Page 8-Tuesday, July 22, 1980-The Michigan Daily PREDICTS DEBT OF $30 BILLION Gov't forecasts deficit in 1981 0 From AP and UPI reports WASHINGTON-The Carter administration, rejecting any tax cut plan at this time, officialy con- ceded yesterday there will be no balanced budget in fiscal 1981, but instead a $30 million deficit. In addition, the administration says its fiscal 1980 deficit will jump from an estimated $36.5 billion to $61 billion, reflecting the country's decline into recession, higher defense spending and surprise events including the eruption of Mt. St. Helens and the flood of Cuban refugees. THE ADMINISTRATION-in its mid-year budget review-also predicted that the recession will push unemployment to 8.5 per cent by the end of this year. Joblessness will remain at about that level through 1981, it said. Some private economists expect the jobless rate to reach close to 9 pe cent. Even the 1.5 per cent projection is far higher than the 7.2 per cent jobless rate predicted by Carter's economic advisers in March. THE OVERALL ECONOMY should decline by 3.1 per cent this year and then rebound modestly by 2.6 per cent in 1981, the new forecast says. Inflation, meanwhile, will increase by 12 per cent between 1979's fourth quarter and this year's fourth quarter-slightly less than originally predicted-and by just under 10per cent in 1981-a bit more than ex- pected.I Currently, consumer prices are rising at a 10.3 per cent yearly pace. "THESE ECONOMIC PROSPECTS are not accep- table to the administration," said James McIntyre Jr., director of the Office of Management and Budget. To combat the deteriorating economy, McIntyre said, "It is quite likely a tax cut will be desirable in 1981." But, he stressed: "It is not appropriate to propose one now. "THE ADMINISTRATION believes strongly that the last months of a congressional session, in an elec- tion year, are not the time to make the judicious decisions needed for a skillfully designed tax program to improve economic performance," said McIntyre. PRIME RIB A RARE PRICE. That tax reduction should be aimed heavily toward increasing investment and producitivity, he said. In contrast, Republican presidential nominee Ronald Reagan is calling for quick enactment of a $36 billion tax cut, effective Jan. 1; and congressional Democrats are hoping to unveil a plan of their own by early September. CHARLES SCHULTZE, chairman of the Council of Economic Advisers, assailed Reagan's tax cut proposals, which he said would reach a cost of $280 billion by 1985. Schultze said that would either require massive spending cuts or entail continued large deficits. Senate and House hearings on a tax cut begin this week. The administration's new forecast and revised budget figures prove a severe reversal from the tone Carter offered in March, when a balanced budget was his main goal and rampant inflation the No. 1enemy. With inflation then running at an annual rate ex- ceeding 18 per cent and the bond markets in near- panic due to skyrocketing interest rates, Carter made a highly unusual about-face and scrapped his initial fiscal 1981 budget only two months after proposing it. Milliken signs bill to stop sexual hw--sment LANSING (UPI)-Gov. William Milliken has signed into law a bill to discourage unwanted sexual advances agaigst both men and women in the workplace. Sexual harassment already was technically illegal and the state Civil Rights Commission, beginning last fall, handed down some landmark decisions dealing with the issue. BUT THE PROBLEM had not previously been specifically defined. Female workers have told of being subjected to pinching, groping and suggestive remarks from their co- workers. Those who complain or rebuff advances sometimes face the loss of jobs or promotions, they said. The measure defines sexual harassment as "unwelcome sexual ad- vances, requests for sexual favors, and other verbal or physical conduct of a sexual nature" in employment, public accommodations, education, and housing. Milliken, who had urged passage of the bill in his State of the State Address, also created a pilot program through the state Department of Labor to help workers develop the skills to cope with sexual harassment. More than 30 training sessions have been conducted with various groups. Milliken also signed legislation gran- ting autonomy to the Office of Services to the Aging which previously chafed under the control of the state Depar- tment of Management and Budget. Join The Daily Generous cut of tender, juicy Prime Rib roasted to perfection. Crisp, garden fresh salad Your choice of steaming hot baked potato, French fries or rice. Fresh bread and butter $7095 At a time when most things are going up, we're doing some- thing rare -bringing the price of Prime Rib way down. This standard cut is served every day, except Friday and Saturday, during our regular dinner hours. And The American Express Card is always welcome. MOUN TiN 300 South Maple Ann Arbor, 5s-1133 Valid through September 11, 1980.