European Stars and Stripes (Newspaper) - August 20, 1991, Darmstadt, Hesse                                Tuesday August 20, 1991 the stars and stripes a Page 7case May Cost Smith family $1 million in fees West Palm Beach Fla. A William Kennedy Smiths defense expenses probably have already topped $500,000, and his family Slegal expenses stemming from the rape Case Are Likely to exceed $1 million Legal sources estimate. For their part prosecutors and police have pursued the Case with what is by far the most extensive rape investigation in the memory of More than a dozen Legal sources. The prosecutions costs although lower with taxpayer salaried employees Are expected to run Well into six figures. A i think both sides Are going to do whatever is necessary a said Bill Wallshein a former Palm Beach county prosecutor now in private practice. A the. Stakes Are High on both  Smith a 30-year-old Nephew of sen. Edward m. Kennedy d-mass., denies that he raped a woman March 30 at the Kennedy family a Palm Beach estate. His attorneys have suggested that psychological problems spurred the woman a 30-year-old resident of Jupiter Fla., to fabricate her Story. Smith a medical school graduate has four Miami attorneys working nearly full time on the Case. Two Washington lawyers were heavily involved during the two months that followed the alleged rape. Among other things Smiths attorneys have a used three private investigators to dig into the background of the alleged victim and her friends. A retained a Duke University polling expert to Sample Public opinion. A have hired labs in Texas and Michigan for evidence analysis. A retained consultants who May conduct a mock trial to give advice on jury selection and what clothes to Wear. A the accused in this Case has resources that very few people in this country can draw upon a and he a making very Good use of those resources a said Joe Mincberg an attorney for Anne Mercer a Friend of the alleged victim. The alleged victims wealthy Stepfather has retained two top West Palm Beach attorneys to represent her. Smiths attorneys and the prosecutors Are barred by a gag order from discussing the Case. Smiths Lead attorney since late june has been Miami Sroy Black one of Florida a most respected defense attorneys. A Legal sources said that because this highly publicized rape Case is unlike any other they have seen it is difficult to give a precise Cost. But Here Are some estimates a Black probably charged a Flat fee for his services and those of Mark Sci Den through the trial set for Jan. 13. Most estimates Are at least $250,000. A Mark Schnapp and Holly Skolnick have spent hundreds of hours since their firm Greenberg traurig of Miami took Smiths Case april 1. Senior partners at the firm charge $350 an hour and Schnapp a former Federal prosecutor probably gets around $300 an hour. Skolnick his associate probably receives at least $200 an hour lawyers said. Senior partner Marvin Rosen is a longtime Friend of sen. Kennedy a and the firm May have a special arrangement to hold Down costs some lawyers said. A Washington attorneys Herbert a a Jack Miller and Randall Turk worked on Smiths behalf until late june. Partners in comparable Washington firms charge $300 to More than $400 an hour. The costs of the state attorneys office and the Palm Beach police investigation probably will run into six figures each. Medicaid Rule to Cut states extra Money Washington a the Bush administration trying to Cut medicaid costs has decided to end a practice that has enabled several states to receive millions of dollars in extra funds a Federal official said. The change could Cost these state governments a already struggling with a recession a $1 billion in the budget year that begins oct. 1, according to the official who spoke on condition of anonymity the regulation is aimed at states that collect special taxes or a voluntary donations from medicaid providers like hospitals or nursing Homes and thus qualify for a Cash match from Washington. States have been turning to this form of financing As their budgets wore thin and health care costs increased. But White House budget director Richard Darman has criticized such arrangements As a sleight of hand schemes that Send the governments share of medicaid through the roof. A a it a created a monster a Darman said. A everybody wins but the Federal  said the new Rule to be published this week would not abolish All such arrangements however. If states tax All hospitals nursing Homes and other health care facilities they would be eligible for Matching payments. States now tend to collect Money Only from those facilities that treat medicaid patients. States a Are not going to be Cut off cold Turkey a Darman said. A fall we re going to do is slow the rate of  but one state official said there would be a severe Impact. Illinois budget director Joan Walters said the ability to capture extra Cash from the . Government is the a Keystone for states to continue providing care to needy  medicaid is a program funded by Money from both the Federal and state governments. It provides health care for 27 million poor or disabled people. The Federal governments share ranges from 50 percent to 83 percent depending on the state. Any new regulation is Likely to draw opposition from Congress. Labor unions health care organizations and business groups Are urging lawmakers to give states the flexibility they need to pay their Bills. Ironically the health care financing administration which runs medicaid once encouraged the controversial funding plan. The plan started in the mid-1980s, when a few Southern states qualified for $50 million in extra payments. The Federal government was racing payments of $5 billion to More than 40 states next  journey Buddhist monks escort nine coffins sunday from the wat Prosku Nara Temple near Phoenix. The bodies or six monks and an acolyte slain with two other worshippers at the Temple aug. 10, were to be returned monday to Thailand for  Given tests for drugs Houston up a parole officers for the first time Are testing the majority of the states 74,000 parolees for illegal drug use and one in three is testing positive the Houston Post reported in a copyright Story sunday. Critics of the testing program including some Harris county parole officers suggest far More parolees Are using drugs than the numbers show. They also say the urinalysis tests Are useless because parole officers Are helpless to punish parolees for using drugs. A a lot of them will just flaunt it a said former parole officer Andy Kahan now a part time consultant to victims rights groups. Nea chief pleads for school funds Washington a the head of the nations largest teachers Union pointing to a 33 percent drop in the Federal education budget Over the past decade wants a major reinvestment in americans Public schools. Keith Geiger president of the National education association said the Federal share of education funding is 6.2 percent compared with 9.2 percent in fiscal 1980. The share of the Federal budget devoted to education has been slashed from 2.5 percent a decade ago to 1.7 percent today. The result is that a states have had to work harder and harder to fill the Gap created by decreased Federal support a Geiger said. A it is not As if there Are fewer students to serve or fewer educational problems to face Quot he said. A in fact our states and communities Are facing educational Chal Lenges of substantially greater magnitude than 10 years  As of june Geiger said at least 30 states had serious budget problems that forced across the Board cuts in state Aid and gutted school improvement efforts enacted in recent years. Geiger challenged Congress and the president to double the Federal education budget within the next three years. Programs administered by the education department received $27 billion in fiscal 1991, he said. Federal education programs have lost significant ground Over the past decade said an Nea report the Cost of excellence. Since 1980, participation in federally funded remedial math and Reading programs has fallen by 8 percent the number of districts receiving funds to compensate for Federal activities has fallen by 40 percent the purchasing Power of the. Average student receiving Pell scholarship Grants has fallen from one fourth of the Cost of attending a Public University to one fifth. According to the report it would Cost the government $25.6 billion in fiscal 1992, beginning oct. 1, to serve All eligible students in six key elementary and secondary programs for disadvantaged and handicapped children. The increase would be More than 100 percent yet it would mean Only a 10.5 percent Federal share of education spending. The report estimated that $17 billion would be needed for All eligible children to receive preschool nutrition and school lunch programs. More than 12 million students Are eligible for reduced Price meals under the school lunch program but the program is funded at about $600 million a 15 percent below the level needed to maintain services current with 1980