THE Michigan Daily Vol, LXXXIV, No. 21 -S Ann Arbor, Michigan-Thursday, June 6, 1974 Ten Cents Twelve Pages Millage proposal defeat would mean reduction of city services By GORDON ATCHESON Daily News Analysis If Ann Arbor voters turn down a pro- posed local property tax increase in next Monday's election, they will have to put up with a reduction in the scope and quality of services provided by the city. The city is requesting a one-time "emergency" 1.7 mill tax hike to ease a financial bind born of increasing operating costs coupled with a signifi- cant leveling off in its present revenue sources. If the millage is defeated, major personnel cutbacks will be necessary to balance the fiscal 1975 budget which goes into effect July 1 and already includes the funds that the tax in- crease would generate. - SOME 30 FULL-TIME employes would have to be laid off. These municipal workers include many high level employes who play major roles in service implementation. Three command personnel in the Police Department would be eliminated as well as the assistant fire chief, a fire inspector, an assistant city at- torney, an inspector in the Human Rights Department, and clerical work- ers in most departments. While the city could operate without these staff members, delivery of services would be impaired-becoming slower and less comprehensive-if they were removed from the payroll. IN TERMING the effects of such lay-offs "devastating," City Adminis- trator Sylvester Murray may be over- stating the magnitude of the resultant problems. But there is no question that each city resident will notice a drop in municipal services. , If the millage is defeated, city- funded programs in the area of drug help, child care, and health care will be reduced. Many Parks and Recrea- tion Department functions will be cur- tailed or eliminated as well. The city administration realizes that seeking a millage increase will now be a particularly difficult proposition. Voters feel the lash of inflation as severely as the city does, and often regard the municipal budget as in- herently flabby due to excessive ad- ministrative costs. ANN ARBOR'S budget for the up- coming fiscal year, however, has been. cut to the bone. Even if the millage is approved, no money will be available to expand programs which the admin- istrators themselves admit are inade- quate in many areas including street maintainence and human resource pro- grams. Clearly the city must attempt to develop new revenue sources, because inflation will continue to drive employe salaries and capital investments higher and higher each year..But the current revenue sources cannot expand at a rate equivalent to these costs. THUS THE MILLAGE is necessary, in the administration's eyes, as a tem- porary measure designed to carry the city through a difficult 1975 fiscal year. It is not viewed as an answer to the long-range budgetary problems. Only the development of an additional revenue source or a steady decline in the level of city services can alleviate the budgetary pinch. Given the present status of municipal services, the city has flatly rejected the possibility of accepting reduced service operations. Murray and City Council have turned their attention toward developing a new revenue source. They plan to hold a series of meetings after the millage vote to map out a long-range financial proposal. INDICATIONS ARE that a city-wide income tax will receive primary at- tention as a new revenue producer. Voters, however, have twice voted down proposed income taxes. House probe says tapes make no mention of milk fund gifts WASHINGTON 10, - Members of the House Judiciary Committee who listened toa tape of President Nixon discussing a milk price support increase, said yes- terday they heard no mention of cam- paign contribution pledges from dairy- men. Committee members generally agreed that Nixon's March 23, 1971, discussion with aides concerned the political rami- fications of the price-support question but that campaign contributions were not di. cussed. The coimmittee is examining evidence in closed session to determine whether the price-support increase was granted in exchange for a promise by dairy co- h -- operatives to raise $2 million for the . , IPresident's re-election campaign. THE COMMITTEE also heard record- ings of two conversations earlier the same day and reviewed documentary evidence to deterrmine whether White IHouse and Nixon campaign aides sought assurances on March 24, 1971, from dairyiien that their campaign pledge would be'met. Rep. Harold Froehlich (R-Wis.), said, "It was a political decision . . . it was not in an area of any wrongdoing." Both Froehlich and Rep. William Cu- hen (R-Maine) said the President and his advisers appeared convinced that if they didn't act the DIemocratic-controlled Congress would pass legislation raising the milk price support. THEY SAID the discussion dealt with the possible loss of political support from diirymen if Congress and the Democrats were permitted to take the initiative. "It didn't do anything to enhance the image of-Mr. Nixon as a statesman, let's put it that way," said Rep John Seiber- ling (D-Ohio). See PROBE, Page 10 AP Photo HOUSE JUDICIARY Committee Chairman Peter Rodino (D-N.J.) and chief counsel John Doar discuss Watergate after an impeachment inquiry session on Capitol Hill. After yesterday's session, House members claimed there was nothing on the tapes they heard to indicate that Nixon had taken contributions from dairymen in return for favors.