Oregon daily
emerald
Friday, October 8, 1982
Eugene. Oregon
Volume 84, Number 26
Olum says 'outreach’ programs are safe
Climbing enrollment spurs initial decision
By Ann Portal
CM th* Emerald
Despite a 7 6 percent enrollment drop, the Univer
sity should be able to save four "outreach” programs
which have been in limbo since June, University Pres
Paul Olum announced Thursday
Enrollment — based on students who have paid
tuition — is "reasonably" close to the level anticipated
by Chancellor Bud Davis, and continues to improve
daily, he said
Enrollment is already at a high enough level to
"assume" the outreach programs are safe, although a
final decision has not yet been made, said Olum.
appearing at his first press conference of the year
The four programs identified as the targets of a
$500,000 special session budget cut included Univer
sity radio station KWAX. the Bureau of Governmental
Research, the Labor Education and Research Center
and the Oregon Institute of Marine Biology
Meanwhile, enrollment is "down a little more than
we thought, but not terribly," Olum said
Students are both enrolling and paying fees later
than usual this year, he said, although the deadline for
paying fees without a fine has passed
Students who paid tuition Thursday were fined $20.
The penalty increases $2 daily, up to a maximum of $50
By Wednesday afternoon, 14.963 students had
paid tuition and fees, compared to 16,202 students at
the same time last year — a 7 6 percent decrease
University officials had forecast a 6 percen* decline
Olum was not surprised that the University showed
a signincantly larger drop in enrollment than Portland
State University, which reported only a 2 3 percent
decline at the end of the first week of classes
Urban universities attract students who can live at
home to economize, he said Residence schools like the
University are bound to suffer more in a recession, he
said
To try to improve enrollment, Olum confirmed that
the University will tje making a major effort" to recruit
students in the near future
The focus of the recruiting drive will be informing
potential students about the academic programs
available at the University, he said Other recruiting
strategies should be announced within a month, he
said
Olum also announced the formation of a planning
committee to oversee $3 million given to the University
to support women s studies
The endowment, the largest single gift in the
University's history, was given by the late William Harris
in honor of his wife, feminist writer Jane Grant, who died
in 1972
Sociology professor Joan Acker has been ap
pointed director of the Center for the Study of Women in
Society. Olum said Detailed research activities of the
center will be released after the Harris will has been
probated, he said
"It should be a magnificent program once it gets
underway," he said
E merald Photo
University Pres. Paul Olum said current enrollment is
probably sufficient to continue University funding of
four outreach' programs threatened by budget cuts.
Tylenol poisonings
linked to extortion
CHICAGO (AP) — Authorities are investigating an alleged
$1 million extortion plot in connection with seven Chicago
area deaths from cyanide-laced Extra-Strength Tylenol,
published reports said Friday.
The Chicago Sun-Times said the FBI was investigating a
man who allegedly mailed a letter to the manufacturers of
Tylenol demanding $1 million and implying that more poi
sonings might occur if the ransom was not paid
The newspaper reported that unidentified sources said the
man was a Chicago businessman and former successful
stock broker who had suffered financial "reverses "
The letter was reportedly mailed to Johnson & Johnson in
New Brunswick, N.J., but it was not disclosed if it was mailed
before seven people died after taking cyanide-contaminated
Extra-Strength Tylenol capsules last week.
The Sun-Times said the letter threatened a “repeat" of the
Tylenol poisonings unless $t million was sent to a postal box
at Continental Illinois National Bank & Trust Co of Chicago
The Chicago Tribune reported bank officials had provided
the FBI with records that an unidentified bank source said
dealt with "an account that once existed at Continental."
The bank also released a statement that said bank officials
were directed Wednesday to turn over to the U S. Justice
Department “financial records of a former customer in
connection with the Tylenol case,”
The letter had the word Tylenol written on the envelope and
was forwarded to McNeil Consumer Products Co., the John
son & Johnson subsidiary that manufactures Tylenol, the
Sun-Times said.
