The Daily Mississippian - July 22, 2011

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O L E M I S S S P O R T S I N F O R M AT I O N

OLE MISS TO ANNOUNCE CAPITAL CAMPAIGN OXFORD, Miss. -- A major announcement in the rise of the Ole Miss Rebels will take place on Tuesday, August 9, as the athletics department and UMAA Foundation will unveil

its landmark capital campaign. Released at that time will be renderings and digital tours of the facility initiatives as well as details for contributions. “Wrapping up a successful

T H E

feasibility study with AECOM, we are excited to release plans for a comprehensive capital campaign,” said Director of Athletics Pete Boone. “This campaign, which is the most

aggressive in our history, is critical to moving Ole Miss to the forefront of college athletics, and we are eager to share our vision with the Rebel Family.

“It’s time to bring championships back to the state’s flagship university.” The announcement will be streamed live on OleMissSports.com’s RebelVision.

D A I L Y

MISSISSIPPIAN

FRIDAY, JULY 22, 2011 | VOL. 100, NO. 163 | THE STUDENT NEWSPAPER

OF

THE UNIVERSITY

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MISSISSIPPI | SERVING OLE MISS

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OXFORD

SINCE

1911 |

THEDMONLINE.COM

WHY PASSING DEBT CEILING LEGISLATION IS IMPORTANT

GRAPHIC BY PETRE THOMAS & NICK TOCE| The Daily Mississippian

BY LEE HARRIS, CAIN MADDEN AND TAYLOR SMITH The Daily Mississippian

The U.S. government’s ability to borrow to pay its legal obligations could screech to a halt on Aug. 2, and many believe the world’s economy hangs in the balance. It could be even worse for Mississippi if the U.S. is unable to pay existing legal obligations due to not raising the debt ceiling, said U.S. Rep. Bennie Thompson (D-MS). “A state like Mississippi, which receives more money from the federal government than it sends it, would be disproportionately harmed by any failure of our financial system,” Thompson said. Raising the debt limit is par-

ticularly important to students, Thompson said. A significant percent, 18-19 percent, of Mississippi’s public school support comes from the federal government, including the meals program and the ability to purchase computers and other aides. “Public education is something that Mississippi can’t support on its own,” Thompson said. “That is why federal help is so important.” Higher education would also be impacted, as many students rely on FAFSA resources, including pell grants, subsidized loans and work-study. “Without it, I would not have finished college, probably, and there are many in the same situation,” Thompson said. “I used work-study and student loans throughout college.”

Problems in the U.S.A.

Not getting it done could also sink programs like Social Security, and President Obama has

A state like Mississippi, which receives more money from the federal government than it sends it, would be disproportionately harmed by any failure of our financial system. BENNIE THOMPSON , (D-MS)

come under fire recently for saying that Social Security checks may not go out. The budgeted expenditures for August total to $306.7 billion,

while the projected revenue is $172.4 billion This leaves a deficit of $134.3 billion that the federal government will be unable to pay. If the government used August revenues to pay for August expenses in Social Security benefits ($49.2B), Medicare/Medicaid ($50B), interest on debt ($29B), unemployment benefits ($12.8), active military salaries ($2.9B) and federal salaries ($14.2B), there would only be $14.3 Billion left to pay for the Department of Education ($20B), IRS Refunds ($3.9B), Veteran’s Affairs ($2.9B), Defense Vendors ($31.7B), not to mention the Justice department, FAA, FTA and other federal agencies totaling $89.9 billion. While the average college student faced with this situation might decide to eat out less or

cancel their Netflix subscription, the choice becomes much harder for the federal government. The U.S. has also recently come under attack by rating agencies in a recent release. The U.S.’s AAA rating is basically like having a perfect credit score, and Moody’s Investors Service is threatening to downgrade that if the U.S. isn’t able to pay its current bills and do something about the debt. Jon Moen, chair of the University of Mississippi’s economics department, said this would be quite the blow. “It will just, in effect, raise the rate of interest the U.S. government has to pay on borrowing,” he said “In other words, more of our taxation and revenue will go to paying interest (on our debt) See DEBT, PAGE 4


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