The ichigan Daily
Vol. XCI, No. 63-S Ann Arbor, Michigan-Saturday, August 15, 1981 Ten Cents Sixteen Pages
U' funds may be reduced
State cutback could
Sweeat into faculty raises
By MARK GINDIN
Daily staff writer
There is a "distinct possibility"
Gov. William Milliken will issue a last
minute executive order to reduce state
expenditures to make up for a projected
shortfall of $50 million to $100 million
for the current fiscal year ending Sep-
tember 30, according to a source in
Lansing.
Although the state is attempting to
cope with a shortfall in its 80-81 budget,
the reduction of state appropriation
from the executive order would be felt
by the University in its 81-82 fiscal year
budget, according to University Chief
Financial Officer James Brinkerhoff.
"THE REDUCTION will mean less
by way of a salary increase for faculty
and staff during our fiscal 82 year,"
said Brinkerhoff. "We will have to ac-
commodate" when submitting the
budget for the 81-82 year, he said. The
planning of this year's budget has been
delayed because of the uncertainty of
state appropriations.
Brinkerhoff said that if Milliken does
reduce the state's September allocation
to the University, the administration
would probably have to reduce the size
of salary raises for faculty and staff
which are already set below the in-
flation rate. He said the cutback would
probably not force further program
reductions, however.
One of the two areas most likely to
receive the brunt of the reduction is the
state's universities, said James Storey,
director of the House Republican news
bureau and Communications. The other
area would be the cities and localities
dependent on the state for funding as
well as the local school districts, he
said.
THE UNIVERSITIES will be hurt
more than other state agencies, Storey
said, because the schools as well as the
localities have only just started their
new fiscal years, and therefore have
more unspent money to be recovered by
the state, whereas other state agencies
are nearing the end of their fiscal years
and have little money remaining.
The reduction would be on the order
- of 1 percent to 2 percent across-the-
e board of the annual state budget,
depending on the actual deficit at the
e. time of the decision, which will be after
e Sept. 15, Storey said.
ts Any executive order by the governor
would have to be approved by the state
House and Senate appropriation com-
mittees before actually taking effect,
Storey said, and those bodies will
reconvene Sept. 15 after the current
vacation. Because the state constitution
requires a balanced budget by the end
of each fiscal year, the decision of how
much to cut would have to be made
before Sept. 30, he said.
The Universitywould not be prepared
to absorb any such cut in its September
allocation easily, said Ralph Nichols,
the University's coordinator of budget
information in the office of the vice-
president for academic affairs.
"We've been planning the budget on
the assumption that they wouldn't come
back (for money)," Nichols said. If an
executive order was issued, Nichols
said, it would mean a reduction in the
state's September payment to the
University and would affect the 81-82
budget, under which the University is
presently operating.
AN EXECUTIVE order reduced the
state appropriation in September of last
year, Nichols said, but the University
had been notified of the impending cut
the previous May and had time to
prepare for it. The state has given the
University no indication this year it
cannot balance the current budget, he
said.
THE BUDGET can be balanced by
Sept. 30 if the state makes internal ad-
justments and an executive order may
not be necessary, said Bill Lobenherz of
the state relations office at Wayne State
University.
However, Ralph Nichols said that if
there is talk of an executive order in the
first place, "they (state officials) have
already exhausted all the other
possibilities."
. f the governor does issue an
executive order for the current fiscal
year, it would probably only be the first
of two required this year. Both state
and University officials believe that the
entire amount appropriated for the next
fiscal year -a 12 percent in-
crease-will not materialize, and an
executive order will be necessary in Oc-
tober reducing or eliminating that in-
crease.
Most University and state officials
concede that the state does not have the
funds to eventually make good on its
budget outlays and the 12 percent in-
crease to the University, Storey said.
Parting shot
As classes end and the summer sun fades away over Rackham Hall, the hec-
tic days of September seem eternities away. Why can't it always be sum-
mer?
De ortation hearings
set for Iranians
By PAMELA KRAMER
Daily staff writer
Sixty Iranians-including two
University students and two others
from Michigan arrested in New Jersey
earlier this month-are one step closer
to possible deportation after yester-
day's breakdown in negotiations with
immigration officials.
The Iranians, who are charged with
illegal entry to the United States, have
filed suit seeking release from jail,
charging that they were arrested
without due process.
DEPORTATION hearings for the
students will begin Monday "come hell
or high water," according to John Gaf-
fney, district director of the Im
migration and Naturalization Servic
in Newark, N.J.
But the Iranians' lawyers disagre
According to James Rif, one of th
lawyers working on the case, his client
were not notified until late yesterda
afternoon that hearings had been set fo
Monday. Even then, he said, they wer
notified by Gaffney-not by the judg'
as he said would have been ai
propriate-so the Iranians do not pla
to show up.
Instead, Rif said, they will b
working on the suit filed by the studer
ts, currently incarcerated in Otisvil
See DEPORTATION, Page 11
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Today's paper is the last issue of the summer Daily. We'll be taking
a few weeks off during the break between summer and fall terms to
recuperate from the summer, but we'll be back in publication when
classes start again Sept. 10. We hope you had a good summer and have
a good break.