The FebrusyIssue
of the
Michigan Journal of Economics
is now
A VAIlIABUEI
Copies can be picked up in
in the lobby of the
Economics Building.
Page 8-Friday, February 22; 1980-The Michigan Daily
State Senate OKs
strict interpretation of
Headlee Amendment
I
CHILE:
Popular Organizations
and Mon-Violent Movements
David. Molmeaux
American Friends Service Committee
Representative in Santiago, Chile
MOM., FEB. 25-8:00 PM
Friend's Meetinghouse
1420 Hill St.
Tues., Feb. 26 noon-lunch
U of M International Center, Madison Ave.,
LANSING (UPI) - The state Senate
yesterday approved legislation adop-
ting a more restrictive interpretation of
the Headlee Tax Limitation Amen-
dment revenue ceiling than the one
favored by Gov. William Milliken.
The bill, approved 23-1, would com-
plete the process of implementing the
Headlee measure which was adopted
by Michigan voters in November 1978.
The measure still needs House ap-
proval.
HEADLEE SEEKS to . prevent the
state's revenues from rising faster than
the total personal income of its residen-
ts.-It imposes a limit based on the ratio
between total state revenue in the 1978-
79 fiscal year and total personal income
for calendar year 1977.
The formula for computing state
revenue used in Milliken's recent
budget message produces a 10.08 per
cent figure. This would limit revenue in
the current fiscal year to $7.85 billion
and to $8.64 billion in the fiscal year
beginning in October.
The Senate, however, came up with a
slightly different figure because it
chose to subtract debt service paymen-
ts and loans to school districts from the
computation of total state revenue.
ITS FORMULA, said to be favored b
Headlee backers, produces a 9.97 per
cent figure, - resulting for the current
fiscal year in a revenue limit of $7.77
billion and a limit of $8.55 billion in the
next year.
The difference at this point is largely
academic since projected state revenue
for this year is only $7.28 billion and
$7.87 billion for next year - both well
below either ceiling. It could make dif-
ference in future years, however.
In other action, the Senate approved
a measure requiring vehicle
registrations to include the color of the
car. The measure, which now goes to,
the House, is favored by police agencies
which claim it will aid in combatting
car theft.
The Senate adopted a House-passed
bill designed to aid highway safety
researchers by guaranteeing the con-
fidentiality of the information they
collect.
Currently, many involved in acciden
ts are reluctant to cooperate for fear
the information will be used against
them.
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Ford to warn owners
of potential car faults,
Daily Photo by DAVID HARRIS.
An eye to the future
Dreaming of blue starts at an early age in Wolverine country.
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WASHINGTON (AP) - Ford Motor
Co. has agreed to notify customers
about potential problems they other-
wise might not know about until their
cars break down, the Federal Trade
Commission (FTC) said yesterday.
FTC officials said the consent
agreement signed by Ford is a major
break in an auto industry practice of
maintaining "secret warranties" tol
cover manufacturing defects.
The FTC officials said car owners are
not informed about these warranties,
which are invoked only in unusual cases
where the consumer complains
vigorously.
THE AUTOMOBILE industry main-
tains there are no secret warranties
because car dealers are notified about
the extra warranty protection.
Ford Executive Vice President
William Bourke called the term "an
inaccurate description" even as FTC
officials said the agreement means that
Ford no longer will maintain secret
warranties.
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FTC official Tracy Westen said,
"Ford will no longer issue 'secret'
warranties for certain repair problems.
Instead, Ford will directly notify each
car owner, by mail, whenever it exten-
ds warranty protections to cover
engine, transmission or other
significant problems."
FORD ALSO agreed to make
available to car owners the Technical
Service Bulletins that describe majox
engine and transmission problems. The
bulletins tell of extensions in the new-
car warranty for systems later found to
have problems.
These bulletins previously were sent
to dealers but not to owners of the cars.
The owners usually did not ask for
repairs covered by the warranties
because they never were told that the
warranties existed.
Under the consent agreement, the
bulletins, rewritten in non-technical
language, will be provided to car
owners on request and will be available
to the public by subscription for a
nominal fee.
In Addition, Ford agreed to buy ad-
vertising telling that the bulletins are
available and giving a toll-free
telephone number for repair questions.
Under the agreement, at least 84 full-
page ads containing the information
will appear in such publications as
Time, Newsweek, U.S. News & World
Report, Sports Illustrated, People, and
Reader's Digest.
Afghans
close shop
(Continued from Page 1)
cities, the official said.
Previously, the State Departmenj
had estimated Soviet troop strength in
Afghanistan at between 90,000 and
100,000. But the department revised the
figure, placing the number at 70,000
with another 30,000 supporting them
from inside the Soviet Union. Another
official who asked not to be identified
said the total number of troops in the
"theater of operations" has not
changed over the past few weeks.
But another U.S. official said yester
day the Soviet Union, in a desperat
situation in Afghanistan, is likely to
send thousands of additional troops into
the country to try to keep a client
regime in power.
He told reporters at the State Depar-
tment that Afghan President Babrak
Karmal might be deposed and Moslem
religious leaders or a member of the
ousted royal family given government
roles in a Soviet attempt to maintai
control.
The Soviet Union continued its indif-
ference to the passing Wednesday of
Carter's deadline for the Soviets to pull
out from Afghanistan or face a boycott
of the Moscow Games. Premier Alexei
Kosygin, surfacing in public after an
unexplained four-month absence, did
not mention the Feb. 20 deadline in a
nationally televised speech yesterday.
PEPtAstRE On:a
I
with special
guest
Jo
SOUTHER
March 22 8pm
Hill Auditorium
Tickets are $8.50, 7.50 and 6.50 and go on sale Mon-