The daily Nebraskan. ([Lincoln, Neb.) 1901-current, September 10, 1990, Page 6, Image 6

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    Officials say initiative poorly worded
Tuition may increase if 2 percent lid passes
By Ryan Steeves
Staff Reporter
Like other Nebraskans, NU stu
dents soon could be taking home more
of their wages if voters pass a 2 per
cent lid on increases in government
spending.
But university officials warn that
students probably will have to dish
out the extra cash — and then some --
for the ensuing increase in tuition and
reduction of financial aid.
No one knows how much tuition
could rise or how much aid could be
cut if the 2 percent initiative passes.
Officials say it is too early to tell what
effect such a constitutional amend
ment would have.
They say the initiative is poorly
worded and that the Nebraska Legis
lature or courts will have to define
some of the language before the ef
fects are known.
But tuition and financial aid could
fall under the provisions of the pro
posal.
The problem is that University of
Nebraska administrators don’t know
what revenue sources the proposal
would restrict. The university gets its
money from about four sources: state
appropriations, cash funds such as
tuition, federal funds and money made
in self-supporting services such' as
housing.
The initiative clearly states that
state aid is included in its provisions
and that money from self-sustaining
services are exempt. But the proposal
is ambiguous about its effect on tui
tion.
It says that revenues from fee
sources such as tuition used for their
“named service” may be excluded
except for “any such fee or fees allo
cated to a general budget for general
purposes.”
Tuition at the University of Ne
braska-Lincoln goes into the univer
sity’s general fund.
Ed Jaksha, the anti-tax activist from
Omaha who ran the petition drive to
get the initiative on the ballot, said he
didn’t intend for tuition to be in
cluded in the 2 percent formula. If the
initiative passes, he said, the Nebraska
Legislature will have to decide whether
to include tuition.
But NU administrators are quick
to point out that the language of the
proposal, not the intent of the organ
izers, will decide how the initiative
will work.
Martin Massengale, NU interim
president and UNL chancellor, told
the NU Board of Regents Friday that
since state aid increases would be
limited by the lid, cuts in the univer
sity budget could force cuts in student
aid. Students also would have to bear
more of the costs to keep programs
running, he said.
If the initiative passes, students
might feel better if tuition becomes
one of the funds under the amend
ment’s formula. This would make it
difficult for regents to increase tui
tion costs loo much for fear that their
appropriation request would be too
high for senators constrained by a 2
percent limit.
But James Griesen, vice chancel
lor for student affairs at UNL, said the
question is whether students want a
good education or a cheap, poor qual
ity one.
If state aid is slashed by a limit,
students may agree that a tuition in
crease is necessary for NU to make
the grade.
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Total state appropriations for NU
and UNL, 1980-91 ' __
Percent increases and reductions A
80- 81- 82- 83- 84- 85- 86- 87- J88- 09- (90*
81 82 83 84 85 ,86 _ 87 88^ 9Q__al_ //
riNU jlOT9.9 1.9 3.7 10.1l!2 2.7 ^0 12.413.613.1 /// I I
Hi UNLjNA 9.9 1.6 3.3 10.S|1.7 1.9 6.4 14.4)14.0(8.0 [$254,503,9531
*1988-91 research initiative; faculty salaries.
Source: Randy Haack, NU Assistant Vice President /
Director of Budget and Analysis. __ t
1980-81 82-83 84-85 86-87 88-89 89-90
John Bruce/Dally Nebraskan
Initiative organizer believes senators
are hooked on spending, not saving
By Ryan Steeves
Staff Reporter
To Ed Jaksha, the American phi
losophy of government is one of re
straint.
Mechanisms are in place to ensure
stability and limit the authority of
politicians who are greedy and power
hungry, he said.
But Jaksha believes one limit is
missing in Nebraska government — a
limit on spending.
That’s why he led a petition drive
to initiate a limit on government spend
ing increases to 2 percent in Nebraska.
On Nov. 6, voters will decide if they
want to etch the initiative into the
constitution.
