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 y 3r re e, in )e n- le 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.