4 4W
Ninety-eight years of editorialfreedom


Vol. XCVIII, No. 98

Ann Arbor, Michigan - Friday, February 19, 1988

Copyright 1988, The Michigan Doily

t

Regents
select
Athletic
Director
By STEVE BLONDER
The University's Board of Re-
gents chose a successor to Michigan
Athletic Director Don Canham dur-
ing a closed meeting yesterday, In-
terim University President Robben
Fleming said. Regent Paul Brown
(D-Petoskey) confirmed that a deci-
sion had been reached, but refused to
comment any further.
The leading candidate for the
Athletic Director position remains
head football coach Bo Schembech-
ler, said sources close to the search,
although the regents refused to con-
firm this.
Brown was unable to "speculate
at this time" as to whether Schem-
bechler would be able to retain his
duties as head football coach in addi-
tion to being athletic director, if he
were to be selected.
Schembechler is on vacation until
Feb. 29, according to the Athletic
See SCHEMBECHLER, Page 9
Large t
By ANDREW MILLS
Weak to minimal financial sup-
port from the state this upcoming
fiscal year will place the burden of
funding the University onto students
and families, the administrator in
charge of formulating the Univer-
sity's budget said yesterday.
"(I)t becomes painfully clear that
in a year in which a weakening
economy is holding both state and
federal support essentially constant,
we must depihd almost entirely on
tuition and fees to meet the in-
evitable increases in our operating
expenses," Provost and Vice Presi-

Du Pont,
Babbitt drop

out of
By The Associated Press
Democrat Bruce Babbitt and
Republican Pete du Pont fell by the
presidential campaign wayside yes-
terday, while Vice President George
Bush said "I'm telling the truth"
about GOP rival Bob Dole in his
tough television commercials.
With one exception, the six
Democratic survivors converged on
Texas for a two-hour debate broad-
cast live on public television. Re-
publicans Bush, Dole, Jack Kemp
and Pat Robertson vied for support
in Nevada's caucuses, a competition
that drew little notice with delegate-
rich primaries just around the corner.
Babbitt made his exit gracefully
in a quip-filled Washington news
conference. "Look, I'm not going to
slash my throat if we don't raise
taxes tomorrow," said the former
Arizona governor, who had asked
voters to stand up for a national
sales tax to reduce the deficit.
Babbitt, who finished fifth in
Iowa's caucuses last week and sixth
in New Hampshire's primary on
Tuesday, said the campaign was "the
greatest joy of my entire public
life." He praised all his former rivals
but endorsed none of them, saying
he would do what he could to aid the

race
eventual winner of the Democratic
nomination.
Du Pont, whose provocative ideas
about fundamental change in Social
Security and abolition of farm
subsidies failed to attract much voter
support, announced his withdrawal
in news conference in Wilmington,
Del.
"The campaign has lowered its
flag but the crusade continues to
march," said the former governor and
congressman. He said his ideas are
right for the country and "they're
coming to America sooner or later."
Sen. Albert Gore Jr. of Ten-
nessee, hoping to emerge as the
Democratic front-runner after Super
Tuesday, said his rivals had taken
positions that were out of th'e main-
stream, and added he was the one
who could lead the Democrats to
victory in 1988.
"Dick Gephardt, for example, has
changed one position after another...
Jesse Jackson hasn't had a single day
of experience in government. Mike
Dukakis hasn't had a single day's
experience in foreign policy. We're
going to lay it on the line in this
campaign, and the next 19 days are
going to be very interesting," he
said.

Lights, camera, action 'oiI7 r 4UIJItJ
Engineer Bob White, Director Tony Labriola, and Audio Technician Steve Carlin film footage of the campus
for a documentary on racism which will be broadcast nationally March 22. The filmmakers have already been
to the University of Wisconsin at Madison and the University of Massachusetts at Amherst.

' 0 0
tition increase
dent for Academic Affairs James University's, part of
Duderstadt said in a report to the appropriations must be saved f
University's Board of Regents. year. When factored in with
Duderstadt's prediction follows a million cut ordered by Blanc
disappointing 1.6 percent, or $3.6 the University's current b
million, state funding increase rec- which must be made up nex
ommended by Gov. James Blanchard "the Governor's recommendati
last month. The University had asked amount to essentially a zero i
for an 11 percent, or $50.2 million, for higher education this year
increase last fall. appropriation," Duderstadt said
WHILE the governor's proposal
is traditionally upped by the state EVEN though the Uni
legislature over the next few months, asked for $50.2 million fro
state officials say the constraints of a state, it's "bare bones" nee
tight state budget will force any in- enumerated by Duderstadt, a
crease to be minimal. $36 million. With projected re
Also, because the state's fiscal from sources other than tuit
year begins three months after the such as interest on investme

