8B
Wednesday, September 28, 1994
UNIVERSITY DAILY KANSAN
Social Security reforms proposed
The Associated Press
WASHINGTON — Senior Democrats issued a painful prescription yesterday to rescue Social Security from insolvency: Raise taxes, cut benefits, and move back the retirement age.
Under their plans, future generations would sacrifice the most, not the politically powerful seniors whose retirement benefits far outstrip their contributions to Social Security.
The lawmakers, Reps. Dan Rostenkowski of Illinois and JJ. "Jake" Pickle of Texas, have proposed separate legislation to keep Social Security from going broke by 2029, as the baby boom generation retires.
A t&a hearing of the House Ways and
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rity, Pickle and Rostenkowski said Congress could make modest changes in the system now that will preserve and protect it well into the 21st century.
"I find reform today preferable to severe benefit cuts, staggering tax increases or means-testing in the future," Rostenkowski said.
Both his plan and Pickle's would raise the retirement age. Under current law, starting in the year 2003, the age for retirement with full benefits will be 65 years and two months. By the year 2027, when people born in 1960 will be retiring, the age will be 67. Rostenkowski's proposal accelerates the increase in the retirement age, while Pickle's would gradually lift it to 70.
Rostenkowski's bill also relies on tax increases and smaller benefits
beginning in the next century, but includes a one-time cut in 1995 of about $3 a month for current recipients.
"Given the generosity of the current program — where nearly every current beneficiary gets back much more than he or she put in — I don't think that is an unreasonable burden," Rostenkowski said.
Pickle's proposal would also reduce benefits to the spouses of working Americans and award cost-of-living increases every other year, rather than yearly, except in years of high inflation.
These provisions would be phased in beginning in 2000 and would not be fully effective until after 2022, and none would significantly affect retirees and workers nearing retirement, he said.
WASHINGTON — The House agreed yesterday to freeze congressional pay for a second straight year and fund the National Endowment for the Arts, a favorite target of conservatives.
The Associated Press
The $23.5 billion Treasury, Postal Service and General Government budget for fiscal 1995 includes a 2.6 percent cost-of-living pay raise for federal workers.
But with anti-Washington sentiment running high this election year, the lawmakers included language in the bill barring any increase in their $133,600 salaries. Federal judges, Cabinet and subcabinet officers and the vice president also are excluded from the pay raise.
House agrees to fund NEA
As part of the $13.6 billion Interior Department bill, the NEA was budgeted $168 million for the fiscal year beginning Oct. 1. It was $3 million less than the administration requested but still a victory for the much-beleaguered agency, which funds art and cultural programs around the country.
The interior spending bill was passed on a voice vote.
As in past years, conservatives sought to eliminate NEA funding or make sharp cuts, arguing that the group has sponsored programs with pornographic or distasteful themes.
The House approved the Treasury bill, by a 360-53 vote, only after trimming $157 million from the same House-Senate compromise bill it rejected last Thursday.
Workers strike at GM plant
The Associated Press
FLINT, Mich. — Up to 11,500 workers went on strike yesterday at a key General Motors Corp. complex, shutting off the flow of parts needed to keep many other GM plants running.
As many as 100,000 other GM workers could be idled within 48 hours, a union leader warned. A subcontractor in Tennessee shut down within hours and 6,550 workers in Lansing were told not to report today.
Welder Dave Falting translated that 'as he walked a picket line: "They speeded up the lines and don't have enough people to do the job."
The United Auto Workers walked off the job at the huge Buick City complex, complaining of production speedups, safety problems and subcontracting.
GM would not speculate on the walkout's effect, which comes in the middle of a production and sales boom for the world's No.1 automaker.
Both sides said they expected to be back at the table this morning.
The Buick City complex assembles
Buicks and Oldsmobiles and makes a number of parts that are shipped to GM car assembly and component factories across the United States and Canada.
"Within 24 to 48 hours we're going to shut down most of the assembly plants," costing GM millions of dollars a day, UAW Local 599 president Dave Yettaw said.
Among the parts made at Buick City, consisting of about two dozen factories, are torque converters for the automatic transmissions that go into most GM cars.
