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KANSAN
The University Daily
University of Kansas Lawrence, Kansas
Friday, October 2, 1981 Vol.92, No.30 USPS 650-640
TRACEY THOMPSON/KANSAN
Private eye
Teresa Bloxham, Colo., senior, finds time to study with her evening job of guarding the entrance to K Mart's parking lot. K Mart, severely damaged by a tornado this summer, is expected to reopen this month.
By United Press International
Reagan defends budget cuts redesigns AWACS package
WASHINGTON—President Reagan said yesterday he would not be swayed from his economic recovery program and vowed to keep the economy strong, saying in Congress that "bust the budget."
He also issued a velled warning to Israel on its opposition to the proposed sale of AWACs radar planes to Saudi Arabia and promised he would not let the oil rich Arab state "be an Iran."
At his news conference on the opening day of the new fiscal year, Reagan defended his budget cuts against critics who said the reductions would hurt poor Americans.
“What we call our safety net is still in effect,” he said. “I don't say there won't be some reductions . . . but those totally dependent on external income . . . nothing will happen to them.”
Questions about domestic issues dominated Reagan's first formal meeting with reporters in more than three months, but he opened the conference by declaring it was 'not the business of other nations to make American foreign policy.'
When a reporter asked if the remark referred to Israel's lobbying against the $5.5 billion arms package for the Saudis, Reagan answered, "or anyone else."
Reagan said the deal, the largest single U.S. arms sale to a single country, posed "no threat to Israel now or in the future."
EARLIER YESTERDAY, Reagan sent Congress a revised version of the armys package that called for joint U.S. and Saudi control of the sophisticated planes and equipment.
Secretary of State Alexander Haig presented the package to the Senate Federal Relations Committee yesterday and assured senators that the airborne warning and control system planes their ground stations would be jointly managed Saudi and American crews 'well into the 1990s.'
The administration previously said the joint crews would be required until about 1887 for the planes, which would be delivered in 1985.
BUT THE 50 senators who are on record against the sale were not satisfied by the compromise.
John Glem, D-Ohio, a leading critic against the sale, said the new plan did not answer all questions about whether the AWACS sale would endanger U.S. national security.
Hours after Haig submitted the revised proposal, the group of senators submitted a resolution of disapproval.
Opponents of the sale also claim to have a solid majority in the House.
IN HIS NEWS conference, Reagan said he could not guarantee that the sensitive AWACS technology would not fall into hostile hands if given to the Saudi regime, which some said faced the same threats that topped the Shah's regime in Iran.
But be said, "Said Arabia—We will not permit it to be an Iran."
In a little more than a half-hour in front of the television cameras and the press corps, Reagan answered 19 questions. Eleven dealt with his economic package, which took effect yesterday.
"In the next several years we can create 3 million jobs and reduce inflation," he said.
ALTHOUGH HE SAID there was early evidence the economy was recuperating, he said, "Our programs won't be instantaneous. The roads and bridges can't be turned around in eight months."
Some in Congress have urged Reagan to abandon his tax cuts in favor of balancing the budget, but the president said, "We will not be away from our plan by every changing current."
TO PROTECT HIS plan, Reagan said, he would refuse to sign legislation that would "bust the budget."
Reagan said his approval of legislation yesterday that raised the debt ceiling to more than $1 trillion for the first time in history, "can stand as a monument to the days of the past which brought it about—policies that as of today are reversed."
Reagan said members of Congress "from both sides of the aisle" supported his cuts. And he said that despite the stock market's recent declines, the industry had given the plan their outright support.
Students save by bagging groceries
"I'm convinced and I do believe there is a trust on the part of the people," he said.
By TERESA RIORDAN Staff Reporter
More and more students are bagging high food bills at traditional supermarkets by sacking their own groceries at no-frills food warehouses.
"A grocery store is a grocery store is a grocery store," said Steve Sachen, Kansas City, Kan., senior, who has been a faithful food warehouse shopper for three years at Food 4 Less, 2525 St. "I only go there for the food, not the decor." he said.
Following a national trend, a second high-
volume, low-frills discount supermarket opened in Lawrence in August.
Mike Valentine, manager of the Food Barn,
1900 W. 23rd St., said his店 was enjoying a remarkable surge of business since the opening of a full-service store and opened the Food Barn.
Valentine said that by maintaining a low overhead, by displaying merchandise while still in boxes and cutting sacking services, Food Barn can keep prices low.
STUDENTS WHO SHOP at warehouse supermarkets probably save from 13 to 14 percent on their grocery bill, according to a report by the Kansas survey of local food prices Wednesday.
EARL RICHARDSON/Kansan Staff
Kansan grocery survey
Item FOOD 4 LESS DILLON KROGER RUSTY'S FOOD BARN
Head of iceberg lettuce .59 .79 .59 .59 .59
One-half gallon 2% milk .99 .99 1.06 1.06 .99
Campbell's chicken noodle soup .28 .27 .37 .39 .29
Rainbo bread .74 .74 .89 .79 .69
Uncle Ben's Instant Rice, 16 oz. .89 1.05 1.05 1.05 $1.59^{1}$
Taster's Choice Instant Coffee, 8 oz. 4.82 5.17 5.79 5.85 4.98
Old Milwaukee Beer six pack 1.64 1.65 1.64 1.83 $2.99^{2}$
Total $9.95 $10.66 $11.39 $11.56 $12.12
1 — 32 oz.
