Ninety-Two Years of Editorial Freedom J' I~Iiv 43. 1E~a1 DITTO Partly sunny, windy, and mild today, with a high in the mid 40s. I s l Vol. XCII, No. 125 Copyright 1982, The Michigan Daily Ann Arbor, Michigan-Thursday, March 11, 1982 Ten Cents Ten Pages r k # Federal financial *aid to be halved, office says. WASHINGTON (AP) - Federal aid to college students would be slashed nearly in half by 1984 under cutbacks already enacted or sought by President Reagan, Congress' top economic ad- viser said yesterday. Alice Rivlin, director of the Congressional Budget Office, also told a House subcommittee on postsecondary education that Reagan's cuts in student loans were "drastic" and likely to make it impossible for graduate students to borrow. MEANWHILE, Education Secretary T.H. Bell was put on the defensive by a House appropriations subcommittee about the proposed cuts in his overall budget from $13 billion to less than $10 billion in fiscal 1983. Bell said some people charge "the president doesn't care about education." "That's unfair and that's not true," Bell said. "His record in eight years as governor of California indicates his commitment to education. It's just this horrendous fiscal dilemma that we find ourselves in right now." RIVLIN testified that federal loans, grants and other aid pay one-third of all college tuition, room and board bills. She said five million to six million students - 1 in 2-- got help amounting to $14.7 billion in fiscal 1981. Almost half the aid was in the form of loans, and roughly 20 percent went to See FINANCIAL, Page 7 M 0en bikesg taxes, spares ' more cuts Daily Photo by DEBORAH LEWIS HELENE FLON, a member of the local Latin American Solidarity Committee, urges students in the Fishbowl yester- day to join the opposition to the Reagan administration's aid to the El Salvador junta. Secretary of State Alexander Haig defended the administration's policies before congressional leaders yesterday. Haig says U.S. military aid vital to E Salvador By JANET RAE Noting that "further cuts could havre disastrous effects" on the state's higher education programs, Gov. William Milliken yesterday spared the Univer- sity any further budget cuts beyond an appropriations deferment plan which had been announced last January. However, because the governor made no mention of the deferment plan, he left some doubt as to whether the previously announced appropriations program still stands. AND, IN A dramatic reversal of earlier economic policy, Milliken an- nounced a state income tax hike of seven-tenths of one percent. The tax hike, if approved by the state legislature,will go into effect April 1, he said. During a televised presentation last night, Milliken called for legislative approval of his plan of budget reduc- tions, employee concessions and the state income tax increase to offset a $515 million state budget deficit. Milliken's plan - which includes a record $450 million executive order spending cut - calls for withholding the University's fourth quarter (July, August, and September) state ap- propriations. UNDER THE plan presented by State Budget Director Gerald Miller in January, that $38 million would be repaid to the University in thirds during: the following fiscal year, in addition to WASHINGTON (AP) - Secretary of State Alexander Haig said yesterday that withdrawal of U.S. military aid would be a -"fatal blow" to the government of El Salvador in its battle against leftist guerrillas. Testifying before a Senate panel that screens foreign aid requests, Haig also said it is "too early to say" whether the United States would continue to supply aid if extreme rightists win the March 28 Salvadoran election. When Sen. J. Bennett Johnston (D- La.) asked what would happen in El Salvador if the United States withdrew its aid, Haig replied, "It would be, I think, a fatal blow to the government's ability to sustain itself." THE SECRETARY added, however, that the outlook for the ruling junta is "not as grim as is sometimes suggested" and "in practical terms, the guerrillas are not about to overrun the country." Haig appeared before the foreign operations subcommittee of the Senate Appropriations Committee as the Reagan administration continued its ef- forts to rally public support for its Cen- tral American policies. On Tuesday, intelligence experts showed off aerial photographs that they say show a massive Soviet-supplied military buildup in Nicaragua. HAIG SAID the insurrection in El Salvador is "largely" and "essen- tially" controlled from Managua, the capital of Nicaragua. Sen. Robert Kasten (R-Wis.), chairman of the sub- committee, said the aerial photographs were "helpful" but "additional hard See HAIG, Page 2 . Milliken ... proposes tax hike a 14 percent appropriations increase. The governor's speech last night did not make it clear whether he still in- tends to repay those losses when the 1982-83 fiscal year. begins Oct. 1. Miller said Milliken's proposed budget for 1982-83, still awaiting initial legislative action;,.already must be reduced $194 million. See MILLIKEN, Page 2 More 'U' engineering graduates leaving state may hurt economy By SCOTT STUCKAL With UPI reports1 A growing trend of University engin- eering students leaving for jobs outside W Michigan after graduation may seriously hamper the state's efforts to, diversify its economy. James Duderstadt, dean of the University's College of Engineering, said yesterday that growing numbers of engineering graduates are passing up jobs in Michigan for higher-paying ones in high-technology industries in the South and West. THIS HURTS Michigan's chances of building a strong high-technology in- dustry in the state and attracting new industries to the economically troubled area, Duderstadt said. The number of Michigan engineering Board vote By CHRIS SALATA The State Board of Education unanimously adopted a resolution yesterday opposing the teaching of creationism in public schools. The resolution, introduced by State Board Secretary Barbara Roberts Mason (D-Lansing), requires "any school district currently teaching creationism or any course in religion in an attempt to indoctrinate (students) toward any particular belief or disbelief cease and desist such a teaching." IT ALSO reaffirms the board's desire that constitutional provisions guaran- teeing the separation of church and state be strictly enforced by the state attorney general's office. Gumecindo Salas (D-East Lansing) graduates choosing to remain in Michigan has