KANSAN University of Kansas Lawrence, Kansas Friday, January 22, 1982 Vol. 92, No. 80 USPS 650-640 Reagan exempts beer from excise tax increase By United Press International WASHINGTON—President Reagan, facing sharp and apparently unexpected criticism from businessman, backed away yesterday from boosting taxes on gasoline, cigarettes, most alcoholic beverages and some luxury items, sources said. Reagan decided to exempt beer from excise tax increases because of concerns by House Republican leader Bob Michel that they would be taking away "the poor man's beer," a white candidate. Administration officials had said earlier yesterday that Reagan reluctantly decided to reopen the plant. with economic advisers Wednesday about his 1983 budget. The government currently adds 17 cents to the cost of a gallon of wine and $10.50 to a gallon of liquor. The tax on cigarettes is 8 cents a pack for adults and 6 cents a pack for lung size. The gasoline levy is 4 cents a gallon. Alcohol taxes alone provided 1.1 percent of the income Alcohol taxes alone provided 1.1 percent of the government's income. proportion of the chief spokesman in presiding over the president still was working on the package of tax hikes and spending cuts for 1983. Both congressional and administration sources said the clincher came during Reagan's breakfast meeting with U.S. Chamber of Commerce officials yesterday. representatives complain bitterly about the plan to boost excise taxes, returned to the Oval Office and told his senior staff to find another way to raise revenues, sources said. Reagan, after hearing the business White House Communications Director David Gergen had told reporters earlier that Reagan did not plan to lock in on several important issues. He had had an opportunity for further discussions. Gergen also said Reagan was not pleased with leaks concerning his decisions on revenue and trade. Carl Grant, vice president of communications for the U.S. Chamber of Commerce, would not press Reagan's organization's top members pressed Reagan to raise the taxes during yesterday's meeting. THE GROUP did discuss the president's economic policy, Grant said, noting. "We are unalterably opposed to excise taxes. We have been for years." Although the president promised in December he would not raise taxes in any way, his advisers have urged him to seek additional revenues that could be coupled with $31 billion in proposed spending cuts to hold the projected 1983 deficit to 190 billion, officials said. The excise tax increase would be a temporary measure, official officials said. They would not specify how long the levies might last or how high they would be raised. The excise taxes and taxes would be doubled from their current levels. The excise tax proposal and other "revenue enhancers" are expected to be included in Reagan's State of the Union address next Tuesday, or in the fiscal 1983 budget to be sent to Congress on Feb. 9. Opposition to the excise tax increases also came from alcoholic beverage producers, who said yesterday they already were being taxed too much. Spokesmen for state governments expressed concern about losing part of their traditional source of tax revenue. Some of Reagan's allies in Congress have urged him not to boost the alcohol and tobacco taxes on grounds that lower-income Americans would be hit hardest. ASK to battle budget By ANN LOWRY Staff Reporter Associated Students of Kansas plan to increase lobbying efforts in February to convince Kansas legislators to support its recommendations for budget, an ASK spokesman said yesterday. The budget presented by Gov. John Carlin to the legislators Jan. 11 contrasted with ASK's recommendations on all five of ASK's priority issues. George Gallion, ASK's administrative assistant, said ASK's five legislative priority issues were a 13 percent faculty salary increase, an 11 percent operating expenses increase, an 8 percent research grant increase and a state support for Washburn University and 100 percent fee waivers for graduate assistants. Gallion said members of the state Senate Ways and Means Committee had already been receptive to these recommendations, which ASK formed during its legislative assembly. Nov. 13 "They will do everything they can to bring the budget in line with our proposals," Gallion said. GALLION SAID AYS'B Board of Directors met Sunday to approve proposals to bring students from the seven member campuses to a mass lobbing day in Toneka or Ceb. 12. ASK also plans to have students work on a letter-writing campaign, send postcards and "The strength in our legislative efforts depends in a large part upon students working," Gallon said. Gallion said the governor recommended a 10 percent faculty wage increase, based on a $2.6 million "shrinkage factor." ASK recommended a $500,000 shrinkage factor. Carlin recommended a 6 percent increase in other operating expenses and a 60 percent increase in payroll. WHILE ASK recommended a $1.4 million increase in government enrollment, the governor increased $600,000. ASK's proposed aid for Washburn would give $2.50 in state aid per credit hour and also provide incentives to out-of-district students, Gallion said. "Any student residing outside Topeka would have his township's government pay a differential of £21 per credit to Washburn, with the state matching," Gallion said. Carlin's plan would give Washburn 50 cents an undergraduate credit hour and $12 a graduate credit hour. "A dollar spent on education is not necessarily a dollar spent that you will never see again. It's not." Gallion said consideration should be given because college graduates incomes would one day be higher than current. Weather There will be a winter storm watch today, according to the National Weather Service in Topeka, with freezing rain and sheet turning to snow. The high today will be in the low 30s. Winds will be from the east at 10 to 20 mph. Tonight's low will be about 5 degrees. There will be a 50 percent chance of snow. JOHN EISLE/Kancan Staff Tomorrow will be partly cloudy with a high in the teens. The low will be near zero. Sunday will be warmer with a high in the mid-20s to mid-30s. No significant precipitation is forecast for the weekend. Roger Marr, Lawrence junior, draws his latest architecture assignment. His studio is in recently renovated Marvin Hall. And Dankwerth, Overland Park freshman, Tim McNeil, Wichita sophomore (middle), and Ken Swenson, Lawrence junior (bottom), enjoy a slippery Mount Aurel after the recent snowfall. Last night, similar slippery conditions caused a number of auto accidents, and roads near campus were closed. Complaint starts Med Center inquiry RvTOMHUTTON