IN DE Once Around Moonstruck without "That's Amore." See ARTS Page 5. 41r 41v 41w --Iw F a ill! TODAY Partly to mostly sunny; high 48, low 30 TOMORROW Sunny, though lass mild; high 46, low 27 Since 1890 Vol. Cl, No. 89 Ann Arbor, Michigan - Tuesday, February 5, 1991 TepyigtanDai Bush submits FY 1992 budget WASHINGTON (AP) - Presi- dent Bush sent Congress a $1.45 trillion budget on Monday that pro- jects a record deficit at a time of recession while paying for the Per- sian Gulf War only through March. The president conceded tough economic times. "The longest pe- riod of economic expansion in his- tory has been temporarily inter- rupted," Bush wrote in a budget in- troduction. "We can, we hope, re- turn to growth soon." He said he will send Congress a supplemental request to cover Op- eration Desert Storm in the coming weeks. Democratic congressional lead- ers called the fiscal 1992 budget inadequate, saying it only envi- sions a short war and proposes no *programs to counter the recession. "They basically repeat a list of the same things that go back to Rea- gan," said House Budget Commit- tee Chair Leon Panetta. In brief, Bush proposed the fol- lowing: A spending increase of 2.6 percent over the current year, which will not keep pace with inflation expected to reach 4.3 *percent this year; p A deficit of $280.9 billion, simultaneously he admitted this year's red ink will hit a record of $318.1 billion, and; Domestic program cuts, worth $46.6 billion for five years. As Bush presented his 2,209- page document, his top economic aides suggested that the recession probably began last August or *September. "The economy is in a recession. We expect it will be of short dura- tion. We want it to get back on a growth path," said Treasury Secre- tary Nicholas Brady. Bush's budget for the bookkeep- ing year that begins next Oct. 1 See BUDGET, Page 2 Grant increase impairs other aid programs by Bethany Robertson Daily Government Reporter changes would benefit low-income An increase in the maximum Pell Grant award is one of the few "points of light" for higher educa- tion funding proposed by the Bush Administration's $1.45 trillion bud- get package for FY 1992, released yesterday. Although some Pell Grant re- cipients would benefit from the budget proposal, a lack of in- creased student aid funding would force cuts to other aid programs. One part of the proposal would increase the maximum Pell Grant - a need-based program - from the current year's award of $2,400 to $3,700. In addition, a $170 mil- lion Presidential Achievement Scholarship Fund was proposed to reward Pell Grant recipients ex- celling in their studies. Although the recommended students, the money for the in- crease would come from cuts in other financial aid programs. "We're really happy with the Pell Grant increase, but they fi- nanced it by eliminating programs and by taking away from work study," said Alicia Ybarra, project coordinator for the United States Student Association, a student lobbying group in Washington, D.C. Although the Pell Grant in- creases would help poor students, the increase would not benefit middle-income students receiving Pell Grants or other forms of finan- cial aid, said Tom Butts, execu- tive director of the University's Washington D.C. office. "These changes can't help but See GRANT, Page 2 Keeping clean Kelly Hense, a financial clerk at the lunch hour yesterday. KENNETH SMOLLER/Dally University Risk Management Office, washes her Escort G.T. during her I Iranian mediation offer rejected by U.S. Associated Press The United States reacted skep- tically yesterday to Iran's offer to mediate the Persian Gulf War, and President Bush declared, "We have to go forward and prosecute this to a successful conclusion." Iran's President Hashemi Raf- sanjani offered to meet Saddam Hussein for talks on ending the 19- day-old war. Rafsanjani also said he was willing to resume official contact with Washington in the in- terests of peace. "What's to mediate?" State Department spokesperson Margaret Tutwiler said. "The only mediation that would be appropriate would be for the people who communicate with Saddam Hussein to convince him to comply with the 12 United Nations resolutions" demanding Iraq's withdrawal from Kuwait. Defense Secretary Dick Cheney said, "If someone can come up with diplomatic resolution that achieves that objective, that would be fine, but I frankly don't expect it." White House press secretary Marlin Fitzwater said Iran "is not directly involved in this conflict and our interest is in getting Iraq out of Kuwait." The United States and Iran sev- ered relations after the 1979 seizure of American hostages at the American Embassy in Tehran. Tutwiler renewed Bush's offer two years ago for direct talks with au- thorized representatives of the Ira- nian government. Iranian President