State Rep... proposes alternative to isch tax cut proposa The Michigan Daily-Saturday, May 24, 1980-Page 3 cal S cen e '{."C"nxn .'.n: By BETH PERSKY - The tax cut proposed by Shiawassee County Drain Commissioner Robert Tisch would be devastating for the University, Rep. Mark Siljander (R- Three Rivers) predicted at a press con- ference yesterday. Speaking to a group of University of- ficials and media-representatives in the Union Pendleton Room, Siljander said "His (Tisch's) perspective is limited. He isn't aware of the fatal implications. of what he's trying to do." SILJANDER IS pushing his own tax cut proposal - one of four that could appear on the November ballot - as he attempts to gather a mandatory 287,622 petition signatures by July 7. While the Tisch Amendment proposes cutting in half the property taxes of businesses as well as those of homeowners and farmers, Siljander proposes halving only the property ' taxes of Michigan homeowners and farmers. Under the Tisch amendment, Siljander said, the state must reimbur- se local government for the funds lost because of property tax cuts. Though Siljander said he agrees with Tisch that there is waste in gover- nment, he added that radical tax cuts may cause difficulties for the state as well as the University. SIXTY PER cent of the University's revenue comes from the state, Siljan- der said, and Tisch's amendment would eliminate thisl source of income. Under Tisch's proposal, Siljander added, the University could not compensate for this loss with a tuition increase unless supported by 60 per cent of all Michigan voters. University property, added the representative, would go back on the tax rolls, causing the University to in- crease its expenditure in property taxes. To compensate in part for the loss of state revenues that would result from his proposed property tax cut, Siljander proposes raising the sales tax from the current four per cent level to five per cent. Siljander predicted a $400-$500 million increase in state revenues in 1981-82, which he said will occur as currently laid-off autoworkers go back to work and begin paying taxes again. He said the autoworkers will return to work within the year as stockpiles of cars are sold and a demand for autos is created. THE COMBINATION of an increased work force and increased sales tax, therefore, would compensate for the loss in state revenue due to the property tax cut, Siljander said. Michigan voters are ready for a tax cut, Siljander said, and will not support a mere tax shift such as suggested in the Smith-Bullard and Milliken- Legislative Coalition Proposals. The Smith-Bullard plan, sponsored by state Reps. Roy Smith (R-Saline) and Perry Bullard (D-Ann Arbor), provides for a shift from dependence on See STATE, Page 10 REP. MARK SILJANDER (R-Three Rivers) addresses a group of University officials and media representatives concerning the controversial Tish tax cut proposal yesterday in the Union's Pendleton Room. urvey reveals waste in city housing spaceorfwwbie17 By JOYCE FRIEDEN as experiencing an increase in the populations of two or fewer, while 1970 Although there are more apartments number of one- and two-bedroom census figures gave a figure o 53.7 per in Ann Arbor than ever before, fewer dwellings and an increase in the Con- . cent. Bohi cited the nation's increasing people are living in each of them, ac- sumer Price Index (an important fac- divorce rate and decreasing birth rate cording to statistics in a recently- tor in measuringinflation) of 107.9 per as possible reasons for this decrease. released survey conducted jointly by cent over the past ten years, which was Bohl said he felt the increase in the the city's planning and community slightly higher than the national in- percentage of one-person households development departments. crease of 105.8 per cent over the same reflected a fallacy about housing prices Planning Department Information period. in Ann Arbor."People are always com- Manager Fred Bohl said the survey The size of the average household is plaining that the housing prices are too consisted of questionnaires mailed to decreasing, according to the report. expensive, but people must be able to 3,093 city residents chosen through a The 1980 survey showed that 63.2 per afford it, since there are so many one- scientific method known as "stratified cent of the city's households had See CITY, Page 1i random sample." "PRIMARILY, WE wanted to find out what kind of people live in this town," Bohl said. He added that other sources of data of this type are poor-for example, the results of the 1980 census won't be available until 1982, so the Planning Department must rely on the 1970 census for demographic data. "There is much underutilization of housing," Bohl said. "Many people are living by themselves in dwellings that were built to house two people." ' Bohl cited population statistics to ex- plain the situation. "We estimate that the populaton has increased by only 7,000 since 1970 ... We've built 7,000 apartments (for more than one person) since then, yet people are still saying there's not enough housing." THE REPORT SHOWED Ann Arbor State Rep. calls for drinking age of 19 By JANET JIRUS At the age of 18 an individual is old The Citizens for a Fair Drinking Age are busy gathering signatures in the state to put the question of a lower drinking age before the voters in November. See Story, Page 10. enough under Michigan law to vote, take out a bank loan, and get married. "But at the wedding reception there better not be any champagne to celebrate if the couple is below the legal drinking age of 21," cautioned Richard Fitzpatrick, chairman of the Citizens for a Fair Drinking Age. Fitzpatrick (D-Battle Creek) has been touring the state in an effort to spark interest in the CFDA petition drive to put the drinking age question on the November ballot. The legal drinking age was raised to 21 last year when Proposition D was approved; See STATE, Page 13