Without the converters, transmission plants will close. Without transmissions, assembly plants will close.
Parts plants run by subcontractors that supply GM plants were first to feel the strike's ripples.
GM doesn't want to hire people whose jobs would last longer than the sales boom. New, permanent UAW employees cost GM more than $42 an hour in pay and benefits after three years, twice or three times the labor costs of some nonunion outside contractors.
Suburbia no longer paradise
The Associated Press
BOSTON — The number of children living in poverty is going up faster in suburbia, once a world of prosperity and promise, than it is in big cities or rural areas, researchers said.
For the population as a whole, the proportion of children living below the poverty line rose 49 percent from 1973 to 1992, said researchers at the Tufts University Center on Hunger, Poverty and Nutrition Policy, who examined Census Bureau data.
In rural areas, the share of children in poverty grew 36 percent, and in the inner city, 56 percent, they said. But in the suburbs, the increase was 76 percent.
"There's been a wholesale transformation of the American economy," Tufts researcher J. Larry Brown said. "Half of our families are experiencing declining wages, and the other half are those who have always been struggling near
poverty."
Brown and co-author John T. Cook cited three reasons for the increase in poverty among children in the suburbs: declining wages; families moving from inner cities to suburbs; and larger suburbs, extending out into what previously had been rural areas.
In 1973, about 8 percent of suburban children were members of families below the poverty line, defined then as $4,540 for a family of four. In 1992, when the poverty line had risen to $15,355 for a family of four, that had risen to 13.8 percent.
The poverty rate overall is higher for children than adults, according to census figures. In the United States, 15 percent of the population lives below the poverty line, but 25 percent of children are poor. In suburbs, 9.7 percent of people are poor, compared with 13.8 percent of the children.
Law might make it easier to get visas
The Associated Press
WASHINGTON — A new rule taking effect Saturday will make it easier for thousands of people in the United States illegally to complete processing of visas for permanent residence
Under current law, any foreign national who entered, worked or remained here illegally must return to his or her native country in order to obtain an immigrant visa that will allow return to the United States.
"We anticipate about 100,000 persons will qualify for this in the coming year," said Rick Kenney, spokesman for the Immigration and Naturalization Service.
The new law does not require the applicant to return to country of origin while the visa process takes place.
The change in rules was included in an appropriations bill for the 1995 fiscal year, which begins Saturday, but it was interpreted by some as a new amnesty program for illegal aliens. Because of the confusion, the INS issued a clarification of the rule.
The Associated Press
WASHINGTON — The Clinton administration is refusing to defend an experiment testing whether Wisconsin, with its generous public benefits, has become a "welfare magnet" to low-income families from other states.
Legal Action of Wisconsin has sued to stop the project in federal court, claiming that it unconstitutionally infringes on the rights of the
Project to test Wisconsin welfare program
poor to travel and migrate freely. A similar welfare experiment in California was rejected by a federal appeals court on those grounds.
Wisconsin launched its "two-tier" experiment in July in four counties.
The federal Department of Health and Human Services approved the pilot project under former President Bush. But HISF now says it will not help Wisconsin defend the demonstration in court.
Under the plan, low-income families who apply for welfare within six months of moving to Wisconsin are paid benefits equal to those in their home state, whether they are higher or lower than those in Wisconsin.
After six months, those families will be paid what other Wisconsin residents receive — $517 a month for a mother and two children. By comparison, Illinois pays $382 and Mississippi $120.
Nuclear waste remains afloat off N.C.
The Associated Press
WILMINGTON, N.C. — Ships carrying nuclear waste from Europe will remain offshore while South Carolina faights in court to keep them from docking, the Energy Department said yesterday.
The state is challenging a federal appeals court ruling allowing the Energy Department to store the hundreds of spent fuel rods at the Savannah River Site weapons near Alken, S.C.
In the meantime. Energy Secretary
Hazel O'Leary, "as a courtesy to the state, has for a short time delayed delivery," representative Jayne Brady said.
