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Page 2-Thursday, January 27, 1983-The Michigan Daily
GOP opposes '84 budget plans
WASHINGTON (AP) - President Reagan's call
for further cuts in the multibillion-dollar food stamp
program hit a wall of resistance yesterday on Capitol
Hill, with one of the Senate's most powerful
Republicans leading the countercharge.
"I don't think we can do much more in the food
stamp area though he (Reagan) cites it frequently'
said Sen. Robert Dole (R-Kan.), chairman of the
Finance Committee and the Agriculture nutrition
subcommittee.
"ENOUGH IS enough," added Rep. Leon Panetta
(D-Calif.), chairman of the House Agriculture
nutrition subcommittee. "I am not going to act on
severe reductions in this program."
In a sneak preview of Reagan's 1984 budget yester-
day, congressional critics called for much deeper
cuts in military spending.
Democrats, sounding a longstanding complaint
about Reganomics, said it was insensitive to
America's needy to call for selective freeze of social
programs while keeping the Pentagon's checkbook
hip-pocket warm. "I can't see that there is fairness,"
said Senate Democratic Leader Robert Byrd.
HOUSE SPEAKER, Thomas O'Neil said the
military budget "must withstand the same scrutiny
for waste and mismanagement that all other
programs must undergo." He said Reagan "has been
fond of 'viewing with alarm' waste in the food stamp
program and others that help the needy.
"Surely he can find enough waste and poorly
targeted spending in the military budget to effect
more savings," the speaker said.
In his State of the Union address Tuesday, Reagan
cited food stamps as one of the "automatic spending
programs" that must be reined in, and said he would
propose a plan that would end what he was $1.1
billion in benefit overpayments last year.
"FOR EVERYBODY'S sake, we must put an end to
such waste and corruption," he said.
The food stamp program, a tavorite target of
Reagan since he took office, has in each of the last six
years undergone legislative changes that slashed
billions of dollars in benefits, most of it during the last
two years. Dole, Panetta and several other House
members say it's time to find budget savings
elsewhere.
Even before Reagan's speech, Dole told civil rights
leaders that there should be no new cuts in food
stamps this year, and Panetta announced plans to
ask Congress to go on record against any budget
reductions for federal nutrition programsin 1984.
"AGAIN, IT'S a lot of people out of work, and a lot
of people need food stamps," Dole said after the
speech. "I don't quarrel with Reagan's general con-
cern about entitlement programs, but I think for food
stamps we've done quite a bit in that area."
The 21-member Congressional Black Caucus at-
tacked Reagan's plan yesterday, charging that the
president still wants "the poor, the working people,
the elderly, the children to bear the brunt of economic
recovery."
The Ark may have
to close its doors
(Continued from Page 1)
before it could be declared a historic
sight," he said, adding that the last few
months have not seen good relations
between the church and The Ark.
THE CHURCH governing session
decided to sell the building in Nov. 1982,
but that decision was cancelled. Tyson
said after November, communication
between the church and The Ark "has
not been good."
"They (the church) don't show good
intentions," he said. "They had some
plan to eliminate ownership of the
building and failed to tell us." £ Tyson
said the church is acting "in a manner
unbecoming a church."
David Siglin, manager and resident
of The Ark, said "The Ark will continue,
with or without the (Hill St.) building."
"THE ARK IS at its healthiest point,"
'he said -"we're very grateful to
the First Presbyterian for the use of the
building. If they want to sell the
building, however, we would continue
as The Ark in a new location. I don't gee
The Ark leaving Ann Arbor, it's- too
healthy."
Siglin said he did not know exactly
where The Ark would move, but added
that it would hve to "change
drastically," if it was relocated.
He said The Ark would have to
change from a non-profit organization
to a profit-making one. "That would
certainly change the way we operate,"
he said.
GIES SAID THE Ark needs "an angel
to put up the money to keep it going.
"The Ark can't generate a surplus,"
he said, "It mainly survives because it
stays there (on Hill St.) rent-free."
Siglin, however, said "Tom Gies has
no knowledge about The Ark at all. He
only knows what he hears in committee
meetings, and that is next to nothing."
Dannemiller had similar feelings
about Gies. "Tom Gies is speaking
from a point of ignorance about The
Ark," she said. "He has no notion of
what's going on - he hasn't been there
in 10 years. It's 'om Gies' power group
within the church that's doing it (pushing
ifor the sale) ."
IF THE ARK does lose its home, the
church has assured The Ark's
management that they will have time to
find another location. "Obviously it
would behoove us to start looking for
another place," Siglin said, "but I think
it would be a major crime to tear down
this building.
"As a church member, I am dead-set
against them tearing it down. It's a
beautiful buildng and it shouldn't be
torn down for the money. They should in-
vest money and keep it, even it it's not
the home of The Ark."
IN BRIEF
Compiled from Associated Press and
United Press International reports
Reagan: Abolish corporate tax
BOSTON - President Reagan suggested yesterday that the corporate in-
come tax be abolished because he said it is unfair to American business and
"there isn't really a justification for it."