Ii
state's1
for next
a $1.8!
hard in
udget,
.t year,
ion will{
ncrease
...a flat
d.
versity
om the
eds, as
re only
venues
tion -
ents -

irobable
hovering between four and five
million dollars, Duderstadt sees a
shortfall of between $31 and $46
million.
In other words, a tuition increase
is a foregone conclusion. The only
question is the size.
According to Duderstadt's esti-
mates, a 23 percent tuition increase
would be needed in order to make up
the difference alone. University bud-
get cuts will probably lower reduce
the burden on students, but it seems
likely that tuition increases will be
in the double-digits.
State Sen. William Sederburg (R-
East Lansing), chair of the Senate
Higher Education Appropriations
subcommittee has predicted most
state colleges and universities will
feel a 10 to 13 percent tuition hike.
AS FOR the cuts, Duderstadt did
not specify which University depart-
ments might feel the axe. He did say
in his report, however, that "we will
be forced to continue to take strong
internal actions to contain and even
reduce costs and to allocate our
limited resources to our " highest
priorities."
Duderstadt also lashed out at the
state for its "erosion" of support for
the University at the very time when
the University's resources "assume
even greater importance for (the state
of) Michigan's future." The Univer-
sity is relying, increasingly on the
federal government, private donors,
See 'U', Page 2

DRINK PRICES MAY RISE

Ba s mshold . liability
ins urance

Enrollment change to c'

By KEVIN KROLICKI
The University stands to lose more than $1.5
million in tuition revenues over the next two years
because of a new admissions policy in which more in-
state and fewer out-of-state students will be accepted.
"The dollar consequences to the University are not
inconsequential," said Robert Holmes, assistant vice-
president for academic affairs. "It's going to have an
effect on the budget."
Under the admissions policy, announced by the
University in December as a result of state pressure,
50 more in-state first year students will be added to the
class of 1992. The number out-of-state enrollees would
be cut by 100.
The additional in-state first-year students next fall
} will pay considerably less than the out-of-state students

who would have taken their spots. For instance, out-of-
state first-year students this year pay about three times
as much tuition as their in-state counterparts.
"You can sort of multiply for yourself what the
impact (of the new policy) will be," Holmes said.
The losses will also be compounded if tuition goes
up. But even without a tuition increase this year, the
University could lose almost $750,000 in payments a
year- the difference between funds that would have
been collected from the out-of-state students that would
have been admitted and from incoming Michigan
students. Don Swain, associate director of admissions,
confirmed the figure.
Swain and other admissions staff said the financial
results of the new policy will be considerable if the
See STATE, Page 2

By LISA WINER
Victims of drunk-driving accidents
may have more hope of recovering
damages under a new state law
requiring bars, restaurants and party
stores that sell liquor to carry insur-
ance.
Many Ann Arbor bars have not
carried liability insurance in the past
because of its expense. Rates were
"excessive and unreasonable last
year," costing perhaps "tens of thou-
sands of dollars," said State Sen.
Lana Pollack (D-Ann Arbor).
'40 percent of the bars in
Michigan might even
close.'
-Todd Headrick, Blind
Pig general manager
BUT AS of April 1, the state+
Insurance Bureau will require that
liquor licensees carry at least $50,000
worth of insurance.
The bureau issued a report in De-
cember concluding that insurance is
now both available and affordable in
Michigan, and that a bar owner can
buy the required amount for about
3,000 dollars a year.
Not all bar owners in Ann Arbor
agree.
Good Time Charley's owner Rick
Buhr estimates that he will have to
pay $50,000 for every $100,000
worth of insurance coverage, because
he sells a large amount of alcohol to

the bars in Michigan might even
close." He estimates that smaller bars
will be those hit the hardest by this
new law. New bars, which must bear
the insurance expense in addition to
start-up costs, will also be hard-hit,
suggests Dominick DeVarti, owner
of Dominick's.
BUT SOME believe the new
law is too lax, because the $50,000
in insurance doesn't begin to cover
the pain and suffering or lost wages
of many victims of drunk-driving
accidents. Ashley's owner Jeff More
considers the $50,000 "a trivial
ambunt," although he doesn't feel
establishments should be forced to
carry insurance.
Most liquor sellers feel they
should not be burdened with quite so
much responsibility for their cus-
tomers' actions. "No one is twisting
people's arms to make them drink,"
says DeVarti.
Understanding the liquor seller's
predicament, Congress made conces-
sions to the seller by "narrowing the
window in which they could be
sued," Pollack said.
The new laws, among other
things, ban families of drunken
drivers from suing the bars or restau-
rants that serve them.
The Associated Press contributed
to this report

MI,