January 6, 2004
02004 The Michigan Daily
Ann Arbor, Michigan
Vol. CXlll, No. 70
One-hundred-thirteen years ofeditoralfreedom
the west at
------ ---- ----------
to meet budget
By Andrew Kaplan
Daily Staff Reporter
Facing a leaner budget than during the
2003 fall term, the University has begun
cutting its expenditures across the board.
Although administrators have not yet
convened to determine spending reduc-
tions, several personnel said they have
already planned to trim costs by elimi-
nating vacant faculty positions, cancel-
ing a few courses this term - mainly
seminars - delaying certain projects
and infrastructure upgrades and locking
up buildings a
than last year. The Cos
the budget cuts University admi,
into a "notice- departments to n
able reduction after state fundn
in activity that Last month, th
isn't scheduled ed 5 percent of it
classes" being the University.
Provost Paul Provost Paul Co
Courant said. all academic units
Some adminis- their spending.
said they had Cost-saving mea
planned for include eliminating
funding reci- positions, suspenc
sions. ri- research/maintena
The rbusiness travel.
from a 5-per-
cent, $16.4-million state funding
reduction last month, come on the
heels of a previous round of reduc-
tions when the state pared about
$37 million from the University's
budget, over a few different phases
of cuts in the last fiscal year.
Those previous measures - which
included laying off faculty, increasing
class sizes and cutting the Division of
Student Affairs by $700,000, among,
other moves - were permanent excises
from the University's budget, known as
By contrast, the current spending
reductions are one-time cuts. When
Gov. Jennifer Granholm plans the
next state budget this spring, the Uni-
versity may be able to restore some of
the rollbacks for the 2004 fall term.
Although the University must, in
effect, give back 5 percent of its fund-
ing this term, expenditure reductions
are not necessarily everlasting.
Nonetheless, some personnel said
they anticipate an ongoing state fis-
cal dilemma to generate a wave of
permanent base cuts after the most
recent round of funding recisions. If
the state Legis-
of Cuts lature choose
to withhold 5
ratos instnUct percent of
duce spending tion funds in
CUtS the next budget
state rescind- cycle, the Uni-
funding to versity could
face a signifi-
ant has asked budget in years
conserve to come.
"Now if the
cuts carry into
ures may next year, that's
acant faculty a whole differ-
g ent situation,"
ice, reducing said University
utting back spokeswoman
She added that
she plans to reduce some temporary
Full Court Press
PASADENA, Calif. - Well,
that didn't last long. John
Navarre's leave of absence
as resident punching bag is offi-
He temporarily gave up that
position after beating Ohio State
in the Big Ten title-clinching game
that should have defined his lega-
But in the stands during the
Rose Bowl game, in the airport on
the way home and in my inbox,
Michigan fans grumbled about the
28-14 loss to Southern Cal., plac-
ing the blame squarely on the sen-
ior quarterback. He 's slow. He
should've thrown the ball away.
It's all his fault.
My response to all of this jumping
on the Navarre-sucks bandwagon?
Get offNavarre's back. The South-
ern Cal. players were there enough
The Trojans sacked Navarre nine
times. They hurried, harassed and hit
him all afternoon.
Navarre spent nearly as much time
on the ground as on his feet. He fum-
bled twice, although he recovered the
ball both times. He was taken down
by guys he never even saw coming.
He threw an interception, albeit on a
fluke play. He did not, to state the
obvious, have a good game.
See LEWIS, Page 7A
Michigan seniors Carl Diggs (43, left) and John Navarre (16) step off the fieid after Michigan's 28-14 loss to the University
of Southern California Trojans in the Rose Bowl on New Year's Day. It was Michigan's 18th appearance In the Rose Bowl this
year played in Pasadena, Calif. In the 90th game In the bowl's history.
Despite bowl loss, thousands rom 'U'
community celebrate zi~Gode n State
staff positions this term, in order to
cut expenditures in her communica-
Peterson has said in past interviews
that long-term state funding cuts will
compromise the University's ability to
"serve its students."
While administrators said all depart-
ments have been asked to make conces-
sions to fill the gap, they added that state
funding cutbacks will not reduce finan-
cial aid payments or cause tuition fees to
See BUDGET, Page 7A
By Ashley Dinges
Daily Staff Reporter
PASADENA, Calif. - $1,793: the
cost of a standard five-day Alumni
Association Rose Bowl package for
$589: one airplane ticket from
Detroit to Los Angeles, with a connec-
tion in Milwaukee.
