ROMNEY'S BUDGET:
WELL, IT BALANCES
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Low--14
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Seventy-Six Years of Editorial Freedom
VOL. LXXVII, No. 106 ANN ARBOR, MICHIGAN, FRIDAY, FEBRUARY 3, 1967 SEVEN CENTS

EIGHT PAGES

Romney

Asks

2.

pct.

State

Income

Tax;

'U' Budget

Request

Takes

Drastic

Slashes

'U Proposal.
Cut Total of . d
15 Per Cent E
C iEWS WIRF

a a uta sr or
Growing Institutions
Set at $47.8 Million
By NEAL BRUSS
By most grading curves, 85 per:
cent is a B-.
The University received only 85{
per cent of its requested $74.6 mil-
lion appropriation in Gov. George
Romney's budget messge yester-
day.
The missing 15 per cent is $12.4
million, which is 'only $6 million
short of what the University re-
ceives from all student tuition fees
and related sources.
But the University may not be
able to settle for a "B-" appropri-
ation. Before appropriations are
finalized, they must be passed by
a Legislature closely split between
Republicans and Democrats.
Almost forgotten yesterday was
the University's $24 million capital
outlay request. Romney asked
$47.8 millon for capital outlay ex-
penditures, part of which would
go to ''critical land acquisitions"~
for rapidly growing institutions.
The University's request is more
than half the amount set by
Romney, and since the University
is not a "rapidly growing institu-
tion" it seems unlikely that it will
receive more than a fraction of its
capital outlay request.
Yesterday, none of the Univer-
sity administrators concerned with
planning the budget or apportion-
ing it for spending were willing to
comment on Romney's move nor
to speculate on what either the
Legislature or the University
might do.
The, silence was reportedly due
to request by Romney that uni-
versity officials not comment on
the budget until after they meet
with him today.
Last year and the year before,
Democratic-dominated legislatures.
have given the University morej
than Romney requested. Romney
cut about $9 million from the Uni-
versity's request for this year, the
legislature passed a final bill add-
ing back $1 million for UniversityI
operating expenses.
But this year, the legislature is.
almost evenly divided, and almost
all key leadership positions have
gone to Republicans.I
In a politically tense year inI
which Romney urges an unpopular
income tax to support a record
budget request, it is unlikely that
there will be any gifts to the Uni-
versity from the state.

Late World News
By The Associated Press

-.. 4
{ja(}(
t

Proposes First
$1 Billion Budget
Fiscal Reform Proposal Ihucudes
Cigarette, Corporate Profits Taxes
By THOMAS R. COPI
Special To The Daily
LANSING-Gov. George Romney yesterday submitted to-
the Legislature what he termed a "tight" budget of $1.15
billion and asked passage of a sweeping fiscal reform pro-
gram, including a flat-rate 2.5 per cent personal income tax.
In asking for approval of the state's first billion dollar
budget, Romney said the time has come for the people of
Michigan to choose: either they must pay more taxes or
"slash education and other essential state services." He noted

