The Michigan Daily-Tuesday, September 15, 1987- Page:7


ciated Press
the press
Sunday.

State could keep
extra taxes to
balance budget
LANSING, Mich. (AP) - The Clay said auto industry layoffs are
Michigan Legislature, once set on responsible for most of the
cutting state income taxes to return sluggishness in the economy.
an estimated $170 million federal tax STATE treasurer Robert
windfall, may now have to keep all Bowman said the governor sticks by
of the extra revenue just to balance his June prediction of next year's
the budget, a Senate budget analyst revenues and his desire to make the
warned yesterday. rollback effective Oct. 1.
The cloudy economic forecast Even if Blanchard's forecasts were
came as House and S e na te right on, the Legislature still must
Appropriations Committees prepared deal with a laundry list of budget
to meet this week to restore more vetoes and other cuts which have the
than $700 million in budget vetoes net effect of reducing the 1987-88
before the new fiscal year begins state general fund budget by $131.5
Oct. 1. million.
Earlier this year, the two Besides agreeing on where the
chambers passed bills giving the cuts will be made in the overall $6.4
$170 million windfall back to billion spending plan, the
Michigan taxpayers, but couldn't Legislature will also have to restore
agree on how to return the money. $701 million of $790 million in
IN JUNE, GOV. James vetoes made by Blanchard. Cuts in
Blanchard reversed his 1986 non-general fund areas will bring the
campaign promise to return the total to nearly $132 million.
money and suggested the state keep By law, the House and Senate
$754 million of the windfall to help must have a budget in place before
balance the budget. He proposed Oct. 1, but Clay said there would be
delaying a tax rate rollback to 4.4 no immediate danger if the two
percent by six months. chambers don't completely finish the
But now the budget-crunching budget.
arm of the Republican-controlled HOWEVER, because no budget
Senate says revenues are off so much was adopted for the Corrections
that lawmakers will have to either Department before legislatgrs broke
keep all of the federal windfall or for their summer recess in June,
find $170 million more in cuts. employees of that state agency could
Gary Olson, deputy director of the face payless paydays if the
Senate Fiscal Agency, said his office Legislature doesn't act before early
will back up his warning tomorrow October.
when he meets with the Senate In other areas of the budget, Clay
Appropriations Committee and said even with the governor's vetoes,
releases specific figures, which he enough money has been appropriated
said will show revenues off more to carry all of the departments
than Blanchard predicted in June. through the first weeks of October.
"I think it will cause (the Coming onboard amidst of all the
Legislature) to re-evaluate the confusion, Blanchard's new director
situation ... in a negative way," of the Department of Management
Olson said. and Budget will spend his second
THOMAS CLAY, director of week on the job answering questions
.the Office of Budget for the from lawmakers outraged over how
Blasnchard administration, said his the governor handled his budget cuts.
figures don't support Olson's Shelby Solomon refused to talk
warning, to reporters until later this week,
Clay said it appears the Senate according to DMB spokesperson
Fiscal Agency's updated forecast was Ellen Jones.

Soviet Foriegn Minister Eduard Shevardnadze speaks to
after arriving at Andrews Air Force Base outside Washington

U.S. to propose
weapons treaty
(Continued from Page l) tightening on emigration and a
Seperately, Reagan served notice growth of anti-semitism in some
that arms control will not be the Soviet quarters."
only topic for discussion. In a letter AMERICAN arms negotiators
to an American Jewish group, he presented Reagan's new treaty in
sharply criticized treatment of Jews Geneva and then quickly boarded a
in the Soviet Union and said plane for Washington. The full team
"political pressure" must be of American arms negotiators -
maintaned on Moscow. including the leaders of talks on
While crediting the Soviet strategic and space weapons - will
leadership with some "positive be in Washington for working-group
steps" in human rights, Reagan said, meetings with Soviet counterparts in
"they coexist with ominous the shadow of the Shultz-
indicators of possible future Shevardnadze talks.

l
l
t
1
l

U.S. helicopter joins
 Kuwaiti tankers in

ABOARD THE USS GUADAL-
CANAL, IN THE PERSIAN GULF
(AP) - The helicopter carrier
Guadalcanal lindes up with a convoy
of reflagged Kuwaiti tankers earlu
today to conduct minesweeping op-
erations as the ships headed out of
the Persian Gulf..
The 18,000-ton helicopter carrier
and other warships of the escort
 group went to General Quarters, the
highest state of alert, as they ap-
proached waters where Iranian speed-
boats have attacked commercial

shipping.
Captain "Skip"
Guadalcanal commar
members of a Pentagon
pool aboard the ship tha
States knows there are r
gulf and knows where the
But he said there was
that Iran had laid any ex
vices other than the ol
spiked contact mines tha
found in the gulf and
waters recently.

gui]
)irren, th
nder, told
news media
t the United
mines in the
ey are.
no evidence
plosive de-
d-fashioned
t have been
in nearby

Pope hope
San Antonio Archbishop Patrick Flores, left, prays with Pope
John Paul 11 at San Fernando Cathedral in San Antonio, Texas Sunday
afternoon.
The most
exciting few hours,
youli spend
aweek.
Run. Climb. Rappel. Navigate.
Lead. And develop the
confidence and skills you won't
get from a textbook. Enroll
in Army ROTC as one
of your electives. Get the facts
today. BE ALL YOU CAN BE.
CALLCAPTAIN 0' ROURKE
- -

based largely on a University of
Michigan prediction of similar
revenue losses.
"We don't think the economic
gloom that the University of
Michigan is predicting at this stage
is likely," Clay said. "We think the
economy will show improvement
over this period, it just won't be as
large as we'd predicted."

WEEKEND
1M AGAZINE
Fridays in The Daily
763-0379

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