8
University Daily Kansan
Campus/Area
Tuesday, Feb. 4, 1986
Gramm-Rudman will trickle down
Law will increase states' deficits
United Press International
WASHINGTON — Most state governments, many of which now enjoy budget surpluses, will be plunged into deficit spending under the Gramm-Rudman law that will rob them of $12.4 billion in 1987, according to a study released yesterday.
The study, conducted by the Villers Foundation, the National Council of Senior Citizens and the Service Employees International Union, said 40 state governments would run deficits if they tried to offset the cuts in federal spending in 1987.
The new budget-balancing law, which goes into effect March 1, requires across-the-board cuts in all government programs if lawmakers fall to come up with an alternative way to reduce the national deficit.
"The automatic cuts under Gramm-Rudman-Hollings will devastate the middle class and the poor, the old and the young, residents of rural and urban areas and affect people in all regions of the country," said Ronald Pollock of the Villers Foundation, a non-profit advocacy group for the elderly.
REDUCED AID/Kansas
Projected losses in federal aid to Kansas under the Gramm-Rudman deficit reduction law.
If Gramm-Rudman is triggered in 1987, federal funds for state and local
- Highway aid: 37.8 *
- Financial aid for college students: 12.8
- Medicare: 12.8
- Special education programs: 7
- Social services block grants: 5.8
- Community development block grants: 5.4
- Wastewater treatment grants: 5.2
- Low income energy assistance: 4.4
*Figures in millions of dollars
Source/Fiscal Planning Services Inc:
governments will be cut by more than $10 billion, the study said. Cuts in two big entitlement programs — Medicare and student financial aid — will add another $2.4 billion to the states' losses.
William Hutton, director of the National Council of Senior Citizens, said in a news conference that the budget-cutting law is "a mindless instrument of fiscal policy which makes
computers and bureaucrats the final arbiters of our future."
Hutton said the cuts also would reduce drastically federal and state programs for the elderly such as nutrition services, senior centers, low-income energy assistance and Medicare.
The country's most populous states will lose the most money under the law, which hits California and New
York the hardest with cuts of more than $1 billion each.
Texas, Pennsylvania and Illinois would lose more than $600 million, and Ohio, Florida and Michigan each would lose about $500 million, the study said.
"Could the states recover from this?" Pollock asked. "The answer is an emphatic no."
Many states have balanced-budget laws, and many now enjoy surpluses, the study said.
However, sparsely populated states in the West and New England would be affected drastically on a per capita basis. The five hardest hit, the study said, will be Alaska, Wyoming, Montana, Vermont and South Dakota.
Pollock called for increasing revenues by closing corporate tax loopholes, making corporations pay a minimum fair share, and decreasing fraud and waste in defense spending to reduce the deficit.
Leaders of the country's public housing and community development agencies also called for a federal tax increase to reduce the deficit and asked for level financing in housing and development programs.
Reagan's address will center on U.S. families
WASHINGTON — President Reagan's State of the Union address tonight is not expected to contain dramatic calls for action but will center on the American family, including plans for a review of welfare programs.
Aides said Reagan's speech would last only 20 minutes — about half the length of recent addresses — and would feature somewhat punchier rhetoric than his first four. The president is withholding until Thursday a delivery to Congress of a 40-page list of legislative, administrative and foreign policy initiatives.
United Press International
The address, to be delivered at 7 p.m. before a joint session of Congress, was delayed a week because of the space shuttle Challenger disaster last Tuesday.
The president is expected to call for a Cabinet-level study of the $110 billion spent on a variety of federal welfare programs, with a report due on Reagan's Oval Office desk by Dec. 1.
Reagan also will propose an evaluation of federal programs and strategy to meet financial, educational, social and safety concerns of families.
As part of a family emphasis; the president plans to highlight the programs that will protect and preserve the American family within the constraints of budget cuts.
There was speculation in the White House that the administration could save money and move some of the poor above the poverty level by giving cash benefits rather than financing specific aid programs.
He also will address the problem of affordable health insurance covering catastrophic illness so life savings would not be wiped out by prolonged or severe medical problems.
State-owned Israel radio and television reported that the Reagan administration told Israeli Prime Minister Shimon Peres and Foreign Minister Yitzhak Shamir that Scharansky would be included in an impending exchange. The broadcasts stressed that no formal announcement had been made by either the Israeli government or the White House.
The New York Times quoted Reagan administration officials as saying the agreement calls for Shcharansky and three or four Western spies held by the Soviets to be released Feb. 11 in Berlin. In return, an equal number of Eastern bloc agents jailed in the West would be released.
State Department spokesman Charles Redman said whether Shcharansky would be released in a spy swap was a hypothetical question.
"These are things of tremendous importance to us all and if the Soviet Union decides to move forward in some of these areas, I'm sure it will be a positive development," he said.
Rep. Benjamin Gilman, II,
reportedly involved in the negotiations,
said serious and sensitive
warnings about war, but he
declined to give any details.
In addition, Reagan is expected to announce he will ask Treasury Secretary James Baker to undertake a study of a possible world currency conference and report by the end of the year. The high value of the dollar relative to other currencies has played a key role in U.S. trade troubles.
