The Michigan Daily - Monday, December 2, 1985 - Page 3
1
BUSINESS
'State reduces income tax to5.1 %
LANSING (UPI) - A state income
tax reduction yesterday from 5.35
percent to 5.1 percent will put about
$50 a year into the household budget of
a typical Michigan family of four ear-
ning $25,000 annually, but difficult
times still loom ahead for the state.
The drop signals a turnaround from
one of the most dismal years of
Michigan fnancial history - a
decade-long tale of accounting gim-
mickry, underfunded universities,
deteriorating roads and bridges and
the humiliation of having to rely on
money borrowed from Japanese
banks to avoid default.
FEARS already are surfacing about
the future. While praising state of-
ficials' role in Michigan's turnaround,
some economists say further changes
are needed and top Wall Street of-
ficials express uneasiness about
Michigan's ability to stay on top.
Huge federal deficits, an unstable
national economy, Michigan's ties to
the auto industry and a political at-
mosphere that dictates lower taxes
loom as ominous signs of Michigan's
vulnerability to a future downturn
they warn.
Administration officials, however,
insist Michigan is back to stay. "What
we're celebrating is not all those fuz-
zy budgets and voodoo bookkeeping,
but an end to all that," Gov. James
Blanchard said recently.
THE accounting gimmickry
referred to by Blanchard extends as
far back as 1976, when state officials
extended the fiscal year to 15 months.
The decision was made to conceal a
burgeoning pile of red ink that even-
'What we're celebrating is not all those
fuzzy budgets and voodoo bookkeeping,
but an end to all that.'
-Gov. James Blanchard
tually would result in a state debt
estimated at $1.7 billion.
Now, almost a decade later,
Michigan is solvent because of a tax
increased pushed into law by Blan-
chard, prudent money management
and a more prosperous national
economy.
Prosperous accounting has been
restored and the budget is balanced.
Blanchard says there is no turning
back.
"It's not by accident that Michigan
was in a category with Puerto Rico on
our credit ratings and had to go to a
consortium of Japanese banks to get
through the year," the governor said.
"State officials were not willing to
make the tough decisions. We did and
it wasn't worth coming all this way to
return."
Career Planning &
Placement
Recruiting Schedule
The following employers and
representatives from
graduate/professional schools
will be on campus to conduct in-
terviews.
January 13
Banker's Trust
Citibank
January 14
Banker's Trust
January 15
Aetna
CNA Insurance Co
January 16
Aetna
National Bank of Detroit
Sears, Roebuck & Co.
January 17
IDS Financial Services
Sears, Roebuck & Co.
January 20
A. S. Hansen
Paul Revere Insurance Co
January 21
Do w Chemical-Communications
Mutual of Omaha
Proctor & Gamble - Sales
January 22
Burroughs Corporation
Dow Chemical-Marketing &
Technical
GTE
May Company
Northern Trust Co. of Chicago
Xerox Corporation
January 23
Dow Chemical-Marketing &
Technical
May Company
Morgan Guaranty Trust Co.
National Security Agency
Proctor & Gamble-Customer
Services
January24
New England Mutual Life
Insurance
University of Michigan
Medical School
January 27
Cedar Point
Nationwide Insurance Co.
January 28
Central Intelligence Agency
Hawlett-Packard Co.
Michigan Bell Telephone Co.
Mutual Bell Telephone Co.
Mutual of Omaha
Naval Weapons Center
January 29
Central Intelligence Agency
Chrysler Corporation
United Way of America
January 30
First National Bank of Chicago
General Amercan Life Insurance
Co.
Lincoln National Life Insurance
Co.
Mass Mutual Life Insurance Co.
National Oceanic & Atmospheric
Admin.
Contact the Career Planning and
Placement Offices for more infor-
mation.
Survey says '86 job outlook brighter
EAST LANSING, Mich. (AP) -
Next year's college graduates should
find the job market slightly better
than this year's graduates, with the
most marked growth in technical
fields, according to a national survey
of employers.
"Again this year, the largest
demand and highest starting salaries
are those in the technical fields," said
John Shingleton, placement director
at Michigan State University who
conducted the study with assistant
director L. Patrick Sheetz.
THE 15th annual Recruiting Trends
Survey found employers expect to
,hire 0.4 percent more graduates with
bachelor's degrees next year at star-
ting salaries averaging about 1.8 per-
cent more than the current year.
Demand remains high for
minorities and women, according to
responses from 710 employers in
business, industry, government and
eduction.
EMPLOYERS indicated they would
hire 3.9 percent more electrical
engineers, 3.8 percent more computer
scientists, an additional 3.4 percent
mechanical engineers and 3 percent
more industrial engineers, Shingleton
said.
