State and Local
Friday, February 28, 1986/The Battalion Page 3
Diversity contributes $350.7 million
Study says A&M aids B-CS economy
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By MONA L. PALMER
Stuff Writer
Texas A&M contributed
150.7 million to the Bryan-Col-
te Station economy in 1985, a
diversity study reports.
Thomas Taylor, director of ac-
oiinting services and acting con-
roller in the fiscal department,
^ys, “The impact is in two cat-
egmies — one being the direct
expenditures of the University,
the other being the intangible ef
fects we have.”
iThe direct dollar impact in-
ludes the amount of payroll on
■mpus, estimated student
Tending and visitor spending, he
fhaso
«e.;
espeti
ndsii
sf'•
^Taylor also says campus con-
ruction indirectly affects the lo-
1 economy.
jThe report, which was done by
llpxas A&M President Frank E.
Vandiver’s office, says A&M paid
about $41.6 million to contractors
for construction. This influences
the local economy through con
tractor purchases and the em
ployment of area residents.
The report also says the Uni
versity spent about $27.8 million
locally for utilities, services and
supplies.
Taylor says A&M’s impact has
increased steadily since 1983,
with a big jump between 1983
and 1984.
In 1983, the University as a
whole contributed $319 million to
the local economy compared to
$344 million in 1984, he says.
The student contribution in 1983
was $102.5 million but jumped to
$ 105.6 million in 1984.
The report says that in 1985
students contributed $105.8 mil
lion to the economy with food
and housing accounting for the
major expenditures, along with
clothing, school supplies and rec
reation.
Bookman Peters, president of
First City Bank, says “The
relationship of A&M in the com
munity is critical to the local econ
omy.
“T exas A&M is the largest em
ployer by far. I would guess that
the second largest employer
might be GTE and A&M employs
five or six times as many people
as GTE. That in itself tells the
whole story.
“We are extremely sensitive to
what happens there and certainly
this area has boomed and grown
because of the growth at A&M,
and there is no way I can over
state the importance of A&M to
this community.
“That goes beyond just finan
cial. That goes into intellectual,
recreational and performing arts
— the scope is broad.”
Peters also says he is concerned
about the effects of Gov. Mark
White’s budget cuts on A&M and
the community.
Taylor says the fiscal depart
ment can’t make projections
about A&M’s future economic
impact.
“We had some thoughts, some
projections last week, which prob
ably don’t mean very much this
week,” he says. “We were predict
ing another slight decline in stu
dent enrollment next year but we
anticipate it beginning to stabilize
after that.
“We plan to continue an in
crease in research volume al
though at a slower pace, but be
yond that I’d hate to predict
anything at this point.”
overnor stresses importance of budget cuts
By FRANK SMITH
Stuff Writer
mind
I
mdera
trii! I
so non
entf
iov. Mark White visited College
endic; kjon briellv Thursday and reiter-
Dwarc |d his belief that the state’s esti-
iU'd SI.3 billion revenue shortfall
I I e met by his proposal for 13
> getE |p|nt budget cuts for state agen-
eavots p . .
RVhiteexpressed confidence in his
, ■p <ls d following his 30-minute ad-
ul “~§ss to the 28th annual County
Bgi and Commissioners' Confer-
lejwhich was held at the College
'H™' ition Hilton.
|l|also said he still doesn’t think
PPt■ ce ^ai-v to call a special session
[heri' lht Legislature to help solve the
jlel financial crisis.
Tlyou look at the numbers we
ifweddB. that’s what we’re going to rely
lanorli-1 think we can get very close to
to itilmr goal is," White said. “ Just
|lit|in alone will save us $400 mil-
1 —that’s a pretty good start.”
Vvlite added that higher educa
tion will be cut in areas that don’t af
fect faculty salaries or educational
xjualitv. However, he said adminis
trative overhead costs will be very
closely evaluated.
In his conference speech. White
lamented the expenditure of $38
million every two years for remedial
education courses in state colleges
and universities.
“Thirty-eight million dollars tea
ching kids how to read and write?”
he said. That’s what we’re going to
start doing in f irst grade.”
White said the budget-cutting
plan will require the imagination of
workers in each state agency as well
as cooperation between both the
public and private sectors.
He cited an example that he said
demonstrated the need for such co
operation, saying he was recently
told that car companies manufacture
police cars only at a certain time of
year.
Consequently, some departments
purchase the cars during the limited
time they're available and extra cars
sometimes sit idly on parking lots for
months and depreciate, he said.
