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 r t 2 r i' 1 T i 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.