iriuian Vol. CI, No. 38 Ann Arbor, Michigan - Friday, October 26, 1990 Copyrght® 1990 Budget bill WASHINGTON (AP)- Bargain- 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 Bush. 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 Senate. 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 j-well. 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 expected 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 to pass today Tax code change may cost 'U' $1 .5 million 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 million. 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 yesterday. "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 comment. 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 AIL i 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 Bono. Indiana seeks to extend "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 game. 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- vice. 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 stated. 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 N.Y. 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- tion. 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 WASHINGTON (AP) - The 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 ! ..