1963 THE MICHIGAN DAILY 1963 THE MICHIGAN DAILY omney Weighshight Tax Pans, resents Them for State Study NSING-Michigan's tangled system has long been under lose scrutiny of Gov. George ney and his top fiscal aides are attempting to reform theh exing financial problems of {::.. CONGRESSIONAL SHUFFLE: Democrats Suspend Districting Fight t present, with state revenues r all time records and the pres- deficit fading out of existence, tney is considering eight pos- e plans for tax reform and senting them to the state in a es of meetings. or although the present deficit r virtually be extinct by June July 1964, Michigan's budget ds will rise by $60 million, troner Glenn S. Allen, Jr. re- Ifture Needs he present "nusiance taxes" mented structure will not be to provide the future needs the state. $rcoperty taxes of ,1 county and town govern Its have been severely limited he polls. Consequently, school ems are having a hard time ob- dng funds as the percentage Subsidy given by the state has pped below what it was in 1952. s for cutting back on state enses, Romney noted that after ful investigation into wasteful enditures of his own office the r thing that he was able to do exchange the governor's lim- ne for a standard model. - omney's assertion that fiscal inm lies down one of two roads i on the local level or tax on state level-becomes quite .r when considering his eight Bible solutions to tax reform for higan. Eight Plans omney's eight-alternative pro- xs are: ' Repeal of the business ac- ies tax and reduction of the lchise tax by two mills and an osition of a six per cent busi- income tax bringing a net I of $11.6 million to the state sury; ) A local option plan to allow mates or cities to initiate an in- e tax of up to two per cent to ised for schools and the run- of local governments. By lim- g state support in these areas, , governments and schools will orced to enact the option plan; Repeal Taxes Repeal of the business ac- ies tax, intangibles tax in ad- on to reducing the corporate ichise tax ,and substitute for nr ,a two per cent fat rate in- e tax on individuals and cor- tions thereby increasing the income of the state by $53.1 ion; I Repeal the business activities and intangibles tax, reduction' the beer, liquor and cigaret is, removal of the' franchise sales taxes on prescription gs and replace them with - a per cent flat rate income tax individuals plus a four per tax on corporations bringing .gain of $61.1 million. Combin- with this plaan would be the oon of counties to levy an in- ., tax of not more than two cent on individuals only;, Repeal the business activities and intangibles tax, reduce corporate franchise tax, beer, or and cigaret taxes and re- ral of the sales tax on prescrip- drugs, food consumed off the Ises and trade-ins and re- e them with a three per cent vidual and a five per cent cor- te income tax for a net gain $26.3 million; Distribute Revenue Th same as plan five with exception that the sales tax ood consumed off the premises sales tax on trading would ain. Net expected gain to the e treasury: $149.3 million. Un- this alternative provisions ld be made to distribute a por- of the taxes to local units on rmula set up by the legislature; limination of one per cent s and use tax repeal of. the ness activities and intangibles s and a reduction of the fran- e and beer tax along with an osition of a three per cent cor- ",te and individual income tax. al state units would receive -third of this income tax which id bring in an additional $14.6 ion; and Repeal of the business ac- tles and intangibles tax, re- bion of the franchise and beer s, exemption of drugs from s,.axes and property. tax relief elderly citizensalong with a per cent individual and three cent corporate income tax ch would bring in an additional 6 million. A one per cent, local on personal income tax would be made available to counties. eetings have been held in sing, Detroit, Jackson and It St. Marie as Romriey tests various- tax plans on public ion. Principle sessions have a with business and labor Ips. TAX REFOItM-Gov. George Romney (left) was told recently by state Superintendent of Public Instruction Lynn Bartlett