Page 2-Thursday, March 24, 1983-The Michigan Daily
LANSING (UPI) - A resolution
asking Gov. James Blanchard to ap-
point .a group to study Michigan's
higher education system - including
suggestions that some programs be
consolidated - was approved by a
House committee yesterday.
The resolution, approved by the
House Colleges and Universities Com-
mittee, now goes to the full House for
"Competition for reduced state funds
dictates more coordination among
higher education alternatives," said
Rep. Ruth McNamee, the Birmingham
Republican who sponsored the
resolution. "The structure of our higher
education system should be examined
as the economic needs of our society
Despite a warning by State School
Superintendent Phillip Runkel, the
committee amended the resolution to
include a representative of education.
Runkel said no one directly connected
with higher education should sit on the
council to assure it is not perceived as
Also included on the suggested com-
mittee would be representatives of
business, labor, and government, all of
whom would work with Runkel to make
a report to Blanchard and the
Legislature by March 1, 1984.
Living on the fault line AP Photo
This Sausalito, Calif. maintenance man peers down the widening crack in the driveway of the condominium complex
where he works. More severe weather is forecast for California in the days to come.
Senate com m--ittee okays tax hike
LANSING (UPI) - The Senate
Finance Committee approved yester-
day a 38 percent increase in the state
income tax with eventual plans to
eliminate the levy when unemployment
levels decline in Michigan.
Less than an hour before, the Senate
Administration and Rules Committee
gave its approval to a companion
measure which will ask voters to sub-
stitute a 50 percent increase in the 4
percent state sales tax for the income
INCLUDED IN the proposed con-
stitutional change is a promise citizens
will get property tax relief when
economic times improve.
The full Senate is scheduled to take
up both measures today, with lengthy
debate predicted. Prospects for ap-
proval of either are uncertain. Both
measures received 3-2 votes by their
committees, with Democrats ap-
proving and Republicans opposing.
State Treasurer Robert Bowman said
while Gov. James Blanchard has not
formally endorsed the proposal, "the
numbers appear to add up." he said the
administration will offer its position
before the Senate vote.
FINANCE chairman Sen. Gary Cor-
bin (D-Clio) described the income tax
plan as a reasonable way to "restore
this state to fiscal integrity."
Michigan currently has a fiscal 1983-
84 budget deficit estimated at $900
million, as well as an $800 million long
term cash shortage.
Senate Democratic Leader William
Faust of Westland said the package has
"a fighting chance" of winning Senate
approval. House Speaker Gary Owen
(D- Ypsilanti) said the plan does not
appear to be a drastic revision of the
proposal approved by House
Democrats earlier this month.
Under the income tax hike bill,
Michigan's current 4.6 percent levey
will rise to 6.35 percent. Included in the
increase is a 0.25 percentage point
charge dedicated to eliminating the
longterm cash shortage which has
brought Michigan disfavor in Wall
Street financial houses.
The Senate Democratic plan.
elaborates on a House proposal
lowering the income tax as the unem-
ployment rate falls. Once unem-
ployment rates reach a 14 percent
average, expected to occur around the
end of 1983, the tax will begin to fall.
Compiled from Associated Press and
United Pressinternational reports
Deficit approaches new record
WASHINGTON - The government outspent its income by more than $25
billion in February, pushing the federal deficit for the first five months of
fiscal 1983 close to the record $110.7 billion for all of last year, a report in-
Last month's red ink - $25.336 billion to be exact - was the second-largest
one-month deficit ever, the third in that general range since the fiscal year
began Oct. 1.
The record shortfall was the $26.17 billion in October. February's total
pushed November's $24.16 billion into third place on the all-time list, accor-
ding to Treasury Department reports.
The deficit this fiscal year is $103.184 billion, the report said. That's about
half the Reagan administration's Droected $208 billion red ink for the year.
Though deficits vary monthly - and the tax payment flood usually
brings a surplus in April - the administration's full-year estimate indicates
officials are expecting the big figures to continue.
Index shows drop in inflation
WASHINGTON - Consumer prices, driven down by record plunges in
gasoline and fuel oil costs, fell 0.2 percent in February, only the second time
since 1965 that the measure of inflation has declined, the government repor-
The new report marked the fourth month in a row of little or no gain in the
Labor Department's Consumer Price Index, and raised the possibility that
inflation for the year would be the lowest in two decades.
President Reagan said, "This steady progress confirms once again that
we are putting inflation back in its cage and that our economy is on the
The continued good news on inflation has been mostly attributed by
economists to the lengthy recession, good crop harvests, and the worldwide
oil surplus, which recently forced the OPEC oil cartel to slash its base price
for crude oil by $5, to $29 per barrel.
Some oil companies are now raising the prices they charge gasoline
dealers as world oil prices stabilize. But many economists predict the oil
cartel will be forced to cut prics even more in coming months, which may
show up later in still lower gasoline and fuel oil prices for American con-
Nicaragua anticipates invasion
MANAGUA, Nicaragua - Bandinista militia commanders reported
fighting with rebel invaders in two Northeastern towns yesterday in what the
Marxist-led government said it feared was the prelude to a U.S.-sponsored
invasion by Honduras.
