Vol. LXXXI, No. 5-S Ann Arbor, Michigan-Tuesday, May 11, 1971 Ten Cents Twelve Pages
City approves
austere budget;
new tax likely
MAYOR ROBERT HARRIS listens to discussion of the city's austerity budget for the coming fiscal
year at last night's City Council meeting. The council unanimously approved City Administrator Guy
Larcom Jr.'s finished budgetary draft.
FIVE-POINT PROGRAM:
By MARK DILLEN
Ann Arbor moved closer toward a city-wide personal
income tax last night as City Council unanimously adopted
a $13 million austerity budget for fiscal 1971-72.
This budget, commonly acknowledged to be at least
$1.5 million below the amount needed to continue the city's
existing level of services, contains cuts in all city depart-
ments. The effect of these cuts is seen as likely to initiate
a drive for an income tax late this year to ease the crisis.
Although officials say an effort was made to apply
cutbacks "across-the-board"
in all departments, police T . . 111
cutbacks are likely to be the
most apparent-due in large
part to an expected decrease ri
in the University's contribu- recoverin
tion to the city for police
and fire protection. in E ur p
If the proposed state alloca-
tion to the University holds, the
city will lose about $750,000 in By The Associated Press
payments from the University The dollar plummeted on some
for fire and police services. European currency exchanges
Where the city received about yesterday but recovered slightly
$1.1 million last year from state in the first trading day since a
funds to the University, only weekend flurry of decisions to
$360,000 is expected this year. ease Europe's monetary crisis.
Despite recent upward revi- The dollar was steady in Lor
sions in City Administrator don and Paris and was up slight-
Guy Larcom Jr.'s budgetary ly in Milan. Britain, France and
draft, the police allocation of Italy did not follow other Euro-
$2.6 million will effect the lay- pean nations in taking steps to
off of at least seven "limited halt the influx of dollars. They
duty" police and reduce police said they had no monetary prob-
overtime funds to the extent lems.
that should there be a large dis- This was the first trading day
order, deficit financing would since most European foreign ex-
be necessary to fund police work. changes closed Wednesday to
In total, the budget authorizes
a ceiling of 43 layoffs, at least
18 of which will come from the For a history of the dollar
city's garbage refuse personnel- as the c en t e r of monetary
another department hard hit by crisis, see Page 6.
budget cuts. Refuse collection,
street and tree maintenance, re-
creation and social services were halt the heavy flow of ars
all reduced over the coming year. caused by speculators, who trad-
,t "an ed dollars for other currencies.
sources" program - recent low- No large volume of money
budget community-oriented pro- movements was reported as
grams - will be saved from total traders reacted with caution and
extinction, however. Some $9,000 confusion to the changes, trig-
saved from last year for a gered by West Germany's de-
Methadone drug treatment pro- cision Sunday to let the mark
gram is approved, as well as re- find its own level to deal with a
duced funds for the city's griev- massive inrush of dollars. Bonn
ance officer, summer youth em- said the dollar influx was adding
ployment programs, day c a r e to its inflation problems.
center, and Ozone house. The government measure was
Mayor Robert Harris empha- strengthened during the day
sized, however, that "these pro- when the West German Central
grams will fail to meet the mark Bank ordered a check on inter-
they're intended to," and that est payments on foreign currency
they will receive little money deposits. This would discourage
See BUDGET, Page 12 dollar deposits. The Central
Drug
By GERI SPRUNG
A plan for a student-com-
munity drug help program has
been designated to receive a
federal grant, the office of Stu-
dent Services (OSS) was advis-
ed yesterday by the office of
Congressman Marvin Esch (R-
Ann Arbor).
The proposal, drafted by a
coalition of University s t a f f,
students and people who have
been working in the Ann Ar-
bor community on drug help
programs, was selected as one of
60 pilot programs to receive
funding from the Dept. of
Health, Education and Welfare
(HEW) under the Drug Abuse
Education-Act of 1970.
The coalition came up with a
five-point proposal requesting
$175,000 in funding. The amount
of money and specific programs
will be determined in a series
of negotiations in forthcoming
weeks.
"We are grant recipients," said
a spokesman in OSS, "but the
coalition must meet again to
further define the program.
Then we will have to negotiate
with HEW the amount of money
we will receive and the kinds of
services that the money w il11
pay for."
The Ann Arbor proposal was
chosen from out of 350 appli-
A cations.
The preliminary proposal de-
signed and requested funding for
five specific drug education pro-
jects, some already existing, are
as follows:
-A program within OSS
which would focus on educating
student and administrative staff
in counseling, housing and edu-
cational programs on drug
emergency training. This would
include training in the means
for dealing with the early stag-
es on a drug emergency and
distribution of accurate, un-
biased drug information.,
)I
an gets
-Drug Help Inc., a voluntary
organization established in 1970
to provide emergency drug in-
formation and mobile teams for
drug crises in the area, would ex-
pand to further serve and edu-
cate the community.
The presently maintained 24
hour crises phone would expand
its number of lines. Currently,
about 300 calls per month come
in, of which one-third are con-
cerned with specific drug in-
formation.
-A proposal that requests fed-
eral financing for a psychology
course, "Drugs and Behavior."
in which students would receive
and integrate information on
drugs from all areas, applying
this information to individual
projects.
While the course provides drug
grant
education within the university
setting, it also remains the ma-
jor arm for ongoing education
and training for Drug Help vol-
unteers.
-A drug program, designed
specifically to serve the black
Ann Arbor commnuity and the
black student body at the Uni-
versity, would be instituted.
Blacks would be trained to
serve as in-University resources
on drug information and avail-
able services. There would also
be a liaison within the Univer-
sity community and between
black students and the com-
munity, in regards to the drug
problem.
-The Ann Arbor Tribal Coun-
cil wduld strengthen the street
community so that it is better
See DRUG, Page 12
i
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t
2
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1
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Bank must approve any interest
payments.
The German government also
barred nonresidents frompisr-
chasing such investments as do-
mestic bonds. This also will
check the influx cf dolars.
In Switzerland, where the
franc was revalued upward by 7
per cent, the decision had a de-
pressing effect cn the stock mar-
ket. Shares declined sharply be-
cause revaluation will make ex-
ports more expensive.
Widespread uncertainty about
the effect of the monetary deci-
sions was evident in the trading
fluctuations on foreign currency
exchanges.
Money dealers in London and
Frankfurt reported that profit
taking, that is to buy back dol-
lars with revalued currencies,
was on a small scale, while
speculators watched develop-
ments in other markets.
In Frankfurt, dealers conced-
ed they were confused about
how the government's decision
to float the mark would work in
practice.
Charge and countercharge
Consumer advocate Ralph Nader, left, exchanges harsh words with Sen. Ted Stevens (R-Alaska) at a,
session of the Senate Commerce Committee on auto insurance. Nader attacked the committee and
charged the auto industry with "massive thievery." Stevens said Nader was too negative.