Ntfchigveyars odi Ninety-five years of editorial freedom Vol XCV .n 27-S Copyright 1985 The Mchigan, Daily Wednesday, July 10, 1985 Fifteen Cents Twelve Pages Stockman resigns budget director post WASHINGTON (UPI) - David Stockman, the often controversial administration whiz kid who has served as architect of President Reagan's budget policies, announced yesterday he is resigning Aug. 1to take a position on Wall Street. Stockman, 38, a two-term Republican congressman before being tapped to spearhead Reagan's attack on federal spending, said he will take his long-expected leave from gover- nment to join the investment banking firm Salomon Brothers. "DAVE STOCKMAN has served with dedication and distinction," Reagan said in a statement. "His tireless efforts to bring fiscal discipline to the federal government and en- sure economic stability for the country are deeply appreciated." White House spokesman Larry Speakes, who announced the resignation, told reporters Stockman informed Reagan of his plans at midday. Reagan expressed his "deep ap- preciation" and "personal gratitude" for the time and effort Stockman has devoted over the last 53 months, Speakes said. The announcement hit as the White House was in the throes of a new effort to break the congressional deadlock over how to reduce the huge federal budget deficit next year. SPEAKES SAID Stockman chose Aug. 1 as his departure date because the month falls between the end of the current budget cycle and the beginning of the next, which allows Reagan time to choose a successor. While there has been consideration given to who might replace Stockman, Speakes said no decisions have been made. Among those rumored as possible candidates are Commerce Secretary Malcolm Baldrige and presidential assistant Jack Svahn. Dole side pped questions on whether the resignation ould hurt the budget process. "We'll be finished by then," he promised. But Sen. Donal Riegle (D-Mich.) a member of Senate Budget Committee, predic- ted Stockman's departure will make it more difficult to reduce the $200 billion-plus deficit projected for the1986budget. Stockman's exit from the administration has been a matter of speculation for some time. Speakes noted Stockman was the youngest See STOCKMAN, Page 4 'U' ADJUSTS FALL AWARDS Pell grants to be increased u w ByKERY MURAKAMI - re Almost alltPell Grant recipients at the University Daily Phots by DARRIAN SMITH can expect "some kind of in- SkytbhighST crease" in their awards for the fall, says Harvey A crane continues construction at 301 Liberty yesterday. The project, part of a recent surge in Grotrian, the University's development in Ann Arbor, is slated tobe used as office space. director of financial aid. The average increase, Grotrian said, will be between MSA wants project rejected $110 and $150, but those due to p i J receive about $1,90 would get an increase of about $200, By KA TIE WILCOX without treaties, while those with smaller gran- The Michigan Student assembly passed a BECAUSE Tanter would be using classified ts would get smaller in- otion last night to urge the University's vice documents, the results of the research could creases. resident for research to reject a political not be published, although Tanter has said he UNIVERSITY of Michigan ience professor's classified research project. hopes his report could be circulated eventually. students will receive $4,000 to Vice President Alfred Sussman has the final The University's Research Policies Commit- $4,500 more in Pell Grants ay over whether political science Prof. tee has already rejected the project, but the than they are now due to get, aymond Tanter will continue to receive RPC is only an advisory committee and Grotrian estimated. niversity support for research on how to Sussman makes the final decision. The good news, Grotrian each informal arms control agreements See MSA, Page 3 said, comes after the U.S. Senate and the House of Representatives passed ides- tical supplemental ap- propriation bills for Pell Gran- ts late last month. Both bills give the grant program - the largest of federal need-based programs - $810 million more than what it is slated for in the current federal budget. $40 MILLION of the in- crease, said Thomas Butts, the University's lobbyist on Capitol Hill, would be used to help pay off last year's awar- ds, but $350 million will be passed on to students this fall. The $350 million increase is designed to pay for raising the maximum size of the grants from $1,900 to $2,100 which was adopted by Congress last October. But not only those due to receive $1,900 in grants will receive increases, Grotrian said. This cap increase ran into problems when educators and the administration discovered they would need $810 million more than what had been ap- propriated for Pell Grants. SINCE then, Butts said, a series of delays by the ad- ministration has prevented any action on the shortfall, which in turn forced the Department of Education to postpone issuing its payment schedule -the chart used by financial aid offices tosdeter- mine the size of federal gran- ts. But because financial aid See PELL, Page 4 m pr sc sa R, Ur re Shyster Ah, relief Metamorphosis Is it undignified for lawyers to adver- Look for mostly sunny skies, and Ron Howard spreads his wings. tise? cooler, with a high in the mid-70s. See Opinion. Page 6. See Arts, Page 8.