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The Daily Tar HeelThursday, December 8, 19883
Officials '."predict state bydcet cots
Effects of Reasao'
j cSeregylatooim policy
varied experts say
Assistant State and National Editor
, Ronald Reagan has maintained
his agenda of cutting back govern
ment involvement, and deregula
tion has been the cornerstone of
"His overall policy is to shrink
the size of government," said a
White House spokesman who
cannot be identified because of
White House policy.
Reducing the bureaucracy that
citizens and private enterprise
have to deal with stimulates the
market, the official said. Dereg
ulation opens up the markets for
increased competition which
improves the product and lowers
prices, he said.
The Reagan administration has
deregulated numerous industries,
. including telephone, airline, bank
! ing, railroad, trucking, energy and
! cable industries.
! '."We consider it a success. It
! benefits everybody across the
' board," the official said.
I . But not everyone agrees.
"Deregulation doesn't hurt the
i companies so much," said R.C.
! Smith, vice president of Teamsters
Local 728 in Atlanta."Companies
' can find a way to bail out and still
; make money. People just go
', 'Wages and working conditions
have deteriorated since deregula-
tion of the trucking industry,
j Slriith said.
"It's about destroyed the indus
; tV, and it's had a traumatic effect
; bfi some of our standards of
living," he said.
Before deregulation, trucking
companies had rights to certain
routes and could borrow money
ijased on expected income from
those routes, Smith said. Many of
th'ose companies went out of
business after deregulation, and
remaining companies refuse to
take shipments for less than 500
to 1,000 miles.
.-. ! "The shipper suffers because
.t there is really less competition for
short hauls and worse quality.
-'Small factory towns are really
.) getting crunched because it's so
.rhard to move their product from
place to place. We're getting to
: where. , we're making things we
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The Reagan Legacy
can't afford to buy," Smith said.
The banking industry has not
suffered from deregulation, said
Paul Eisenbeis, Wachovia profes
sor of banking at UNC.
"What happened was much
more the result of market forces
than of intellectual decisions
.flowing from the Reagan admin
istration policies," he said.
Deregulation of banking has
increased the quality, and variety
of bank services, but there are
some complaints about increases
in service charges, Eisenbeis said.
Most rate increases represent an
assessment of specific bank servi
ces that were priced as an equal
portion of a block before dereg
ulation and must be priced separ
There have been a number of
new entries and consolidations in
the banking industry since dereg
ulation and a lot of failures, but
there is no evidence that the
failures are due to deregulation,
Eisenbeis said. . '
"I'd say the failures are more the
legacy of past regulatory policy
than the legacy of deregulation in
the Reagan era."
Not only has deregulation bene
fited consumers by increasing
interest yields and banking servi
ces, but it has created jobs for
hundreds of thousands of Amer
icans, the White House source
Government statistics indicate
that deregulation has created
76,000 jobs in the airline industry
and 223,000 jobs in the trucking
industry. Deregulation also saved
consumers $10.9 billion in airfare,
$46.2 billion in energy-related
purchases and a 6.5 percent
decrease in trainfare, he said.
But Smith said those figures
could be deceiving.
"The people running things
have a way of blocking things out.
They may have created more $5-an-hour
jobs but the common
people aren't getting the benefits.
You know you can't work for
McDonald's and raise a family."
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By STEPHANIE VON ISENBURG
A decrease in North Carolina's
state revenue resulting from Gov. Jim
Martin's tax cuts and the costly Basic
Education Plan has placed a strain
on the state's budget that may force
cuts in programs.
The Basic Education Plan, which
was developed four years ago to
improve public schools and ensure
equally good education in all coun
ties, requires from $110 million to
$180 million of the budget.
Education programs are allotted a
budget of $2.9 billion out of an annual
total state budget of $10.5 billion, said
Experts push- for confidential AI DS tests
By DENISE JOYCE
Because South Carolina's confi
dentiality law still requires that
patients' personal information be
given when they are tested for AIDS,
many people are crossing into North
Carolina for anonymous testing,
officials said last week.
That concern for confidentiality is
a reflection of the inadequate laws
of the states, they said.
Chris Hoke, head of the legal office
division of Health Services fer North
Carolina, is an adamant supporter of
anonymous testing to protect people's
"Anonymous testing has shown
more testing and counseling with
persons in high-risk groups. Until we
provide better protection for these
groups and therefore obtain better
Brock Dickinson (Dist. 13) agreed.