Politicians see the proposed amend
ment as a headache that will seriously
hamper government services. Jaksha
said it was necessary to curb the ten
dencies of lavish politicians.
“The reason we’re doing this is
because the Legislature -- Sen. (Jer
ome) Warner, Sen. (Loran) Schmit,
Sen. (Ernie) Chambers, the governor
-- have all been unable to discipline
themselves,’’ Jaksha said. “They have
not been able to control their addic
tion to the spending habit. Just as bad
as drugs. They’re hooked on spend
ing.”
Jaksha said he objects to this year’ s
24-percent increase in Nebraska’s
general fund.
State government isn’t the only
spendthrift.
Jaksha said he believes every
government entity spends more than
it should.
But Sen. Warner of Waverly dis
agrees with Jaksha’s analysis of state
spending. He said the Legislature has
skillfully handled state money and
taxes.
“I’m not successful running for
re-election on the basis that 1 spend a
lot,” said Warner, who has been re
elected seven times.
Warner, chairman of the Lcgisla
lure’s Appropriations Committee, said
that in the past few years, the percent
age of growth in state taxes has nearly
matched the growth in Nebraskans’
personal income.
Nebraska also collects less tax
money per $100 of income than most
states, Warner said.
He admits property taxes are high
but said they are needed because local
governments rely so heavily on them.
Warner said he didn't object to
placing a limit on government spend
ing increases as long as the limit was
tied to increases in personal income.
But an arbitrary limit set 3 per
centage points below the rate of infla
tion would seriously hurt government
services and economic development,
he said.
Jaksha said the proposal would
spur business because reduced taxes
would give Nebraskans more to spend.
Inflation would decrease under the 2
percent proposal because runaway
government spending causes infla
tion, Jaksha said.
Warner disputed this, saying stale
government doesn’t cause inflation.
In fact, government is the biggest
victim of it, he said.
And the most severe casualties of
the 2 percent plan coupled with infla
tion would be services, said Lee Rupp,
vice president for university relations
at the University of Nebraska.
Rupp, who has been lobbying
against the initiative on his own time,
said governments would be too poor
to extend such things as roads and
sewers to businesses.
As a result, potential businesses
would never come to the state and
established ones would leave, Rupp
said.
“Obviously, the 2 percent lid is
about the biggest disincentive to
economic development that 1 can think
of,” he said.
But Jaksha disagreed, calling such
rhetoric “political hogwash.”
He objected to Rupp’s “lid” la
bel. Jaksha said the pioposal was not
a lid. He noicd that it allowed for an
increase of greater than 2 percent.
The proposed amendment would
require that 40 of the 49 state senators
approve increases of more than 2
percent to the state general fund.
Local governments must get ap
proval from voters before increasing
their spending beyond 2 percent.
And if voters vote down the in
crease, the government doesn’t even
get 2 percent. It gets no increase.
“It’s sort of like rolling the dice,’ ’
Warner said of the precarious ap
proval process for local governments.
He objected to punishing governments
for trying to increase their budgets.
But Jaksha compared the process
to selling shoes.
“If (local governments) are good
enough salesmen, they’ll get their
commission,’’ Jaksha said. “If they’re
not good enough salesmen - if they
don’t have any justifiable cause, then
maybe they deserve to lose it (the two
percent).’’
The controversy is not likely to be
resolved, no matter what the voters
do. Spending limits are popular. Be
tween 17 and 21 slates have them,
Warner said. Jaksha said at least eight
states are considering proposals simi
lar to Nebraska’s.
If the proposal passes, legislative
and court battles over the language of
the amendment are likely, those in
volved say.
Rupp said he had no doubt the
proposed amendment would pass if
Nebraskans voted on it today. He said
a “confidential” poll showed the
initiative would have passed if voted
on recently.
If it does pass, few Nebraskans
will admit to voting for it once they
see its true effects, Rupp said.
Gelling rid of it will be an arduous
process.
“It’s the next best thing to chisel
ing it in granite when a constitutional
amendment passes,” Rupp said.
Thai’s the kind of stability Jaksha
was looking for.
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