THE
Michigan Daily

Vol. LXXXIV, No. 61-S

Ann Arbor, Michigan-Tuesday, August 13, 1974

Ten Cents

Twelve Pages

Ford asks Congress

to

rev up

economy

Seeks balanced budget next year

WASHINGTON (A1 - President
Ford asked Congress last night to
help him get America "revved up
and moving again" with a drive
against inflation to include wage-
p r i c e monitoring, a home-front
summit conference on the econo-
my, and a balanced budget next
year.
Cheered and applauded in the
House chamber w h e r e he served
before his appointment to the vice
presidency, F o r d said w h a t he
wants is not a honeymoon with
Congress but "a g o o d marriage"
that will solve national problems.
. . We have a lot of work to do,"
he told Congress and the nation in a
nationally televised and broadcast ad-
dress. "Let's get on with it."
FORD SAID his was not a formal re-
port on the State of the Union, but it
amounted to that-his first assessment
of the nation's situation and needs un-
der his new presidency.
"My instinctive judgment is that the
State of the Union is excellent," Ford
said. "But the state of our economy is
not so good."
He said that is the unanimous concern
of Americans.
FORD PROMISED to work with Con-
gress in an effort "to bring the federal
budget into balance in fiscal year 1976,"
which begins next July 1.
That pledge drew a burst of applause.
Setting a bipartisan tone, Ford said
his first specific request is not to Con-
gress but to voters in the November
elections, to support candidates of either
party who back "tough decisions to cut
the cost of government, restrain federal
spending and b r i n g inflation under
control."
FORD! SAID it may take some time
to stop inflation, but ticked off three
immediate steps to fight it:
* The drive for a balanced budget;
* A request that Congress enact im-
mediately a bill to revive the Cost of
Living Council to "let us monitor wages
and prices to expose abuses" without
reinstating c o n t r o1 s. Ford said that
should be done before Congress takes
its Labor Day recess;
* A "domestic summit meeting to
devise a bipartisan action plan for sta-
bility and g r o w t h in the American
economy." He said he would convene
such a conference, and "I will personal-
ly preside." Ford said the meeting
should be held soon, and "in full view
of the American public."
Ford made oblique reference to the
Watergate scandals that forced Richard
See FORD, Page 9

AP Photo
PRESIDENT FORD acknowledges applause upon his arrival at last night's joint session of Congress. In his speech he asked
the lawmakers to help him get the nation "revved up and moving again." Behind Ford at left is House Speaker Carl Albert
of Oklahoma, and at right is Sen. James Eastland (D-Miss.),
Counci deates $100000
surplus in '73 -'74 budget

By CHERYL PILATE
City Council last night received and
discussed a report outlining Ann Arbor's
current financial status - which includes
an unexpected $100,000 surplus from the
1973-74 fiscal year.
The report, compiled by City Admin-
istrator Sylvester Murray, states that
the excess stems from unanticipated
revenue from fines and forfeits and re-
strained spending by 17 of 20 city de-
partments.
ALTHOUGH the entire general fund
surplus amounts to over $400,000, the
city is committed to allotting $300,000 of
that sum for deficit reduction.
Last fall, the Michigan Municipal Fi-
nance Commission ordered Ann Arbor to
reduce its $1.2 million debt and approv-
ed a payment schedule whereby the

city's deficit should be erased by July
1, 1976.
The $100,000 general fund surplus-the
first excess since 1967-68--was, also
achieved because of decreased city serv-
ices and erpploye lay-offs.
"This performance should not be taken
as an indication that the fiscal problems
of the City have been solved," the report
stated. "The 1974-75 General Fund bud-.
get is deficient in many areas. Without
increased support for these General
Fund activities, we will continue to face
the prospect of additional layoffs and
cutbacks in services.
COUNCILMAN Jamie Kenworthy (D-
Fourth Ward) emphasized that "this sav-
ing was accomplished through providing
worse and fewer city services."
In other action, council discussed a

survey conducted by the community
management and planning staff which
shows that 3% randomly selected Ann
Arbor residents favor establishing a one
per cent city income tax and support the
$5 mtarijuana fine charter amendment.
Survey respondents were selected from
updated 1970 Ann Arbor census data to
include a cross-section of the community.
OF THOSE surveyed, 52.7 per cent
support the $5 dope law and 61.1 per
cent oppose rent control--figures which
closely reflect the April election results
on the two ballot proposals concerning
those issues.
Councilwoman Carol Jones (D-Second
Ward) expressed the hope that council
would study the figures and that con-
clusions could be drawn from them.
See COUNCIL, Page 10