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CAMPUS/AREA: Today is Earth Day, but Environs has planned to celebrate Sunday
KANSAS STATE
HISTORICAL SOCIETY
TOPEKA KS 66612
THE UNIVERSITY DAILY KANSAN
VOL.102,NO.143
THE STUDENT NEWSPAPER OF THE UNIVERSITY OF KANSAS
ADVERTISING:864-4358
THURSDAY, APRIL 22,1993
(USPS 650-640)
NEWS:864-4810
Senate GOP slashes Clinton's jobs legislation
Republicans say cuts in existing programs should pay for bill
WASHINGTON — Democrats abandoned their effort to push President Clinton's jobs bill through the Senate yesterday, as relentless Republicans saddled the new president with his first major legislative defeat.
The Associated Press
After hours of fruitless negotiations between White House officials and Senate Democrats and Republican, the Senate used a voice vote to approve only the $4 billion the bill contained for jobless benefits and strip the
rest of the money from the legislation.
The move, in effect, killed one of Clinton's major economic initiatives. The Senate measure now goes to the House.
"While the other side is congratulating each other on proving they are a force to be reckoned with, they have only proved that they are the guardians of gridlock," said Sen. Robert Bord D-Wa.
Hours earlier, Democrats had lost their fourth attempt to break a filibuster by minority Republicans that had frozen the measure in its tracks in the Senate since last month.
The jobs bill had contained $12.2 billion to restore forests, provide immunizations for children, create summer jobs for students and finance programs Clinton says would stimulate the economy and put people to work. It also had $3.2 billion from the existing highway
trust fund for road construction.
But Republicans stood firm, arguing that the package would add billions to record federal deficits while doing little to help a 86 trillion economy. Democrats had wanted to finance the measure by borrowing money, which would drive in the budget shortfall.
In a day of closed-door talks, Republicans offered a much smaller version of the package worth about $5.1 billion — the jobless benefits money, plus some spending for summer jobs, road building and other projects. All the programs but the unemployment benefits would have been paid with cuts in existing programs, a package the Democrats rejected.
"IIf am any judge, I think the American people are supporting our position on this package," said Senate Minority Leader Bob Dole. R-Kan, "Most people I talk to cut spending
Dole said the latest administration offer was for a total of $12.9 billion, including the highway money. And he said that for the first time, Democrats had offered to pay for some of the spending by cutting existing programs — the primary Republican demand.
But he said the new White House proposal was too large. And he said Republicans wanted everything in the measure paid for with offsetting cuts — except $4 billion it contains for obliess benefits.
There had been bipartisan agreement that no matter what happened, Congress would approve the unemployment money, which is needed next week to continue benefits for U.S. citizens out of work a long time.
Earlier, Clinton swiped at Republicans.
"I'm trying to put as many people in America
to work as possible." Clinton said. "Sen. Dole is trying to reduce the number of people that go to work."
The administration said the bill would create more than 200,000 jobs. But Republicans called it unnecessary spending that would swell the federal deficit.
"When you can't give it away, it amt' very sweet. That's their problem," said Sen. Phil Gramm, R-Texas.
Democrats fired back salvos of their own.
"They've cut off the options for Americans who are out of work." Sen. Patrick Leahy, D-Vt., said of Republicans. "Just because a couple of them want to run for president, it's a mean and cruel thing for people out of work, especially when they (senators) get paid $135,000 a year"
Living on borrowed time
Elaine Nelson, assistant vice president at Sallie Mae in Lawrence, says the effects of President Clinton's proposed direct-lending program would not have an immediate effect on the company.
Renee Knoeber / **KANSAN**
College loan plan puts Sallie Mae's future in jeopardy
By Jess DeHaven Kansan staff writer
How does it sound — four years of college loans in exchange for two years working as a tutor for inner- youth or may be an artist in a hospitality
It may sound like a terrific deal to some KU students. But just a few blocks from campus on the bluffs overlooking Sixth and lowa streets, 575 people aren't exactly crazy about the idea
They are the employees of the Student Loan Marketing Association, or Sallie Mae, the student loan broker. Sallie Mae, a $845 million a year operation that holds one of every three student loans in the United States, could be put out of business by President Clinton's proposed national-service plan.