Staff Reporter The complaint made by State Rep. Norman Justice, D-Kansas City, Kan., to the Kansas Civil Rights Commission concerning the KU Greek to Roger Lovett, an attorney for the commission. The commission will, however, inquire into Justice's complaint against the University of Kirkcaldy. Lovitt said that Justice never filed charges against him, complained to the commission about the policies there. Because of a reporting error, yesterday's Kansan incarnated that Justice had filed a lawsuit against the judge. Because of a Kansas law that exempts nonprofit fraternal organizations from discrimination investigations, the commission will be unable to act on the fraternity selection not amenable to the law as long as they remain a non-profit organization intended for social purposes," Lovitt said. LOVITI explained the $\sigma$ process the commission to determine whether discrimination did exist at the time. After a complaint has been lodged, according to Lovitt, an inquiry into the matter is made to determine the basic facts in the case. A member of the commission meets with both parties named in the complaint and attempts to settle the issue. "By the nature of the organization, they are If this process does not rectify the situation, Lovett said, the matter is referred to an investigator. "These investigators look at documents, interview witnesses and find new sources," Lovitt said. "They unearth the new sources of evidence." The investigator then presents his findings to one of seven commissioners, who decides if there is a need for further action. Should the commissioner determine that no serious problems exist, Lovitt said, the matter is ended. HOWEVER, if the commissioner decides that discrimination did occur, he calls another meeting between the two parties to attempt a settlement. Should the case continue, it is heard before the judge that was compared by Lovitt to a court hearing. "The same rules and freedoms apply in the commission hearing as in a court of law." Lovitt The commission as a group then votes on the decision and decides to reject or adhere the decision. Depending on the outcome, a decree may be ordered to decide the extent to which the complaint should be rectified. "If the commission decides that the person was denied a job because of discrimination, the commission may order that the company pay a job and also award back pay. 'Lovitt said,' Legislator says Carlin's budget bad for KU By COLLEEN CACY Staff Reporter A budget proposal by Gov. John Carlin to transfer $82 million from the state's general tax fund to finance highways may have "long-term devastating effects" on the University of Kansas, a Douglas County state legislator said yesterday. "This is bad for KU because this is the principal institution in education, it said Rep. David Miller, R-Edison. In 1981, KU received $65,758,583 from the state's general fund. the governor's proposal calls for $2 million The governor's proposal calls for $2 million from sales tax revenues to go toward building and maintaining highways. Of this money, $280 million was spent on the highway. Miller said that normally, users fees and motor fuel taxes have supported state transportation projects, but the revenues from these increases because people are using less gasoline. "It's costing more to make repairs, and Carlin doesn't want to propose a tax hike." he said. Miller said that Carlin's proposed severance tax, a tax on minerals, would benefit mainly elementary and secondary schools. The revenues from the severance tax would go into the state's general fund, freeing more money to be allocated to these schools, but it would not have been possible without the support. "This proposed expenditure is very troubling from KU's point of view," Miller said. Miller also questioned whether Carlin exceeded his legal authority when he developed his budget recommendations. Carlin assigned three levels of expenditures to each state agency (A, B, and C), and three budget requests were to be submitted. In a recent letter to Kansas Attorney General Robert Stephan, Miller said that Carlin's budget report listed only a "B'-level budget." Council approves sexual harassment policy Rv ANNECALOVICH Staff Reporter The University Council yesterday approved a policy on sexual harassment after deleting part of a definition considered vague and probably unconstitutional. Vickie Thomas, University general counsel, questioned the constitutionality of including students in a definition designed by the Equal Employment Opportunity Commission employees and said the wording was too vague. Sexual harassment, in which unwelcome sexual advances have the purpose or effect of "creating an intimidating hostile or offensive environment," was deleted from the definition. "I don't know what those words mean for everybody," Thomas said. The policy now defines sexual harassment as unwelcome sexual advances, requests for sexual contact or solicitation. a sexual nature, especially affecting em- erence or academic decisions or perfor- mance. The committee has studied and combined two policy drafts that the administration composed in August, including in the final draft a clause that covers students. The committee based part of its decision on surveys that showed students thought the original policy for students did not give a broad enough definition of sexual harassment. Thomas also said that because harassment was considered discrimination on the basis of sex, and thus was under the jurisdiction of the office of affirmative action, the policy should not be changed in order to more trained people, because other forms of discrimination did not receive the same treatment. But Shirley Harkess, chairman of the Ad Hoc Committee on Sexual Harassment, which presented the report and policy, said the severity of the problem justified special treatment. The employee draft is based on regulations from the Equal Opportunity Employment Commission and Title VII of the Civil Rights Act. Both prohibits discrimination on the basis of sex. The Council also acted on the recommendation of Harkess and added another EEOC phrase to the policy for purposes of clarity. The phrase said the University must consider the totality of the circumstances surrounding a harassment complaint. The policy now will go to the KU administration for approval. in other business, Executive Vice Chancellor Robert Cobb presented statements of funds for the college to the council. Cobb said that by cutting back on expenses in other university departments, leftover funds at the end of the fiscal year could go to the library, that the amount of these funds was not known.