Ninety-One Years
of
Editorial Freedom
: '
Sir luaug
1E aiI
WARMER,
Partly sunny Saturday,
high near 40, becoming
cloudy Saturday night, low
in the mid 20s.
Vol. XCI, No. 138 Copyright 1981, The Michigan Daily Ann Arbor, Michigan-Saturday, March 21, 1981 Ten Cents Eight Pages
'U
officials
forecast more
financial
Drily Photo by DAVID HARRIS
On y ,our mark
Students rare up to go in the annual Greek Week bed race. This year's winner was the team from Alpha Zi Delta, Sigma
Delta Tau, and Delta Chi.
Reag an tells unemploye
*to read el p-wanted
WASHINGTON (AP)-"Secretaries-Where Are You?" addressed to people already working, n
ask the Sunday classifieds, and Ronald Reagan wonders, too, TO LURE PROGRAMMERS, for
why so many people are unemployed when the papers are full Automation Corp. of Silver Spring,
of help-wanted ads. reimbursement, profit-sharing, free p
Earlier in the week, Reagan noted to a group of growth potential."
congresswomen that in last Sunday's New York Times These were not jobs for those withou
"there were 451/2 pages of help-wanted ads, and in the The Post carried only three ads for dish
Washington Post .. . there were 33 pages." He added that houseworkers were outnumbered by sit
"these were jobs calling for people of every range that you houseworkers seeking employment.
could imagine."
"HOW DOES A person in any one of those skills justify Greenspan, a Reagan adviser, said th
calling themselves unemployed, when there's a fellow spen- was making is that there are far mc
ding money and saying 'I've got a job, come fill my job?' " there should be if everyone were willi
Reagan asked. were a shade under or different from
Alan Greenspai, a economist who agrees with Reagan on what they were looking for.
most things, said he knows why-society has gone overboard "WE'VE GONE TOO far in unempl
in making joblessness painless. But other economists say "ve GonE the orin nept
Reagan is reading too much into the classifieds. Whether the have gotten beyond the original concep
economy is booming or dragging, they say, some people will However, Sar Levitan, a labor ec
madea mstak byassuming "pet
be out of work and some jobs will go begging. changeable parts-anybody can fill an
Most of the ads the president saw, like the one in the Post "Many of the people looking for joby
asking for secretaries, were for workers with skills that are the jobs that are advertised," Levitan
in great demand. Others were for draftsmen, nurses,
engineers, and computer programmers. Those ads seemed depth of the Depression there were job
ads
ot to the jobless.
r example, System
Md. offered "tuition
arking and unlimited
t skills or experience.
washers. Ads seeking
tuation wanted ads by
he "point the president
ore unfilled jobs than
ng to take jobs which
their previous job or
oyment insurance and
)t."
onomist, said Reagan
ople are like inter-
yjob."
s are not qualified for'
said. "Even during the
vacancies."
By BARRY WITT
In what one Regent dubbed an
"obituary" for the University; ad-
ministrators forecast yesterday more
severe financial setbacks in store for
the University.
Vice President for Academic Affairs
Bill Frye and other top-level administr-
ators outlined for the Regents methods
being used to cope with the current
financial strain as well as additional
losses with which the University must
deal in the coming months.
IN THE MOST comprehensive
analysis of the University's financial
situation released to date, Frye said
students next fall will probably face
tuition hikes somewhere in the "mid-
teens" in percentage terms.
The administrators said until they
can be more sure of how much the
University will receive in state ap-
propriations next year, it is too early to
tell how the University will be affected.
The administration expects the state
legislature to approve Gov. William
Milliken's proposed 12 percent ap-
propriation increase for the University
within the next several weeks, Frye
reported. However, he also warned the
University will not receive the full
amount unless the state's economy
bounces back to the level the governor's
office expects.
IN ADDITION, Congress' reaction to
President Reagan's proposed cuts for
financial aid and government-spon-
sored research projects will have a
great impact on the University, Frye
warned.
University President Harold Shapiro
added that indirect effects of the
Reagan budget policy hurt the Univer-
sity through a "substantial reduction in
aid to state and local governments."
"That is going to put considerable ex-
tra pressure on state budgets and in-
crease competition for support from
state and local governments, Shapiro
said. Proposed state tax reform
measures, which could decrease state
revenues by $250 million, also con-
Regents reject
tribute to the problem, Shapiro said.
SHAPIRO SAID, however, there is
still a "tremendbus amount of uncer-
tainty" surrounding the external finan-
cial situation.
Concerning increases in fixed costs,
such as utilities, staff benefits, and
other internal commitments, Vice
President and Chief Financial.Officer
James Brinkerhoff contributed his
somewhat dismal prognosis on the
University's fiscal ailments.
"The deregulation of natural gas
(prices) has caused us to anticipate a 25
percent increase in the cost of (fuel),"
Brinkerhoff said. Only last fall the ad-
ministration had estimated an expen-
diture of $1.8 million for the next fiscal
roes
year, but now a $2.8 million increase is
expected, he said.
