8-The Michigan Daily - Wednesday, June 28, 1995
Regents to establish escrow account for SLS

4

By Deborah G. Weinstein
Daily Staff Reporter
The long-standing tension surround-
ing the funding of Student Legal Ser-
vices was eased temporarily two weeks
ago when the University Board of Re-
gents voted unanimously to establish an
escrow account for the straggling ser-
vice.
The escrow account will contain the
equivalence of 23 cents per student,
which will be tapped only if students
vote for increased SLS funding in the
November Michigan Student Assembly
elections.
If the vote fails,the money willleventu-
ally return to the students. MSA President
Flint Wainess suggested a 23 cent deduc-
tion from student fees if the ballot fails.
MSA Vice President Sam Goodstein
said he thinks this is only a temporary
solution to SLS's financial problems.
"The escrow account is not the answer
to the problem, it is a step," Goodstein said.
"With theescrow account, SLS will receive
about $18,000, will balance the books and

6;Our increase will get us back to being like
real people. We are struggling to get a fair
budget and wage that fairly compensates
people who work here."
-Doug Lewis
Student Legal Services director

get a 5-percent raise, but they still don't
have retirement accounts, which all other
University employees do. They don't have
health benefits."
SLS Director Doug Lewis said that
without the additional funds the organi-
zation will be forced to lay off employ-
ees, refuse clients with time-consuming
and complicated cases, and become a
mostly advisory facility.
"We would probably have to advise
as opposed to representing clients in
landlord-tenant court," he said. Lewis
also said that SLS will reduce its com-
munity involvement that includes speak-

ing to groups during alcohol awareness
week.
Vice President for Student Affairs
Maureen A. Hartford acknowledged the
short-term benefits of the increase.
"What (MSA President Flint
Wainess) proposes, and I concur is a
short-term solution ... that would allow
for a 5-percent salary increase. (We will)
still work toward something on a perma-
nent level," she said.
Lewis said that SLS needs a perma-
nent financial plan. "We're trying to make
up for time and plan for the future....
The fee increase proposed is enough to

carry SLS for at least three years. It does
not make any sense to have to engage
in political rambling every 12 months,"
he said. "One increase will get us back to
being like real people. We are strug-
gling to get a fair budget and wage that
fairly compensates people who work
here."
Although supporters of SLS agree on
the need for the additional funds, they dis-
agree on why the ballot failed last Novem-
ber, and how to succeed this coming fall.
"A lot of people don't know about
SLS. ... People tend to vote no on fee in-
creases," Goodstein said.
Lewis plans to start campaigning for
the fee increase on the first day of
classes. "When you have a heavy turnout
and when people are uneducated they
will vote no. SLS did not push as hard as
it would have liked to. Everyone assumed
it would pass," he said.
Student reaction was indifferent. "I fig-
ure they're sucking my blood anyway,"
said Theresa Sproull, a second-year Art
School student. "What's another 23 cents?"

The scoop on SLS
1994-1995 marked the fifth
year SLS has been without a
budget increase, and the second
year without a raisa.
* SLS serves about 1,800-2,000
students a year, representing
student in a sariety of cases,
such as landlord-tenant disputes,
divorces, credit disputes and
custody battles.
. SLS falls under the student
organization category, meaning
its four employees are not
considered University employees.
Lacking University status means
the attorneys do not have a
retirement plan, parking, or
access to University funds, often
purchases such as computers
and insurance come out of its
budget, in'addition to operating
costs.


Republican 'contract' might
bring cuts in financial aid to'U'

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By Amy Klein
Daily News Editor
With the budget for the 1996 fiscal
year up for debate, many Washington law-
makers see cutting back student loans as a
solution to budget woes.
Closer to home, University adminis-
trators are concerned over the possible
changes.
"I'd characterize the scene in Wash-
ington as one of great uncertainty," said
Vice President for University Relations
Walter Harrison at the last regents meet-
ing.
There are 12,400 undergraduate stu-
dents at the University receiving financial
aid-with 40 percent of in-state students
and 25 percent of out-of-state students
S
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by and Practice

benefiting from the funds.
"None of the changes will affect the
University immediately," said Thomas
Butts, associate vice president for Uni-
versity relations, who oversees the
University's Washington lobbying of-
fice. "The Perkins loans are at high riskof
elimination. There are a number of small
programs being eliminated for effi-
ciency."
One of the proposals under discussion
addresses the possibility of eliminating the
in-school interest benefit for graduate and
undergraduate students - a program in
which thegovernment pays he interest on
student loans while the student is still en-
rolled.
Many administrators fear students will
suffer under the new proposals. The Direct
Loan Program, which offers students four
different repayment options through the
University, is moving toward the endan-
gered list.
"Students will bear the grunt of the
loss of the Direct Loan Program. We
highly recommend the continuation of


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the Direct Loan Program," said Judith
Harper, interim director of financial aid.
Many regents also said the cuts in fi-
nancial aid would become a hardship only
for students.
"What does our university do
about our students, thousands of
them, being disadvantaged by sot
folks in Washington?" asked Regen
Philip Power (D-Ann Arbor). "This
is a non-trivial issue. It hits directly
about what a public university is
about - how families without a lot
of dough can get through school
without leaving and being hit hard
with debt."
Regent Shirley McFee (R-Battle
Creek), however, said that fewer incoming
students should be dependent on financi
aid.
"What began as an assistance has be-
come a way of life to apparently 75 per-
cent of the incoming students. It can be-
hoove us all to work to find ways to have
families set aside money forttheir children
to go to college," McFee said.
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