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During the press conference in the state administrative building, Hunt, state budget officer Richard Futrell and deputy state budget officer Robert Powell discussed the governor’s bud get recommendations for 1993-1995. “We’re trying to deal with the budget just like a business would,” Hunt said. Hunt said he was sure no division of state government was operating as effi ciently as possible and added that he expected each department to cut 1 to 2 percent from its budget. “These are very reasonable, I would say conservative, budget figures,” he said. Hunt said since the state’s economy was expanding he thought the govern ment probably could make budget cuts Company faces bid-fixing charges By Brad Williams Staff Writer The Maola Dairy and Ice Cream Cos. was indicted by a federal grand jury in Wilmington last week as a result of charges it participated in a conspiracy to fix bids on a milk contract with the Craven County school system. In a press release issued by Mildred Jones, Maola’s vice president, the New Bern-based company maintains it is in nocent of the charges. “Maola has never believed that the charges were true, and Maola has coop erated fully with the government’s in vestigation,” the statement said. “In addition, Maola has had its own law yers investigate these charges.” Gina Talamona, public affairs spe cialist with the antitrust division of the U.S. Attorney General’s office, said the grand jury had handed down a four count indictment against Maola and its president, Kenneth Reesman, for con spiracy to commit bid-fixing. Maola and Reesman also were in dicted on three counts of mail fraud. According to Talamona, the Maola case was not an isolated incident. She Athletes to graduate in 1993. “The high graduation rate is a credit to the athletes and shows the commit ment the coaches have in making cer tain the athletes understand that their first priority at the University is to get an education,” Swofford said. John Blanchard, director of athletic academic affairs and an athletic asso ciation academic counselor, said the graduation rate was a credit to the stu dent athletes and the athlete academic counselors on staff, “The athletes come to the University committed to graduating, and they put forth the energy needed in athletics,” Blanchard said. The University admitted 12 excep tions students who fail to meet the minimum admission requirements but are accepted based on additional crite ria for football and men’s basketball, GPSF dent, passed easily. “We’re very excited about the vice president position,” she said. “It’s so important to give graduate students a voice, because we make up such a large amount of the University. I guess I’m a believer in democracy.” Bridges said she and Harrell still were working on what the exact role of the vice president would be. The GPSF will focus on two other major issues in 1993-94, Bridges said. A tuition hike proposed by the N.C. BCC the coalition for a free-standing BCC, said the Monday meeting had gone as he expected and he still planned to par ticipate in the joint planning process. “We’re just as stuck on the Wilson site as (the working group is) stuck on the Coker site,” Smith said. “We’re willing to compromise as much as they are.” BCC supporters were making a pre sentation rather than a protest to the working group Monday, Smith said. Crawford and about 20 BCC supporters left the meeting before making a pre sentation about the new building’s space needs as had been previously planned. “We weren’t protesting,” Smith said. “It went from intellectual to emotional because we saw that all along people t HAROLD has a secret! Harold is a hemophiliac. 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Hunt proposed S6O million in fund ing for the N.C. Partnership for Chil dren, a public-private initiative to pro vide early childhood education, day care, health care and other critical services to said the antitrust division of the U.S. Attorney General’s office had received several case files that listed 83 criminal cases involving 47 corporations and 56 individuals in bid-fixing scandals since 1988. “The practice of bid-fixing is widespread,” she said. Talamona said there had been $35 million in fines levied against corpora tions for bid-fixing, but “the cost to the taxpayer has been in the hundreds of millions of dollars.” “Companies want the highest bid prices possible,” said Bill Tucker, an investigator with the N.C. Attorney General’s office. Tucker a milk company official, of ten would call another corporation in volved in the bidding to discuss that corporation’s bid prices. The two then would contact other companies in an effort to raise the overall bid price. Contracts to provide milk to public schools are awarded to distributors by each local school district, said Nancy Carroll, assistant superintendent for the Craven County school system. Carroll said the milk contracts were binding for one school year. The school system mails bid specifications to local while the other 14 UNC-system schools combined admitted 20 exceptions in 1992, the report stated. “What an exception is at UNC-CH is different from what an exception is at other institutions,” Swofford said, add ing that the number of overall excep tions has declined in recent years. Anthony Strickland, assistant direc tor of undergraduate admissions, said the admission of exceptions was a closely supervised process. “The procedure is set up by a faculty committee to ensure that every facet of a person's makeup is considered,” he said. Strickland said the exception pro cess considered students with disabili ties and special talents. Elizabeth City State University had the highest graduation rate for athletes recruited in 1987, with 82 percent of the General Assembly would raise tuition for graduate students