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February 10, 1989 University of Nebraska-Lincoln Vol. 88 No. 98
Bill to help finance college tuition advances
By Chris Carroll
Senior Editor
The Nebraska Legislature advanced a bill
Thursday that would provide an incen
tive to Nebraskans who save money for a
young person’s college education.
aegflME
Under LB 140, Nebraskans could set aside
up to $2,000 a year for an individual’s educa
tion without having to pay stale taxes on that
money.
Those taking advantage of the plan could
invest or save the money, as long as they place
it in a federally insured financial institution.
An individual saving $900 in a year with an
adjusted gross income of $15,000 would save
about $28.35 in Nebraska taxes, according to
statistics compiled by the Nebraska Depart
ment of Revenue.
The bill, also known as the Nebraska Col
lege Savings Plan Act, states that money accu
mulated under the act would be available to
students once they enroll full-time in a degree
obtaining program within the state of Ne
braska. Full-time is defined in the bill as meet
ing 75 percent of the institution’s full-time en
rollment requirements for undergraduate stu
dents and meeting 50 percent of graduate en
rollment requirements.
Students could use this money to pursue
undergraduate and graduate studies at private,
state or technical colleges in Nebraska. Tui
tion, housing and small equipment expenses
are included in the bill.
Students who want to attend a college out
side of the state would be charged a 10 percent
penalty and have to pay taxes on money in the
account. The same penalties would apply if the
money was used for something other than pur
suing an education.
Sen. Jerry Chizek of Omaha, one of the
bill’s sponsors, said the rising costs of higher
education justify the College Savings Plan.
Tuition at state colleges rose an average of
114 percent since 1978, Chizek said. The cost
of a University of Nebraska education has
increased 130 percent, he said.
In 1978, University of Nebraska-Lincoln
students paid $22.50 per credit hour. By 1988
the cost had jumped to $48.50.
Nebraskans in the middle-income bracket
cannot always afford to pay higher education
costs in lump sums, Chizek said. The bill
would encourage long-term saving, he said.
Chizek said the average Federal Adjusted
Gross Income for 75 percent of the state’s
residents is under $30,000.
During discussion of the bill, Sen. Don
Wesely of Lincoln said he supports the bill, but
is concerned that slate revenue lost through
tax breaks might decrease the $4 million need
based aid provided to state colleges and univer
sities.
Sen. Gerald Conway of Wayne, another
sponsor of the bill, said there is plenty of need
based aid available, and that the bill addresses
the plight of middle-income Nebraskans who
may not qualify for need-based aid.
Sen. Owen Elmer of Indianola said the bill
is “. . . worth the small investment the stale
might have.”
Twenty-five senators supported advancing
the bill from the general file and two were
opposed.
David Fahltaon/Dally Nebraskan
Duk-Choong Kim
Kim discusses economic cooperation
By Brandon Loomis
Senior Reporter
Agrowing global tension-eas
ing trend could lead to in
creased economic coopera
tion between East and West, said
Duk-Choong Kim, who some call
the “Henry Kissinger of Korea.”
Kim, a prominent South Korean
businessman, professor and eco
nomic adviser, spoke loan audience
of about 300 people in the Nebraska
Union Thursday as part of the Coo
per-UNL Forum on World Affairs
series.
Kim addressed the topic: “U.S.
East Asian Trade Issues from an
East Asian Perspective.”
“No longer is ideology a divid
ing line,” he said, maintaining that
the political openness established
between former President Ronald
Reagan and Soviet leader Mikhail
Gorbachev will influence the world
economy.
“Il’sabrand new ball game,” he
said.
Now that the United States is not
so preoccupied with containing
communism, Kim said, the world
can concentrate on economic prob
lems. *
He said communist nations are
beginning to realize that having
some private enterprise is the key to
meeting the basic demands of their
citizens. In the future, communists
probably will incorporate more
aspects of a capitalist system, Kim
said.
“They’re sending a white flag
saying, ‘we failed to meet the basic
demands of the people.”’
Kim said the new political cli
mate also has helped the economy
of South Korea. Although South
Korea was never communist, its
system in the past has been less than
sympathetic to U.S. demands for
human rights and a democratic
government, he said.
Until recent years, South Korean
laborers could not organize and
strike. But strikes for higher wages
are now common, having reached
an all-time high in November 1987.
“We had 3,OCX) organized labor
strikes in one month,” Kim said.
“We are changing to meet your
criteria.”
In 1960, the per capita yearly
income in South Korea was $80, he
said. Now it is about $5,000.
“I’d like to see it at $10,000
before I die,” Kim said.
Before last year, South Korea’s
president was chosen by an elite
electorate of 5,OCX), he said. Last
year that was expanded to 25 mil
lion.
Kim said the prospects for reu
nification of North and South Ko
rea are slim so long as there is no
formal peace treaty between them.
He did say, however, that eco
nomic cooperation between the
two countries is a “definite possi
bility.”