Shcharansky, a Jew, has been seeking permission to emigrate since the 1970s. He has served eight years of a 13-year sentence for spying for the United States. The founder of a Soviet Monitoring Group to check human rights violations by the Soviets, he is in Perm labor camp, 500 miles east of Moscow.
According to the reports, the East German and West German agents will be swapped on Glienice bridge between East Berlin and West Berlin, where captured U-2 pilot Gary Powers was exchanged for Soviet master spy Rudolf Abel in 1962.
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He is expected to pay tribute to the seven astronauts who lost their lives in the explosion of the Challenger. Aides said no money has been put into the 1987 fiscal year budget, which is to be delivered tomorrow.
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WASHINGTON — Secretary of State George Shultz declined comment yesterday on reports that Anatoly Shcharansky would be released in an East-West spy swap but said the plight of Soviet dissidents was of tremendous importance to the administration.
However, Reagan will reaffirm that the space program will go on and once again express his determination to pursue his anti-missiles Strategic Defense Initiative, better known as Star Wars.
Aides said Reagan will describe the state of the economy as good and will stress the need to make the government fiscally fit by starting the Gramm-Rudman balanced budget law. Aides were confident that Reagan would continue to oppose any new taxes and would make it clear that he wanted to continue the military buildup.
The West German newspaper Bild, quoting sources in Moscow, first reported that agreement had been reached on the largest East-West spy swap since World War II.
The Blid identified the two key agents to be freed as Yevgeni Deliakav, a Soviet spy arrested in 1985 in Koln.
Foreign policy will take a backseat in the address, but Reagan was certain to castigate Libya's Moammar Khadiya and notify Congress he would seek military aid for rebels fighting the governments of Nicaragua, Afghanistan, Angola and Cambodia.
Although a source in New York's Jewish community said the swap could be any day now, White House
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House votes to require warning labels on snuff
United Press International
The Associated Press
Deal for Western spy remains unconfirmed
THE CASTLE
TEA ROOM
WASHINGTON — The House, faced with mounting evidence that youths are turning to snuff and chewing tobacco as alternatives to cigarettes, voted yesterday to require health warning labels on smokeless tobacco and to ban their broadcast advertising.
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The bill would require one of three rotating warning labels to be added to tins and pouches: "This, product may cause oral cancer." "This product may cause gum disease and tooth loss," or "This product is not a safe alternative to cigarettes."
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Rep. Henry Waxman, D-Calif., chairman of the House Energy and Commerce health subcommittee, said he hoped the labels would persuade teen-agers not to take up "this filthy habit."
The bill was reluctantly supported by most of the tobacco industry as the favored alternative to a myriad of state labeling requirements.
Rep. Thomas Bliley Jr., R-Va., a tobacco industry supporter who blocked consideration of the bill last year, told the House he would not attempt to delay the bill
The Smokeless Tobacco Council, a trade organization, helped draft the compromise bill, although executive director Michael Kerrigan said the industry still thought warning labels were not needed.
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Jim Cobb, a state health official who is coordinating the study, said workers would go to 500 randomly selected homes in the city's dilapidated southwest side, where most of the 43 AIDS victims live.
Researchers with the federal Centers for Disease Control in Atlanta and the Florida Department of Health and Rehabilitative Services said yesterday that they hoped to study about 1,000 people in Belle Glade, a community of about 20,000 in southeast Florida.
deficiency, a fatal disease that destroys the body's ability to fight other illnesses.
"You have a high incidence of AIDS in Beille Glade, and no one knows why," Cobb said. "It would be prudent epidemiology to examine (every) theory. You can't turn your face to this kind of issue."
Study to research high rate of AIDS in city in Florida
United Press International
BELLE GLADE, Fla. — Researchers will begin studying Belle Glade residents next week to try and determine why the migrant farming community has the highest AIDS rate of any city in the United States.
As of Jan. 24, there were 43 confirmed cases of acquired immune
Those studied will be .tesed for AIDS, given a brief physical examination and questioned.
PAID ADVERTISEMENT
NEW HYATT TO OPEN SOON ON THE SMU CAMPUS
It's the first of its kind. Never before has the luxury, comfort, and leisure of a Hyatt been combined with the excitement, activity, and all-out fun of a prominent university.
Chris Yanney, the proprietor and manager of the Hyatt Nyanky apparently came up witht the idea when a friend of his from Kansas wished to come visit the school and he realized for the first time that there were no such establishments built anywhere on the campus. When we asked Chris
about it he told us, of "course it's very exclusive; it has to be—it's what the clientele wants. What we offer is this: an escape, excellent company, and the finest in cuisine. In exchange for this, the guest simply signs a short contract in which he she promises to drink and be fun during the stay. It's all about it. You get it from Yannie. This latest of campus getaways is scheduled to open in the last of February and is surely to be one of the Haytt's greatest successes.
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Local seminar to be held
Thursday, Feb. 6 2:00 p.m.
at Alderson Auditorium (In the Kansas Union)