The Michigan Daily-Friday, May 16, 1980-Page 3
Shapiro warns Regents of
possible 'IT, staff layoffs
The. reenot-inau urated resdent said no growth this year in state income tax revenue.

By MITCH STUART
Special to the Daily
DEARBORN-University ' President' Harold
Shapiro warned the Regents yesterday that staff
layoffs will probably be necessary to compensate for
the small increase in state appropriations that
executive officers expect for the 1980-81 general fund
budget.
"We're going to try to counter it (budget hardship)
by decreasing the number of staff, which means that
we will have to cut down some areas of the
University," Shapiro told the Regents at their
monthly meeting here yesterday.
SHAPIRO SAID THE University will try to reduce
staff first by leaving vacated positions unfilled, but
added he is fairly certain that layoffs will also be
required.
Officials:
Revenue
sharing
waon't end
'U'budget
cutbacks
By ELAINE RIDEOUT
As the House-Senate Conference
Committee deliberates in Washington
on a Senate budget proposal to restore
$700 million in general revenue sharing
to the states, University and state of-
ficials agree the impact of increased
state funds would not be enough to save
the University from major budget cut-
backs.
The Senate approved a $613.1 billion
balanced 1981 budget last Monday that Wladys
restored funding to the federal food weapon
stamp program and the Veterans Ad-
ministration in addition to the state
revenue sharing plan. CHA
"THE SENATE BILL would clearly
help the overall state revenue picture,"
said Tom Clay, director of the state of-
fice of the budget. Clay cited social ser-
vices and welfare programs as priority
areas for any additional funding. "The
impact on the University is hard to
say-there are too many other things Revisio
happening state-wide." - budgets f
Richard Kennedy, University vice- in financi
president for state relations, agreed sity stude
that any added revenues would help the will be re
state meet increasing general welfare according
and unemployment payments. Ken- Financial
nedy said he hoped the bill could free up At the s
state revenues to be allocated to higher Education
education. "We would probably be able the amou
to count on state support at the level allocate
we're thinking of right now," he said. scholarsh
According to Clay, Gov. William programs
See OFFICIALS, Page 7 MEAN

preliminary budget plans call for the largest amount Instead of an anticipated five per cent growth, there
of shrinkage in non-research, non-teaching areas. was a six per cent drop, he said.
Specific program priorities, however, have not yet Income tax is a primary source of revenue for the
been set down, he added. state general fund, Dunn continued, and the 11 per
One of the main budgetary concerns of the cent difference between expected and actual income
University is the possibility of an executive order could have a significant impact on the budget.

from Gov. William Milliken mandating a cutback in
the state's education expenditures, University Vice-
President for State Relations Richard Kennedy told
the Regents.
KENNEDY SAID HE has met with Milliken and
top legislators and reported to the board that "an
executive order may indeed be unavoidable,"
although the legislature has been hesitant in past
years to cut back the education budget.
Regent Gerald Dunn (D-Lansing) noted there was

SHAPIRO, WHEN OUTLINING the preliminary
budget plans, said the 1974-75 strategy of attempting
to retain the entire staff and make cutbacks
elsewhere is now "inappropriate."
He said that strategy had damaged the
University's academic integrity such that it is only
just recovering:
With that historical precedent in mind, Shapiro
See SHAPIRO, Page 5

Plea for peaice
law Narowski and his dog Dobry ask for an end to the world's problems including hunger, oppression, and nuclear
us yesterday outside the Ann Arbor Federal Building.
NGES MADE IN FEDERAL, STA TE BUDGETS:
Iin aneial aid to be cut

3y JOYCE FRIEDEN
ns in state and federal
or fiscal year 1981 will'result
al aid cuts for many Univer-
nts, but most of the lost aid
placed by University funds,
to officials in the Office of
Aid.
tate level, the Department of
has announced a cutback in
unt of funds it intends to
for the state's competitive
ip and tuition grant
WHILE, FEDERAL officials

are considering changes in the format
of federal loan and grant programs as
well as in the administration of those
funds. One revision currently under
scrutiny in the Senate is a cut in funding
for the Basic Educational Opportunity
Grant (BEOG) program.
Studetns receiving state scholarships
can expect the following revisions:
those normally receiving $250 or less
will get no money; those normally
receiving $251 to $350 will have their
awards cut back to $100; and, those
normally receiving $351 to the
maximum $1200 award can expect cuts

of $250.
According to Harvey Grotrian, direc-
tor of the University's financial aid of-
fice, "the needs for next year simply
exceeded the money allocated. The in-
creased need resulted from the in-
crease in applicants and institutional
costs as well as a decrease in the expec-
ted amount of financial support con-
tributed by parents. Although the state
anticipated these things, they did not
expect them to occur to the degree that
they did."
See FEDERAL, Page 15