The Michigan Daily - michigandaily.com Friday, February 20, 2009 - 3 NEWS BRIEFS NEW YORK Dow ends at lowest close since 2002 An important psychological bar- rier gave way on Wall Street yester- day as the Dow Jones industrials fell to their lowest level in more than six years. The Dow broke through a bottom reached in November, pulled down by sharp declines in key financial shares. It was the lowest ending for the Dow since Oct. 9, 2002, when the last bear market bottomed out. The move below that level dashed hopes that the doldrums of November would mark the ending point of a.long slump in the mar- ket, which is now nearly halfway below the peak levels reached in October 2007. The market's inability to rally signals that investors see no imme- diate end for the recession, which is already 14 months old and one of the most severe in decades. Inves- tors also haven't been impressed with two major economic initia- tives from the Obama adminis- tration this week, an economic stimulus package and a mortgage relief plan. OTTAWA Obama asks Canada to come to its aid in Afghanistan President Barack Obama courted warmer relations with America's snowy northern neighbor yester- day, declining to ask war-weary Canada to do more in Afghanistan, promising he won't allow a protec- tionist creep into U.S. trade policy and talking reassuringly around thorny energy issues. Obama-happy crowds cheered Obama's seven-hour visit, his first outside U.S. borders as president, and he returned the compliment with a quick stop at an indoor market where he delighted shop- keepers by picking up pastries and souvenirs for his daughters. "I love this country and think that we could not have a better friend and ally," Obama said as he appeared side-by-side with Canadi- an Prime Minister Stephen Harper at gothic Parliament Hill. He later slipped slightly as he walked to his plane and joked that the weather reminded him of Chicago. SCARAMENTO, Calif. Schwarzenegger receives California budgetbills The California Legislature yes- terday approved a plan to close a $42 billion budget deficit after an epic impasse that involved several all-night sessions, sending Gov. Arnold Schwarzenegger a package of bills that raises taxes and cuts spending. It was not immediately clear when Schwarzenegger would sign the bills. During an afternoon news con- ference, the Republican governor praised the effort to forge a compro- mise. Itrequired Democrats to back away from their opposition to deep spending cuts and some Republican lawmakers toset aside their opposi- tion to tax increases. He called the Legislature's work, after a grueling week of late-night sessions, courageous. CHICAGO Black pastors to ask Burris to resign A group of black ministers who supported U.S. Sen. Roland Bur- ris as he fought to get his job now plan to ask for his resignation fol- lowing revelations that he tried to raise money for the disgraced gov- ernor who appointed him, one of the ministers told The Associated Press yesterday. Many of the city's influential black pastors supported Burris because of his scandal-free reputa- tion - even though he was appoint- ed by then-Gov. Rod Blagojevich three weeks after the governor was arrested for allegedly trying to sell the Senate seat. Now some of those pastors will ask Burris to resign, according to the minister, who spoke on condi- tion of anonymity because a meet- ing with Burris had not yet been scheduled. Burris testified before an Illi- nois House committee in January that he hadn't had contact with key Blagojevich staffers or offered anything in return for the Senate seat vacated by President Barack Obama. - Compiled from Daily wire reports Regents approve $13 million in new construction By ERIK TORENBERG For the Daily At its monthly meeting yes- terday, the University Board of Regents approved four construc- tion projects that will together cost approximately $13 million. The regents approved renova- tions to the Residential College's auditorium in East Quadrangle NOTEBOOK Residence Hall. The renovation will update light- ing, stage and seating areas, and is expected to cost approximately $2.1 million. An additional $1.2 million was given to update research labs in the Environmental and Water Resources Building. The Col- lege of Rngineering will fund the 8,300-square-foot renovation. The Regents also authorized a $6.6 million plan to replace 600 feet of utility tunnels in the northwest section of the Diag and 125 feet of tunnels near Lorch Hall. The Regents also approved the University of Michigan Health System's plan to add a new cooling tower and new piping and controls for its chilled water expansion sys- tem. The $3.25 million project will help meet increased demand dur- ing the summer months. $320 MILLION COMMUNITY BENEFIT PACKAGE Douglas Strong, director and CEO of University of Michigan Hospitals and Health Centers, updated the regents on UMHS's community involvement. Strong said he estimates that UMHS's spent more than $320 million in 2008 to benefit the com- munity. Of the estimated $323 million, $170 million is credited for uncompensated direct patient care, $11 million for community health programs and $142 million for research. Strong said UMHS was voted the best large hospital overall in Michigan by patients. The hospi- tal sees approximately 300,000 different patients each year and received about $340 million in federal research money last year. Strong closed by saying that despite the current economic situ- ation, UMHS is increasing its com- munity outreach. "It is increasingly difficult in this economic environment to provide the level of benefit to the community that it needs," he said. "Amidst all of our other demands, we have significantly expanded our commitment to community benefit in recent years." . See CONSTRUCTION, Page 7 ARIELiBOND/Daily Mary Sue Coleman listens as The Student Sustainability Initiative and the Student Veterans of America both addressed the Board of Regents during the regents' monthly meeting in the Fleming Administration Building yesterday. u dents lobby 'U' for more veterans benefits ii Two from a advoca the Un yesterc an-frie to mak attend The resenti of Am the Br in-stat waive ans, ex for dei acaden trainin armed LSA Group asks for founded the Student Veterans of America, told the regents that by n-state tuition charging all veterans the in-state tuition rate - regardless of resi- for veterans dency - that the University could attract more highly qualified vet- By KYLE SWANSON erans. The 21st Century GI Bill, Daily StaffReporter which will take affect in 2009, will cover the full cost of in-state University students tuition for veterans and provide a