0 Page 4-B- Friday, September 11, 1981-The Michigan Daily Budget hike for new 'U' hospital may face appeal By JENNIFER MILLER Last month's state approval of a budget increase for the University replacement 'hospital may be challenged by the state's federally- funded health planning agency, but University officials say construction will begin as scheduled.I Groundbreaking is planned for Oct. 1. University President Harold Shapiro said Wednesday that construction costs will stay within the $285 million budget approved by the state Department of Public Health. THE HEALTH department's decision came despite a recommendation by the Comprehensive Health Planning Coun- cil of Southeastern Michigan to reject the $75 million increase. The health planning council is a federally-funded' agency which reviews all proposed construction of medical facilities in the state. The agency, whose members represent public input to health planning, makes recommen- dations on medical projects to the state health department. The health depar- tment has the final.authority to decide whether a medical facility is needed. The new hospital project, which has been in the works for 11 years, will replace the deteriorating, 50-year-old University Hospital with an 11-story main building, an ambulatory care facility and a psychiatric wing-all slated for completion in 1986. The old hospital will be demolished unless the University finds a non-medical use for it. IN 1979 the health department ap- proved the hospital project with a cost ceiling of $210 million. In July 1981 the University requested a $75 million in- crease over the cost ceiling. The health department approved the hike last month, although the planning agency had recommended disapproval. The planning agency's executive committee will vote Sept. 15 whether to appeal the decision to increase the cost of the University Hospital to a gover- nor's board. If an appeal were to be rejected, "the second step may be to go to court," the agency's Executive Director Terrence Carroll said. Carroll said the planning agency is considering an appealbecause it believes the health department "acted precipitously and had not really weighed" the agency's arguments. The agency believes "the mission of the University Hospital could be accom- plished with a project within the con- fines of a $210 million ceiling," Carroll said. DR. HERMAN ZIEL of the health department said, "it was justifiable to amend the original amount. One of the major reasons was that without the in- crease, they '(the University) would have to cut out certain important elements of the project." Hospital attorney Edward Goldman said the appeal process will not affect construction of the main hospital. An appeal will involve only the $75 million increase, which covers the cost of the ambulatory care center, renovations to existing buildings, and inflation costs. Shapiro firmly vowed that project costs will not exceed the new budget. "We believe it's an absolute necessity-neither we nor the state can afford it," he said. Under state guidelines, the University could spend an additional $43 million over budget without obtaining state approval, but Shapiro said the University does not in- tend to exercise that option. IF NECESSARY, the University will adjust the nature and scope of the project" in order to stay within the $285 million budget, Shapiro said. Della Goodwin, president of the plan- ning agency's executive committee, said the council has appealed health department decisions before, but has not been very successful. The agency has never gone to court on an appeal, Goodwin said. Daily Photo by PAUL ENGSTROM UNIVERSITY CELLAR. EMPLOYEE Claire Gebben (right) signals she is available to approve another book rush customer's check. The check approvers are a new addition to the book buying process this year. Tuition tax credit -may eilea WASHINGTON (AP)- Tax credits for private school tuition, an idea long supported by President Reagan, may violate the separation of church and state doctrine of the Constitution, ac- cording to a key administration official. Deputy Treasury Secretary Tim Mc- Namar, the first administration official to raise constitutional concerns publicly, said a number of Justice Department officials have similar reservations about tax credits for parents who send their children to private schools-85 percent of which are church-operated. "WE DON'T WANT to do anything disingenuous like pushing a bill and then seeing it declared uncon- stitutional. That's silly," McNamar, the second-ranking official at the Treasury said. Up to now, only opponents of the measure have raised the First Amen- dment problem, while the Reagan ad- ministration has promised consistently to work for passage of the tax credits. Many religious groups and other sup- porters of the measure contend it will SAN FRANCISCO'S HOC SR'S E S POSTERS fihcsc arc surplus 1)ostC rs Icf t OVCr frOm thC Ball. Each )oStCr mcasures ap)prox. 20" Y 29" and is ii fll color )1 a thick (801b.) papCr stock. Supply is Limitcd. $10. each o $17 both i)lus $1.50 pOstagc & handling IAL encourage greater freedom of choice in education, but opponents argue tuition tax credits would advance religious training at the expense of public education. ADMINISTRATION concerns about the legality of tax credits come on top of previously expressed reservations about the proposal's economic feasibility. President Reagan promised during last year's campaign to "wholehear- tedly support" enactment of tuition tax credits, and his aides say he remains committed to the proposal. However, administration enthusiasm for swift passage has been ebbing because the legislation would cost the Treasury billions of dollars in revenues at a time the president is trying to keep budget deficits from ballooning. SOME administration officials said earlier this summer that the tuition proposal was a top priority likely to be included in a tax package the president might send Congress this fall. But McNamar said Congress might not want to take up tuition tax credits until next spring so members can cam- paign on the issue for the fall, congressional elections. That would suit the administration because it "gives us the time to look at the question of constitutionality," he said. "I do know that in some quarters of the Justice Department there are very strong reservations only on that question," he continued. E Scnd to: I LOOKER'S BALL, 1377 1,94 101, Avc., San I rancisco , Ca. 9412.2 The Housing Division feels that students should be free to concentrate on academic (and other) pursuits with- out added worry of dietary requirements. Therefore, 6 University Residence Halls offer tracts" for University students liv and in non-University housing. "Optional Meal Con- 'ing in Baits, Fletcher, 4 Fall Term Winter Term Fall & Winter Terms * available at most halls * select one convenient location k initiate or cancel at your request * select lunch, or dinner, or both * re-serves on nearly all foods. Salad, bars, soft drinks and soft serve ice BOTH MEALS (excludes Sunday lunch) $563.92 $622.44 $1186.36 6 LUNCH ONLY (except Sunday lunch) $241.68 $266.76 $508.44 cream available for both meals. * reasonable prices - DINNER ONLY $349.80 $386.10 $735.90 I 1 1 El m