Columbia Missourian Newspaper 1982-02-07

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74ih Year - No. 122 Good Morning! It's Sunday, February 7, 1982 5 Sections - 60 Pages - 50 Cents '
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NewYorfcTimes
WASHINGTON President Reagan will send
to Capitol Hill Monday a 1983 budget that urges
Congress to " stay the course" and press on with
his grand design for shrinking the size and re-sponsibilities
of the federal government while exp-anding-
the nation's military strength.
As outlined in the budget message, the presi-dent's
fiscal and economic strategy contem-plates
continued monetary restraint, brisk re-ductions
of inflation and a slow decline of
unemployment.
Insisting that no changes be made in the three- ye- ar
tax cut enacted last year, Reagan projected
several years of large budget deficits, which he
ascribed to past policies.
Elaborating on themes he has evoked in his
first year in office, the president's budget calls
for rapid growth of military spending and cuts in
benefits for individuals and in other non- milita- ry
programs.
Since adoption of a $ 35 billion package of Rea-gan
budget cuts last summer, the mood m Con-gress
has grown more cautious. Evidently
mindful of that, Reagan laced his message with
exhortation.
Under the heading " No Tune to Retreat," the
chief executive sounded this battle cry :
" Our task is to persevere, to stay the course; to
shun retreat; to weather the temporary disloca-tions
and pressures that must inevitably accom-pany
the restoration of national economic, fiscal
and military health."
Distinguishing his own administration from its
predecessors, Democratic and Republican, Rea-gan
cited budget and tax cuts made last year and
concluded, " For the first time in two decades,
the destructive pattern of runaway spending, ris-ing
tax- rate- s and expanding budgetary commit-ments
has been slowed, and with the cooperation
of Congress this year, will finally be broken. ' '
In an uncommonly long message presenting
the budget, Reagan repeatedly cautions the Con-gress
and the American people against trying to
cure the present economic recession by spending
more pr having the federal reserve make credit
easy.
Congressional Democrats . Saturday assailed
the president's budget as unfair and unworkable,
while Republicans predicted the president would
have trouble selling the budget package to Re-publicans
as weU as Democrats.
Sen. Robert Dole, R- Ka- n., chairman of the fi-nance
committee, said, " The Republicans I've
talked with are frightened about the deficit." He
called Reaaan'anrajpsal " acredibl1iudget"
callous character of tf administration.
" The administration understands that its man-date
is about to mo otnV and toe radicals in the
administration are pressing for allthey can get,"
said HartwHe added that the proposed new cuts
m social programs " essentially eliminate the
ladder of opportunity."
Like presidents before him, Reagan is asking
the Congress to ratify a long list of proposals for
spending cuts, selective tax increases, user fees
and a realignment of responsibilities with the
states under the " New Federalism" banner un-furled
in the State of the Union message.
Inevitably, Reagan acknowledged, Congress
will make some changes. Among the proposals
that seem to have the least probability of adop-tion
are the repeal of energy tax credits for busi-ness,
user fees for aviation and recreational
boating, deep cuts in subsidies for Amtrak pas-senger
service, a massive expansion of federal
leasing of offshore oil and gas lands, imposition
of fees on low- inco- me Medicaid patients and thes
sale of " surplus" federal property.
Asserting that budget deficits " must be ad-dressed
squarely," the president devoted three
and a half pages of his 21- pa- ge message to this
subject. But he did not refer to the widely held
view that the 1981 tax cut has been an important
contributing factor.
Reagan did not reject directly suggestions by
some Democrats and Republicans that the defi-cit
could be reduced by stretching out the 1983 in-come
tax cut, but the burden of his argument
was to oppose such a change
More soberly than a year ago, the budget of-fered
this qualification: " But the widely antic-ipated
decline in interest rates will not proceed
as rapidly nor as predictably as many hope. The
attitude of inflationary pessimism that has domi-nated
economic behavior in recent years will not
be dissolved quickly."
As was true a year ago, there was some ques-tion
whether the slow growth of money advised
by the administration was sufficient to finance
the forecast growth of the economy at more than
4 percent a year after allowing for inflation. The
budget did not disclose the assumptions about the
money supply made by the economists who pre-pared
the forecast
The most favorable part of the forecast was the
slowdown of inflation. The administration fore-cast
that from the autumn of 1981 to the autumn
of 1982 inflation as measured by the Consumer
Price Index would measure 66 percent, as
against 8 9 percent in the 12 months through De-cember
1981
Such. a showing would whittle down the fiscal
1983 increases in Social Security pensions and
other ttstefits that law are tied to the CPI.
