Thursday, October 30, 1969
THE MICHIGAN DAILY
Page Seven
I
$240 MILLION
II
B~-U
Michigan may
face
1971
LANSING (PA-Michigan faces a
possible $240 million deficit in
mid-1971 if taxes are not increased
and programs cut, says the chair-
man of the Senate Appropriations
Committee.
Sen. Charles O. Zollar, (R-Ben-
ton Harbor) said Tuesday that,
previously released figures - in-'
dicating a June 1970 surplus of
up to $72 million - may have left
the impression that "we're going
to have a surplus amount of money{
to work with" on Gov. William
Milliken's education reform pro-
gram.
"That's not true," Zollar told a
news conference. "I don't want the
public impression to be one that
it is not necessary to do anything
in the fiscal area."
Even without the governor's pro-
gram, Zollar said, the state could
face a deficit of $165 million.
Zollar said budget projections,!
based on the same percentage of
revenue increase the state has
experienced in pasttyears, indicate
expected revenue to total some
$1.555 billion, with a projected sur-
plus of some $54 million.
Projected expenditures, he said,
would include a base of $1.555 bil-
lion (the expenditures for the cur-
U-
rent fiscal year), $125 million in.
such built-in commitments as ad-
ditional employes and civil service
pay raises and some $94 million
more to continue school programs
without improvements.
That totals some $1.774 billion-
$165 million more than revenue.
With some $75 million added for
implementation of the governor's
proposed parochiaid payments, De-
troit teacher enrichments and re-
tirement costs, the deficit could
total $240 million, he said.
A proposed 5-cent-a-pack in-
crease in the current 7-cent state
cigarette tax and elimination of
the property tax credit on income
taxes c o u ld cut the deficit by
some $215 million, he estimated.
"It's evident to those of us in
the fiscal area that there are two
things to do," he said.
The first approach would be to
take a "hard line" and cut the
budget "in every conceivable
manner consistent with state ser-
vices. Politically this is a r e a 1
tough one," Zollar noted.
"The other is obviously raising
taxes," he said "and unless we
make every effort to cut unnec-
essary expenditures, the public
will not accept an indiscriminate
increase in taxes.
"The public is making the fact,
known that they are unwilling to
be continually taxed," he s a i d.
"They're not satisfied that expen-
ditures are made as well as they
can be."
Zollar said he would try to ac-
deficit
complish some "fat trimming' on
expenditures.
His comments were in reply.to
a report earlier in the week by
senate minority leader Sander
Levin (D-Berkley), who released
findings of Dr. Harvey E. Brazer,
chairman of the University's eco-
nomics department.
Brazer predicted the $72 mil-
lion surplus, which he said "may
of course be reduced by the
amount of any supplementary
appropriations ."
State Budget Director Glenn S.
Allen Jr. said the supplementals
would be some $20-$25, million,
bringing the surplus to $50-$58
million.
Zollar's figures allowed fvr a
$54 million surplus at the end of
the current fiscal year.
SDS to join demonstrations
in Ann Arbor for moratorium
By JOAN MORROW
Plans for local demonstrations
during the November moratorium
and a reorganization of internal
structure were discussed Tuesday
night at a mass meeting of Stu-
dents for a Democratic Society.
SDS plans to join a coalition of
groups, including Resistance, the
"media distortion and manipula-
tion."
At the meeting, attended by 75
persons, SDS also started plans for
forming small groups, or "col-
lectives," within the large organ-
ization which would increase in-
ternal education, facilitate con-
centrated action on political is-
sues; and incr paa benth thenmt
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(Contiued from Page 1)
buying books at a lower price
than what they are resold for,
and attributed it to the unpre-
dictability of the book being used
the next term.
Announces pe nPetitio n i ngIfbSBS knows a good-condition-
An o n e p n eiinn ed book will be used for another
term, he explained, it will gen-
raGs and Underg radserally buy back the book at a 50
sper cent rate-standard for books
for used the next term. But professors
rarely inform the bookstores of
their choice of books until the
start of the new year, Shure said.
Sign up for interviews at SGC offices, 1st floor, SAB Consequently SBS, unsure of
whether the book will be used
Petitions due Monday, November 3, 5:00 P.M. again, cannot afford to give as
much a rebate at it could when
the book lists are in, said Shure.
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