Serving the students and the University community since 1893
Volume 97, Issue 39
Monday, August 28, 1989
Chapel Hill, North Carolina
Business Advertising 962-1163
Task force study shows peer
institutions have more contro
By DAVE GLENN
The inflexibility of state budget
policies toward UNC hampers the
University's ability to operate effi
ciently, according to Wayne R. Jones,
UNC associate vice chancellor of fi
nance. Jones, commenting on a favorite
topic of UNC Chancellor Paul Hardin,
said he supports the chancellor's stand
in favor of changing the state's budget
process to give University officials
more control over the allocation of
funds in the UNC budget. "I am cer
tainly with the chancellor one hundred
percent on this issue," Jones said.
The inflexibility is closely tied to
the use of purpose codes and object
codes that define where all budgeted
money goes, Jones said.
Purpose codes indicate the particu
lar function connected to the alloca
tion of funds such as construction
work, library improvements, academic
support and student support. Object
codes deal with the particular recipi
ents of the allocated money within a
purpose code such as the separa
tion of personnel and non-personnel
"The inflexibility is that we are not
permitted to move money between
purpose codes and many of the object
xodes," Jones said. "That's when the
bind comes in.
"We may have a need for funds in
.'one area, and availability of funds in
another area, but we are not permitted
to make that shift."
Other public universities have much
greater flexibility in budget matters,
due to their independence from state
government in many areas (see accom
The unpredictability of future events
By PAUL BREDDERMAN
A record number of black students
have applied to the University for the
fall of 1989, according to Vice Chan
cellor Harold Wallace.
A total of 1,330 minority applica
tions have been received, up from last
year's 1,230 applications, Wallace said.
Approximately 400 black students
will be entering this year's freshmen
class according to safest projections,
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No, not yet. Jenny Halpern, a student at the Carolina Friends Early
School, pauses by the Bell Tower during a campus tour this summer.
ett MeAoi fifty
"This means the University, which has
obtained remarkable status among
universities in the world today, may
lose that status." Mark G. Lynch
also creates problems that are com
pounded by the inflexibility of the
state's budget requirements, Jones said.
"If a federal agency cuts back in
one area, and another increases its
support, we may have a problem," Jones
said. "Because the discipline that is
cut back is going to have trouble ad
justing. We don't know at the begin
ning of the year where and when the
grants are going to come. You need
flexibility to be able to adjust to those
changes during the year."
There is a second problem in North
Carolina's allocation process, Jones
"We get quarterly allotments of
cash," Jones said. "If we are not allo
cated the cash on a quarterly basis, we
cannot spend anything."
Jones said that in the fourth quarter
of this year, UNC's allotment was cut
"When the extent of the cutback is
unexpected, it's very difficult to man
age particularly late in the year,
when commitments have already been
made," Jones said. "In this case, it cre
ates an enormous problem winding up
the year, trying to pay for those things
that are considered essential.
"We're actually paying for some of
this year's obligations with next year's
The stringency of the UNC budget
process is further represented by the
"This is well in excess of 10 per
cent of the entering freshmen class,"
This number remains constant with
the number of enrolled blacks for the
fall of 1988, he said.
Despite a nationwide decrease in
college-bound black students in the
'80s, N.C. universities have kept their
numbers steady, he said.
"From what I understood a couple
Tar HeelSarah Cagle
state's policies regarding overhead and
overrealized receipts, Jones said.
"The University provides a num
ber of services, and there can be an
unexpected increase in demand for
those services," Jones said. "So, we
generate more receipts, but we can't
automatically spend that extra money.
We can only spend the amount that
was anticipated that we would spend.
In effect, we have no control over the
extra money that we ourselves pro
duced." UNC officials' protests were bol
stered by a UNC task force report in
May. An executive summary of the
report said the state's tight fiscal poli
cies may put the university at a disad
vantage as it competes with schools,
such as the Universities of Michigan
and Virginia, for grants and profes
sors. Mark G. Lynch, chairman of the
panel of visitors that wrote the report,
said the university has "practically no
flexibility" in handling its budget.