Reagan also proposed to modify the cost- of- livin- g
formula for federal civilian and military re-tirees.
He asked Congress to raise their benefits
by the increase of the CPI or the pay raise for the
civil servicejwfiicbever is less.
" Under the bealHfJrsBrtictural changes," the
detailed budget document projected that Rea--
igan's strategy would lead to larger shares of the
government pie for defense, Social Security and
health care and declines elsewhere. Those three
parts of the budget would grow by 11 percent a
year from 1983 to 1987.
For fiscal 1983, the budget projected spending
cuts of $ 43 billion, or almost as much again as the
$ 45 billion of cuts approved by Congress.
The Budget Dollar
Fiscal Year 1983 Estimate
WHERE IT
Corporation COMES FROM... Income Taxes
." T J " Excise Taxes
I IRnSseotccaainapcltes I tAJtf?
B 29$ 6- orro-wig
Vlnd. vidual Income 7 WHERE IT
, Tas GOES...
Direct Benefit Payments
tor IncSvKjuals
Grams lo fl""""-- - 43C
States f 44 A . I
and 11 1
Localities n -- y I J
VL-- d. I National ifVNel Defense
s& f Interest OOft " Other Federal XX 13$ Operations . r
Pope
State may outlaw
drug look- alik- es
that harm youth
ByJIQMfller
State capital feurean
JEFFERSON CITY " Kiddy dope" may
conjure images of colorful sugar pills and
make- belie- ve drugs. But kiddy dope, which
resembles amphetamine pills, often contains ,
chemicals capable of killing those who take
it in search ofa high.
Take the case of one Jefferson City 14- year- o- ld's
reaction to three fake " speckled
birds," a street name for a popular ampheta-mine.
The young woman swallowed the tab-lets
at 2: 30 p. m. Twenty minutes later she be-gan
vomiting; she continued for 10 hours.
Her blood pressure soared. The skin around
her nose and mouth flushed deep red, and a
" flaming red" streak appeared across her
forehead, according to Linda Nelson, an al-cohol
and drug abuse counselor at the hospi-tal
where the victim ended up.
Her blood pressure remained high for al-most
three months. She stayed in Charles E.
Still Osteopathic Hospital for three weeks.
" These are dangerous drugs," Mrs. Nel-son
says.
Indeed they are. At least 14 people nation-wide
have died from kiddy dope m the past
two years.
Almost all the 34 teenagers who entered
Still Hospital for drug abuse treatment in the
past year had mixed kiddy dope with alcohol
( See DOPE, Page 12A)
Jtrrj Naunhttm Jr
This card, advertising for " kiddy dope" distributors, was found in a local telephone booth.
. ... .
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Reagan evaluates
high deficit's causes
WASHINGTON ( UPI) President Reagan, who once
promised a balanced budget by 1984, said Saturday the
recession, high interest rates, failures by Congress and
his own success in fighting inflation are producing mas-sive
deficits
Reagan, m the fiscal 1983 budget he sent to Congress,
also advanced arguments why projected deficits of $ 98 6
million this year and $ 91 5 billion in 1983 are not so bad.
Among them was one heard in past years from Demo-cratic
administrations' that the deficit is not large when
viewed as a percentage of the gross national product
Reagan listed four factors as causing the deficits.
1. The recession, which he said was the most important
reason for the deficit.
2. High interest rates.
3. Iower inflation, which decreases the amount of
money coming into the government because tax receipts
are not artificially swollen by inflation.
, A. Failure of Congress, to enact all of- hi- s programslasf
year, including approving his Social Security revisions.
However, in a section of the budget called " The budget
deficit in perspective," Reagan cited three factors to
consider when evaluating the the deficit's severity.
First, he said, the deficit " is not unprecedented in the
context of a recession and recovery cycle." Second, the
deficits " reflect the excess spending commitments of the
past." And third, the share of the gross national Droduct
taken by taxes will be " substantially lower," and there-fore
there still will be incentives to save.