national student veterans housing stipend. cy organization urged Blumke also said the University riversity Board of Regents should create an extended admis- day to adopt more veter- sion application deadline for vet- ndly policies in an effort erans returning from deployment ke it easier for veterans to to accommodate their needs. He the University. talked about some potential stu- two student-veterans, rep- dents who may be deployed at the ing the Student Veterans time applications are due but hope erica organization, asked to enroll the following semester. oard of Regents to offer By waiving the application fee, e tuition to all veterans, Blumke said the University could application fees for veter- encourage more veterans to apply. :tend application deadlines He said that the University has ployed soldiers and award the second lowest veteran enroll- mic credit for specialized ment in the Big Ten, with only 48 ig received while in the veterans enrolled in 2007. Ohio forces. State University had 598 veterans junior Derek Blumke, who enrolled in 2007. Blumke also urged the regents to consider allowing student-vet- erans to receive academic transfer credit for advanced training that has an equivalent at the Univer- sity level. If approved, veterans may qualify for transfer credit for training in topics like foreign languages and engineering. LSA senior Carl Ireland, the Michigan legislative director for the Student Veterans of America, also spoke before the regents on the issue, telling the board that when he enrolled, the GI bill only covered $11,000 of tuition costs. "As you guys can put together pretty quickly I'm under a moun- tain of debt right now," he said. Ireland added that by offering in-state tuition to out-of-state veterans, the University would receive full tuition payment from the federal government while not having to offer any financial aid or scholarships. -Erik Torenberg contributed to this report. Stimulus package may provide Mich. $2.5B in education funds U.S. Education Dept. money would make up for expected cuts LANSING, Mich. (AP) - Michigan's K-12 schools probably don't have to worry about losing $59 per pupil in the fiscal year that begins Oct. 1. Gov. Jennifer Granholm said yesterday that money from the federal stimulus plan should make up for any cut in per-pupil aid she's proposing for the next school year. That move could be outlined in a supplemental budget bill Granholm expects to submit next month to the state Legislature. The U.S. Department of Edu- cation estimated yesterday that Michigan will get about $2.5 bil- lion for schools from the stimulus package over a two-year period. Nearly $1.6 billion would come in state fiscal stabilization funds designed to prevent budget cuts. "We will submit a supple- mental that makes the schools whole," Granholm told reporters Thursday. Stimulus money also could lessen the need for a proposed 3 percert budget cut for state universities. But Granholm still wants the schools to pledge to freeze tuition in exchange for avoiding a smaller appropriation. That stance could be subject to a legal debate. Gary Olson, director of the nonpartisan Senate Fiscal Agency, said Thursday the federal stimu- lus measure won't allow the state to cut money going to K-12 schools and universitiesnext fiscal year. Granholm released her bud- get proposal last week, before President Barack Obama signed the stimulus package into law on Tuesday. The Democratic gover- nor did not take the stimulus cash into account when proposing her education budget, although she did count in additional federal aid for Medicaid health coverage. K-12 school districts are get- ting at least $7,316 per student this fiscal year. Granholm said Thursday any cut in per-pupil money would be reimbursed through the stimulus package. Granholm spokeswoman Liz Boyd said the administration will "stand firm" on its decision to cut the foundation grant, but noted the cut would be more than offset by stimulus money for education, just not within the foundation budget line itself. - Schools are set to get more fed- eral dollars through the stimulus package for programs such as Title I, which gives schools extra money to help low-income stu- dents, and for special education. Those extra funds - along with money schools could get from budget stabilization dollars in the stimulus package - means most school districts would be able to overcome any cut in the per-pupil dollars from the state. But funding schools that way could have implications forschool budgets ina couple of years, when the stimulus money runs out. School funding would be starting from a lower per-pupil allowance level that it would otherwise. Granholm warned education officials at K-12 schools and uni- versities to be looking now for ways to save. "We have to take a two-year look at this, because the stimulus money is going to be gone next year," Granholm said. "This is an opportunity for them to take this year and do everything they can to tighten their belt in prepara- tion for next year." University Prof. John U. Bacon was surprised yesterday when he received the news that he is this year's recipient of The Golden Apple Award. WANT TO DESIGN FLASH GRAPHICS FOR THE DAILY? E-MAIL GRACA@MICHIGANDAILY.COM F RIDAYS Domestic Bottles are only go #g 10- mss I 0 95 3 18 3 4 7 8 2 1 8 5 6 5 7 5 1 7 1-2 -1 4 3 79 5 8. k 4i 1 8s Clyburn: Opposition to the stimulus is slap in face U.S. Rep. insulted by govs who may not accept stimulus COLUMBIA, S.C. (AP) - The highest-ranking black congress- man said yesterday that opposition to the federal stimulus package by southern GOP governors is "a slap in the face of African-Americans." U.S. Rep. James Clyburn, D-S.C., said he was insulted when the governors of Texas, Louisiana, Mississippi and his home state, which have large black popula- tions, said they might not accept some of the money from the $787 billion stimulus package. Texas Gov. Rick Perry said Wednesday he would accept the money, and none of the oth- ers has rejected it outright. The Republican governors of Idaho and Alaska also said they had reservations about whether the money would come with too many strings attached, but Clyburn said he was particularly taken aback by southern governors who said they might decline it. "These four governors repre- sent states that are in the prover- bial black belt," Clyburn said. A spokesman for South Caro- lina Gov. Mark Sanford accused Clyburn of playing the race card. "Spending money at the federal level that we do not have repre- sents a future tax increase on all South Carolinians, regardless of their color," Sanford spokesman Joel Sawyer said in an e-mail statement. (