The ships were three to five miles off the North Carolina coast late yesterday, said Ron Shackelford, executive director of the Wilmington-based environmental group Coastal Alliance for a Safe Environment.
the weapons-grade uranium is waste from nuclear reactors in Austria, Denmark, the Netherlands and Sweden.
The Associated Press
WASHINGTON—The nation's 30 million insured aren't the only losers from the collapse of health reform. The high hopes that many physicians, hospitals and even insurance companies had placed in a major overhaul also have been dashed.
The American Medical Association had lobbied furiously for special protections to guarantee the patients' right to choose their doctors and to prevent big insurance companies from arbitrarily cutting physicians out of their networks. For now, that battle is lost.
Small businesses dodged a bullet in helping to kill President Clinton's proposal to make all employers help pay their workers' premiums. But they also lost a chance to join government-assisted purchasing pools to get a better price on the high premiums many small businesses now pay.
The academic health centers would have gotten billions of dollars each year in new federal revenues under Senate Majority Leader George Mitchell's plan. The denise of reform leaves them back at square one.
Even before the White House launched its crusade, teaching hospitals were worried that belt-tightening and the shift to managed care by big insurers and employers would cost them patients and revenues.
The most obvious losers are the 15 percent of Americans with no health insurance and the millions more with inadequate coverage.
Health care reform hopes shattered
Some 81 million Americans — nearly a third of the population — are said to have preexisting conditions that make getting or keeping insurance a constant worry.
While Congress had retreated weeks ago from Clinton's goal of guaranteed coverage for every American, all of the health bills had promised to curb abusive insurance company practices and make it easier for Americans to stay insured when they changed jobs or got ill.
"The three big problems that brought about this debate are only going to get worse," said Drew Altman, president of the Kaiser Family Foundation, a think tank that specializes in health policy. "The number of uninsured will increase. The middle class problems and fears about their insurance will get worse. And health care spending will continue to grow to ever scarier numbers."
The National Federation of Independent Businesses, which helped galvanize the fierce small business opposition to any compulsory health insurance contributions by employers, said it felt both "disappointment and relief" at the outcome.
Drugs, weapons in schools
The Associated Press
WASHINGTON — Junior high students are more likely than high schoolers to be involved in weapons offenses at big city schools, but drug and alcohol abuse is more common among the older teens, urban educators reported today.
Two percent of teachers in the cities' public schools feel unsafe during the day, twice as many as in the suburbs, the Council of Great City Schools said. After school hours, the figure jumps to 15 percent in the cities and 5 percent in the suburbs.
In a 1992-93 report card on the state of urban education, the council said more than half the school systems it represents have gang and crime prevention programs; all the districts have programs to address drug and alcohol abuse.
The council asked school superintendents to assess their progress toward meeting a set of eight education goals. Based on that survey, the council said that although some improvement has been made in such areas as parent involvement, big-city school systems still have a long way to go.
House extends assassination review
The Associated Press
WASHINGTON — The House sent the president a bill yesterday extending for a year the John F. Kennedy Assassinations Records Review Board.
The board, established in 1992, is responsible for examining hundreds of thousands of Kennedy-assassination documents and deciding whether they can be made public.
use the Federal Supply Service and the U.S. mail under the same conditions as other government agencies, and requires all employees to qualify for the necessary security clearances before they take office.
The board was formed with the aim of speeding the release of records pertaining to the 1963 assassination. It is not authorized to conduct another investigation into the death of the president.
Meanwhile, a new group called "Coalition on Political Assassinations" on Monday announced a conference in Washington Oct. 7-10 to "give the American public a professional assessment of the documents and evidence released so far."
Child molester info hotline started
The bill specifies that the board can
The Associated Press
Gov. Pete Wilson signed legislation yesterday that requires the state Justice Department to maintain a 900-number that members of the public will be able to call to get information
SACRAMENTO, Calif. — Starting next year, Californians will be able to call a number for a small fee and learn if someone is a convicted child molester.
Supporters say the new law, which takes effect Jan. 1, will enable parents to better protect their children by determining if a neighbor has a history of child molestation.
about child molesters.
Calls to the number will cost about $4 for the first minute and $2 for each additional minute, although charges could drop if the volume of calls increases.
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