$285: splitting the cost of a rental
recreational vehicle between eight
But no matter how fans traveled
there, and despite the loss, they
showed their support for the football
team and University.
Many fans opted for one of the
Alumni Association's Official Bowl
Tour packages, including hotel accom-
modations, game tickets, and other
In total, the association accommo-
dated about 6,000 to 6,500 people on
both five-day and two-day land/air or
land only packages.
Rita Werthman, manager of the
Alumni Association Board and
Employee Relations, worked at
several of the organization's
events, including the pre-game
"We thought it was a great trip,
the weather cooperated, which we
were concerned about. We loved
being with the Michigan group -
they were very enthusiastic,"
See FANS, Page 7A
Borders employees, executives
reach'tentative' labor agreement
By Mona Rafeeq
Daily Staff Reporter
It's back to business as usual for the
downtown Borders bookstore after a "ten-
tative agreement" was reached last week
between Borders Group and hourly
The agreement came after nearly a year
of negotiations between the two parties.
During that time, 16 of the store's 43
hourly employees went on strike for more
than a month after failed negotiations.
Union executives are recommending
that employees ratify the agreement, said
David Radtke, the union lawyer for the
Since the breakthrough in the negotia-
tions, the striking employees put away
their signs and began arriving back at
work on Friday.
Jim Kirk; a former striker, negotiated
with the Borders Group. Kirk and other
Borders Books and Music hourly workers
are members of a Madison Heights chap-
ter of the United Food and Commercial
"We are especially pleased because the tentative
agreement is in step with two of our principles: to
treat all Borders employees nationwide fairly and
consistently and to remain competitive in the retail
- Anne Roman
Borders Group spokeswoman
The downtown Ann Arbor store is one
of two Borders in the United States with a
union. The other store is located in Min-
"This has been a long hard struggle over
the last couple of months and the last
year," Kirk said. But he added that he and
the other ex-strikers are happy with the
Anne Roman, spokeswoman for Borders
Group, said she is satisfied with the terms
tentative agreement is in step with two of
our principles: to treat all Borders
employees nationwide fairly and consis-
tently and to remain competitive in the
retail sector," Roman said.
Employees plan to vote on the ratifica-
tion at a meeting either tomorrow or
Thursday. The union will supervise the
The parties have agreed not to discuss
the terms with the public until the agree-
ment is ratified. But employees said the
terms address their concerns.
See BORDERS, Page 7A
RC junior Matt Kessler (left) and Engineering senior ElI Cooke (ight) shop the bargain tables outside Borders
Books and Music yesterday afternoon. Borders workers, who had been striking against their employer since
November, reached a tentative agreement last week with company negotiators to return to work.
especially pleased because the
'U' report: economy not as robust as expected
By Tomislav Ladika
Daily Staff Reporter
Just as the national economy appeared to be
overcoming a two-year slump and people were
beginning to look forward to significant job
growth, economic reports released during the
holiday shopping season indicate the recovery
may proceed slower than initially expected.
Last month's Index of Consumer Sentiment
fell from 93.7 to 92.6, according to a news
release by the University's Surveys of Con-
sumers, marking the first time the index has fall-
en in three months.
Many department stores also reported that
l salcs the weekend- after Thanksgivina - which
Sears, Roebuck and Co., for example, reported
a 3.6 percent decline in sales during November,
and Kohls experienced a 4.4 percent decrease in
sales, according to company news releases. Both
results were lower than expected.
Other stores such as Wal-Mart saw increases
in holiday sales that were lower than expected. A
Wal-Mart news release states that total sales
were "tracking nearer the low end of the 3- to 5 -
percent range for the December period."
The sluggish holiday sales and fall in con-
sumer confidence indicate that the national
economy will recover slower than many analysts
earlier predicted, Business School Prof. Claes
Becaue conumer nendina makes un almost
declines, Fornell said.
But he added that while the economy will
grow at a modest rate, he does not believe the
upward trend will reverse itself and lead to
Despite the decline in consumer confidence,
Surveys of Consumers Director Richard Curtin
said in a written statement that many consumers
expect the economy to remain strong and create
further job growth in the year ahead.
"The highest proportion of consumers in two
decades anticipate a falling unemployment rate
in 2004," he said in the statement.
According to the survey results, consumers
expect the unemployment rate to fall to 5.5 per-
cent by mid-2004 and GDP to grow by 4.5 ner-
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