Reagan made the surprise proposal during a meeting with Massachusetts
businessmen at the end of a day-long visit to Boston in which he also toured a
job-training center and computer assembly plant, sipped a beer in a
working-class Irish bar, and told a black audience that Martin Luther King
Jr.'s birthday deserved national recognition.
After listening to corporate executives recall the economic progress that
Massachusetts has made and responding from a prepared text, Reagan
said:
"I realize that there will be a great stirring and I'll probably kick myself
for having said this, but when are we all going to have the courage to point
out that in our tax structure the corporate tax is very hard to justify its
existence?"
Reagan suggested that corporate profits simply be distributed to
stockholders in the form of dividends and let those stockholders pay in-
dividual income tax on the income.
Economic upturn predicted;
high jobless rate to continue
WASHINGTON - Treasury Secretary Donald Regan said yesterday that
unemployment will average 10.7 percent this year and remain in double
digits for several months into 1984, but he still insisted the nation has "turned
the corner" toward economic recovery.
Regan also told Congress' Joint Economic Committee that interest rates
must come down further for a lasting recovery to take place.
The Reagan administration's economic forecast, scheduled to be released
next week, calls for a relatively weak recovery beginning later this year, but
with high unemployment hanging on.
Inflation is expected to inch up from last year's 3.9 percent rise in con-
sumer prices, and interest rates are expected todecline slowly under the
forecast.
Regan said the official forecast is for joblessness averaging 10.7 percent
this year and 9.9 percent next year - meaning it would be above 10 percent
for at least several months in 1984. He said the forecast did not predict 11
percent joblessness for any three-month period.
Women activists blast Reagan
WASHINGTON - Women's rights leaders said yesterday that President
Reagan has yet to make substantive proposals to battle sex bias and "he
would have been better off not saying anything than throwing "a few crumbs
our way" in his State of the Union address.
"It is another indication that the president does not begin to comprehend
the range and seriousness of problems that face women." said Judy Gold-
smith, president of the National Organization for Women.
In his speech Tuesday night, Reagan reiterated his support for the
elimination of sex discrimination, although his position stopped short of en-
dorsing the proposed Equal Rights Amendment.
Earlier this month, the Reagan administration surprised women's groups
by supporting a lawsuit before the U.S. Supreme Court that would eliminate
discrimination against women in pension payments.
Police call cyanide scare hoax
NEW ORLEANS - Police said six arrests and a promise of stiff prison
terms yesterday slowed . the rash of anonymous cyanide threats that
deprived 250,000 residents of drinking water during the past six days.
No threats have been made since the arrests of five juveniles and a 20-
year-old, all admitted pranksters.
Police, state health officials and city officials also questioned continuing to
shut down municipal water systems because of a few words over the
telephone.
"We do believe the arrests have had some chilling effect on the
proliferation of calls, as they have slowed to almost nothing," said state
police Lt. Ronnie Jones. "We believe that all the calls were pranks."
Jones said his agency, working with the FBI in investigating the bizarre
ordeal which began last Thursday, now advises cities to weigh heavily any
temptation to shut down water systems after receiving a threat.
Child's origins must be clear
before adoption, judge says
LANSING - An Ingham County probate judge said yesterday he cannot
release for adoption the child born to surrogate mother Judy Stiver without
trying to clear up the mystery surrounding his origins.
Judge Donald Owens will preside today at a hearing on the unwanted in-
fant, known at this-point only as "Baby Doe."
The child was born Jan. 10 at Lansing General Hospital, .suffering from
microcephaly - a smaller than normal head size which sometimes indicates
retardation.
Alexander Malahoff of Queens, N.Y., who paid Stiver $10,000 to bear his
child, ordered that medical treatment for a strep infection be discontinued.
Stiver, however, consented to continuation of medical care.
Now, Dearborn attorney Noel Keane, who helped arrange the surrogate
contract, contends blood tests prove the baby is not Malahoff's. The New
York man has refused to pay off on the contract.
Vol. XCIII, No. 96
Thursday, January 27, 1983
mmmmmmmmm
Biking away AP Photo
In Vandenburg, Calif., Tom Jones clears out "of the launch area on his bike
Tuesday morning before the launch of the rocket. The satellite and telescope
will search the heavens for previously unseen stars and other objects.
Blanchard eases up on
proposed '83 budget cuts
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(Continued from Page 1)
fering," suggesting that social services
may be cut the least.
To help alleviate the" state's high
youth unemployment, Blanchard said
he hopes to "address the critical need to
find work for our state's young people."
Again, Blanchard gave no specifics.
The tax hike is also larger than the
Fiscal Crisis Committee had recom-
mended - its recommendation had
been for an increase of 1.4 percent.
Blanchard said he would not allow
"bookkeeping gimmicks" used by the
Milliken administration to help work
things out. "The road to fiscal hell is
paved with good intentions," he said.
Blanchard, who has been in office
just over three weeks, said he would
make the specifics of his budget cuts
known soon.
Correction
Zeta Phi Beta sorority sponsored "The
Man" male beauty contest Saturday
night. The Daily incorrectly reported
the sorority's name in Tuesday's
Today column.
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