Chilly with rain;
High: 38, Low: 27.
Cold, flurries possible;
High: 31, Low: 14.
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'M' icers sweep
Irish, 4-3, 8-5.
One hundred and one years of editorial freedom
Vol. CI, No. 55
Ann Arbor, Michigan - Monday, January 13, 1992
Copyright ()1 992
The Michigan Daily
by Purvi Shah such a!
Daily Administration Reporter are hes
'U' continue despite recession
inimizing layoffs, they enue from direct corporate dona- ing for external funding," he said. is the University's greatest threat, state-funded. Because $800 million
to provide donations. tions has increased from $16 mil- "It depends somewhat on what the Roberson maintained. "The most of total revenue stems from th
ivate corporations are lion in 1990 to $18 million in corporation is interested in and our important effect of the recession University hospital, the state actu-
bottom-line now," he 1991, Roberson said. program moves with theirs." has been the state's ability to sup- ally funds about 25 percent of th
He added that while companies Roberson added that this re- port the University," he said. "If University's academic programs.
donations accounted for still retain an interest in the Uni- search shift does not have a great the state of the economy doesn't Yet, Roberson said he was opti-
While college students and
their families are agonizing over
financial concerns in light of the
recent recession, University fund-
raising appears to be unhampered
by current economic pressures.
University fund-raisers say that
although they are receiving fewer
awards from private companies,
alumni donations are increasing
this year - due in part to the
breadth and success of the Univer-
sity's academic and athletic pro-
Joe Roberson, associate vice
president for Development, indi-
cated that because companies are
concerned with internal problems
by Jennifer Silverberg
Daily Staff Reporter
Like many University student
groups, Hillel, the second largest
umbrella organization on campus
next to UAC, is experiencing a fi-
nancial strain due to the recession.
The non-profit Jewish student
organization is sponsoring a major
fund-raising campaign to combat a
worsening financial situation.
"A financial crisis is an appro-
priate way to describe it," said
David Glaser, chair of the Hillel
student governing body.
"We're shooting for $200,000,
but there could be a deficit of as
much as $60,000," Glaser said. Hil-
lel had raised $109,000 as of Jan. 9.
"This year, given the recession
and general financial times, our
economic condition is worse," said
Dianne Harrison, Hillel's director
Glaser felt that other factors
were also partly responsible for
Hillel's financial crunch.
"We are slightly stuck for
funds because the Jewish
community is facing a wide variety
of stresses. The biggest is
n in revenue during the
last fiscal year, Roberson said. The
University has raised $40 million
so far this fiscal year, nearly equal-
ing private donations at this stage
Additionally, University rev-
versity, they have shifted their
overall focus - and money -
from higher education to elemen-
tary and secondary schools because
they perceive the latter to be in
Roberson indicated that at-
tempts are now made to solicit
corporations to fund faculty mem-
bers who are working with ele-
mentary and secondary school sys-
"We have a lot of faculty doing
that kind of work and they're look-
'A large portion of the alumni donors are in
the recession-proof category.'
Tele fund Program Manager
impact because of the range and
quality of University programs.
"We're still a high priority to
them," he said. "It's just taking
more effort and making more
matches of programs."
The state's vulnerable economy
improve, you're worried something
Executive Director of Univer-
sity Relations Walter Harrison
said 15 percent of the University's
$1.8 billion operating budget is
mistic about the University's posi-
tion even though corporate giving
is down, arguing that Michigan has
not been as hard-hit economically
as other states.
Harrison agreed, "Of course ev-
erybody's aware of the recession,
but we don't have undue concern
Nonetheless, the University is
not taking lightly the issue of
fund-raising - especially from
See RECESSION, Page 2
by Karen Sabgir
Daily Higher Education Reporter
Although the recession has af-.
fected fund-raising campaigns at
universities nationwide, philan-
thropy directors, like their coun-
terparts at the University, are re-
porting a satisfactory, if not re-
markable, year overall.
Some of the directors say they
have yet to feel the effects of the
recession, while several others say
they are prospering under the pro-
tection and consistency of capital
"We are down some this year,
but not a large percentage," said
Gary Kitsmiller, Ohio State Uni-
versity's associate director for De-
velopment. Kitsmiller reported a
decrease in corporate but not pri-
He said past recessions have not
had a great effect on fund-raising,
and he does not believe that the cur-
rent decrease in gifts is related to
"A change from the recession
may happen. If so, we'll see it in
the next six months," he said.
Sandy Waterkotte, director of
special and annual gifts at Michi-
gan State University, agreed with
Kitsmiller. "There is certainly
nothing official ... but the next six
months should tell more."