“The North needs our exper
tise,” he said.
In the next century, the United
States will have to cooperate eco
nomically with East Asian coun
tries to maintain economic power.
“The center of economic activ
ity in the 21st century definitely
will be in Asia,” Kim said.
One example of Asia’s growing
economic dominance is that South
Korea went from being one of the
world’s four biggest debtor nations
to having a trade surplus of $14
billion last year.
Kim said the United Stales
should have an open trade agree
ment with South Korea like the
new agreement with Canada. Ko
rea is opening up its market to
American products, he said.
Currently, South Korea’s mar*
ket is open to about 95 percent of
American products, he said.
Kim said he was surprised and
pleased to sec so many people in
Nebraska interested in U.S.-Asian
trade. •'He said he prepared his
speech thinking he would deliver it
to about 38 people, because “in
the middle of nowhere, why are
they interested in international
affairs?” *
Commission s abrupt action
prompts exec’s investigation
By Eric Pfanner
Staff Reporter
The Electoral Commission’s
decision Thursday on the
number and location of poll
ing sites for student government elec
tions has sparked an investigation
into the commission’s handling of the
situation.
Jeff Petersen, president of the
Association of Students of the Uni
versity of Nebraska, said he is disap
pointed by the commission’s deci
sion and tne manner in which it was
I made. He said he is investigating the
I proceedings.
The commission unanimously
approved a proposal by Bill
Meredith, commission member and
chairman of the human development
and family department, to locate
polls at the Nebraska unions, Cook
Pavilion, Hamilton Hall, and the
Lutheran Center at 535 N. 16th St.
By passing Meredith’s proposal,
the commission ignored a resolution
made by ASUN in January encourag
ing the commission to place a polling
site at the Harper/Schramm/Smith
food service building. Members of
the Residence Hall Association had
proposed the food service site to
ASUN senators.
“I was a little surprised at the
abruptness of the proceedings to
night,” Petersen said. “Particularly
in light of the fact that the RHA
proposal was not even mentioned.”
Nate Geisert, AS UN first vice
president and electoral commission
member, said he thought all the
commission members were aware of
the RHA proposal.
“I didn’t nave anything to say on
it,” he said. “Everybody (on the
commission) was at the ASUN de
bate.” Larry Koubsky, RHA presi
dent, said no RHA members expected
the commission to approve the
Harper/Schramm/Smith polling site.
“I knew they (commission mem
bers) had already made their decision
before the meeting,” he said.
Marc Shkolnick, RHA vice presi
dent, said he was “a little upset” by
the electoral commission’s decision.
“(A polling site at) Harper/
Schramm/Smith would be symboli
cally a great move for greck/reSi
dencc hall relations,” he said.
Koubsky said he was happy with
the increase in the number of polling
sites. The Cook Pavilion site is a good
one, he said, although RHA would
See POLLS on 3
Blank to propose task rorce
to study post-secondary changes
By Lisa Twiestmeyer
Staff Reporter
and Larry Peirce
Senior Reporter
University of Nebraska Regent
Donald Blank of McCook is
adding a new chapter to the
continuing story of the future of Ne
braska's post-secondary institutions.
Blank will introduce a resolution
at the NU Board of Regents meeting
Saturday proposing that Gov. Kay
Orr appoint a special task force to
study the idea of reorganization or
name changes for the state’s post
secondary institutions.
The resolution proposes that the
task force study and recommend
whether structural or curriculum
changes in the University of Ne
braska, the state colleges and the
technical colleges arc desirable to
belter serve students.
The task force also would study
the financial ramifications of such
changes, how the post-secondary
system can be coordinated and what
system is best so Nebraska can be
economically competitive.
Blank proposes that the task force
include rerprescntatvics from the
university, state colleges, technical
community colleges and the legisla
tive and executive branches of stale
government. The task force would
submit its recommmcndalions by
Dec. 15, 1989.
If the resolution is passed, any
legislation introduced in the Legisla
ture this year concerning the issue
would be deferred until the 1990 ses
sion when legislators could consider
the task force findings.
Blank said he thinks nine to 10
months should be enough time for the
task force because the issue has been
discussed and studied a lot already.
‘‘I don’t think we need a full
blown study,” he said. ‘‘This should
be enough time for them to take a
good look at what direction we’re
going and report to the Legislature.”
Blank said he is introducing the
resolution because there arc so many
variables involved in restructuring
the university system. If Kearney
State College entered the university
system, he said, it could have many
different effects on the University of
Ncbraska-Lineoln and the other state
colleges.
For example, he said, if Kearney
becomes part of the university,
50,000 of Nebraska's post-secondary
students would be under one system.
It wouldn’t make sense to leave the
9,000-10,000 students from the other
state colleges out of the system, he
said. This is4hc type of thing the task
force needs to look at, he s^id.
Blank said the (ask force also
See REGENTS on 2