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The Michigan Daily-Friday, July 27, 1979-Page 7
GOP devises options to Carter programs
NGTON (AP) - Senate ministration "seems to lack either the "windfall profits" tax on the oil in- Finance Committee, where the ad-
ns offered their alternatives ability or the will - or both - to deal dustry. ministration is fearful amendments
nt Carter's economic policies with" inflation and recession. MEANWHILE, the Senate Energy may whittle it down, jeopardizing fun-
urging across the board tax THE GOP economic document left Committee gave Carter's energy plan a ding for Carter's $142 billion energy
lanced budget and new job open such questions as the size of boost by voting to establish an energy plan.
ies. proposed tax cuts and when the federal board with broad authority to speed
h ile, Congressional budgetshould be balanced. construction of priority energy projec- The president also claimed a new im-
ic leaders vowed to give Car- And, in a reflection of deep divisions ts. passe on gasoline rationing in the
help he needs to keep the within the party, Sen. Jacob Javits, (R- By a vote of 14-1, the committee House "illustrates once again the
his new energy plan intact, N.Y.), who chaired the subcommittee agreed to the creation of a national timidity of the Congress." It was a
he recent setbacks and that produced the document, said such Energy Mobilization Board with three reference to the House's 232-187 ap-
. But House Speaker Thomas "quick-fix measures" as wholesale tax advisory members and a powerful ad- proval late Wednesday of a Republican-
licated that may take a lot of cuts "will only paper over the problem ministrator. The board is designed to sponsored amendment limiting the
ming "the oil lobby is more and simply further fuel the fires of our cut government red tape and speed president's flexibility by giving
han it's ever been. There's no double-digit inflation." development of various non-nuclear Congress two separate opportunities to
bout it. The first test of the GOP plan is ex- energy facilities as a means of reducing block any rationing plan.
iference of 41 Republican pected when the Senate Finance Com- U.S. dependence on foreign oil imports.
agreed that the Carter ad- mittee begins writing its version of a Carter, in his nationally-televised Both Wright and O'Neill blamed the
news conference Wednesday night, ap- development - which caught them by
Dems maneuvered budget
fund-state GOP leader
LANSING (UPI) - A House stabilization bill was not to allow th
Republican leader yesterday accused removal of funds merely in anticipati
Democrats of pulling off a "raid" on the of hard times.
state's Budget Stabilization Fund in a "The decision by the Deinocrat
back-door legislative maneuver - a leadership to circumvent that intent
claim denied by the majority party. attempting to 'raid' the budg
House Republican Floor Leader stabilization fund at the 11th hour wit
Michael Busch of Saginaw asked Gov, absolutely no public debate
William Milliken to veto a section of a discussion is unjustifiable," he said.
recently-passed budget bill which he BUSCII SAID the actions of th
said appropriates $59.1 million out of Democrats were especially ironic
the fund. light of House Speaker Bobby Crim
BUSCHl SAID the provision was lavish praise of the "openness" of th
sneked through the legislature in the recently completed budget-writin
waning hours of the session in a "gross session.
abuse of power on the part of the Busch said Milliken should veto tt
Democratic leadership." entire bill if necessary to block the a
touse Fiscal Agency Director John propriation.
Morberg said the section in question is MORBERG SAID the budg
an estimate of the money that will be stabilization law requires an annu
available from the fund - not an ap- estimate of the transfers into and out
propriation. the fund. The $59.1 million estimate
The bill "does not appropriate money based on projections that personal i
out of the fund," he said. conre, adjusted for inflation, w
A MILLIKEN spokesperson said the decline in the coming fiscal year.
possibility of a veto is under study. The money would come out of tI
The fund is designed to store up fund only as needed, Morberg said.
money in good economic years for use The section of the bill containing tI
during recessions when revenues dip budget stabilization estimate also i
and the demand for state services cludes projections of revenue from tf
grows. income tax, sales tax, lottery and oth
Busch said language appropriating items.
$59.1 million out of the fund was slipped
into the multi-purpose general gover-
nment budget bill after House-Senate AT
conferees already had agreed on a final
version of the measure. Republican
conferees had no knowledge the section 5th Avenue at Liberty St. 761-9
was added, he charged. Formerly Fifth Forum Theater
"OUR CAUCUS does not dispute the
fact that the Michigan economy may
decline to the point where an infusion of W OO DY A LLEN
money from this fund may become N L 0 N
necessary," Busch said in a letter to DIA KEATrN
Milliken. I H E
"However, the intent of the MICHAEL MURPH
legislature in passing the economic
- 4 MARIEL HEMING
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pealed to Americans to help him win surprise - on partisan politics and con-
approval of his energy plan, depicting a fusion among the 79 defecting
"massive effort to gut" his proposed Democrats who backed the GOP amen-
windfall profits tax on oil companies. dment.
THE TAX HAS already passed the "I feel certain we can turn it
House and is now before the Senate around," O'Neill said.
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