The Tribune said the letter was being "taken seriously” by
the FBI
A Johnson & Johnson spokesman. Lawrence Foster, said
early Friday that he was unaware of the alleged extortion plot
but added that the company had agreed to cooperate with the
FBI should any such situation arise.
“The procedure was that it we got anything, it would go
directly to the FBI," Foster said.
Illinois Attorney General Tyrone Fahner, reached at home
Friday, said he would have "no comment" on the alleged
extortion plot
Earlier on Thursday, top authorities In litinois said there was
no apparent connection between the April cyanide death of a
Philadelphia man and seven deaths from cyanide
contaminated Tylenol in the Chicago area
Measure 3 attracts criticism
from higher education officials
By Hank Trotter
Of the Emerald
Higher education officials
predict “serious implications"
for the University budget if Bal
lot Measure 3, a property tax
limitation initiative, is approved
by Oregon voters on November
2
University Pres. Paul Olum
says although the measure does
not "formally" affect the
University funding, there will be
a "devastating second order
effect "
If approved, Measure 3 would
reduce property taxes to 1979
levels and limit combined
property taxes from all local
governments to $15 per $1000
assessed value The Oregon
Legislature would distribute the
reduced funds among local tax
ing districts. Property tax in
creases would be held to two
percent per year
If Measure 3 passes it will
"decimate everything that
depends on property tax,” Olum
says. “I can’t believe the state
won't help bail out the com
munities."
Olum is afraid local school
districts, cities and counties will
be forced to compete with
higher education for a share of
the dwindling state general
fund. The University receives
$34 million from the state fund
"The total fiscal situation
under the current tax structure
is serious," says Bud Davis,
chancellor of the State System
of Higher Education.
“The bottom line is there are
already inadequate funds. This
(Measure 3) would make it
worse,” Davis says
A Legislative Revenue Com
mittee evaluation of the mea
sure's impact predicts a loss of
$767 million statewide.
In Eugene, School District 4J
is predicting a loss of $9.7 mil
lion if Measure 3 passes. The
district receives $38 million from
local property taxes annually.
Vernon Smith, the district's
budget officer, says approval of
Measure 3 would bring a "pan
ic, crisis situation" to Oregon
school districts.
"Every school in the state will
push for new kinds of taxes,” he
says. "You name it, they'll ex
plore it."
Smith says the Eugene dis
trict, however, has no im
mediate plans to ask the state
for additional funds, something
higher education officials are
afraid will happen.
"You don’t go to someone
filing for bankruptcy to borrow
money,” Smith says.
State Rep Margie Hendrik
sen, Democratic challenger for
Oregon Senate District 20, says
approval of Measure 3 approval
would "totally tie our hands at
the legislature."
She calls the measure "anti
democratic,” saying the provi
sion requiring a two-thirds
legislative approval of all tax
increases would make it "poli
tically impossible to raise new
revenue.”
According to the voters'
pamphlet, the Homeowner and
Renter Refund Program would
be preserved but decreased by
$7.5 million in 1984 because of
lowered tax payments State in
come taxes would increase
$26 9 million in the same year
because of fewer property tax
deductions.
Measure 3 also contains a
clause repealing the state’s ob
Election '82
Ballot Measures
Emerald graphic
ligation to back agency bonds
with state property taxes in case
of default by the agency.
The Higher Education Facili
ties and Building Program is one
of nine agencies whose bonds
wouldn't be backed
Bill Lemman, higher educa
tion’s vice-chancellor for ad
ministration, says higher
education has never defaulted
on its bonds but the provision
guaranteeing payment brings
favorable interest rates.
The bill’s petitioners, Oregon
Taxpayers, conducted a poll
showing a comfortable lead for
passage of the measure With
this threat, at least one of the
agencies affected has rushed to
finalize its bond sale.