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October 26, 1990 - Image 1

Resource type:
The Michigan Daily, 1990-10-26

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Vol. CI, No. 38 Ann Arbor, Michigan - Friday, October 26, 1990 Copyrght® 1990



ers wrestled with lingering disputes
over benefit cuts and tax breaks yes-
terday but congressional leaders pre-
dicted passage for the broad deficit-
reduction bill supported by President
None of the outstanding differ-
ences was seen as a deal-killer for
the $250 billion collection of tax in-
creases and spending reductions.
White House spokesperson Marlin
Fitzwater said Bush liked the emerg-
ing bill, and that seemed to stamp
out the possibility of any last-
minute setbacks.
"With the White House opti-
mistic, one would guess it would be
hard to shipwreck the thing," said
Rep. Bill Frenzel of Minnesota,
ranking Republican on the House
1 Budget Committee.
House Speaker Thomas S. Foley
(D-Wash.) said he expected the
House to approve the measure today.
Little trouble was expected in the
The package would boost the
nine-cent-per-gallon gasoline tax by
about a nickel and increase levies on
alcohol, tobacco and fancy cars as
It would raise from 28 percent to
31 percent the income tax rate on the
richest Americans, but drop the rate
paid by the upper-middle class from

33 percent to 31 percent. The mea-
sure also would reduce the deductions
available to people earning more
than $100,000 yearly by three per-
cent, and phase out their $2,050 per-
sonal exemptions.
It also cuts Medicare, farm aid
and other benefit programs. A chief
remaining disagreement involved the
Medicare program for the elderly and
handicapped. The program's pro-
jected growth over the next five
years was expected to be trimmed by

about $42 billion, with more than
one-fourth of that coming from ben-
eficiaries. But the precise figures re-
mained undecided.
"There's nothing the president
has signed off on yet. It's not just
one issue. There must be two dozen
important issues that haven't been
resolved." Senate Minority Leader
Bob Dole (R-Kan.) said after an af-
ternoon White House meeting.
In Michigan, Republicans were
See BUDGET, Page 2




Tax code change may


'U' $1



by Bethany Robertson
Daily Staff Reporter
Buried in the current budget nego-
tiations in Washington, D.C. are
two proposed changes in the tax
codes that could cost universities
throughout the nation more than
$600 million, and cost the Univer-
sity of Michigan and its students $3
A proposal that would remove
campus-employed students' exempt
status from the social security tax is
now being considered.
A second proposal will decide
whether or not to reinstate the tax-
exempt status of the Employer Pro-

vided Education Assistance program,
which expired Sept. 30. Through
this program, students received tax-
exempt money from their employers
to pay for university courses.
Executive Director of the Univer-
sity's D.C. office Tom Butts said
students' exempt status - in effect
since 1937 - was originally slated
to continue next year, but pressure
on Congress to find more money has
prompted discussion of the proposal.
"Now they are looking around for
money so much that it's not 100
percent sure (if students will remain
exempt)," Butts said.
See STUDENTS, Page 2

MSA changes procedure
ifor distributing money

by Christine Kloostra
Daily MSA Reporter
The Michigan Student Assembly
Budget Priorities Committee (BPC)
has cancelled the remainder of its
hearings and all funding requests will
be addressed to the full assembly, an-
nounced BPC Chair Charles Dudley
"All groups seeking to receive
funding from BPC will receive con-
sultations from BPC; however, no
hearing of the group will take
place," Dudley wrote in a letter to

assembly members yesterday.
Groups requesting funding will
now attend a specified assembly
meeting, "at which time the assem-
bly will decide what monetary
amount is fair for said student orga-
nization to receive," he wrote.
MSA President Jennifer Van Va-
ley declined comment until she
speaks with Dudley, but said he
could not change BPC procedure as
he proposed.
Dudley could not be reached for

The controversy surrounding
BPC methods began Tuesday night
when MSA representatives ques-
tioned the fairness of BPC alloca-
tions. This month, 26 groups re-
quested a total of $37,949; the BPC
has $2,500 to allocate each month.
BPC Vice Chair Eric Baumann
explained that representatives' mis-
understanding of BPC procedures re-
sulted in Dudley's action. "I think
See BPC, Page 2

You gotta have art
LSA Sophomore Paul Sassalos tries to fathom the deep meaning in this print for Art History 102.

