NATION
UNIVERSITY DAILY KANSAN
Friday, April 30, 1993
5
Clinton unveils service program
Plan would make IRS responsible for college loans
The Associated Press
WASHINGTON — Students who perform community service could work off $13,000 in college tuition, get a modest stipend and qualify for health care and day care benefits under President Clinton's national service program.
According to a White House outline of the program obtained by The Associated Press, the plan to be unveiled today also includes a more controversial component to make higher education affordable: a $25 billion federal
government takeover of the college loan program.
Clinton said during the campaign he would like to have the IRS collect loan money from students, but Deputy Education Secretary Madeline Kunin said yesterday that the Department of Education will hire private contractors to collect debts for now.
Neither the community service program nor the loan overhaul would be fully in place before 1997, but Clinton promised last month that the program eventually will "change America forever and for the better."
made directly to schools.
Students, age 16 or older, could serve after high school and before, during or after they attend a college, university or vocational school.
The White House outline also says participants "without access to health insurance will receive health coverage." Federal money would pay up to 85 percent of these costs.
The federal government would pay a portion of the students' stipends. The outline says the government would pay no more than 85 percent of the annual stipend now given to Volunteers in Service To America, or VISTA, workers. In Washington, that amount would to less than $600 a month, although the figure would vary from city to city.
Community service programs
would be allowed to double that amount using their own money.
Clinton has already budgeted $8.5 billion for five years for the program, with only $98 million set aside for the fiscal year beginning Oct. 1.
To administer the National Service Trust Program, Clinton wants to merge two existing federal agencies, the Commission on National and Community Service and ACTION, which runs VISTA and other domestic volunteer programs.
Under the college loan program, the government will begin borrowing money and lending it to students with colleges and universities acting as agents. Now, students borrow directly from banks, but Kunin said students would pay an interest rate as much as a half percent lower with the direct approach.
Cautious consumers, defense cuts slow economy
The Associated Press
WASHINGTON — The growth rate in the U.S. economy slowed dramatically to 1.8 percent in the first three months of the year as consumers turned more cautious and defense spending dropped sharply, the government said yesterday.
The increase in the gross domestic product, the sum of all goods and services produced in the United States, was less than half the robust 4.7 percent annual rate of the fourth quarter, the Commerce Department said.
The White House immediately seized on the figures to renew its pitch for a $16.2 billion job-create stimulus package, blocked last week by Senate Republicans.
"Obviously, the president is very concerned about
this” said White House representative Dee Dee Myers. “The president believes we have to get out of this recession.”
However, economist Norman Robertson, an adjunct professor at Carnegie-Mellon University in Pittsburgh, said "I don't think this number in any way implies we are on the threshold of another recession."
"It illustrates the unevenness and lack of consistency of this economic expansion," he said.
A spending spree by holiday shoppers had helped push growth to a five-year high during the final three months of 1992, but this year consumers have focused more on paying credit card bills than on making new purchases.
In advance, economists were looking for a somewhat better first quarter rate of between 2 percent
and 2.5 percent. Much of the decline was accounted for by an unexpected sharp drop in defense spending. Excluding that, GDP advanced at a 3.5 percent annual rate, department officials said.
Commerce Secretary Ronald Brown said the report "confirms yet again that our economy is growing, but at an unacceptably low rate." The economy would benefit from a modest and focused jobs package." he said.
In another economic report today, the Commerce Department said sales of new homes unexpectedly rose 4.8 percent to a seasonally adjusted annual rate of 637,000 in March.
Also, the Labor Department said first-time claims for jobless benefits dropped by 7,000 last week to 349,000. Analysts said the small drop suggests a stable labor market.
Thousands mourn at Chavez's funeral
DELANO, Calif. — Eight farm workers hosted a pine casket containing the body of Cesar Chavez onto their shoulders yesterday and led thousands of mourners on a march to his funeral Mass.
The Associated Press
Many carried banners displaying the United Farm Workers' black eagle insignia with a white background to symbolize Christian resurrection.
"This man gave every ounce of energy that he had for farm workers and other poor people," said David Martinez, the union's secretary-treasurer.
Chavez, the United Farm Workers founder and president who led the effort to bring dignity to the lives of migrant farmhands, died April 22 in Arizona. He was 66.
The palebearers carried the casket in relays, with eight fresh workers wearing white shirts and gold crosses taking over every three minutes over the 2 1/2-mile route. Police estimated as many as 25,000 people were in the procession.
The casket was closed for the Roman Catholic Mass of Christian Burial at Forty Acres, the farm land 150 miles north of Los Angeles where Chavez began his struggle with table grage growers in 1962. Los Angeles Cardinal Roger
Mahony, a longtime supporter of Chavez, led the celebrants.
The casket, built by his brother Richard, was open for viewing Wednesday and at a private Mass for family and union staff on Sunday. A blue rosary and a single red rose from his widow, Helen, were nestled in Chavez's crossed hands.
Celebrities, politicians and union leaders who had marched with Chavez for "la causa," the cause, returned to walk behind his body. Ten thousand gladiators, Helen Chavez's favorite flower, were distributed to people to carry during the procession.
those attending included Ethel Kennedy, the Rev. Jesse Jackson and former Gov. Jerry Brown, who in the 1970s spearheaded the passage of an historic state law that let farm workers choose their union representation by secret ballot.
Chavez fasted for 36 days in 1988, the longest of numerous fasts to promote his cause that he said helped clear his mind. Doctors said the 1988 fast left him with kidney damage.
Chavez ended a fast of almost a week the day before he died. But a report released by the family from his physician, Dr. Marion Moses, made no mention of fasting as a possible contributory cause of death.
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