At the United Nations, Honduran ambassador Enrique Ortez Colindres
rejected the charge that Honduras was planning to attack Nicaragua.
"We don't believe in the language of the gun or in violence," he said. "We
believe in dialogue between countries and the popular expression through
the ballot box."
He denied Nicaraguan claims Honduran troops were massing on the bor-
der with Nicaragua and said "we are ready to submit ourselves to inter-
national supervision" to confirm this.
Nicaraguan Deputy Foreign Minister Victor Tincoco said early in the day
that the "massive infiltration" of rightist rebels from Honduras posed no
military threat but his government feared the action might be just the
Big Macs reveal new virus
BOSTON (AP) - A mysterious intestinal ailment that first struck diners
at a fast-food chain is a new-found disease caused by a rare bacteria, and it
has spread across the United States, researchers say.
Federal disease experts are seeking the source of the organism so they can
wipe it out, but they fear it is becoming established in the nation's food
The first major outbreak appeared last year among 47 people who ate at
McDonald's restaurants in Michigan and Oregon. It has since occurred
among patients at a Canadian hospital, and 40 scattered cases have been
reported in the United States.
The disease is hemorrhagic colitis, and is caused by a rare form of the
common bacteria E coli. Victims have severe cramps and bloody diarrhea,
and the sickness lasts from three days to more than a week.
Doctors from the Centers for Disease Control in Atlanta call the ailment
"a clinically distinctive gastrointestinal illness" and say it is apparently
transmitted by undercooked meat.
Habib pushes new U.S. plan
for Mideast peace agreement
U.S. envoy Philip Habib yesterday gave Israeli officials a warning from
Beirut that Lebanon cannot sentany further in talks on a withdrawal of
foreign troops, Lebanese officials said.
Lebanon will "not confine itself to fruitless negotiations," the official
Lebanese National News Agency said. Habib "was conveying to the Israeli
authorities Lebanese limits which cannot be crossed," it said.
In Jerusalem, "no major progress" was made in a meeting between
Israeli Foreign Minister Yitzhak Shamir, Defense Minister Moshe Arens
and Habib, an Israeli source quoted by Irael radio said.
The new U.S. withdrawal plan proposes that Lebanese army troops and
multinational peace-keeping forces cooperate in patrolling souther Lebanon
to protect Israel's northern border, the official Lebanese agency said.
The plan would go into effect after a withdrawal of the 30,000 Israeli, 40,000
Syrian and 10,000 Palestinian troops in Lebanon.
Vol. XCIII, No. 136
Thursday, March 24, 1983
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715 HL WOMEN AND POWER (A series)
Corner: Oakand / . Thursday, March 24, 8pm
i Margo Duley Morrow, Pres. Mich. N.O.W. and Assoc. Dir., Honors Progr., LSA, U-M
Dates: r " and "Empowering Women in Politics"
Tues. MaWch 9 :' WOMEN'S LIVES
Conversatlons on how women grow and change
CA*LLN FOR RESERVATIONS Friday, March 25, noon:
769-3078 995-3276 996-2479 Dottie Jones, Asst. Dir., UAW Walter Reuther Senior Centers, Detroit,
0 00pr SedarPoet and former Auto Worker.
Lunch (home-made vegetarian soup) available at $1.00
is GUILD HOUSE, 802 MONROE (662-5189)
Robste r Studenfs Program is sponsored by Guild House Campus Ministry and funded in port by
Michigan Commission/United Ministries in Higher Education.
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JUSTWHA T THE.
Managing Editor ......
Opinion Page Editors.
Student Affairs Editor
Arts Magazine Editor.
Associate Arts Magazine Editi
Associate Sports Editors....
BARRY WIT son Foye, Chris Gerbosi. Paul Helgren, Steve Hunter.
JANET RAE Doug Levy, Tim Makinen, Mike McGraw, Rob Pollard
. KET REDING Don Price. Paul Resnick. Scott Solowich, Amy Schiff,
KENT REDOIN Paula Schipper. Adon Schwartz. John layer. Steve
FANNIE WEINSTEIN BUSINESS MANAGER ........ SAM G. SLAUGHTER IV
GEORGE ADAMS SALES MANAGER,....................MEG GIBSON
BETH ALLEN DISPLAY MANAGER....................JEFF VOIGT
BEN TICHO CLASSIFIED MANAGER ................PAM GILLERY
ors ... LARRY DEAN OPERATIONS MANAGER .........LAURIE ICZKOVITZ
MARE HODGES NATIONAL MANAGER ................. GITA PILLAI
SUSAN MAKUCH FINANCE MANAGER ................MARK HORITA
... JOHN KERR ASSISTANT DISPLAY MANAGER ..... NANCY GUSSIN
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CHUCK JAFFE CIRCULATION COORDINATOR........TIM McGRAW