The Michigan Daily-Thursday, October 1, 1981-Page5
Reagan's fiscal year, and all
WASHINGTON (UPI) - The gover-
nment rings in a new era of austerity
today, the beginning of Ronald
Reagan's first fiscal year. There will be
cheers over a tax cut, but little
rejoicing by those who will get less
The new money year 1982 - bringing
down the curtain on an age of big spen-
ding - is opening amid some confusion
about changes dictated by the new
president's new economics, such as
school lunch cutbacks and new block
grants designed to give states more
control over federal programs.
IT ALSO COMES at a time when
Reagan is seeking further budget
reductions. To help hold down the
federal deficit, the president wants
Congress to pare another $13 billion,
beyond the $35 billion already cut from
1982 spending plans.
Some of those reductions went ipto ef-
fect before the fiscal changeover.
School lunch subsidies dropped in Sep-
tember, although officials are still
trying to decide on new minimum meal
requirements. And the business part of
Reagan's huge tax cut was retroactive
to January, although most firms won't
see the difference until tax returns are
BUT OCT. 1 does bring with it the fir-
st increment of the personal income tax
cut, higher interest charges and a
"needs test" for college loans, reduc-
tions in food stamps, tougher standards
to qualify for welfare, smaller budgets
for scores of federal agencies and
ges, begin 1
abolition of the Community Services
Administration, the last batallion of the
War on Poverty.
States had a deadline of midnight last
night to apply for most of the nine block
grants enacted to give them more say
in how federal money is spent. Other-
wise, Washington planned to continue
administering the 57 programs merged
into the big grants.
Either way, the states would get the
lower funding levels - about 25 percent
less = enacted as part of Reagan's
blueprint to spur economic recovery
while reducing the role of the federal
government. The block grants cover
programs for health, education, social
services, community services, energy
assistance and community develop-
HIAPP V HOUR
Getting ready AP Photo
An employee of Kansas City's Hyatt Regency Hotel checks a glass table in the lobby of the grand hotel in preparation
for its reopening later this month. The hotel has been closed since the July 17 disaster that killed 111 people when two of
the hotel's three skywalks collapsed. The hotel has since built new skywalks, one of which is pictured above.
Reagan will announce
OK of MX, B-i bomber
Mon-Thurs.-8:OO p.m. till Close
Local Beer-Pitcher 2.25
OPEN 7 DAYS
1 S. University Hrs.-1 1 am-Midnight
(Continued from Page 1)
e spurce said. Air defenses of the U.S.
continental also would be strengthened.
The Office of Technology Assessment
has estimated the original plan to
deploy 240 MX missiles would cost $43
billion, and that the B-1s would cost
around $100 million each.
A;100-MISSILE MX system would be
a cut-down version of' the now-
discarded plan by Carter to rotate 200
missiles among 4,600 shelters in
,Nevada and Utah.
The Carter plan had drawn strong
* opposition from environmentalists,
ranchers and the influential Mormon
Church in those states, and the prospect
of a smaller version has not mollified
,many of the critics.
Nevada Gov. Robert List, for instan-
ce, said in an interview on NBC-TV's
"Today" show yesterday: "We don't
think it makes good sense militarily.
We feel very clearly it would just turn
our landscape and lifestyle upside-
Defense Secretary Caspar Wein-
berger, noting conflicting reports about
Reagan's decision, urged the news
media and others to be patient until the
official word tomorrow.
"I've said from the beginning if
people would only wait until the
president has made his decision and
made his announcement we'd all get it
accurate," Weinberger said on ABC-
TV's "Good Morning, America"
Kingsley apartment robbed
An apartment on the 800 block of
Kingsley was broken into early
Tpesday morning, police said yester-
day. The thief entered through an
unlocked door and took a turntable,
tape deck, albums, and cigarettes. The
value of the missing items is unknown.
#an robs Industrial A&P
.An armed suspect robbed the A&P
Grocery store on 1919 Industrial Ave. at
about 10 p.m. Tuesday, police reported
yesterday, The male suspect, said to be
in his 20s, entered the store, told a clerk
he had a gun and forced the clerk into
an office. The suspect showed the gun to
the store's assistant manager and an-
nounced that he was robbing the store.
A small amount of cash was taken and
the robber fled on foot. Police officials
said they called in dogs to track down
the suspect, but lost his scent a short
distance from the grocery store.
The purse of a 34-year-old Ann Arbor
woman was stolen Tuesday evening on
the 300 block of North Maple Street, the
woman told police. Two males repor-
tedly in their late teens grabbed the
purse and fled on foot. A witness chased
the suspects on foot to I-94, where they
got into a waiting vehicle. The purse's
contents were unknown.
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