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June 09, 1978 - Image 2

Resource type:
Michigan Daily, 1978-06-09

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Page 2-Friday, June 9, 1978-The Michigan Daily
Brown asks Cal. to aid schools

SACRAMENTO, Calif. (AP) - Gov.
Edmund Brown Jr. asked California
lawmakers yesterday to give $4 billion
in direct aid and $1 billion in loans to
schools, cities and counties hit by the
Jarvis property tax cut measure.
He also told an emergency joint
session of the legislature that he would
propose cuts of at least $300 million in
the state's $17.4 billion budget in
response to the tax cuts mandated in
Proposition 13. Californians approved
the amendment to the state constitution
in a landslide vote Tuesday.
BROWN, WHO vigorously opposed
the measure before the vote, repeated
his promise that there must be no state
tax increases to offset the tax cuts.
"Voters have told us they want a tax
cut. They don't want a game," said
Brown, who was somber during the
brief address.
The proposal, named after tax critic
Howard Jarvis, takes effect July 1 and
requires a 57 per cent cut in all property
taxes. It also rolls back assessments to
1975-76 levels and limits assessment in-
creases to two per cent a year except
when a property changes hands.
THE AID Brown proposed would
reduce the amounts that local gover-

ting government spending. "If he
comes around to our way of thinking, he
will get our support," Priolo said.
Assembly Speaker Leo McCarthy, a
Brown ally and the most powerful
Democrat in the legislature, said he
doubted that the state could come up
with as much money as Brown
proposed. McCarthy said a bi-partisan
committee would be named to draft
amendments to a tax bill which is now
in its final stages in the legislature.
BROWN SAID the $4 billion in grants
could be made for one year only, using
up a $4 billion state budget surplus that
has accumulated over the past four
years. McCarthy said his figures of the
surplus are about $1 billion lower than
Brown described the loan funds as
similar to a revolving fund to meet cash
flow problems.
He said in future years, the state
could afford to give no more than an
estimated $2 billion annually, plus $1
billion in loans. This would force
schools, cities and counties to reduce
their budgets in future years by $5
billion, the equivalent of a 15 per cent
cut, he said.

BROWN, WHO said he would make
detailed proposals later, did not specify
how he would cut the state budget. He
repeated his earlier order of an im-
mediate hiring freeze for all state
agencies to reduce the state's work for-
ce by attrition.
Brown also said the federal gover-
nment "should assist, not by reaping a
windfall, but by providing assistance to
those who face troubled times."
That was a reference to the estimated
$2 billion in extra federal income taxes
Californians will pay because of
reduced property tax deductions.
HE DID NOT specify exactly how
that money could be returned by the
federal government to California.
Brown also said businesses will save
$3 billion in taxes under Proposition 13
and he urged corporate presidents to
"invest that money in California, to
create jobs" to offset the layoffs of
workers anticipated in local schools
and city halls.
Brown's address came as schools,
cities and counties started sending
layoff notices to thousands of em-
ployees, and while suits attempting to
block the tax cuts and layoffs were
awaiting a decision from the California
Supreme Court.

(v. Brown
nments must cut from their budgets
under the measure from $7 billion to
around $3 billion.
State Assembly GOP leader Paul
Priolo praised Brown, a Democrat, for
adopting Republican views about cut-

Turkish arms embargo lift seems unlikely

Cypriot President Spyrous Kyprianou
campaigned yesterday for retaining the
U.S. arms embargo against Turkey,
even as President Carter lined up in-
fluential senators in favor of lifting it.
Kyprianou, meeting with Congress
members and reporters, said that if the
embargo is lifted, "a Cyprus solution
would be more difficult."
CARTER, meanwhile, met- with a
group of senators to argue the opposite,
saying that the three-year-old embargo
has not helped solve the Cyprus
problem and has weakened NATO.

Afterwards, Sen. John Stennis, (D-
Miss.), announced his firm support for
removing the embargo, which he has
favored doing since 1975, and announ-
ced that the Senate Armed Services
Committee, which he chairs, will soon
hold hearings on the subject.
STENNIS SAID, "We must close
ranks in NATO to meet the challenge of
a Soviet buildup and at the same time
help look for a solution to the problem of
Cyprus with fairness to both Turkey
and Greece."
Sen. Frank Church (D-Idaho), said
the issue would be hotly debated in the

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Senate, but he rated prospects for
repeal of the embargo as "generally
"I think the case the President makes
is a very strong one," he said.
DECLARING THAT the embargo
"obviously hasn't worked" to promote
a Cyprus settlement between Greece
and Turkey, Church said, "I don't think'
we should perpetuate a policy that has
Church, w~io supported the embargo
in 1975, changed his position and voted
to lift it earlier this year.
However, despite pledges of support
from senators at the White House
meeting, there was no sign of a
dramatic shift in sentiment on Capitol
Hill where the outcome is considered in
REP. CLARENCE Long, (D-Md.),
chairman of the House appropriations
subcommittee on foreign aid, said the
proposal to lift the embargo was
"another example of the inverted, Or-
wellian reasoning of the ad-
ministration, just like the arguments
advanced for weapons in the Middle
East - weapons for peace. I hear what
you're saying, but I can't get the logic."
Long's remarks came during
testimony by George Vest, assistant
secretary of state for Europe, who said
the administration position was that the
embargo had served its usefulness as
an "object lesson" to the Turks but that
it now was an impediment to a Cyprus
Carter, flanked by Secretary of State
volme LxXXVIII, No. s-s
Friday, June 9, 1978
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Cyrus Vance and Defense Secretary
Harold Brown, told the group he does
not question the justification for im-
posing the embargo three years ago, af-
ter Turkey employed American-
supplied arms on Cyprus.
BUT HE argued that instead of
helping to promote a Cyprus set-
tlement, the embargo contributed to a
worsening of relations between NATO's
eastern partners, Greece and Turkey,
and between those countries and
Continuing the embargo, Carter con-
tended, would lead to "a perpetuation
of the present stalemate regarding
Cyprus, if not a deterioration."
Kyprianou said the reason the em-
bargo hasn't worked is that both the
Ford and Carter administrations have
favored its repeal, giving Turkey hope.
"They have to know the embargo will
remain," he said.
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