The budget in brief
Highlights of the fiscal 1983 budget President Reagan sent to Con-gress
TfiXeS No tax increases are proposed, but the budget recommends
raising $ 7 2 billion by closing corporate loopholes and authorizing $ 2 5
billion in " user fees" for services now provided free to the public The
administration estimates it will collect $ 666 1 billion in taxes in 1983
However, federal spending will continue to outpace receipts, leaving a
$ 91 5 billion deficit
OCIGHSG Congress received a record peacetime military bud-get
of $ 215 9 billion for everything from personnel to bombers, nuclear
missiles and submarines The Pentagon would get even more in total
budget authority, which can extend over several years $ 43 7 billion
more than 1982
SOCial Services Nearly $ 13 billion was specified for cuts
in welfare, food stamps and other entitlement programs He would
make it more difficult to receive public assistance, require able- bodi- ed
recipients to look for work and make the poor and elderly chip in for
health care. Social Security would not be touched
FOOfl Stamps Reagan proposed cutting $ 1 7 billion from the
food stamp program, which, through tighter eligibility rules and other
steps, would drop an estimated 9 percent of the current recipients and
cut the average monthly benefit from $ 41.98 to $ 39 93
JODS Despite 8 5 percent unemployment and a recession- plague- d
job market, Reagan proposed a $ 2 6 bilhon cut in federal job
and training programs in favor of state training
AgriCllltlire The Agriculture Department faces budget
cuts from $ 29 4 bilhon to $ 23 5 bilhon This reflects lower spending for
commodity price supports, food stamps and rural housing loans
MealfII The budget proposes turning over more federal health
programs to the states and providing a slightly higher overall level of
funding for health, despite personnel cuts Health care outlays would
rise from $ 68 bilhon this year to $ 72 7 bilhon. Reagan wants Medicaid
recipients to help pay.
Environment A proposed $ 9 9 billion environmental bud-get
cuts back sharply on spending by the Environmental Protection
Agency.
EQer2y The energy budget proposals were dominated by in-creased
spending for atomic power and deep cuts in energy tax cred-its,
low- inco- me grants and subsidized loans
LoaH programs New cutbacks m many longstanding govern-ment-
guaranteed loan programs were proposed, but increases in
housing, veterans benefits and military assistance for foreign nations
would offset the cuts by about 2.7 percent
nOUSUlg Reagan, confident of a revitalized private- sect- or
housing market; proposed sharp reductions in federal assistance for
home buyers and renters, with overall spending of $ 7 3 bilhon for sub-sidized
housing.
JUStlCe The President proposed $ 2 67 bilhon for the Justice
Department, an increase of 7.7 percent, in part to support the adminis-tration's
crackdowns on narcotic trafficking and illegal aliens
Regulation Proposals would cut the Federal Trade Com-mission's
budget by more than $ 7 million, dismantling the Bureau of
Alcohol, Tobacco and Firearms.
IiisMe today
Fulton State Hospital are being torn
Nebraska snaps
Tiger streak
The unbeaten dream came to an
end Saturday night as Nebraska
swept Missouri off their own court
67- 5- 1. The Tigers experienced one of
their coldest shooting nights of the
season. Things wont get any easier
for the Tigers Tuesday, as they
travel to Lawrence, Kan. See IB.
In town today
2 pjn. " The Chalk Garden," Stephens Col-lege
Warehouse Theatre, tickets $ 2 and $ 4.
3 p. m. " Enoch Arden," a melodrama, Fine
Arts Recital Hall, free.
8 pjn. Brass Chamber Concert, Fine Arts
Recital Hall, University campus, free.
In town Monday
l p-- m. Special Business District Board of
Directors meets, County- Cit- y building.
7: 30 pan. Boone County Sewer District
ineetsCouito- Clt- y building.
, 7: 39 pja. Columbia Public Schools Board
of Education meets, 1818 W. Worley.
Index
Backgrotnd .... . .5C
Newsmakers ....... ..... ........... 2k
Picture page ......... ...... SB
Sparta ........ ..... 1B- 4- B
2MCm6 MMMMNMMlfMMMMM( MfNHIMlBA'Vn
' 83 budget
may assume
too much
New York Times
WASHINGTON The Reagan administra-tion
budget for the fiscal year 1983 is based
on a body of economic assumptions that are
optimistic and fraught with uncertainty. If
the assumptions go sour, as many of them
did in last year's economic forecast, the bud-get,
already burdened with a high deficit,
could look much worse.
All administrations face this problem
They have to make economic assumptions
on which to base the budget and there is al-ways
the possibility the projections will be
wrong.
In its 1983 budget released Saturday, the
administration appears, at least to some
analysts, to be ignoring the restraint on eco-nomic
growth imposed by the Federal Re-serve
Board's tight monetary policy, which
the president endorses in his budget mes-sage
to Congress. Reagan, m his budget, as-sumes
relatively large economic growth to
help hold the deficit in the next fiscal year to
$ 91.5 billion and to bring down the deficit in
subsequent years.
Exactly one year ago today the president
said in a televised address that the nation's
( See REAGAN'S, Page 12A)