"WeVe decided this is a sound and
good thing. Why would it only be
a good thing a year and a half from
Other members of congress said
they opposed scheduling the bill to
take effect this year because of how
other students may view it. "I cer
tainly don't question the intent (of
congress members involved with the
bill); I question the appearance," said
Gretchen Knight (Dist. 20).
Congress voted 14-5-5 to put the
bill into effect in 1989 if it passes
during the Feb. 21 election as a
The bill was referred back to
committee after congress members
expressed concern about possible
problems in the line of succession to
the student body president.
In other business; congress passed
a measure condemning the University
Sen. Harold Hardison of Deep Run,
vice chairman of the Senate alloca-.
The slow growth of the state's
economy and the reduced revenue
because of lowered taxes create a
long-term budget problem, said
outgoing Sen. Tony Rand, who was
chairman of the state Base Budget
The budget is projected on the
growth rate in the economy, Hardi
son said. If the economy is slower
than projected, the budget is tighter..
Increases in Medicaid and aid to
children will require $60 million of
access to them, this is the best way,"
The only protection for AIDS or
HIV infected people in North
Carolina is the state's law protecting
people with physical disabilities from
It is unclear how AIDS victims fit
into this law, Hoke said. It only
applies to large companies.
One recent Wake County suit that
could have tested the law concerned
an HIV-infected cook who lost his
job, Hoke said. The court dismissed
the case without saying why.
Sheri Britton, an AIDS counselor
for the Charlotte Health Department,
also stressed the need for anti
"Confidential testing would only
defeat the purpose of helping these
housing department's proposal to
guarantee sophomore housing.
Members said the measure was
discussed because of the Housing
Advisory Board meeting today that
could decide whether to adopt the
Congress members cited the effects
the proposal could have on integra
tion of the different classes in the
residence halls, enforcement of the
alcohol policy and parking.
Congress Speaker Neil Riemann
(Dist. 12) said the purpose of the
measure was to express moral sup
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the budget, and another $60 million
will go to medical insurance for state
employees and teachers, said Demo
cratic Sen. Henson Barnes, president
pro tempore nominee.
When the legislature convenes Jan.
1 1, it will debate issues such as raises
for state employees and which if any,
programs need to be cut, Rand said.
Barnes said no major programs
should be cut, although some of the
minor programs may be. Education
will remain a high priority for
"We shall not allow our universities
to decline. We will do whatever it
people until strong protection laws
are passed," she said.
While she had no exact figures on
the number of people crossing into
North Carolina for testing, she did
say that a few of her patients told
her they were from out of state.
Linda Kettinger, head of the
communicable diseases department
of Columbia, S.C., said the state
switched to confidential testing in
Februrary 1986 because of the state's
high rate of AIDS cases.
Patient information must be given
to the testing agency, but it cannot
be released from there.
"We're not blind to the fact that
some may not come in, but we hope
the majority will," she said. "There
have been no breaks in confidentiality
with this agency to another
from page 1
port for the Residence Hall
Members said they did not believe
the housing department was support
ing the best interests of students in
their proposal. "They have told the
RHA president (Jimmy Randolph)
their main reason is financial,"
Riemann said. "It will increase
"We believe our proposal is more
fiscally and certainly more ethically
sound," he said.
The motion was adopted by
THROUGH MONDAY, DECEMBER 12
AND M OR
takes to keep salaries on a parity with
other universities," Barnes said.
A raise for state employees is
possible but money toward other y
programs may be reduced, Hardison
said. "It's going to depend on whether
or not they put the pay raise at a
The budgeting of educational
programs and faculty salaries is up
to the governor, Barnes said. Martin
has not yet presented his budget.
"We're now getting into a situation
where budget makers must be
awfully, awfully cautious," Hardison
said. , ,
organization." - , ,
Kettinger said she had no informa
tion on the crossover occurrence,
Giang Le, communicable disease
program manager for - Raleigh, said
there had not been any significant
increase in Raleigh's average 250 tests
"There are pros and cons to each
method," Le said, "but what we really
want to do is promote accurate
education on AIDS. It's terribly
important. We assume test patients
are already at risk, and we want to
nip AIDS in the bud before that?
happens.";. ' - A
Hoke said a bill should be intro
duced to the General Assembly this
spring that would address discrirmV
nation in housing, employment,
public services and transportation. ,
"We need to control tins epidemic
of fear," he said. "It's so easy to
discriminate under the current laws
because there's so many loopholes." .-.
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