The Michigan Daily Vol. XC, No. 15-S Ann Arbor, Michigan-Thursday, May 29, 1980 Ten Cents Sixteen Pages State slashes ' budget By MITCH STUART Two legislative committees approved Gov. William Milliken's $97.5 million budget-cutting executive order yester- day, giving the nod to a $1.6 million slash in the University's budget. The order, which applies to the current 1979-80 fiscal year, was ap- proved by both the State Senate and House appropriations committees. It will take effect immediately, according to University Vice-President for State Relations Richard Kennedy. MICHIGAN COLLEGES were hit with a 1.1 per cent across-the-board budget cut, resulting in a total of $6.9 million to be whittled from higher education budgets state-wide. Higher education cut by $6.9 million The University was the hardest hit of president and chief financial officer. all Michigan colleges, suffering a loss "SINCE OUR state appropriation is of $1.8 million for all three campuses - the largest, we're looking at the biggest $1.6 million for the Ann Arbor campus cutback in terms of a dollar figure," alone. Brinkerhoff said. "The things that will have to be cut The University receives ap- (from the University budget) are the proximately $150 million per year in deferrable expenses," such as library state appropriations. and laboratory acquisitions, said One complication in the budgetary James Brinkerhoff, University vice- maze is the conflict between state and University fiscal years. Milliken's executive order requires cutbacks in the state's 1979-80 budget, which runs from October 1979 to October 1980. The University's fiscal year, however, runs from July 1979 to July 1980. THE UNIVERSITY will have to break up the $1.6 million cutback bet- ween the 1979-80 budget and the 1980-81 budget. The University faces massive cutbacks, including staff layoffs, for the 1980-81 budget year. State Sen. Bill Huffman (D-Madison Heights), appropriations committee vice-chairman, said Milliken's original higher education budget recommen- dation was a two per cent cut. Conferences between legislators and state budget officials finally resulted in a 1.1 per cent cut, but the difference was made up in the state-city revenue sharing program. HUFFMAN SAID cities' revenue sharing was cut an average of five per cent, but some cities suffered cuts of seven to ten per cent. "We figured they (the cities) could take the five per cent cut easier than higher education could take the two per cent," Huffman said. Milliken's order cut only $100 million, leaving the state with a projected $80 million deficit. BUT, HUFFMAN said, "We're goin to do a lot of juggling (of state funds) to keep from making any more cuts this year." State Rep. William Keith (D-Garden City), chairman of the colleges" and universities committee, said, "Kin- dergarten through twelfth grade districts are taking a larger cut, and junior colleges are taking a 1.5 per cent cut. Whe' you look at the overall, a one per cent cut is tolerable, compared to the two per cent (some) other depar- tments are taking." Michigan State University will have to cut $1.3 million; Wayne State University, $1 million; Western Michigan University, $506,000; Eastern Michigan University, $376,000; and Central Michigan University, $319,000. Afternoon interlude Yesterday's warm weather brought hundreds of persons out to the Diag yesterday, including one couple photographed here during an intimate moment. The crowds shouldn't be out and about today, however, as the weather takes a turn for the worse. See Today, Page 2. -Military tightens grip in, Korea SEOUL, South Korea (AP) - The military, unchallenged after crushing democracy-seeking in- surgents, will formalize its control of South Korea by establishing a council that will govern by martial-law decree, informed sources said yesterday. The sources said Choi Kyu-hah, the interim civilian president, will remain in his post, but Chun Doo- hwan, the nation's security commander, and other generals will run the country. THE POPULARLY-ELECTED national legislature will have virtually no role to play in the decision-making process once council members are named, the sources said. The military offered a limited amnesty in Kwangju yesterday, a day after paratroopers killed 17 civilians when they crushed a nine-day rebellion. The rebellion, in which 290 persons were killed, was led by students demanding greater democracy. In Washington, a coalition of human rights groups accused President Carter of supporting the "most vicious and fanatic elements" of the South Korean military. U.S. OFFICIALS in Washington privately ex- pressed alarm over trends toward authoritarian rule in South Korea, but said no consensus had emerged yet within the Carter administration on an official U.S. response. The State Department earlier expressed regret at the clashes between South Korean soldiers and in- surgents and called for establishment of a "broadly based civilian government." Some American of- ficials predict that if the generals try to retain power for an extended period, they almost surely will en- counter strong public resistance. South Korea's military long has played a prominent role in the nation's affairs. But it won even greater power after the assassination of President Park Chung-hee last October. Martial law was declared in South Korea after Park was killed and was extended throughout the country May 18 after bloody rioting in Seoul, Kwangju and other cities. The martial law command urged participants in the Kwangju rioting to "surrender to the nearest authorities" and promised "maximum generosity" to those surrendering during the next 10 days.