BRINKERHOFF ALSO said in-
creased building space due to nearly
completed construction of certain
capital projects would add to the total
drain on utilities.
An additional $2 million will have to go
toward increases in Social Security
costs and other staff benefits, he said.
Vice President for Research Charles
Overberger informed the Regents that
in addition to federal social science
research cutbacks - which Reagan has
referred to in his public addresses -
See FINANCIAL, Page 2
PIllGIAI
By BARRY WITT
The Public Interest Research Group
in Michigan lost its bid for a
refusable/refundable system of collec-
ting funds from students yesterday, as
the University's governing board
defeated Regent Gerald Dunn's (D-
Lansing) motion to implement a new
financing system, 5-2.
The Regents voted to continue the
positive check-off system of soliciting
for the next two years, but dropped the
requirement that PIRGIM receive 25
percent studentsupport each term.
THE REFUSABLE/refundable
method, which received support only
from Dunn and Regent Nellie Varner
(D-Detroit), would have automatically
assessed students $2 on their tuition
bills each term unless they requested
the University not do so.
"I think (PIRGIM's) track record of
good for the citizens of Michigan speaks
Cellar to cut sale,
. of non-course books
pn
for itself," Dunn said in support of the
organization.
But Regent Deane Baker (R-Ann Ar-
bor), the board member most vocal in
his opposition to allowing PIRGIM to
use the University billing system for
fundraising, said, "The issue isn't how
good a job somebody does."
Baker, and the other opponents to
refusable/rfundable, argued PIRGIM
does not deserve an "unfair advan-
tage" over other organizations in its
fundraising attempts.
Baker also disputed PIRGIM's claim
to overwhelming support from students
on campus. "There is no doubt that
student support for PIRGIM is rapidly
declining," he said.
Baker said he did not want PIRGIM
to use the University's billing system in
any way, but his motion to stop the
positive check-off system received nd
support.
City may
get half
million for
fire safety
By DE BI DAVIS
The state House approved a measure
Thursday that could restore half a
million dollars to the city to pay for fire
protection services to state-owned
buildings, namely the University.
The bill, now in the Senate Ap-
propriations Committee, is expected to
be considered by the entire legislature
Monday. If passed, it will go to Gov.
William Milliken for final approval.
CURRENTLY, Ann Arbor and other
cities with large amounts of state land,
are operating without such state sub-
sidies.
Since state-owned institUtions are tax
exempt, local property taxes must
finance such services, producing a
financial burden for cities.
But although the funding may be
See CITY, Page 2 -
enougn peope were taking advantage "afford""" "" " '7 y " U f 9
of the department." to haffordt ave several lss centers, _,*,<
MATTHEW NEUMEIER, president Neumeier said. "Here we had an D
of theWneU elEr, Brdeof albatross drawing huge amounts each Daily Photo by DAVD HARRIS
of the University Cellar s Board of A WOMAN BROWSES through a row of non-course books in the University Cellar. Due to severe financial losses, the U-
Directors, explained that the goal of the See CELLAR, Page 7 Cellar Board of Directors voted Thursday to cut this department.
TODAY
Gridders get Hayesd
T THE END of Thursday's football ,practice,
Bo Schembechler gathered his team at midfield
and introduced a man "from somewhere down
south" who was probably the last person the
Wolverine players might havn expected to see-former
Ohio State head coach and arca-rival Woody Hayes. Hayes
spoke to the team for several minutes on subjects ranging
can find cars priced lower than those on his lot. "I just got
fed up with all this nonsense," said dealership owner Stuart
Lasser of Clinton. "To be honest with you, there are a lot of
ploys used in all types of car advertising. But we all buy
from the same dealerships and work with the same mark-
ups, so it's ridiculous. Besides, there's too much
seriousness in this world. People have enough troubles; so I
figured I'd give them something to laugh at." Q
Ticket for Heroism
Diving nitn the Potomac River tn tr and re enta ra-
ficer and his car was towed away by Poor Richard's Crane
Service. The normal fee for such a tow job is $45, but the
firm, in the interest of fairness considering Stankiewiecz's
bravery, knocked off the $20 impoundment fee. Justice was
done, however, the state police said they will foot the rest of
the bill. L
Mil y match
Indiana Governor Robert Orr has learned that when it
comes to milking, he doesn't have as much pull as he
thought. Orr was bested by his lieutenant governor, John
Mutz. in a contest designed to test who .wa sthe 'hbter
Africa. In such a hurry, in fact, that he forgot to get out of
his car before entering the Rochester-Monroe County Air-
port terminal. Stevens sped through the terminal doors'
wheeled past a snack bar and was finally stopped by a
baggage area, sheriff's deputies reported. H was charged
with disorderly conduct and third-deg e criminal
trespass, and was held without bail pending arraignment
after the Thursday night incident. Nobody was in that area
of the terminal at the time, and nobody was hurt. -Deputies
said the only damage to the terminal, other than the doors,
was tire tracks and motor oil on the floor. "I still can't see
how he fit through those doors," said Sgt. Anthony
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