he did not think the mall
would have an adverse effect on business.
"There is a mall similar to that on the
Boulder, Colo., campus, with malls and
shops on each side of the street," he said.
"It's a neat deal. It attracts a lot of people,
and there is always somebody walking
around."
June Oldenkamp, owner of Dippy
Donuts, 1227 R St., said she knew of the
mall plans from a drawing in the news
paper. The proposed parking lot would not
hurt her weekend business too much be
cause it is mainly drive-in, she said. How
ever, she said that if the mall was to be
a grassy area, it would hurt her weekend
business.
The Nebraska State Historical Society
board of directors voted Oct. 9 to support
the mall project, said Marvin Kivett, dir
ector of the State Historical Society,
15th and R streets.
Ivett said the mall would be a positive
step in making the university campus a
better place.
The street closing should have no great
effect on the Historical Society, Kivett
said, since the museum will be moved to
15th and P streets, decreasing the number
of visitors. However, the museum move
did not come as result of R Street plans.
He said the move to the former Elks Build
ing has been in the process for at least two
years.
The mall plan also should add parking for
people doing research, Kivett said.
Currently, there are no parking lots for
people visiting the State Historical Society,
he said.
Dick Propst, assistant manage" of the
Nebraska Bookstore, 1135 R St., said he
believes the mall project will have an ad
verse effect on his business.
Students will still have access to the
bookstore, but Propst said the business
also relies heavily on other people who
won't be able to get around on campus.
However, Propst said that the additional
parking would help his business, and the
others on R Street.
Nebraska Union Director Daryl
Swanson said he was initially concerned
about whether the mall project would
leave any visitor parking close to the build
ing. He said he is no longer concerned
because the drawings appear to provide
for parking.
Swanson said he was also concerned
about whether commuting students would
have access to the union. The current bus
transfer area is located on Q Street, and
Swanson said he hoped the area would be
closer to the union. With the mall, the
transfer probably would not be moved
any closer to the union, he said.
"Other than that, it would be nice to
have a mall on the south side of the build
ing," Swanson said. "It would be more
suitable for events like the Homecoming
pep rally, and the landscaping should also
give more elbow room and be less
restrictive."
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1980s culled decade ofrobo
By 1990, General Motors Corp. will have more than
14,000 robots operating in its automotive plants, CM
robotics manager Richard Beecher said Wednesday.
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Beecher and other company executives spoke in the
lounge of the UNL College of Business Administration.
The 1980s is "the decade of the robot," Beecher
said. "By the end of the decade robots will play a major
role in production."
He said many factors make robots more attractive
for use in production than they have been in the past.
Robots are less expensive and are more dependable
than before, he said.
"There is also more worldwide competition in the
robot market. The competition is intense because the
market is seen as very large," he said.
Higher worker wages also make robots more desirable
as a technological tool.
Beecher said more than 200 companies worldwide -SO
in the United States - manufacture robots. Much of
the robotic research is being done by the Japanese.
"The Japanese are threatening to become the world
leaders in robotics," he said, "It's estimated they will
spend over S300 million in the next few years to develop
sensor-controlled robots."
Reuben Jensen, executive vice president for GM,
acknowledged that the Japanese are leading the market
in robotics, but added, "they're not ahead by a tremen
dous amount. We're catching up fast."
Jensen was unsure how many GM workers would
lose their jobs because of being displaced by robots.
"That's almost impossible to determine," he said.
"Some people will lose their jobs, but other jobs will
be created. We can't really tell what effect that will have
on the economy. Times change. We're just working with
every technological innovation we can."
Despite worries about a possible increase in unemploy
ment, Beecher said the introduction of robotics would
have several benefits for workers.
"It would eliminate undesirable tasks," he said. "It
would also increase productivity, dampen inflation and
improve the overall quality of work life."