Hashemi Raf- sanjani, who has held discussions with Iraqi and Kuwaiti envoys, said he was willing to meet with Iraqi President Saddam Hussein and to resume direct contact with the United States to try and medi- ate a peaceful settlement. The Bush administration dis- missed the likelihood that diplo- macy, not war, would drive Iraq from occupied Kuwait.' "I think that we're now in a sit- uation, having embarked on the course we're on, that we will pur- sue military action until we have achieved our objectives," said De- fense Secretary Dick Cheney. Meanwhile in the Persian Gulf, the oil spill continues to spread. Saudi Arabia will have to ration drinking water if oil spills into the water which feeds the world's largest desalination plant, an engi- neer said yesterday. Saudi Arabia gets two-thirds of its water from its desalination plants, half of it from the one at Jubail, a coastal city on the Per- sian Gulf. If the world's largest oil slick manages to taint the Jubail plant, it would have to be shut down and a water shortage would quickly follow, said Mohammed Sulaiman, the engineer in charge of defend- ing the plant. "We would not have normal production," he said. "We would have to ration water.- Workers are deploying an array of booms, skimmers, deflectors and filters at the mouth of the placid Gulf lagoon to try to prevent the oil spill from hitting Jubail's desalination plant. The slick had been lying idle about 80 miles north of this costal city, but heavy winds yesterday were expected to speed its progress south. The spill is now expected to reach Jubail this week. Abdallah bin Faisel al-Sad, prince of Jubail, said the gulf should be declared "an interna- tional disaster area" and appealed for worldwide aid to help contain the spill. The desalination machinery stretches two miles down the coast, sucking water from a lagoon created' by a semi-circle of stone breakwalls that branch out into the Gulf. It is this lagoon that must be protected against the oil - some- thing Saudi officials have consis- tently said they are confident they will be able to do. Saudi Arabia has been criti- cized for confining its efforts to de- fending the desalination plants in- stead of attacking the spill off- shore. *DPSS reexamining contracted security by Tami Pollak Daily Crime Reporter Following an assault incident in the Hatcher Graduate library in- volving a University contracted State Security Inc. officer, atten- tion has refocused on a recom- mendation to reduce the number of hours contracted security guards serve on campus. The original suggestion came last March from a University Task force on Campus Safety and Security. "Maybe library staff could be- gin doing the security service in the Grad," said Leo Heatley, Uni- versity Director of Safety. Refer- ring to the incident in which a State Security officer assaulted a Michigan Video Yearbook camer- aperson, he said, "It was never our intention for State Security to become a bouncer at the library." Janis Apted, external relations officer for University libraries, said that there will be no change in the security at the library, however. "I believe that there has been discussion in the past, but as of now, nothing is changing. There certainly has to be security in the library," Apted said. The University contracted State Security Inc. about five years ago, and the contract is up for renewal this year. The current contract stipulates the company provide about 3,000 hours of patrol per week. Robert Patrick, Asst. Director of Safety, said, "Their real purpose is fire watch. They are the eyes, ears, and in case of fire, the nose of safety at night." "There's some question about what the guards' role in the library is. Are they there enforcing library rules or should library staff be en- forcing the rules ... it's still under discussion," Patrick said. "We have an employee-em- ployer relationship with the secu- rity company supervisors," Heatley said. "We recommend disciplinary action to them when there is rea- son. We can't directly fire a state security guard, however." Disciplinary action has been taken against the State Security officer involved in the Graduate assault, he added. See SECURITY, Page 2 Don't look down Tony Kilbourne, of Planet Neon Sign and Co., puts the finishing touches on the new neon sign at the Galleria Mall on South University. UHS officials: students are not utilizing effective birth control by Bonnie Bouman Despite the contraceptive op- nancy tests made in the Nursing Clinic come back positive, said the body than the Pill, more effec- tive and more convenient than the insert the device. Besides actually providing con- trwn-. .,a Adi-wiPnno en ,.1 an Cc. people," said Tina Timm, a peer contraceptive educator. Twice a inspection. "Most people here already have di-ridp~ t tnrP thePll hl r I