Law students push for pro bono service requirement
M~ fess PecmrIass


Daily Staff Reporter
Future University law students
would have to provide free legal ser-
vices as part of their graduation re-
quirement, if four law students are
successful in achieving their goals.
In response to what they say is a
lack of legal representation for the
poor, the students, including one
University of Michigan student,
*have formed Law Students for Pro
seeks to
"M' woes
by Eric Lemont
Daily Football Writer
All roads to a winning record go
through Bloomington.
It's not as catchy a motto as "The
road to the final four" and it's not
the kind of inspiring war-chant a
team can rally around. Yet, it might
'be the most appropriate theme for
this weekend's Michigan-Indiana
After two consecutive one-point
losses, the Wolverines (3-3 overall,
1-2 Big Ten) find themselves play-
ing in a big game where they didn't
expect it. A win this weekend
against the Hoosiers is essential if
Michigan is to stay in major bowl
contention and avoid a repeat of
1984's 6-6 season.
Does that memory of mediocrity

Pro bono legal services - mean-
ing "for the people" - are provided
free of charge to those who cannot
afford legal representation.
Law Students for Pro Bono wants
to make pro bono work a graduation
requirement for all 175 accredited law
schools in the country.
Pam Herzig, a second-year stu-
dent at Michigan Law School and an
organizer of the group, said that Law
Students for Pro Bono hopes to use

a pro bono requirement to serve a
double purpose: to "match unmet
needs of low-income people with
unmet education of law students."
Herzig said the group's three
goals are "to sensitize students to the
necessity to provide legal service for
those who need it, to make young
lawyers do pro bono work as a habit,
and to uphold the Bar Association's
standards of public service."
It is estimated that each year an

indigent family has between three
and five problems requiring legal ac-
tion, according to a Pro Bono press
release. Nine out of 10 of these legal
needs go unmet.
If each of the nation's 129,000
law students performed 100 hours of
pro bono work, they would provide
12.9 million hours of free legal ser-
As pro bono cases usually take
about ten hours each, more than one

million Americans would have some
of their legal needs met if the re-
quirement is adopted by the nation's
law schools, the same press release
Jason Adkins, a third-year law
student at Harvard and organizer of
Law Students for Pro Bono, was
impressed with the response at the
group's press conference, held last
Monday in Washington. He said that
more than 100 schools from around

the country attended to share their
ideas and plans. "Law schools from
Hawaii to Maine were represented,"
he said.
Adkins also spoke of the group's
"multi-pronged focus," and said it
hopes to "direct services to the struc-
tures of power in society that pre-
vent people from access to the
courts, as well as to poor people."
Consumer advocate Ralph Nader
See PRO BONO, Page 2


Yankees' partner

to speak at graduation

by Lari Barager
Robert Nederlander, a University
alumnus and the new managing gen-
eral partner of the New York Yan-
kees, will be the speaker for Winter
Commencement Dec. 16.
Nederlander replaced Managing
General Partner George Steinbrenner
this summer, becoming one of 18
limited partners who own shares in
the New York Yankees.
Though Nederlander's office is in
New York, he retains close ties to
the state of Michigan. He is a mem-
ber of the Economics Club of De-
troit and the Michigan Bar Associa-

While at the University, Neder-
lander received a bachelor's degree in
economics and later earned a law de-
gree in 1958. For part of his un-
dergraduate career, Nederlander was
captain of the tennis team.
Nederlander served two eight-year
terms on the Board of Regents from
1968-1984. He was also co-chair of
the Campaign for Michigan fundrais-
ing effort which brought in $354
million for the University. He is
now the University's National De-
velopmental Chair.
The Nederlander family is consid-

ered one of the most powerful fami-
lies in theater. Nederlander is presi-
dent of the Nederlander organization
which owns, among other theaters,
The Fox, The Fisher and the Ma-
sonic Temple in Detroit.
Members of the selection com-
mittee could not be reacted for
comment, but Homer Rose, assis-
tant dean of graduate studies, said
"the regents have the last word" on
who gets chosen to speak at com-
mencement, and they are "carefully
advised by the committee."

U.S. may send 100,000 to Gulf

Pentagon is laying plans to send as
many as 100,000 more troops to
Sauidi Arahia. hut the exnanded

gion will not be secure unless Sad-
dam is removed from power or he is
"disassociated" from his chemical
weapons and reDorted efforts to ac-

the same sentiments as many of his
colleagues who have supported the
gulf deployment.
Kerrey, a Vietnam veteran and

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