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www.michiandaily.com Ann Arbor, Michigan m Vol. CXV, No. 80 x2005 The Michigan Daily
State to cut $5.6 million from 'U'
E Granholm's proposed budget which would cut $5.6 million from the University The plan would continue the cuts into next year, come," Coleman said, for maintenance projects - for the next two fiscal
as part of a $30 million higher education cut. and would offer increased state aid to universities University Provost Paul Courant said last years. These funds can be used for the renovation
may force mid-year tuition With the state in a sluggish economic condition, that keep tuition increases under 5 percent. December that a mid-year tuition increase would or new construction of buildings around campus.
hike, draws opposition from Michigan Budget Director Mary Lannoye present- After Granholm's discussion of the importance be very likely if the state cut higher-education Office of the State Budget spokesman Greg
ed Granholm's state budget proposal to the state of education in boosting the state's economy in her funding further. University Spokeswoman Julie Bird said the capital outlay funds more than com-
Coleman in written response Legislature yesterday. She said the cuts as neces- State of the State address Tuesday, some were sur- Peterson said the administration will meet with pensated for the other decrease.
sary to balance the gaps in the current budget. prised by the $30 million cut. University President the University Board of Regents next Thursday to "Colleges and universities are given (this
By Julia Homing The cuts come at a time when the state's rev- Mary Sue Coleman said the proposal will serious- discuss a possible tuition increase and have not yet money) from which they can make capital, struc-
Daily Staff Reporter enue estimates for this fiscal year are $382 million ly affect the University's operating budget, nam- decided if it will happen. tural improvements on campus. This is really quite
less than budgeted. To compensate, Granholm ing expenses such as faculty instruction, student To offset the decrease in funds, Granholm's an achievement," he said.
A mid-year tuition increase became more likely plans to decrease funding to Medicaid and elimi- services and educational technologies. budget allows public universities and community But Coleman said this does not balance the other
yesterday after Gov. Jennifer Granholm released nate some tax exemptions in addition to the higher - "(The proposal) has the potential to affect colleges to take advantage of $100 million in capi- losses in funding. She said the small amounts of
her proposed state budget for fiscal year 2005, education cuts. our core academic quality for many years to tal outlay funds - state bonds which may be used See STATE, Page 7
boasts of having
Leaders say they will not
disarm despite Bush's vow to
rid the country of its weapons
SEOUL, South Korea (AP) - North Korea
announced for the first time yesterday it has
nuclear weapons, and it rejected moves to
restart disarmament talks anytime soon, saying
the bombs are protection against an increasing-
ly hostile United States.
The communist state's statement dramati-
cally raised the stakes in the 2-year-old nuclear
confrontation and posed a grave challenge to
President Bush, who started his second term
with a vow to end North Korea's nuclear pro-
gram through six-nation talks.
"We ... have manufactured nukes for self-
defense to cope with the Bush administration's
evermore undisguised policy to isolate and
stifle the (North)," the North Korean Foreign
Ministry said in a statement carried by the
state-run Korean Central News Agency. The
news agency used the colloquial term "nukes"
in its English-language account.
The claim could not be independently veri-
fied. North Korea expelled the last U.N. nuclear
monitors in late 2002. It is not known to have
tested an atomic bomb, although international
officials have long suspected it has one or two
The CIA has estimated that with a highly
enriched uranium weapons program and the
use of sophisticated high-speed centrifuges,
North Korea could be making more. Some
analysts and observers have put the estimate at
six to eight.
Secretary of State Condoleezza Rice said
the North had no reason to believe the United
States would attack.
"The North Koreans have been told by the
president of the United States that the United
States has no intention of attacking or invad-
ing North Korea," Rice said in Luxembourg.
"There is a path for the North Koreans that
would put them in a more reasonable relation-
ship with the rest of the world.
"Let's see what the North Koreans do
down the road," Rice told reporters on the
flight home. "Everybody is urging them to
get back to the talks."
Traveling with Bush to North Carolina,
White House press secretary Scott McClel-
lan said the statement from North Korea was
"rhetoric we've heard before."
"We remain committed to the six-party talks.