dropped 25 percent over the past year, Duderstadt said. Traditionally, Duderstadt said, about one in every three University engineering graduates take a job in Michigan, while another one in three selects a city in the Great Lakes area as his or her place of employment. DUDERSTADT said the way to reverse this damaging trend is for in- dustry and the state to boost their sup- port for the engineering college. He said declining state financial support is allowing engineering programs to deteriorate. This, he said, will result in a decline in the quality of graduates and, ultimately, will harm the state's efforts to build a top-quality high- technology industry in Michigan. But, a number of engineering seniors contacted last night said they still plan to leave the state after graduation. Engineering senior Stephen Akiello, who is from Trenton, Michigan, said he plans to accept a job in California "b ecause I don't think Michigan has a hell of a lot to offer." Another senior in industrial engineering, Steve Langer, said he too plans to leave the state once he graduates. "I think I might be out of state," he said. "Things are a little depressed around here. There's not a lot of opportunity for industrial engineers. Things are juist so tight." 'U' report re dicts economic recovery By ABBY TABB University experts are forecasting that an economic recovery from the current national recession will begin in the second quarter of this year and will then accelerate sharply after mid-year when the second stage of President Reagan's personal tax cuts take effect. The forecast, put together by some of the University's leading economists, is in the periodic update of a report made last November at the University's 29th annual Conference on the Economic Outlook. University Economics Prof. Saul Hymans, University President Harold Shapiro, and - University Economics Research Assistant Joan Crary comprised the forecasting team. ONE SIGN OF economic upturn in- cludes a forecasted rise in the Gross National Product's annual growth rate (adjusted to inflation) in the spring quarter of this year. Other signs in- clude a predicted rise in auto sales of 500,000 units from the first to the second quarter of 1982 and a rise in housing starts of about 140,000 units during the same period. The forecast also predicts the unem- ployment rate will peak at mid-year at a quarterly average of .9.2 percent and then will decline until the closing quar- ter of 1983 at 6.8 percent. They expect the inflation rate to decline from 6 per- See 'U' REPORT, Page 7 s against C had proposed a resolution last month which would have expressed the board's adament opposition to "the teaching of any religion or religious theory in our public schools." That resolution was dumped by 'a tie vote split along party lines. The Mason resolution state the board will "oppose the teaching of any course in religion in public education in- stitutions which is outside of the realm of a secular program of education." Howard Simon, director of the Michigan chapter of the American Civil Liberties Union, applauded the resolution. "It is cautiously worded, but in a crucial respect intelligently wor- ded," he said. The resolution, said Simon, is only "the necessary first step" in efforts to keep creationism out of the public reationism schools' science curriculum. Rep. Alan Cropsey (R-DeWitt), a leading proponent of creationism in the state legislature, said he considered the vote "merely a recommendation... not binding on the local school districts." Simon denies allegations by creationists that the ACLU is attem- pting to be a censor for public school education. "We are not engaged in an effort to ban creationism," he said. "We are engaged in an effort to make fundamentalists be a little more honest than they have been." "If (the creationists) are honest enough to call it religion, there are places it can be taught," Simon said. School board officials in at least three Michigan school districts have allowed creationism to be taught alongside evolution in science classrooms. Daily Photo by DEBORAH LEWIS Coming soon The new Alumni Building sports a sparkling facade as construction wraps up. The building, located opposite the Rackham Building, will open soon af- ter finishing touches on the interior are completed. Y 7TODAY Physician fetishes HOSE MICHIGAN State University researchers just don't stop. The latest from the East Lansing gang is a snappy little study of physicians' fetishes. It reports that physicians most dislike patients who are dirty, demanding, and hostile, and those whose conditions are hardest to cure. David Klein, a professor of social sciences and human development, based his conclusions on a survey of 1,000 members of the ditions they seem to dislike most are the ones they can't cure or aren't trained to deal with," he said. Responses on social characteristics indicate doctors strongly adhere to traditional American, Protestant values, Klein said, adding this indicates a need for a change in medical school prac- tices. 0 Mora fedoras Indiana Jones, the hero played in the adventure film Raiders of the Lost Ark, has done more than entertain moviegoers coast-to-coast. He has fostered a fashion trend. women are buying fedoras for themselves. Many couples in Manhattan can be seen wearing look-alike hats. "Everybody wants to be a hero, and they. identify with people who lead more exciting, adventurous lives," said Marsha Akins, designer of Makins Hats. "The hat becomes part of the identification, part of the fantasy. One year it was Kojak, even though the hat was ugly, another year it was the urban cowboy and this year the macho image is In- diana Jones," she said. Gary Rosenthal, president of the Stetson Hat Co., said he is delighted by the reaction to the Indiana Jones' look. He said the strongest reaction so far has come, as may be expected, from those in the 18-30 age Also on this date: " 1963- Five University professors took part in a "balan- ced" non-partisan probing of eight major sections of the proposed state constitution. " 1949- The newest innovations at West Quad were table cloths at all evening meals. Actually the new system was an experiment to discover whether men in the Quad could keep the cloths clean so that there will be enough to continue using them. * 1933- Registration in the College of Engineering showed a decrease in enrollment from 1,326 to 1,225 6tuden- ts. The mechanical engineering department was still the .I I i