This year, Massachusetts Insti-
tute of Technology (MIT) offi-
cials are finishing up a five-year
capital campaign called "Campaign
for the Future." The goal has re-
cently been increased from $550 to
"The recession has had an im-
pact in giving, but we still have av-
eraged $100 million a year since
1987, and we will reach our new
goal," said Charlie Ball, assistant
director of the MIT News Office.
Despite the campaign's success,
Ball pointed to some decreases in
donations. The total amount of
gifts, according to the MIT trea-
surer's report, shrunk 4.5 percent
between the 1989-90 and 1990-91
fiscal years. The total amount, ex-
cluding donations of equipment,
was down 10.4 percent.
"Gifts from individuals were
adversely impacted from the de-
cline in the stock market caused by
the crisis in the Middle East," Ball
said. Individual donations were
down 26 percent last year. How-
ever, Ball said corporations and
foundations showed modest gains.
Both Linda McNay, executive
See FUNDS, Page 2
AIHUNYJI TM. ..r,,LLIUaI
Hillel, the second largest umbrella organization on campus, is experiencing financial difficulties resulting from
the recession and a variety of other problems.
Operation Exodus, which is trying
to get Jews out of the Soviet
Union," Glaser said. "Funds that
would stay at the University go to
help them instead."
The financial problems are also
a result of the lack of a
officials said. Four years ago, with
the aid of a building endowment,
Hillel moved into a $3 million
building. The organization
expected to create a program
endowment afterward, but the
money was never raised.
"We never would have built the
building if we had known that we
wouldn't get the program endow-
ment," said Executive Director
Hillel's financial crisis may
cause cutbacks in staff and pro-
gramming. The organization cur-
rently operates on an annual budget
of $600,000, Glaser said.
"Because costs keep going up
and we are funding more projects,
there is a greater financial need,"
Harrison said. "If we don't raise
money, we will have to cut back on
staff, and then they aren't there to
help with student programming.
Then there are less student
programs which means there is less
of a need for staff to supervise,"
See HILLEL, Page 2
'U' student travels to
0 Moscowdespite coup
by Mona Qureshi
Daily Staff Reporter
News of the sudden coup in the
Soviet Union shook Ellen Fred's
household in Traverse City last Au-
gust. While the LSA junior was
packed and mentally prepared to
spend the semester studying in
called. After the coup ended one and
a half weeks later, Fred said her par-
ents were still uncomfortable, but
they allowed her to leave.
A student of Russian and East
European Studies, Fred spent last
semester studying at the Moscow
State Institute of International Re-
lations (MGIMO) in Russia
through the Study Abroad Program.
The MGIMO prepares students to
be international ambassadors, a ca-
reer that Fred said interests her.
The MGIMO is reputed to be the
most prestigious university in Rus-
sia, Fred said. "It's very difficult to
get in without connections. I got in
as foreign visitor."
Fred said the students at her
school spoke English well and
wanted to practice with her, but it
also frustrated her that she was not
able to practice her Russian as much
as she wanted.
Fred attended classes ranging
from Russian political theory to the
history of international relations.
Fred described the students at
her school as formal and competi-
tive. She also said she did not know
if she could trust the other students
See MOSCOW, Page 2
by Ben Deci
Daily Crime Reporter
Michael Wax, the former owner
of Wolverine Video, may have
rented out his last new release. He
recently filed for Chapter Thirteen
bankruptcy and sold his store, amid
allegations of unfairly charging
customers' credit card accounts.
Wax sold Wolverine Video, lo-
cated at 611 Church Street, to
Amer's Inc., last month, after filing
for bankruptcy on Sept. 3, 1991.
A group of University students
will file a class action suit against
Wax after his bankruptcy hearings.
The students' lawyer, Nick
Roumel of Student Legal Services,
explained the delay by saying,
"Chapter Thirteen is a reorganiza-
tion bankruptcy. He asks the court's
protection for his assets while he
pays back his creditors. Until the
court makes a ruling, Wax's assets
Roumel also added that nor-
Fred poses in front of Reu
Square's St. Basil's Cathedral.
Moscow, her parents were deter-
mined to stop her.
"I fought with my parents. I
watched CNN for 16 days. I mean,
in one night, the whole thing was
off. I was devastated," Fred re-
Gymnast Rich Dopp, an LSA first year student, was taken to University Hospitals after falling following a
vault yesderday afternoon. He was treated and released several hours later.
Ann Arbor City Council candidates
launch campaigns for April elections
by Erin Einhorn and
stressed a need for students to un-
voting in a presidential election,"