1 — 12 pack
Low overhead, however, can mean lower customer service.
"We don't have quite a complete variety, but we've done of the ways we cut costs," Valentine said.
"We carry whatever items are cheapest, if we can get a good buy, we get it."
ALTHOUGH DISCOUNT supermarkets represent a big saving for many students, others still shop at the neighborhood full-service store for the convenience, wider variety, extra services or better quality meat and produce.
Jim Roberts, manager of Rusty's Food Store at 23rd and Louisiana Streets, said his store was not feeling the pinch from bargain price competitors.
"There is still plenty of room for the 'personal service market of full-service stores,"
"to serve our clients."
David Lahn, manager of Dillons, 1740 Massachusetts St., said students would continue to front the store because of the bank's expansion and extra services such as a bakery and banking facilities.
ONE SHOPPER SAID she shopping at her neighborhood store because of its convenient location.
"I don't look at the prices, I shop for convenience." Fran Sherman, St. Louis senior, saleswoman.
Even for the discount store faithfully, the no-
tion said was to place orders. Sachen
he brought his meat at Kroger.
THE KANSAN SURVEY was based on five names, brand items and two produce items,
Brand items compared were Campbell's chicken noodle soup, Rainbow bread, Uncle Ben's instant rice, Taster's Choice Instant coffee and Old Milkwee beer.
Shoppers form co-op to increase purchasing power
One group of cost-conscious shoppers has found another way to heat high food prices—a
The co-op bays large quantities of cheese, oatmeal, rice, tea, raisins, flour and other items from The Community Mercantile, 700 164 W. 32nd St., according to Randy Fletcher, a co-op member.
The group, which currently has about 12 members, met last night to decide on its November purchases and divided up its October merchandise.
"We'd like to have more members because we don't quite have enough buying power to buy them."
Group members meet the first Thursday of each month to decide on purchases and then go to The Community Mercantile to pick up their last order.
Fletcher said that the group saved 17 to 65 percent over retail prices by buying its food
The co-op meets in the Pinetree Townhouse community building.
The Community Mercantile sells the group food at 16 percent over wholesale cost. The group then adds two percent for its own costs and three percent for sales tax.
Slow year forecasted for local businessmen
Staff Reporter
By JOE REBEIN
Staff Reporter
President Reagan's supply side economic gospel won't offer Lawrence businesses relief from high interest rates and sluggish sales for at another year, a KU economist said from
Anthony Redwood, director of the KU Institute for Economic and Business Research and an associate professor at the School of Business, said local entrepreneurs had to "bite the bullet" until the economy came out of its downward trend.
Redwood, using a maze of maps and statistics, demonstrates that high interest rates were the main reason after 1983.
REAGAN'S ECONOMIC policy, which went into effect yesterday with the start of the new fiscal year, is oriented toward long-term goals rather than short-term goals, he told about 100 local business leaders at an Economic Outlook Conference in the Apollo Room in Nichols Hall.
"The Lawrence economy will be as tough in 1982 as it was in 1981," he said.
Redwood said the cuts in student aid programs had "eroded the purchasing power of the student," which would have a depressing effect on the Lawrence economy.
THE FOUR ELEMENTS of Reagan's supply side programs are reducing marginal tax rates, cutting government spending, reforming the economic system and restraining money growth.
"Supply side economics is a return to the philosophy that governed the American economy."
He said that during that time the U.S. economy rode an "economic roller coaster" with asset and liabilities swirling.
THE PRESIDENT'S program will have to have a devoted following in the financial community.
Redwood said the theory was abandoned after the Depression of the 1930s.
"Supply side economies is nothing more than the classical theory with a new name," he said. "I think this is a cause for some concern. This was found wanting when it was tried before."
See ECONOMIC page 5
Faculty investigates delays of retirement fund transfers
Staff Reporter
By SHARON APPELBAUM
Faculty members are losing money and they want to know why.
So yesterday the Faculty Council decided to send a member of its executive committee to the Board.
PROFESSORS HAVE complained for several years that the state takes too long to put part of their navchecks into retirement accounts.
The accounts earn tax-free interest until the owner retires and begins drawing on them.
While most faculty members are paid on the first of the month, the retirement payments aren't transferred until sometime between the 21st and 27th of each month.
As a result, faculty members are losing interest between $1 to $5 a month, depending on salary and the amount deducted, which can be between 5 and 16 2/3 percent.
Fred Van Vleck, council member and professor of mathematics, estimated the yearly loss of a hypothetical faculty member earning $27,000 a year, or $3,000 a month for nine months.
IF THE PERSON put 10 percent of his salary away, and the yearly interest rate were 12 percent, he would end up losing 13 for a month's delay, Van Vlieck said.
"That happens every month, so that's $33," he said. "But you're losing interest on that interest. That has a net effect of doubling the loss each month." The "$75 to $100 each year for being one month late."
Martin Jones, associate director of business affairs, said the delay was caused by an antiquated computer system used by the Division of Accounts and Reports in Topeka.
He said no payments could be transferred to retirement funds until all payrolls were processed. Although most state employees are paid the rest of the month, a few are paid around the 18th.
See COUNCIL page 5
Weather
It will be sunny and mild today with a high near 70, according to the National Weather Service in Topeka. It will be cold, loudly night with a low of about 50.
Winds will be light and variable from the southeast.
There is a 30 percent chance of rain tomorrow and tomorrow night. Weekend highs will be in the upper 70s while morning lows will be in the low to mid 50s.