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E&awale to rail again
By KERRY DeROCHI
DTII SlafT Wrifcr
. Citing a need for Town Council mem
bers to pause and re-evaluate Chapel
Hill's future needs, Council Member Bev.
Kawalec announced her 'candidacy for re
election Wednesday. A
"We've had four years of very good
government," Kawalec said. "The new
services have brought Chapel Hill up to
date to what we ought to have."
Kawalec, a resident of Chapel Hilf for
14 years, , was elected to the council in
1977. Then, the town was growing with
out organization, she said. But since that
time the council has approved a zoning
ordinance and comprehensive plan for
development in the town, she said.
Kawalec said with new services in
cluding a recreation center on Estes Drive
and a new police headquarters Chapel
Hill had become more than a University
town. Today, the city operates its own
power,, water and sewage, she said.
But Kawalec warned that the council
needed to evaluate what citizens want in
the community before implementing
more services. One of the major issues in
the' campaign, she said, would focus on
the town's budgeting and tax rates. Al
though property taxes in Chapel Hill de
creased this year, the re-evaluation of
property would increase the taxes most
people pay, she said.
"Citizens may have been telling us
during the budget procedures that we
have been expanding services faster than
they could keep paying for them,"
Kawalec said. "We need to continue pro
viding the services but not, hopefully,
raising the taxes."
Kawalec said the new zoning ordinance
also may be a major issue in the election.
Many residents misunderstood the ordi
nance, she said, which was to encourage
development within the town instead of
expanding into the fringe areas.
"The zoning ordinance was misunder
stood by many because a lot of people
zeroed in on the points, but didn't see the
larger goals," Kawalec said. "The ordi
nance is to try to accommodate additional
housing in an area with an increasingly
tight market without making the liveabi
lity of the town less desirable."
Friday, September 11, 1981 The Daily Tar Heel3
it & recession, sazy economists
Housing shortages have continued to
be one of the largest problems in Chapel
Hill, Kawalec said. Residents, especially
students and elderly have been hurt by
rising costs and rents, she said.
"We are limited in what we can do,"
Kawalec said. "We have to admit the pro
blem is larger than the council can solve
the national interest rates are beyond
the control of the council."
Kawalec is the first candidate to an
nounce for the Nov. 3 election. Four of
the eight council seats are open. Filing for
office begins today and continues until
By SCOTT PHILLIPS
DTH Staff Writer .
Even though several factors in the be
leaguered U.S. economy indicate the coun
try is in a recession, several area econo
mists feel that claim is exaggerated.
The recent high interest rates, weak ex
ports, slow business investments and a de
clining real gross national product are all
indicators that the country is experiencing
a recession. ' . v
However, the United States also is ex
periencing an increase in employment,
personal income and personal savings,
none of which are harbingers of a reces
sion. James C. Ingram, a UNC professor of
economics, said because of fairly heavy
consumer demand, he saw no evidence of
a current recesstion.
"If interest rates stay at 18-20 percent
for high-quality, long-term securities, then
we could have a recession. This is a prob
lem the housing industry is now having.'
Ingram said the inflation" rate might de
crease if President Ronald Reagan could
pare down federal expenditures. "If Rea
gan can find another $20 billion to $30
billion to cut, that might help," he said.
"Otherwise, you might hear him calling
for an increase in taxes in order to balance
Michael K. Salemi, assistant professor
of economics, said basing a recession on
two consecutive quarters of negative real
growth, as is sometimes done, was too
weak an argument to make for a reces
sion. "A recession would be a sustained
... departure from the long-run economic
growth plan," he said.
Salemi said based on bis definition, the
United States was not suffering a recession,
but that some factors mainly the high
interest rates seemed to suggest one.
He said inflation could be brought un
der control. "The combination of a bal
anced budget and tight money (a policy
of the Federal Reserve Board restricting
the money supply) will end inflation," he
Sheron Morgan, chief of economic pol
icy research in the North Carolina Depart
ment of Administration said the state was
in a better position to weather a recession
than most states.
"North Carolina is moving away from
its traditional industries, such as textiles,
and is gaining in new ones, such as rubber,
glass and microelectronics all of which
pay higher wages," she said.
Morgan said the Triangle area was in
better economic shape than the rest of the
state because of its rising number of resi
dents. "There is an awful lot of in-migra-tion
to this area which is keeping the hous
ing and building companies moving at a
pretty fast clip," she said.
Chancellor Brewer resigns in wake of ' controversy'
From Surf and Wire Reports
Dr. Thomas B. Brewer resigned as chancellor of East
Carolina University Wednesday in the wake of a contro
versy involving his candidacy for the presidency of West
Brewer, 48, was criticized last week by members of the
ECU Board of Trustees for failing to notify them that he
was seeking the job at the Morgantown, W.Va., school.
In a prepared statement, Brewer said his resignation,
effective at the end of the current academic year, was "in
the best interests of East Carolina University."
"This action was not requested by UNC President
William C. Friday nor the Board of Trustees," said Ruth
Allen, a spokesperson from Brewer's office.
Brewer has had a strained relationship with the ECU
Board of Trustees since he succeeded Leo W. Jenkins as
ECU chancellor three years ago.
. Major changes in the ECU administration, the resig
nation of at least four administrators and two job searches
by Brewer have left the impression he was interested in
making changes without being around to see the results.
Brewer first drew fire in November when the trustees
learned from news reports that he was a finalist for the
presidency of the University of Louisville. Brewer with
drew his name from consideration for that post.
The discovery last week of Brewer's candidacy at the
West Virginia school was "the straw that broke the
camel's back," said Ashley Futrell, chairman of the ECU
Board of Trustees. .
Officials at West Virginia University have confirmed
that Brewer is. being considered for the job as president.
"Dr. Brewer is scheduled for an interview in Morgantown
on Sunday," said Donald Thomas, a spokesman for the
president office. ,
In his statement, Brewer said, "I have also requested a
leave; with pay, to begin at a date determined by Presi
dent Friday. This will allow me time to prepare for other .
Brewer received a bachelor's degree in liberal arts
from the University of Texas at Austin in 1954. Later, he
received a master's degree in history from the school and
a Ph.D." in American history from the University of
Pennsylvania in 1962. ' :
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