"One of the significant changes is
the increased demand for graduates
with degrees in education," Scheetz
said.
"This year, for the first time in a
decade, education moved into the top
10 of fields showing the highest per-
centage of increase, 1.9 percent," he
said. "The demand is especially good
in special education, mathematics
and science, and teachers in English,
Spanish and French."
Nearly every academic major
showed some gain, except
agriculture, which remained the
same as the previous year, the
researchers said.
The survey shoed demand for ac-
Estimated starting salaries for college graduates next year:
Electrical Engineering ................ ..............
Mechanical Engineering .....................................
Chemical Engineering ......................................
Com puter Science .............................. ............
Physics .....................................................
Chemistry ..................................................
General Business Administration ........................
Mathematics ..................................
Liberal Arts ................................................
Geology ....................................................
Education ..................................................
Natural Resources ..........................................
29,187
28,971
28,739
27,775
24,370
19,679
19,589
19,014
17,358
17,185
16,903
15,709
I
counting majors rose 2.7 percent;
marketing and sales, 2.7 percent;
hotel, restaurant and institutional
management, 1.8 percent; chemical
engineering, 1.8 percent; general
business administration, 1.5 percent;
metallurgy and materials science, 1.5
percent; chemistry, 1.4 percent; and
civil engineering, 1.3 percent.
Failures delay Fermi H start-up
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From United Press International
The start-up schedule at Detroit
Edison's Fermi II nuclear plant has
been delayed by at least six months
due to equipment failures and
operational problems, the Detroit
News reported yesterday.
Federal regulators, who just mon-
ths ago pointed to Fermi II as a model
for other utilities, now say the plant
has developed one of the worst start-
up records in the Midwest.
THEY SAY their confidence in the
plant, built along the Lake Erie shore
near Monroe, has been "shaken."
Eight months ago when operational
testing began, Edison officials expec-
ted Fermi II would be operating at 75
percent capacity by October. It is now
two months past that deadline and the
plant is restricted to low-power
operations while federal authorities
investigate its problems. The new
target date is March.
The cost of Edison and its 15-
percent partner, the Wolverine Power
Supply Cooperative, continues to
escalate by $1 million a day in interest
until the company can begin charging
its ratepayers for the cost of construc-
tion.
EDISON last week recalculated the
price at $3,765 billion, up some $190
million from the previous estimate.
And Edison has begun cutting expen-
ses in the face of Fermi II costs.
-Problems at Fermi II bring
political implications as well. In Lan-
sing, energy officials vividly remem-
ber the abandonmentolast year of
Consumers Power Co.'s Midland
nuclear plant and now are dealing
with the question of whetherdutility
customers should pay for a plant that
doesn't generate power.
In Washington, Nuclear Regulatory
Commission officials - who this past
FIAPPENI NGS-
Highlight
The Saline Big Band will perform music of the swing era tonight at the
Ark. The concert is a benefit to help the Ark raise money to put in an
elevator accessible to wheelchairs. The performance begins at 8 p.m.
Films
Mediatrics - A View to a Kill, 7:15 & 9:30 p.m., Natural Science Bldg.
Performances
School of Music - Recital, bassoon, Margaret Phillips, 8 p.m., Rectial
Hall; New World String Quartet, 8 p.m., Rackham.
Speakers
Friends for Mental Health - Jay Callahan, "Crisis Intervention," 7:30
p.m., Public Library.
Guild House Reading Series - Stephen Dunning, Martha Clark Kalin, 8
p.m. 802 Monroe.
Studies in Religion - Harvey Cox, "Jesus and the Moral Life," 8
p.m., MLB 3.
Women's Research Club - Sharon Sutton, "Current Research in En-
vironmental Psychology," 7:45 p.m., W. Conf. room, Rackham.
Meetings
LS&A Facultu -4:10 p.m., MLB 4.
Miscellaneous
summer said Edison has "set an
example for other utilities around the
country" - now wants to make sure
their praise for Fermi II was justified.
"I would say Fermi has had more
than its share of problems," said Paul
Byron, NRC senior resident inspec-
tor at the plant. But "there is no doubt
in my mind" it eventually will be
able to operate safely.
The question of cost, however, is not
of concern to the NRC, whose job it is
to make sure the utility builds and
operates a safe plant - as Byrn put it,
to make sure Edison "does what the
law requires."
The Undergraduate
Law Club
presents:
Allan Stillwagon
Dean of Admissions,
U of M Law School
Tuesday, December 3
7 p.m., Michigan Union
ANDERSON ROOM
'Because you never
get a second chance ...
to make a
first impression."
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