The Michigan Daily-Friday, March 14, 1980-Page 9
Carter to announce anti-inflation measures;
}balanced budget, higher gas tax expected
WASHINGTON (AP) - President
'arter will unveil today his newest anti-
inflation-strategy, which is expected to'
qncIude the first balanced budget in,12
years and a new tax that would raise
asoline prices 10 cents a gallon.
White House officials said Carter will
nnounce his anti-inflation plans today
t 4:30 p.m. in a White House speech
4#nd will hold a news conference tonight
jt 9 p.m. to discuss them further.
In announcing Carter's plans, of-
ficials said all details of the strategy
have not yet been worked out and will
be announced later.
IN ADDITION to seeing a higher tax
on gasoline, Americans also are likely
to feel the bite of the new Carter
program in higher interest rates, credit
controls, and an end to Saturday mail
delivery, among other things.
Carter is expected to propose $12
billion to $15 billion in spending cuts for
1981, and to impose a new tax on impor-
ted oil that would raise the price of
gasoline an additional 10 cents a gallon.
Carter already has authority to im-
pose the tax. He also has authority to
impose credit controls. However, some
of the spending reductions would have
to be approved by Congress.
THE RESULT of the cuts in spending
and the increase in revenues would be a
slight budget surplus in 1981 in contrast
to the original Carter budget, submitted
in January,,which provided for deficit
spending of $15.8 billion. The nation has
not~ had a balanced federal budget since
1969.
As part of the package, the indepen-
dent Federal Reserve Board is expec-
ted to take steps to hike its discount rate
by one or two percentage points, sour-
ces said. It wasn't known whether the
board would announce its action
simultaneously with the president's an-
nouncement.
1Mass. Supreme Court
bans school prayer law
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BOSTON (AP) - The state Supreme
sCourt yesterday struck down
Massachusetts' new law reintroducing
prayer in the public schools, saying the
statute was unconstitutional because it
sponsored religion.'
The court enjoined the state from en-
forcing the law, saying in its five-page
order, "The program contemplated by
the statute and as actually carried out
in the schools was religious in charac-
ter."
THE STATE argued at a hearing
before the full court last week that the
law, which took effect last month, ac-
commodated religion rather than spon-
sored it.
* The attorney general's office said it
would await a more detailed ruling,
promised by the court, before deciding
whether to appeal to the federal courts.
"We find a religious program, which
was sponsored and put into effect by
state and local officials under aegis of
state statute, was conducted from day
to day by teachers employed as public
employees in public schools, and was
carried out on public property, during
school time, and as part of the school
exercises," the court said.
"THE APPLICABLE precedents are
clear that such a statute with such im-
plementation violates the 'Establish-
ment Clause' of the First Amendment
to the U.S. Constitution.
"According to the precedents, the
statute could not be saved from uncon-
stitutionality by the fact that the prayer
were spoken by volunteer pupils, or
that pupils could choose to be excused
from the exercise," the court said.
THe law passed last fall requires that
public school teachers ask each day if
any student wishes to offer a prayer.
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