UNITED NATIONS, N.Y.-Diplomatic sources said yesterday
that the United States and North Vietnamese agreed in early
December to hold preliminary peace talks in Warsaw but U.S.
bombings near Hanoi broke up the agreement.
They said the two countries were discussing a date to begin
the talks on the ambassadorial level when the bombings took place
on Dec. 13 and 14 and North Vietnam quit the discussions.
In Warsaw, U.S. Ambassador John A. Gronouski yesterday
declined to comment on a similar report in the Washington Post.
Gronouski flew to Washington Dec. 22 and returned to Poland
after one day saying he had discussed financial matters and his
forthcoming January meeting with the Chinese Communists in
Warsaw.
The informants, who closely follow efforts to settle the war
in Vietnam, said Poland worked out the agreement. They said
that in consenting to the talks, North Vietnam did not make the
condition that the U.S. bombing of its territory should stop first.
CITIZENS FOR NEW POLITICS will conduct a second drive
tomorrow to collect signatures for a petition asking the Ann
Arbor city council to place a referendum on the Vietnam war on
the April municipal ballot. Last week, the group collected about
1000 signatures of registered voters in the fifth ward. Council will
consider the petition at its regular meeting next Monday. The
group will meet at the Student Activities Building at 9:30 a.m.
tomorrow.
THE 58TH ANNUAL UNIVERSITY World's Fair begins to-
night at the Michigan Union. A joint project of University Activi-
ties Center and nationality clubs on campus, the fair will feature
exhibitions of paintings and glassware. It is part of UAC Inter-
national Week, and will continue tomorrow. Variety shows with
Peter Griffith, Hungarian classical guitarist, and dancers per-
forming native dances will be given at scheduled intervals on
both days. The fair opens at 7 p.m. tonight and again at 1 p.m.
tomorrow. Admission price is 50 cents.
* * * *
MEMBERS OF VOICE Political Party picketed Central
Intelligence Agency recruiters at the Student Activities Build-
ing and other places yesterday. The local chapter of Students for
a Democratic Society charges the CIA is attempting to recruit
"assassins, spies and counter-revolutionaries."
PRINCESS IRENE OF GREECE, sister of ruler King Con-
stantine, will visit the University's School of Music Monday at
her own request. The non-state visit will precede her trip to De-
troit where she will be honored by the Detroit Symphony Or-
chestra.
45 STUDENT LEADERS who met with Secretary of State
Dean Rusk Tuesday are drafting a new statement criticizing U.S.
conduct of the Vietnam war. The statement reportedly will be
sent to more than 100 other student body presidents for their
signatures over the weekend. The new document is reportedly
far more critical than. the original letter signed by 200 campus
leaders last December. That letter led to the meeting with Rusk.
A member of the student leaders expressed "dismay" over what
they described as Rusk's lack of interest in a negotiated settle-
ment of the war.

Expenditure
Increases

that Michigan is the only in.
dustrial state that has not in-
creased taxes or floated large,
general bond issues in the past
five years.

--Daily-Thomas R. copi
GOV. GEORGE ROMNEY submitted a record $1.15 billion budget for the forthcoming fiscal year to
the Legislature yesterday. The University received severe cutbacks to its capital outlay request at
the same time.
RECOMMENDATIONS:
Panhel Rush Resolution AiMS
For Local Chapter Autonomy

Romney, who began his third
m inim ized term as governor last month, said
'that passage of a fiscal reform
program this year is essential.
The state budget for fiscal 1967- He said that the need for tax
68 proposed by Gov. George Rom- reform has been recognized long-
ney yesterday would, if adopted, er than the need for additional
"do little more than continue the revenue, but that by the end of
existing levels of public services the current fiscal year the extra
and extend these levels to meet the money will be needed.
requirements of a growing popu- Romney blamed the decrease in
1ation." the state's general fund surplus,
But, Romney said, "We cannot which totaled $167 million at the
afford just to continue." He pro- outset of the current fiscal year,
posed "a minimum number of new on the levelling off of the state's
or improved programs."I economy. "Our economic growth
r dnext year is not expected to ex-
Among these are: ceed four per cent-we are enter-

By LUCY KENNEDY alumnae in the national organ- It was felt that voluntary rec- -$5 million for matching grants
A Panhellenic President Council ization. Panhellenic Presidents ommendations can be useful in to local units of government for
resolution, p a s s e d Wednesday, Council feels, however, that if a obtaining information on the ac- s e w a g e treatment and other
aims at preventing the inter- major council takes a stand tivities of the prospective pledge methods of water pollution con-
ference of national organizations against binding alumnae ree- before she entered the University. trol;
in individual sororities membership The resolution is intended to in- -$5.6 million to cover the cost
dommendations national sororities h e n f s pri- f liin g nd sr inr s

ing a period of more normal
growth," he said.
Economic gains for the past
two fiscal years have been 12 and
nine per cent, respectively.
Tax Increases

selection thr ough the use of rush
~seeciuiiIA~u~I~iLfl U 01 J.uau~will be influe
recommendations.
By resolving that alumna rec- recommenda
ominendations on rush candidates The resolu
not be binding on local chapters, individual m
Panhel hopes to guard against pos= President's C
sible discrimination and to in- any structur
crease the autonomy of local allows for t
chapters. ' criminationo