that his fiscal reform plans must include aid for hard-pressed local Eucator-ls Ask School Aid FrmLegislative omSession Michigan schools are in great the state, Gov. George Romney financial difficulty and the prob- lem of financing state education met with opposition even to his should. be one of the first items eight alternative tax reform plans. on the Legislature's agenda this Want Control fall, State Superintendent of Pub- Assistant Detroit superintendent lic Instruction Lynn Bartlett said of schools William Simmons told recently. Romney "we want to be treated Bartlett cited. half day sessions the same as cities or counties. in three grades of the Detroit School boards have no control over school system this fall and termed .choel finance. this situation, caused by the April "We too should have the right millage defeat, "completely intol- to levy an income tax." he added. erable and inexcusable. " One of the more outspoken the school school officials was Grand Rapids Noting the defeat of c School superintendent Benjamin J. millage proposal in Detroit, Bart- Buikema. "It's high time the lett also cited similar cutbacks and school boards .had local independ- difficulties in other areas of the ence-fiscal autonomy," he said. -nefsa atnmhesid state. Nnf: Ambifinn Disgruntled Democrats, angry at the Republican-sponsored reap- portionment of the state's con- gressional districts, have given up -for the moment-any attempt to overturn them. The Republican-dominated Leg- islature during its short June pre- adjournment session redrew the lines of the districts of the state's Washington delegation, admitted- ly for their own benefit. Demo- crats, especially state Democratic Chairman Zolten Ferency, had talked of a 1964 referendum on the districts or a court suit. Ferency later ruled out a ref- erendum, but indicated there might be a constitutional amend- ment on the subject. State AFL- CIO President August Scholle, who filed a new suit against legisla- tive districts under the new con- stitution, said that suits against this districting will have to wait until his other legal action is com- pleted. Other party leaders, notably Fifteenth District Rep. John Din- gell (D-Detroit) said that Demo- crats should attempt to pick up the Upper Peninsula District now in Republican hands and the new 18th rather than bemoan the dis- tricting. New District The redistricting ,encorporates a 19th district, entitled to Michi- gan after the 1960 census. This will eliminate the at-large seat now held by Rep. Neil Staebler (D- Mich.). The new districting also elimi- nates one of the most glaring in- equities in the United States. The .range of districts was reduced to 473,0001306,000 from 690,000-177,- 000. The new district was placed in Oakland County. The old 18th Dis- trict was reduced to southeastern Oakland County with the rest be- ing added to Livingston County. Reduce District The Upper Peninsula represen- tation was reduced from 1.75 con- gressmen to one while the districts in the northern part of the Lower Peninsula was juggled to save in- cumbent seats. This juggling de- layed approval of the districts. Detroit's congressional districts were also altered from a vertical plan to a more square one. This led 14th Congressional District, GOP Chairman Richard Durant, a long-time Romney foe, to claim the district was designed against him. The new districts will put sev- eral congressmen outside their current districts. Dingell, Rep. W i 11 i a m Broomfield (R-Royal Oak) and Rep. Frank Knox (R- Sault St. Marie) have the option of moving to their former districts or staying put in the new district. The 19 new districts are as follows: . First, north central Detroitn469,000 3 ~ 5ai. people; Second, Washtenaw, Hillsdale, . Lenawee and Monroe Counties, 386,000; k Third, Kalamazoo, Calhoun, St. Joseph . and Branch Counties, 386,000; Fourth, t { '. .4'a'S.4. OttawaAllegan,Van Buren and Cass ' Counties, 392,000; Fifth, Kent and Ionia Counties, 406,000; Sixth, Clinton, Eaton,Fy _ Ingham and Jackson Counties, 431,000. Seventh, Shiawassee, Genessee and t < , z "}{, ' Lapeer Counties, 470,000 people; Eighth, w ; ..t.k- ..Z Saginaw, Tusucola Huron, Sanila$c andv°. St. Clair Counties, 445,000; Ninth, Le- ....z.M... lanau, Benzie, Grand Traverse, Manis- tee, Wexford, Mason, Lake, Osceola, . Ocena, Newaygo, Mecosta, Muskegon and Montcalm Counties, 377,000. ' . Tenth, Emmet, Cheboygan, Presque .