We remain committed to a peaceful diplomatic
resolution to the nuclear issue with regards to
North Korea," he said.
Previously, North Korea told international
negotiators in closed-door talks that it had
nuclear weapons and might test one of them,
South Korean officials say. The North's U.N.
envoy said last year the country had "weapon-
ized" plutonium from its pool of 8,000 nuclear
spent fuel rods. Those rods contained enough
plutonium for several bombs.
Yesterday's statement was North Korea's
first public announcement that it has nuclear
North Korea said Thursday its "nuclear
weapons will remain (a) nuclear deterrent for
self-defense under any circumstances."
It said Washington's alleged attempt to topple
the North's regime "compels us to take a measure
to bolster its nuclear weapons arsenal in order
to protect the ideology, system, freedom and
See N. KOREA, Page 7
South Korean tourists read a unification banner on a barbed-wire fence at the Imjingak Pavilion near the border village of Panmunjom
between the two Koreas in Paju, north of Seoul, South Korea, yesterday. The North Korean Foreign Ministry announced for the first time
yesterday, in a statement carried by the state-run Korean Central News Agency, that it has nuclear weapons.
could hurt state
'U' to take legal
action against Channel 4
F Michigan, Indiana and
Ohio could lose a total of
69,000 jobs as popularity
of hybrid cars grows
By Adhiraj Dutt
Daily Staff Reporter
The growing popularity of fuel-efficient
vehicles in the United States may benefit
the environment but could potentially have
severe consequences for
jobs," Flynn said.
The expected rise in imports of these envi-
ronmentally friendly vehicles may cause the
loss of nearly 69,000 jobs in Indiana, Ohio
and Michigan combined, he added.
"The argument is that we need to incent
- it makes economic sense to get the manu-
facturing of these vehicles and their compo-
nents into the country," Flynn said.
The study interviewed people in the auto-
motive industry and examined different sce-
narios in which the hybrid and diesel markets
News station says 'U' is
not doing enough to ensure
security in residence halls
By Jeremy Davidson
Daily Staff Reporter
The Residence Halls Association met last
night to pass a resolution against WDIV Chan-
nel 4, which aired a story Monday and Tuesday
and claimed to reveal "shocking" secrets about
the security inadequacies of the residence halls at
Michigan State University, Wayne State Univer-
sity and the University of Michigan.
Earlier this week, the channel broadcast a
report in which undercover reporters illegally
trespassed into dorms at all three of the universi-
ties they were investigating.
RHA passed the resolution last night in hopes
of encouraging the University to pursue the fullest
legal recourses in response to the trespassing.
Alan Levy, director of housing public affairs,
said he felt the television reports were biased,
inaccurate and selective.
"The report did not provide information regard-
ing the actions we have taken over the last two
years to enhance safety and security in our halls,"
Channel 4's report repeatedly claimed that the
undercover investigation team had easily gained
access to three residence halls at the University,
although its footage only showed three different
halls within the same dormitory - South Quad-
rangle Residence Hall. The network's piece on
See RHA, Page 3
in the United
according to a study
recently released by the
University's Office for
the Study of Automo-
The market for
hybrid and clean-die-
sel cars in the United
States could increase
by nearly 1.8 mil-
"We'd lose jobs in
States could grow by 3 to 11
percent by 2009, Flynn
said. These growth rates
depend on the strength
of consumers' prefer-
-- - ,.. -A -1 P ~l r
Local group to build
in tsunami-hit areas
two ways: Current
job would be lost,
and we would not
gain extra jobs."
ence toward tuel-etn-
cient cars, which could
depend on factors such
as oil prices.
In order to provide an
incentive for manufac-
turers to produce hybrid
cars and their com-
r~~rsort.. 1i . --A
By Rachel Kruer
Daily Staff Reporter
Whenever Rackham senior Marcia
Barron opened a newspaper over the
ln,. twn nntlho ci., wasohoaintnA Iby the
her charitable works in hospices, hospi-
tals and orphanages. The center plans
to undertake a one million dollar effort
to rebuild 500 houses in tsunami-
Thk wnill he in ninrtin with the.
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