Recommendations are designed'
primarily to give a house addi-
tional information on a prospec-
tive pledge. If an alumna gives a
"do not recommend" on a girl,
however, many sororitiesdare pres-
ently forced not to pledge that
girl.
The council resolution lacks
power since recommendation pol-
icy is determined by sororityi

UAC
Offe

. a ie e eig ginuei5
enced to change their dents as sorority leaders rather
tion policy, than as representatives of certain'
tion states: "We, the chapters or national sororities.
embers of Panhellenic Any chances in chapter recom-I
.ouncil, do not favor mendation policy would involve
al mechanism which constitutional change, which would
,he possibility of dis- have to be made at each national
on the basis of race." convention this summer or next.
Symposiumon Ghettosf
rs Ribicoff McKissiekl
CHAEL DOVER in major speakers to discuss pro-
vocative programs and specialists
aham Ribicoff D- to explain specific problems and
give the keynote ad- solutions we hope to balance the

By MI(

Sen. Abra
Conn.) will

' ~ ~ Te tx chngeprogam hich
at state colleges and universities;Rmhetsuggedpro dam 2.c
Romney suggested includes a 2.5
-$6.2 million to increase sup- per cent flat rate personal income
port for special education of tax, a five per cent corporate
handicapped children in elemen- profits tax and an eight per cent
tary and secondary schools; income tax on financial institu-
-$4.4 million for new programs tions. Also included is an increase
in the area of mental health; in the cigarette tax from seven to
-$3.5 million to improve the 10 cents per pack.
system of veteran homestead tax These increases in revenue would
relief; Teeicessi eeu ol
-$1 mlo tsrbe coupled, in the governor's fis-
-$1 million to strengthen the cal reform plan, with:
program of the Civil Rights Coin--Repeal of the business activi-
mission, including $200,000 for -Reali
grants to local governments to ties tax;
encourage the development of -A $10 per person annual sales
local civil rights agencies; and tax rebate, and
-$1 million for full reimburse- - An increase in exemptions
ment on' medical costs under the from the intangibles tax from $20
crippled children's program. toe$my0.
Passage of Romney's tax re-
Romney said his proposed bud- forms would result in a net an-
get represents "a drastic reduction nual increase in revenue of $235
in the rate of expenditure increase million.
from the past two years." In Romney's plan, the corporate
Even such modest budget in- profits and' financial institution
creases would require additional income taxes would become effec-
funds, Romney added. And he tive on Jan. 1, 1968. The increase
noted that he will not sign any in the cigarette tax and the per-
budget measures for next year sonal income tax would go into
until he is sure that revenues will effect at the beginning of the
cover expenses. next fiscal year-July 1, 1967.
Romney's proposed $1.15 billion Because the new taxes would
budget represents an increase in start at different times, Romney
expenditure of $128 million over estimated that they would bring
this year's budget. $343 million in new revenue in the
The budget message was de- next fiscal year. However $88 mil-
livered yesterday to a joint session lion would be lost that year in re-
of the Legislature at 7 p.m. peals or.changes in present taxes,