~ Isle, Charlevoix, Antrim, Otsego, Mont- " o ;*.,. morency, Alpena, Kalkaska, Crawford, "- Oscoda, Alconia, Missaukee, Roscom- mnon, Ogemaw, Iosco, Clare, Gladwin, f u t x ,'yrt'y /,t0' .}k xvao t} 4 Arenac, Isabella, Midland and Bay Counties, 393,000. Y }. .. xa , , ,.f ...k Eleventh, Upper Peninsula, 306,000 people; Twelfth, Macomb County, 406,- - , 11' . 000; Thirteenth, central Detroit, 473,000; Fourteenth, northeast Detroit and the . Grosse Points, 371,000; Fifteenth, South- . . t. ..... eastern Detroit and eastern Dearborn, 462,000; Sixteenth, west Detroit and NEW DISTRICTS--In its short pre-adjournment session, the western Wayne County, 453,000; Seven- Legislature passed a reapportionment of Michigan's Congression- teenth, northwestern Detroit, Livonia, Redford Township, 405,000; Eighteenth, al districts. A new district was added in southeastern Oakland southeastern Oakland County, 383,000 County and Upper Peninsula representation was reduced to and Nineteenth, Livingston and the ndistrict. rest of Oakland County. one NEW SUIT FILED: Scholle Renews Seating Fight With the certification of the new constitution, Michigan AFL- ald (R-Grand Ledge), one of the and House provisions, under the CIO President August Scholle re- three senators who petitioned the revised Constitution both the Sen- filed his redistricting suit against high court, noted, "It looks as if ate and the House of Representa- Secretary of State James Hare. they're trying to determine in tives will be controlled in perpe- Schoole and others represent- Washington what the view on tuity by a minority of the states ing "disenfranchised" areas claim mootness is here in Michigan." voters, and the majority will be that under the new document In both the original and new deprived, as heretofore, of the op- Senate and House districts are di- suit, the state districting methods portunity to enact legislation vi- vided in such a way as to give were claimed to violate the "equal tal to the needs of a burgeoning vided in sch wa ase puton iveprotection" and "due process" urban and increasingly industrial- eight per cent of the population clauses of the Fourteenth Amend- ized. society, to their incalculable the same representation as the ment. and irreparable damage," the other 92 per cent. Under the new constitution, "As consequence of the Senate complaint said. Senate seats are allocated under a formula giving 80 per cent weight to population and 20 per cent to area. The State Supreme Court is to fix the 80-20 formula if the bi- partisan Apportionment Commit- tee is unable to agree on the dis- tricting. SUMMER SEMIN Moot Issue The United States Supreme Court had previously sent mem- JULY 2 Speakers: Dr. William M. Cave, Dr. Finley Carpente oranda to all parties to the suit in "Education and Social Change in Soviet Central Asia order to discover whether the orig- inal 1959 redistricting case was JULY 9 Speaker: Dr. Richard L. Cutler Fo o i ue ictum laid down Topic: "Mental Health Consultation in Schools: A in Baker vs. Carr, the State Su- JULY 23 Speaker: Dr. W. H. G. Armytage, preme Court ordered last July 18 Topic: "Science and the Arts in Education" that the Senate be immediately redistrictedand that if the action was not taken the Senate's 34 Time: 12:00 Noon to 1:00 P.M. members were to seek election on an at-large basis in the 1962 race. Place: Gymnasium, Room 1525 University Elementary School On an appeal by three Republi- Sponsored by the SCHOOL OF EDUCATION FACULTY RESEARC can state senators, Associate Jus- tice Potter Stewart granted a stay EDUCATION SCHOOL COUNCIL, PHI DELTA KAPPA, PI L to state court's ruling. Since that time no further action by the fed- eral high court has been taken. Bring or Buy a Bag Lunch ($.85) Coffee served by the Educa 'Space Concept' The new suit that was filed by Scholle criticized the "space con- cept" on the grounds that it would allow the