I I
o
er
In urance
tudy reveals
exce profit
By SHElLEY DeLUCA
Capillll News Service
LANSI G - Michigan in­
surance companies are overes-
imating their losses and not
being efficient in their ad­
ministrative costs, claims the
author of a preliminary tudyon
po ential uto rate reductions in
the state.
"The report identifies where
rate reductions can be made
ba ed on what profit the in­
surance companies should be
making, " aid Brian Johnson,
eco omic policy director for the
Michigan Citizens Lobby. The
due
group is one of the proponents
of legislation to roll back
automobile insurance rates by
20 percent.
"They're doing this year after
year after year and not passing
on any of the benefits of the
surplus to the customer," he
said. "Then their unpaid reserve
winds up dropping off and be­
coming profit."
Bur a spokesperson for the
Michigan Professional In­
surance Agents association,
said the insurance industry is
being singled out unfairly as
having to bear the brunt of the
costs for high rates.
The report, scheduled to be
officially released around Nov.
13, comes out of controversy
over whether the rollback
proposed by Rep. Nelson
Saunders CO-Detroit) can be
C tID 12
tee the use of lottery revenues to
fund K-12 education. State law
does channel lottery money now
into school aid, but tha could
be changed from year to year by
the Legislature. .
Rep. Glenn Oxender (R­
Sturgis) said that although
revenue from the lottery has in­
creased over the past 11 years,
there has been a sharp decrease
in general-fund money for
education. The general fund
refers to revenue generated
from state income, sales,
cigarette, liquor and other
taxes.
"Over the last 11 years, there
has been a $306 million increase
. in lottery revenue and a $485
million decrease in the general
fund. A difference of 179 m.it­
lion. That's the problem,"
Oxender said.
Oxender said that passage of­
Proposals A and B would
guarantee that there would be
. CoatID 12
School radio
tation fate
di eussed
behind closed
doors
Lot ery, revenues don' help
I
chools, some experts say
By CHRIS MURRAY
Capital News Service
LANSI G - Although
revenue from state lottery sales
is upposed to provide addi­
tional funding for education,
legi lators are the biggest
players in numbers game that
C D wind up not helping
Michigan pupils.
That' the view, anyway, of
supporters of both school­
finance reform measures on the
Nov. 7 ballot who contend that
lottery revenue, under the
present system, isn't necessarily
helping Michigan schools.
Both Proposals A and B
would consitutionally guaran-
, I
By FLODEAN • RIGG.
Sta Re ner
DBTROrr - Thur day Oct.
I 26 a committee selected to
make recommendations con­
cerning the future of WDTR_,
the educational broadcasting
station, bad a closed meeting in
the Schools Center Building.
While certain media were
closed out others sat on the
committee as members.
Included on the committee:
Coordinator Arthur Carter,
Interim Deputy Superintendent
fqr Community Confidence;
Verna Green, WJLB general
manager; Caryn. Mathes,
WDET general manager;
Agnes Scott, wrvs vice presi­
dent community development;
Wade Briggs, Barden Com-
Co tlDued 0 7