SENATE COMMITTEE HEARING: dress Tuesday evening, Feb. 7, for symposium, make it more compre-
the University Activities Center's hensive as the result of varied
third annual symposium, "The opinions and outlooks."
Urban Ghetto." Ribicoff will speak McCreath said that following
(1 on "Urban Crisis" in Hill Aud. the talks of Ribicoff, McKissick,
Ta i j E 1I The symposium this year feat- and Boyd, 'reactor panels" com-
S a b a ares zeven participants in a two- posed of University faculty and
week program covering carious other persons would question the
aspects of the urban ghetto en- three in more specific areas.
vironment. Each speaker has ex- Dean Cummings, 68, Chairman
tensive experience in either the UAC's Contemporary Dis h-r
initiatioin or implementation of UsiAn Co temprary Din-
O pens P ossiminties For ~social reforms, particularly those clusion of theComtesi reactorhh panels will
reforms dealing with the problems "make the presentation more
cluionofthepresatopnmelswl
of city Negroes. meaningful" by clarifying further
By PAT O'DONOHUE China may convince Hanoi tp un- ership of the NLF is made up of . . . without causing civilian cas- Floyd McKissick the viewpoints of the three speak-
special To The Daily dertake negotiations. southerners. ualties," he added.
He added, however, that "at the He said that the NLF was not Salisbury questioned the effec-
WASHINGTON - New York same time, the dangers of escala- solely a Communist organization tiveness of the bombings, claiming Feb. 22; when Floyd McKissick,
Times assistant managing editor tion seem grave to me. The dan- but represented a variety of po- that while "we have been able to national director of the Congress "
Harrison Salisbury told the Senate gers of such a course lie in the litical parties and movements inflict severe punishment upon for Racial Equality, will speak on a d *ca E &
Foreign Relations Committee yes- possibility that we may by one act throughout Vietnam. He added many of the military facilities "Black Power in the U r b a n
terday that the Vietnam war seem- or another trigger the entry of ; that the Communists do dominate located in the region . . . it is Ghetto. Nie t
ed to be reaching a turning point. China into the war." the NLF. quite obvious that the supply con- Other engagements will feature ill iin
In testimony before the packed Salisbury said he was told by Salisbury said that, in his view, tinued to move south in massive Father Malcomb Boyd, author of
Senate hearing, he said that civil the North Vietnamese that China "the most profitable course for the quantities." the best seller, "Are You Running
turmoil in China and its possible would enter the war if the United U.S. at the present time would be He pointed out that "one must with Me, Jesus?", for which he is By LEE WEITZENKORN
effect on Chinese assistance to States crossed the 17th parallel ' ad ent i e or balance the deterrance to the known as America's "poet priest"; The Radical Education Project,
Norch Vietnam "seems to propel with land forces, made amphibious t i wth Hanoi representatives movement of men and supplies to Thomas Hayden, former Daily initiated last year by Students for
Hanoi toward exploration of a set- E landings in the north from the of the possibilities for a settlement the south from our bombings editor, co-founder of Students for a Democratic Society, is expanding
tlement of the war." coast or "brought the war closer agreeable to both sides against the strong nationalistic a Democratic Society, and now a its program for internal and ex-
Salisbury, the first American to the Chinese frontier." reaction which the bombing has community organizer in Newark, ternal education on a national
newsman to visit Hanoi since thSearate Entity When en. Frank Lausehe D- stimulated among the teneral New Jersey; David Miller, '67, Law, level.
war began, contended that the He 'reiterated his observations hio asked if that las not pre- population. Drganizer of the Cornerstone Pro The organization, which is "ded-
possibility of Chhese intervention that the Viet Cong or National I wish I cou be sur that we en. Wayne Morse (D-Ore) ask ject in New York City, a com- icated to the cause of a democratic
"exists on other grounds as well. Liberation Front is a separate en- are doing that." ed Salisbury if the war in Viet- munity aid program designed for radicalism, and aspiring to the
Chinee-rienpted .* - . , ,f m r, TTa ng nnm in his opinion. was a civil Congressional interns: Roger Wil- creation of a new left in America,"

a

ication Unit.
isl Success'
With a limited staff, REP is
doing its utmost to gain the sup-
port of more than 'just a small
minority of students, said Miss
Goldfield.
Since September REP -has re-
leased numerous publications such
as Alan Haber's "End of Ideology
as Ideology" as well four study
guides on such topics as Marxism
and radicalism. In addition, it has

Asks Approval
Romney said that approval of
his tax package must come by
April 1, in order to begin imple-
mentation at the start of the new
fiscal year in July. He warned that
each month the starting date is
delayed, the state would suffer a
loss of $21 million in potential per-
sonal income tax revenue.
The tax plan also includes a
section on property relief that
calls for a 10 per cent credit on
taxpayers' real and personal prop-
erty tax bills.
The credit, to be effective Jan.
1, 1968, excluding special assess-
ments, would be received by the
taxpayer through the local treas-