Upper Peninsula to have three senators "even in the absence of all human habitation." Although he refused to give his own opinion on whether or not the case was moot, Sen. John Fitzger- a sw- n r OWE wr.r°M-L a State Role "The state's portion of public education has continuously de- clined. While the state paid 52 per cent of the school dollar in 1952, it only pays 39 per cent now," Bartlett said. He asserted that the state's bid for the 1968 Olympic games be- comes a ."gross mockery" when physical education and athletic programs in the schools must be curtailed for lack of funds. In discussing the problem with school officials from throughout IN IlA M311oUs Voicing his objection to the gov- ernor's tax reform program, Buike- ma said that none of the eight programs was ambitious enough. "I don't even want to talk about $50 million. To do the job and give relief from the property tax bur- den for schools will take more than that," he claimed. Romney answered that the pres- ent tax system is a worse alterna- tive and that the kind of taxes that Buikema urged might be "too big a step" which could cause the collapse of a "good tax structure." THAYER, STAEBLER: Hopefuls Eye_,.Gubernatorial Posit ion r , With Gov. George Romney look- ing toward the national scenes several 1964 gubernatorial hope- fuls have popped up in both par- ties.' Several Ann Arborites are men- tioned in the speculation. If Romney runs for president or vice-president next year, three hopefuls have been mentioned as probable successors. Ann Arbor's Sen. Stanley G. Thayer, currently Senate majority leader, has been widely named. So have fellow Sen. William G. Milliken (R-Traverse City) and Congressman Robert P. Griffen (R-Traverse City). Rules Caucus, Thayer rules the all-important Republican caucus in the Senate and was largely responsible for steering the governor's program in tact through that body.'His leader- ship was subdued the veto bloc to a whisper. He put together a moderate Re- publican-Democratic coalition that passed an income tax last year in the Senate, only to have the con- servatives reverse the vote five days later. Subsequently, retire- ments and primary defeats reduc- ed the conservatives representation and replaced them with moderates. 17 Milliken, who is Thayer's whip in the Senate, is also looking for political advancement. Labor Act Griffin is co-author of the con- troversial Landrum-Griffitn Act limiting the activities of labor un- ions and imposing strict financial controls on them. He is one of the two well-known Republican mem- bers of the state's congressional delegation. His cohort Rep. Gerald Ford (R-Grand Rapids) is seen as a possible vice-presidential nomi- nee. All three have denied aspirations on Romney's seat as long as the governor occupies it or intends to, but none have ruled out am- bitions if Romney moves to the national scene. This reluctance does not effect Rep. Neil Staebler (D-Ann Arbor), Michigan's 'congressman-at-large, who admitted recently that he is willing to be pushed into a race for the governorship. Wide Open With the Democrats out of power, the governor's race is wide open and includes such party per- sonalities as former Gov. John B. Swainson, Detroit's Mayor Jerome Cavanagh, Secretary of State James M. Hare and Atty. Gen. Frank Kelley. However, a number of other par- ty leaders have indicated a prefer- ence for Staebler. He was the Democrats' best winner last fall, pulling a surprising 118,000 vote margin over former Rep. Alvin Bentley. Although a member of the los- ing faction in last spring's intra- party fight, many party leaders see Staebler-the architect of the 10 years of former Gov. G. Men- nen Williams success-as a man who could unify the party and woo the voters. D _. °! TEXTBOOKS ELISABETH SCHWARZKOPF DETROIT SYMPHONY ORCHESTRA WILLI BOSKOVSKY, Guest Conductor in a Summer Festival Concert Sunday, July 14,,8:30 For those hard-to-find Textbooks always buy at IN HILL AUDITORIUM The Program of Vienese Music includes selections from Strauss' "Fledermaus," "Wiener Blut"; Lehar's "Merry Widow"; Von Suppe "Beautiful Galatea"; Carl Zeller's "Der Vogelhandler" 11 I El - - - -- - -®-