"This means the University, which
has obtained remarkable status among
universities in the world today, may
lose that status," Lynch said.
Most of the task force's recommen
dations called for major changes in the
way the university is allowed to man
age its state funds, which amount to
more than $200 million a year, or 39
percent of the UNC budget.
of years ago, there was an average
nationwide drop-off of about 13 per
cent from 1980 to 1985," he said. "Our
lowest figures have been down in the
300s in the early 1980s."
UNC and" schools like N.C. State,
N.C. Central and Duke University share
the goal to help increase the number
of college-bound blacks overall, rather
than to get only the best students to
apply and enroll, Wallace said.
"It's going to require a little bit of
AC adds 300
By SARAH CAGLE
Renovations to the Dean E. Smith
Center scheduled to be completed by
the 1989-90 basketball season should
give students about 300 more seats,
according to Smith Center Director Jeff
The renovations, costing the ath
letic department between $40,000 and
$50,000, will bring the number of stu
dent seats in the lower level to more
than 2,000. Students have 4,408 seats
in the upper level.
"This is not just talk," Elliot said.
"This is tangible proof of our commit
Daiiy Tar Heei moves
By DAVE GLENN
The Daily Tar Heel Board of Di
rectors has voted to go ahead with the
process of incorporating UNC's daily
student newspaper, which has been in
operation since 1893.
Kevin Schwartz, director and gen
eral manager of the DTH, said the vote
is a response to the University's "do
nothing and nothing bad will happen"
attitude regarding the tax liabilities of
various campus organizations.
"For several years, the University
and student organizations have been
going back and forth on income tax
liabilities," Schwartz said. "The Uni
versity is exempt. But because the
University will not state in writing that
we (the DTH) are part of the Univer
sity, we're seeking to protect ourselves
UNC Budget and Finance Report
Michigan Virginia Tennessee Texas UNC
PERSONNEL Unlimited Controlled Unlimited Unlimited Controlled
PRACTICES Authority by State Authority Authority by state
BUDGET Complete Substantial Substantial Substantial Little
FLEXIBILITY (see story)
PURCHASING No Only two. No None on State
RESTRICTIONS Limitation $6,000 on Limitation research, handles all
computers, local. items more
$50,000 on $1 ,500 on than $5,000
research state funds
OVERHEAD Keep 100 Keep 100 Keep 100 Keep 100 Keep 65
RECEIPTS (see note)
OVER-REALIZED Keep 100 Keep 100 Keep 100 Keep 100 Revert to
RECEIPTS state for
RECEIPT Keep 100 Keep 100 Keep 100 Keep 100 Year-end
SUPPORTED balance goes
OPERATIONS to state for
REVERSIONS Carryover Carryover Carryover Carryover Unspent
all unspent 2 of funds all unspent every other funds revert
funds wapproval funds year to state
UNDERGRAD $2,876-3,194 $2,526 $1,466 $164-569 $876
OUT-OF-STATE $9,888-10,614 $6,336 $4,200 $184-2,753 $4,830
GRADUATE $5,056 $2,526-6,096 $1,780 $164-905 $872
OUT-OF-STATE $10,580 $6,336-12,366 $4,514 $184-3,383 $4,826
TUITION Keep 100 Keep 100 Keep 100 Keep 100 Keep none;
RECEIPTS must cover offset vs.
40 of budgeted
costs to arrive at
(NOTE: Virginia overhead receipts 70 percent retained as appropriation from general assembly for
enhancement of research and related activities; 30 percent to be used in E and G expenditures;
during current biennium may retain 1 00 percent in excess of actual recoveries (target from first year of
biennium) in second year of previous biennium as incentive for increasing externally funded research
for fail at ail-tome
extra effort to keep increasing these
numbers," he said.
