Recession may threaten 'U' By ADRIENNE LYONS The possibility of a recession is a threat to the 9.3 per cent increase in funding the University is slated to receive from the state, a University official said yesterday. Meanwhile, University officials are feverishly working on a budget package for the new ap- propriations to present to the Board of Regents at the meeting on Thursday. UNIVERSITY VICE-PRESIDENT for State Relations Richard Kennedy said school officials "fear what may happen in terms of a recession," ."There are always the problems of an executive or- der coming from the governor withholding funds. We could wind up with a state order saying 'X per cent should be withheld (from the planned ap- propriations)," Kennedy said, adding that Gov. William Milliken's office is "very worried" about a possible recession. Kennedy said if funds are withdrawn from the University during the coming year, 'there is a range of things the University could do, including freezing ap: pointments, deferring equipment purchases, and staff layoffs. UNIVERSITY OFFICIALS currently are preparing a budget package to take to the Regents containing recommendations for University finances. University Vice-President and Chief Financial Officer James Brinkerhoff said an average tuition hike of 8.75 per cent and a pay increase of seven per cent for faculty and staff are likely to be included in the package. . a Michigan Daily-Tuesday, July 17, 1979-Page 3 ate funding Although state and University officials refused to speculate on the likelihood of a recession, Bob Endriss, budget analyst for higher education in the state Office of the Budget, said, "In the present state (of the economy), some national economists say we're just about to entera recession and they don't think it will be severe." According to both Endriss and Kennedy, several years ago the state withdrew appropriated funds from the University because of a recession. The funds with- drawn amounted to approximately one to two per cent of the total University appropriation at that time. THE STATE legislature Friday approved a 9.3 per cent increase in funds to the University, an increase of approximately $12.2 million from last year. The fun- ding level for the coming year was set at $148 million. Auto talks begin at GM despite 2-hour delay DETROIT (UPI) - Auto industry contract talks for 750,000 workers began yesterday at General Motors Corp. with a militant show of union for- ce over retiree pensions and a management plea to avoid an economy- crippling nationwide strike. United Auto Workers (UAW) Union President Douglas Fraser shrugged off as temporary a current car sales slump blamed on gasoline shortages and once again made clear he considers the ad- ministration's seven per cent wage WHILE A guidelines dead. Several thousand retirees and other retirees ai UAW members picketed GM's world- streets bel wide headquarters in a massive but or- derly demonstration sparked by the O emotional issue in this year s round of bargaining - increased pension GRAND R benefits for retirees. GRARy IN A BREAK with tradition, the and two oth opening of negotiations was delayed for and to nearly two hours while Fraser and yesterday to other union officials confronted GM Michigan'sa Chairman Thomas Murphy and Mchigan's a President E. M. "Pete" Estes to com- license plate plain about alleged company inter- administrate ference in a crucial union election at a edmini new GM plant in Oklahoma City. award-winni Fraser said the union had "over- Petek,62,of' whelming evidence" of an anti-union of Crunch Bi See AUTO, Page 9 pleaded inno and conspira tod a Morris G1 Prof passes away University English Prof. Marvin Feldheim, 64, died yesterday. Felheim received many awards during his career, including the 1979 Joe Lee Davis Professorship in American Culture, and People magazine recently did a profile of the University in- structor. "Mary Felheim was a person born to be a teacher," said Interim University President Allan Smith. "His love of teaching and of the humanities carried him inot the hearts of his students in a way which few persons can achieve. His influence in the University and throughout the state will be sorely missed." Funeral services will be held at 11 a.m. today at Temple Beth Emeth, 2309 Packard Rd. L / 3. FR ZIVA SAFE UTO INDUSTRY contract talks for 750,000 workers began yesterday at General Motors Corp. in Detroit, rnd autoworkers, in support of demands for cost of living pension increases for retirees, marched on the ow. ficial pleads innocent to APIDS (UPI)-A top aide associated with M.G. Casey Inc., a well- of State Richard Austin known Detroit consulting firm which er men pleaded innocent has done work in Austin's political charges stemming from campaigns, pleaded innocent to con- d scheme involving spiracy, mail fraud and influence ped- ward winning bicentennial dling charges. s. ALL THREE MEN were released on erkowitz, 58, of Lansing, an $10,000 personal recognizance bond by r with more than 30 years U.S. Magistrate Stephen Karr. n state government, and The three were indicted July 2 by a ng film-maker Theodore federal grand jury which charged West Bloomfield, president Berkowitz with scheming to pay con- rd Studios Inc. of Detroit, tractors for work on the bicentennial cent to federal mail fraud license plates which they did not ac- cy charges. tually perform. eicher, 62, of Southfield, The indictment charged Berkowitz, mail fraud Petok, and Gleicher with working out a 1974 agreement on the design, layout and consultation for the license plates-work which was actually per- formed by state employees. PETOK ALLEGEDLY received a check for $1.260 for the work which was allegedly sent through the mail. Gleicher is also accused of receiving kickbacks totaling $18,000 for using his position of influence with Austin to make sure Petok won contracts for producing the "Safety Man" commer- cials. Petok won a 1971 Academy Award for in an animated cartoon category for the commercials. U of Iowa goes gasahol All the 300 gasoline-powered vehicles in the University of Iowa fleet are now running on gasohol. The conversion began in early June, when the University received just 70 per cent of its gasoline allotment for the month. The vehicles use a mixture of almost 20 per cent alcohol, the rest gas. "We put 880 gallons of alcohol in the tank first," said George Klein, business manager of the university's physical plant. "Then a transport unloads 7,500 to 8,000 gallons of gasoline." But the conversion hasn't been cheap. "We are buying alcohol for $1.75 a gallon, which increases the overall cost 11 or 12 cen- ts a gallon," Klein added. He indicated that if the university's shortage of gasoline continues, the conversion to gasohol may become permanent. 4347 . .. the Near Eastern Studies department will present Prof. Clement Henry and Prof. Ali El- Houderi speaking on "Theory and Practice in North Africa Politics" at 1 p.m. in Lecture Room 1, MLB ... The Ann Arbor School of Metaphysics will sponsor a lecture and workshop on "Psychic You" at 7:30 p.m. at the Ann Arbor Public Library ... there will be a Faculty Chamber con- cert in the Rackham Building at 8 p.m. . , . also at 8 p.m., the Summer Reperatory Theatre presents "Wedding Band" at the Power Center.. . FILMS: Media Resources Center-Green Machine; At the Crossroads; Farming and the Land; Right Whale: An Endangered Species; program begins at 7:30 p.m., Aud. 3, MLB ... Ann Arbor Film Co- op-Ford's The Searchers, 8 p.m., Aud. A, Angell Hall. On the outside The clouds will roll in today, but the temperatures will be somewhat comfortable, in the upper 70s. The low will hit the mid-50s.. Correction Happenings ... An article in Saturday's Daily stated that Ronnie .Happ eis Preson as arained ridy onchaged f amed -. Drug Help will be offering training session for Preston was arraigned Friday on charged of armed volunteers interested in crisis phone work starting robbery. Ronnie Collins was the man arraigned. Friday. Call Lorraine for an interview at 994- The Daily regrets the error.