by 50 percent. “The fee increase will hit graduate students harder than undergraduates,” she said. “During a time when money and budgets are tight, it’s especially important that we be heard.” Bridges said the GPSF was just start ing to plan specific strategies to deal with the anticipated tuition increase. .Another broad goal of the GPSF is increased communication between un dergraduates and graduates and also were playing games.” Smith said the heated discussion was not unusual for the joint BCC planning meetings. “There’ve been debates all along the way,” he said. “If we agreed on every thing we would have a building now.” Crawford, who said after Monday’s meeting that she was withdrawing from the joint planning process, could not be reached for comment Tuesday. McCormick said he was optimistic that Crawford’s comments after the meeting did not necessarily mean she was removing herself from the plan ning process. “I took (her comments) to be an ex pression of her intensity of feeling about the issue and not necessarily that she ever)’ child who needed it. Hunt said one of his educational goals was to expand the state’s vocational programs. His new budget recommends approximately S6O million for worker training programs at community col leges. The improved training programs will mean both high school and community college proficiency tests will be more difficult. Hunt said. “I'm recommending a tough new exit exam for community college graduates as well so that high school and commu nity college graduates enter the work force equipped with the skills they need to compete,” Hunt said. Hunt also proposed pay hikes for teachers to improve educational stan dards. He said he knew the annual 2-percent raise for educators was not substantia] and barely would cover cost-of-living increases, adding that teacher salaries would be bolstered as more funds be came available. “I would like to help our state em ployees more,” Hunt said. companies, who then send their bids to the school board during the summer. The school board has the right to ap prove or reject a bid, she said. Carroll said the companies that usu ally bid for the Craven County school’s milk contracts were established local companies. The school system never has performed background checks dur ing the bidding process, and Carroll said the no-check policy would con tinue despite the Maola indictment. “We will not change the (bidding) process until the court has decided Maola is either guilty or innocent,” she said. “It is not the American way.” Shirley Wartford, child nutrition di rector for the Chapel Hill-Carrboro school system, said schools in that dis trict did not have a formal procedure for background checks of milk companies. She said the school system received information on prospective milk com panies from the Department of Public Instruction, along with guidelines for the bidding process. Wartford said the Maola indictment did not come as a shock to her. “We are disappointed that companies go to that length, but we are not surprised.” from page 3 44 athletes receiving their degrees within five years. Fayetteville State University had the lowest rate of athletes graduating in five years, with 30 percent of the 43 athletes recruited in 1987 graduating by 1992. N.C. State University’s men’s bas ketball team had the lowest graduation rate for athletes recruited from 1983 to 1987. Of the 21 players recruited during these years, only one player earned his degree within five years. For the 3,151 students who entered UNC-CH in 1987, 80.9 percent gradu ated in five years the highest five year graduation rate of all the 16 UNC system institutions. Fayetteville State University had the lowest percentage of students graduat ing in five years with 13 percent of the 471 students admitted in 1987 graduat ing in five years. from page 3 between the various graduate schools. “We’ve worked very hard to im prove communication it’s important for graduate students not to be iso lated,” she said. Bridges also called for more gradu ate students to get involved in student government. “Our personal experience isn’t enough,” she said. “I personally can’t figure out how a mother with five kids is handling graduate school and what her needs are.” from page 1 would pull out of the joint planning process,” he said. Following the BCC advocates’ de parture, the working group approved resolutions setting the new center’s pro posed size at 48,000 square feet contin gent on funding, calling for a joint re port and eliminating two possible sites from inclusion in the report. McCormick said he had communi cated the resolutions of the working group to BCC Advisory Board Chair man Harry Amana. Amana was un available for comment. The official drafting committee will meet Friday, and McCormick said he hoped to complete the final report soon. “We’re aiming for first draft by the end of this week, and maybe a revised draft sometime next week that would be distributed to everyone,” he said. The final report could still make it to the Board of Trustees by the BOT’s March 26 meeting, McCormick said. McCormick said he could only make a personal guess what the final report would say about a site for the BCC. “I think the most likely outcome is the report will discuss two sites, and note that the BCC Advisory Board pre fers one site,” he said. Robert Eubanks, a former BOT chair man, last week resigned from the work ing group but then withdrew his resig nation. Eubanks refused to comment except to say that he still was a member of the group. “I think we need to write the report and move on with it,” he said. The working group has no power in deciding the final location of the BCC, Eubanks said.
Daily Tar Heel (Chapel Hill, N.C.)
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Feb. 17, 1993, edition 1
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