The plan, which has not yet entered Congress, would allow students to repay college loans through community service. It also would bring the government back into direct lending, and that would involve the middleman companies like Sailie Mae.
Stephanie Babayak of the U.S. Secretary of Education's public affairs office, said the role of Salle Mae in the Clinton promotion legislation had not been completed.
"We have good reason to be concerned because the basic structure of our business is under threat of dissolution," she said recently.
Elaine Nelson, assistant vice president of Sallie Mae, said Clinton's plans made her somewhat apprehensive about the future.
"The program would be phased in gradually, so certainly Sallie Mae would have a role for a time," she said. "The long term program the Sallie Mae have yet to be released."
She's not the only one in Lawrence who is worried
Bill Martin of the Lawrence Chamber on Commerce also expressed concern about the impact the possible closure of Sallie Mae would have on Lawrence.
"Certainly the loss of an employer that size will hurt the local economy," he said. "The loss of that many jobs alone is a major problem."
Sallie Mae's Lawrence office employs 575 people, making it the fifth-largest
employer in the city. It also pumps about $15 million into the local economy each year.
Sallie Mae is a government-sponsored private enterprise that is given favored regulatory treatment. It was created by Congress in 1972 to make government-guaranteed college loans more accessible to students.
Sallie Mae was government-owned until 1982. The following year the company began selling shares of its stock on the New York Stock Exchange, but only educational institutions and banks own voting shares.
The company is headquartered in Washington, D.C., and has five sales offices and seven loan servicing centers, including the one in Lawrence, which opened in 1984. Salle Mae employs 4,400 people nationwide.
The increase in college costs and the number of people applying for college
loans have led to higher profits for Salie Mae. The company's net income in 1901 was $345 million, and it is on the Forbes list of the 100 largest U.S. companies in terms of total assets.
All that could change under Clinton's plan. Investors are already running scared. Sallie Mae stock has plummeted more than 33 points from its 52-week high of 76 to just 43'44 close Tuesday.
The plan centers around exchanging money for college for community service. A government fund would be set up for student loans that could be repaid through community banks by taking credit from working fields and repaying loans with portions of salaries.
The Clinton administration believes its program not only will reduce the number of loan defaults, which currently cost the government $4 billion a year, but also will make loans more available to low-income students.
Of course, limits would be set on the
amount of money students could receive for college.
Eli Segal, director of the White House national service office, said that no nailing caps have been set but that the amount that could be borrowed would probably be somewhere around the average student debt of $6.300.
Lawrence Hough, president and chief executive officer of Sallie Mae, said Clinton's proposals could best be carried out through continued reliance on companies like Sallie Mae. Hough said he thought direct lending would increase the risk and costs for the government.
"it's safe to assume that four years at Harvard entirely on loans wouldn't be covered," he said.
Officials at Sallie Mae think Clinton's plan will be less effective and cost more.
Story continues, Page 7.
Daughters of civil-rights leaders unite
By Jess DeHaven and Terrilyn McCormick
Kansan staff writers
The differing civil-right ideologies of Martin Luther King Jr, and Malcolm X may have kept them apart in the 1960s, but today their eldest daughters continue the fight on a united front.
Yolanda King and Attallah Shabat, daughters of the slain civil-rights activists, will speak at 7:30 onight in Allen Field House about their fathers' impact on the civil-rights movement.
Yolanda King
King and Shabazz met when a mutual friend introduced the two while they were studying theater in New York. They eventually formed Nucleus, a theater company whose productions are reflective of both fathers' beliefs about human rights. The two daughters also tour the country together, lecturing at high schools and universities.
