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Mtt4 tfV~t~ D ily Saturday, May 5, 1979 ]
[ he l . Sixteen Pages
Ann Arbor, Michigan Ten Cents
Nation's med schools may face budget cuts

By VICKI HENDERSON
The Carter administration is asking Congress for
the authority to cut the appropriated budget set up in
1971 for the nation's medical schools, said the Socio-
economic Newsletter of the Institute for Socioeconoxnic
Studies (ISS) in White Plains, New York. A $46.4
million cut already has been approved by the Ap-
propriations Committee while further action is being
awaited by Congress.
In the early 1970's, the federal government initiated
a funding program for medical schools on the basis of
the number of students enrolled in the school.
DR. JOHN GRONVALL, dean of the University
Mediea1 eohnn1 was invnlved in the initiation of the

capitation program when it began. In 1971 capitation
went into effect and funds were appropriated on a per
capita basis according to the number of students
enrolled. The University was required to increase its
enrollment by five per cent to receive core support,
said Dr. Thomas Herman, associate dean of the
Medical School. "The University went along with it," he
said. "We increased enrollment by 12 students in order
to maintain support of our present programs and to be
eligible for capitation."
"Funding has varied from $1,000 to $1,300 per
student," said Gronvall. He said that this year, the
University received just over $1 million in core sup-
port.
"The original intent of the capitation program was to

enhance medical school enrollment. The ad-
ministration is now saying that medical schools don't
need to expand," Gronvall explained.
THE GROUND RULES now are being changed, said
Herman. "If we lose core support, we'll have to reduce
the number of students to use fewer dollars to maintain
the quality of the school," he added.
An overload of doctors by 1990 predicted by the
Department of Health, Education and Welfare justifies
the budget cuts, the ISS newsletter said. But other fac-
tors besides numbers must be taken into consideration,
said Herman. "Fewer doctors mean longer lines, it's
harder to see a doctor, and physicians must see more
See CARTER, Page 2


Carter: Inflation
cure will hurt

From AP and Reuter
DES MOINES, Iowa - President
Carter warned Americans yesterday to
beware of "people selling snake oil
cures for inflation - or telling science
fiction stories about easy energy."
In a speech to the Iowa State
Association of Counties, at the start of a
two-day, "non-political" tour of Iowa
and California, the president said in-
flation might worsen in the short run.
"THERE IS NO miracle cure," he
declared. "And the measures that will
work are going to hurt."
The same is true of energy, he said.
"The federal government has no secret
scientific miracle tucked away that will °
suddenly produce a cure for our
longstanding overdependence on
foreign oil."
Carter said the lack of a miracle
energy cure means "we must use less
and will pay more for what we do use."
HE ALSO renewed his call for
congressional approval of a tax on win-
dfall profits the oil companies will reap
from removal of federal price controls
on domestic crude oil. "It is unjust for
the- oil companies to profit from our
pain," Carter said.
The president said it would be far bet-
ter to concentrate on a test of strength
ME NT

with the oil companies than to extend
price controls.
Carter applauded California Gover-
nor Jerry Brown, a potential rival for
the Democratic presidential
nomination next year, for taking steps
to restrict the supply of gasoline to
California motorists.
CALIFORNIA, with poorly developed
mass transport systems, is heavily
See NO, Page 5
Staty budget
deliberately-
fake, senate,
leaders say
LANSING (UPD-Gov. William
Milliken deliberately submitted a
phony 1979-SO state budget so
lawmakers would catch the heat for in-
creasing it, two Senate leaders said
yesterday.
"The governor's proposed '79-'80
budget is currently well out of balance
and it was out of -balance when he
presented it to us-and I am fairly cer-
tain he knew of it,'" Senate Ap-
propriations Committee Chairman
Jerome Hart (D-Saginaw) said.
"1. am really getting sick and tired of
the governor regularly submitting to
the legislature a budget that's out of
balance,' and then allowing the
legislature to take the blame for in-
creasing the budget to meet the under-
funded needs in his proposal."
HART SAID Milliken's revenue
projections "rarely match his expen-
diture requests" and claimed the
See MILLIKEN, Page 2

MARGARET THATCHER, Britain's first woman prime minister, will find British
relations with Rhodesia her first critical foreign policy concern.
FIRST F EMALE HEAD OF PARLIA

British elect Thatcher prime minister

i

FromAPand Reuter
LONDON - Conservative Party
leader Margaret Thatcher, appealing
for renewed "harmony and hope" in a
battered Britain, became Europe's first
woman prime minister yesterday, her
Conservative Party back in power with
the biggest parliamentary majority
since 1966.
Thatcher and her Tories routed
James Callaghan's Labor Party gover-
nment in Thursday's general election
with promises to cut taxes, boost per-
sonal incomes and curb the power of the

country's labor unions.
WITH 10 RACES still undecided from
Thursday's voting, Thatcher's trium-
phant Tories held a commanding
majority in the 635-member House of
Commons - 334 against a combined
opposition of 291.
That's the biggest majority any party
has had in the House since Labor won a
99-seat -nargin in the 1966 election un-
der Harold Wilson.
Accompanied by her husband Denis
and their twin children, Thatcher went
from Buckingham Palace to 10

Downing Street, the official residence
of Britain's prime minister, where she
told a television interviewer on the
steps of the prime minister's office that
she was "very excited, very aware of
my responsibilities.
"THIS IS THE greatest honor that
can come to any citizen in a
democracy," she said. "I will strive
unceasingly to try and fulfill the trust
and confidence which the British people
have placed in me."
With the Conservative triumph a
See THATCHER, Page 12