“That’s not the American business
svstem working for the consumer,”
White said. “ There the consumer in
this case — we the state government,
vou the county government and yes,
all of us as taxpayers.”
White also told the conference
that Friday he asked President Rea
gan to impose a temporary variable
tat iff on imported oil.
“All we’re saying is that there has
been dumping in the oil market,”
White said. “Saudi Arabia is dump
ing oil into the market and artifi-
ciallv driving down the price.
“The administration in Washing
ton savs that’s not so — that this is
just f ree market forces at work. Any
body that would believe that would
believe anything.”
After making his conference
speech, White said he has not re
ceived a response from Reagan
about the tariff proposal although
the President has consented to meet
sometime in the future with White
and (Oklahoma Gov. George Nigh.
“I’m anxious for a meeting with
him because I think it’s vital to the
future of our country’s national se
curity that we have adequate oil sup
plies to fuel the ships, the tanks and.
the planes that we rely upon for our
nation’s security,” White said.
In Washington, the Senate Fi
nance Committee conducted a hear
ing on Texas Sen. Lloyd Bentsen’s
bill calling for the creation of a per
manent, variable tariff on oil im
ports and a minimum per-barrel
price to protect the domestic oil in
dustry.
During that hearing, J. Roger
Mentz, a Reagan administration offi
cial, told the committee that raising
taxes on imported oil would cost the
average family up to $365 a year, pe
nalize the poor, hurt key allies and
damage the nation’s trade balance.
Andersen defaults
on construction
of A&M building
By GRETCHEN HOELSCHER
Reporter
With more than $6 million of con
struction still to be completed on the
new chemistry building, B.B. Ander
sen Construction Co. has defaulted
on its building contract with the
Texas A&M University System,
which will result in a delayed com
pletion date.
Officials at Andersen didn’t re
turn phone calls when contacted by
The Battalion.
Construction on the building be
gan in 1984 and was scheduled to be
finished this May.
Now, however, the building prob
ably will not be ready until well after
the start of Fall 1986, said George
Cole, a project manager at A&M’s
Facilities Planning and Construction
Department.
A specific completion date is hard
to pin down at this time, Cole said,
because weather also affects con
struction progress.
According to a letter from Gen.
Wesley E. Peel, vice chancellor of Fa
cilities Planning and Construction,
to Chancellor Arthur G. Hansen, the
contract between A&M and B.B. An-
defsen was terminated for default
Jan. 15.
The United States Fidelity and
Guaranty Co., the insurance com
pany for B.B. Andersen, had to find
another contractor to complete the
job.
Don Mills, a project manager for
the company, said Avery Mays Con
struction Co. will take over the pro
ject.
“The bonding company came to
us and asked us to have a look at the
job and see if we’d be interested in
taking it over,” he said.
Avery Mays then sent a solicited
proposal to the insurance company
to complete the remaining work on
the structure.
Following a recommendation by
Vice Chancellor Peel, the Texas
A&M Board of Regents approved
the takeover agreement at its last
meeting and Avery Mays Construc
tion replaced B. B. Andersen Con
struction as the contractor for the
new building.
Avery Mays will have to meet the
same contract requirements that
B.B. Andersen did.
But the actual change was not as
easy as signing a contract.
“It didn’t just happen overnight,”
Mills said. “Andersen kind of phased
themselves out, and we just kind of
moved in right behind them.”
Although the actual contractor
has changed, Mills said, Avery Mays
will use the same subcontractors and
subcontracts that had already been
signed with B.B. Andersen.
However, the subcontracts will
have to go through a ratification
process that involves approval by
Avery Mays and the insurance com
pany that hired them. Mills said.
“We have not finished ratifying
everyone’s contract yet,” Mills said.
Cole said it won’t cost A&M a cent
to change contractors in the middle
of the project.
According to Gen. Peel’s letter,
Avery Mays will complete the work
on the building for $6,435,897.64,
the unpaid balance in B.B. Ander
sen’s old contract, plus a contractor’s
fee that will be paid by B.B. Ander
sen’s insurers.
Therefore, the building will not
cost A&M any more than the
amount originally appropriated by
the regents.
Mills said he is not worried about
the ability of Avery Mays to fulfill
their contractual obligations to
A&M. He said there are no unusual
problems associated with putting up
a structure on a college campus, with
the exception of traffic and parking.
“It’s kind of a hassle sometimes to
get material in here,” Mills said. “We
usually try to get most of the big
loads of material in early in the
morning before classes start.”
warn