Shabazz and King were unavailable for an interview, but they spoke extensively about their efforts in the Nov. 30, 1989, issue of *Rolling Stone*.
together may seem difficult or strange." Shabazz said in the magazine. "But look at us standing here, both of us clearly the products of our individual households and yet we still have a reason for union."
A union between Shabazz and King may seem strange because of their father's different opinions about the means to obtain civil rights.
Dorothy Pennington, associate professor of African and African-American studies, said the final goals of King and Malcolm X were similar, but the men had different means or methodologies in obtaining their goals.
Malcolm X is often misinterpreted as advocating violence, while no evidence from his public speeches supports this. He called for self-defense, Pennington said.
macom believed in "By any means necessary." she said. "While Martin was focusing on nonviolence, but nonviolent direct action."
Shabazz said in Rolling Stone that the image of her father as a gun-toting militant did not reflect his true character. The image she was referring to was captured in a photo of her father holding a rifle peering out of the window.
Like their fathers, Shabazz and King said that they did not always have similar opinions.
"All I know is, in so many ways Attallah and I are like day and night," King said in Rolling Stone. "We agree to overlook things."
The daughters said their fathers probably would have overlooked their own differences as well.
"Regardless of any differences in our fathers philosophies, their yearnings were the same," Shabuzz said. "They were inspired by the very same dream — respect that was long overdue."
Settling down
Ted Owens, who coached the Kansas basketball team to 348 victories from 1964 to 1983, has bounced from one job to the other in the past 10 years. Now, in his third year at Metro Christian Academy in Tulsa, Okla., Owens has found a place that feels like home.
See story, Page 9.
Pearl Jam-less Day on the Hill still a jam
Lawrence acts to star; mystery band possible
By Ben Grove Kansan staff writer
Brad Roosa, Student Union Activities live music coordinator, is sick of the question. Here's the answer.
No, Pear Jam is not coming back to this year's Day on the Hill.
Roosa said yesterday that Gin Blossoms and Reverend Horton Heat were headline-quality bands and would be featured at the free May 1 alternative music concert on Campanile Hill, now an annual event.
And no other big-name headliner has been scheduled.
But Roosa said SUA still was pursuing another act that he would not identify.
"We've invited someone to the event," he said. "Whether they perform or not is up to
them."
Roosa said if the mystery band did agree to perform, he still would not name it until the day of the show.
"It's going to be a surprise," he said. "It's way late but because of budget constraints, we've had a hard time naming a headliner."
Rosaa said that last year's headliner, Pearl Jam, was scheduled by mid-February, just before the group exploded in popularity.
We got them cheap. "Booo." By the time the band played Day on the Hill, it was enjoying the success and national recognition created by its first album, "Ten."
Roosa said this year's playbill, which includes Lawrence acts Kill Creek and Rise, was stronger than last year's lineup. He said it was unfortunate that people weren't as excited as last year simply because no big name headliners were playing
"I'm sure people are going to be disappointed," he said. "I'm sure there will probably be idots out there holding up signs that say,
'Where's Pearl Jam?'
"Pearl Jam is not the only band on the planet."
"I guarantee this band (Gin Blossoms) will be a big band in two months," he said.
Roosa said the concert last year attracted about 18,000 people. He expects about 10,000 people this year.
Roosa heralded Gin Blossoms and Reverend Horton Heat as up-and-coming bands, as Pearl Jam had been last year and Toad the Wet Sprocket had been when they played Day on the Hill in 1990.
"It would be nice to see a big out there, but I don't think SUA needs to feel like they have to top last year's Pearl Jam," Petterson said. "Just because they don't draw 25,000 people doesn't mean it won't be a good show."
Jeff Peterson, KJHK program director, did not express disappointment with this year's Day on the Hill lineup and said it was a goo chance for local groups to get exposure.
Rise
Kill Creek
MU 130
Gin Blossoms
Reverend Horton Heat
This year's Day on the Hill festival will be May 1. Here are the bands scheduled to perform.
KANGAM