Wallace attributed the increase in
part to the change in educational cli
mate since the close of the Reagan
administration. "There was so much
negative talk about the availability of
financial aid in Washington that stu
dents were discouraged from applying
to universities," he said. "It wasn't
supportive or positive."
University students, faculty and
ment to students."
Originally, the Carolina Athletic
Association (CAA) proposed install
ing bleachers in part of the lower level
to accomodate more students, but El
liot said bleachers would present sev
"From an aesthetic standpoint,
bleachers just don't look as nice," he
said. "It would also be a problem at
concerts to have part bleachers and
Instead, six press booths have been
removed to install about 250 seats in
the lower level. Also, armrests between
some retractable seats in rows A
from possible tax liability."
The board plans to incorporate the
DTH as a non-profit organization in
North Carolina with plans to attain
tax-exempt status, along with a par
don for possible previous taxes, from
the Internal Revenue Service, Schwartz
"We're seeking the peace of mind
that comes with knowing that the IRS
isn't going to come in here and shut us
down," Schwartz said.
Kevin Martin, former UNC student
body president, attempted to get the
issue resolved a year ago when he asked
UNC administrators to come up with a
list of those groups that the University
would have liability for under their tax
umbrella. There still is no such list.
Some campus groups including
the Interfratemity Council, the UNC
alumni have been able to coordinate
their efforts in recent years to bring
more students to visit the campus,
Wallace said. "We have also been able
to involve students' families and com
munity leaders more than in the past,"
he said. "This can make a big differ
ence." Herb Davis associate director of
admissions, said the increase in appli
cants is due in large part to the in
creased recruiting efforts of enrolled
through L will be removed to add be
tween 40 and 50 seats.
These additions will provide about
the same number as bleachers would
have, Elliot said. - "
CAA president Lisa Frye said stu
dents are not guaranteed to receive the
particular seats that are being added,
but that students will receive that
number of seats.
"I think these are definitely good
seats, but we want to leave our options
open," Frye said.
Once the seats are installed, Elliot
and Frye will work to determine where
the additional student seats will be
Band and the Campus Y are classi
fied as independent and non-fee sup
ported. Thus, the University did not
file tax forms for them.
Other groups, including the DTH,
are not protected by the University's
tax umbrella even though the or
ganizations in the group received stu
DTH board member Ed Davis said
the board's vote was a response to the
University's "informal non-existence"
policy toward the DTH.
"They don't want to formally rec
ognize our existence, but they don't
want to give us any autonomy, either,"
Davis said. "With incorporation, we
are setting out on our own path."
Susan Ehringhaus, assistant to the
See DTH, page 4
students at UNC.
Tar Heel Target, one of the UNC
recruiting programs mentioned by
Davis, enlists enrolled black students
to talk at high schools at home over
fall break, and possibly follow up on
those who decide they want to come
to the University.
"I think when students are happy at
UNC, they tell a lot of others to try to
come here," Davis said. "We see a lot
located. "By the time school starts, I
feel confident we'll have some defi
nite idea," Elliot said.
Frye said her goal is to retain stu-
dent seats in a student section. "It's
possible that we could sit in other ar-;
eas that would make an actual block,"
Plans to provide even more student
seats by scaling down seats in rows M
through AA were also considered by,
the athletic department, but officials
were hesitant because of the cost and
because of possible damage to the struc-"
See SEATS, page 5
The nightlife of a Chapel Hill
police officer 2
SBP Lewis to organize task
force for financial aid 3
Applications to UNC down
for 1989 4
Triangle offers many 'Living
Poets Societies' 6
A look back at the hottest
summer flicks 7
Lacrosse title was team
effort for Syracuse 8
UNC will be better without
J.R., Dave says 8
Where to go, what to do,
what to see 9-20
Melting pots and girls
named 'Kristi'..... 22
A freshman's guide to Camp
i ' " 1 1