The Michigan Daily-Friday, October 31, 1980-Page 17

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Budget chief explains state economic woes

By JULIE SELBST
That the economic outlook in
Michigan is bleak comes as no surprise
to anyone who reads the newspapers.
The news that the economic fortune of
#ichigan is cyclical and that the cycle
pends upon automobile sales also
comes as no great shock.
That the 1980 state budget has yet to
be balanced a month after the start of
fiscal year 1981 due to a lack of funds is
disto*bing.
SItAKING BEFORE a group of ap-
pri ately 40 persons yesterday at
Ha Auditorium, state Department of
Migement and Budget Director
Gerd Miller told listeners that after
thred preventative measures his depar-
ent took, economists were still
finable to balance the 1980 budget.
In addition, Miller said the 1981
budget is expected to be $700 million
smaller than the 1980 budget in current
dollars.
Miller said the department ex-
propriated $100 million by executive
order as a first measure in balancing'
the state budget, and that his depar-
tment "brow beat" another $97 million
It of other departments by

discouraging them from spending their
full allocations under the original
budget.
AS A LAST effort, the Management
and Budget Department depleted the
entire state stabilization fund in an at-
tempt to balance the budget, and even
that did riot work. He said the budget,
still has about a $70 million deficit.
The stabilization fund is a pool sup-
ported by tax revenues in more
prosperous years. Recognizing the
cyclical nature of the state's economy,
Miller and Gov. William Milliken
created the fund informally in an effort
to offset the effects of a recession.
This year, however, the fund was not
large enough to solve the problem.
ADDITIONAL problems besides the
current budget deficit stem from the
budget not being balanced. New York
credit rating firms have given the state
no credit rating, which discourages in-
vestors from spending money in the
area, thereby causing the state ad-
ditional losses of revenue. Cash flow
transactions are also impeded because'
the state cannot borrow money.
"We're facing beyond question the
most difficult budget period Michigan

has ever seen," Miller said. "We're a
very troubled state, economically."
Miller said it is difficult to know how
best to proceed for the future because
econometric models are frequently im-
precise indicators of economic trends.
HE CITED four econometric models
for the state, all based primarily upon
automobile sales as the chief economic
variable, and noted that every 100,000
automobiles sold in Michigan provide
$10 million in revenue for the state.
Among the models cited, however,
predicted sales of new cars ranged
from 9.3 million to 10.7 million, a
discrepancy which produces a differen-
ce of $140 million in state revenue.
Miller said deciding where to make
budget cuts is even harder in light of the
Tisch tax cut amendment.
"It's naive to think that after
Tuesday, it will be business as usual,"
Miller said, explaining that support for
the Tisch amendment indicates a
"significant measure" of unhappiness
with the current government, because
it will force a drastic reduction of all
public bodies in Michigan.
"Mr. Tisch has written a very good
amendment," Miller continued. "By

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Miller
... worried about future
that I mean, there aren't any loopholes,
and if it passes, I will have to abide by
it. But if I were governor, I'd put a
proposal on the ballot in 1982 that would
repeal it," he added.

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Lead found on toxic shock cure

I

ATLANTA (UPI )-A promising, but
inconclusive, lead has been found in the
search for the cause and possible cure
of toxic shock syndrome, officials said
yesterday.
A UCLA microbiologist believes he
& traced the disease to a bacterial
ton.
"He's found a new one (toxin) that
nobody's found before," said Dr.
Kathryn Shands, the national Centers
fo Disease Control's principal in-
v stigator of the ailment that has
st uck 420 victims, mostly men-
st uating women, and killed 40.

years ago while seeking the cause of a
scarlet fever-like illness. Those cases
are now considered to have been toxic
shock syndrome, Schlievert said recen-
tly.
Schlievert said the toxin is produced

by the bacteria staphlococcus aureus.
He said he could produce the disease in
experimental animals and cure it with
use of an anti-toxin. The animal anti-
toxin, however, cannot be used in
humans.

th
h
i
b
thi
tol
d4
S

TOXIC SHOCK syndrome is a newly
Cognized illness that produces a high
ver, sunburn-like rash, a peeling of
skin, and in some cases a sudden,
tal drop in blood pressure. Tampons
ve been ctied as a contributing factor
the incidence of the ailment. One
tdu, Rely, has been removed from
i rket.
iscovery of the toxin that causes
ic4 shock syndrome could lead to
telopment of an anti-toxin to fight the
tease.
the oxin was found by Dr. Patrick
lievert who began his search four

The Center for Western European Studies
The Department of Communications
The Department of Romance Languages
present
alecture by
UMRlERTO ECO
"COM IC, HUMOR AND
CARNIVAL"
Friday, October 31
4:10 p.m.
Lecture Room I
Modern Languages Building

ANGIE JONES VEIGEL
FOR
REGISTER OF DEEDS
DEMOCRAT
Angie's main objectives are the long over-
due updating of the Deeds Office and initi-
ating a computerized index system for more
efficient service to the public without rais-
ing taxes.
Angie needs your vote to update
an ancient Records system.
Vote for a change.
-I
Paid for by Committee to Elect Angie Jones Veigel
Mike Homel, Treasurer, 1357 Huron Dr., Ypsilanti

HIGHLY QUALIFIED
* 16 years in Washtenaw County Gov't.
. 7 years Deputy County Clerk
" 6 years Probate Clerk
" 3 years total Planning Commission,
Environmental Health and Civil
Defense Departments
. 10 years a Court Reporter
owner of Public Stenographer Business
" 5 years University Medical Center, Worked
for directors of Psychiatry and Medicine
. 3 years as Administrative Secretary to
Businesi Manager, Loca 252, I.B.E.W.
. Active in Community Affairs
* Lifelong resident of Washtenow County



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