European Stars and Stripes (Newspaper) - September 15, 1977, Darmstadt, Hesse                                Thursday september 15,1977 the stars and stripes Page 7 conferees of $458.3 billion budget Washington a a Senate House conference committee tuesday approved a $458.3 billion budget for 1978 that includes a $61.3 billion deficit the second largest in history. The Compromise budget assumes continued High unemployment and Only mod Erate economic growth Over the next 12months. It would not accommodate a Cut in income taxes which some economists say May be needed and assumes no increase in social Security payroll taxes on grounds such a move would slow the Economy even further. The deficit is up from this year s $45.1 billion but lower than last year s record $66.4 billion. The Overall spending total is slightly under the $462.8 billion recommended by president Carter which would have meant a deficit of $61.5 billion. The biggest single share of the 1978 budget $146.1 billion is for social Security and welfare benefits. Defense will get $110.1 billion health programs $47.2 billion and education Job training and social services will get $26.4 billion. Some $41.7 billion is earmarked for paying just the interest on the National no Blind Faith Carter aide says pledge to balance budget falters Washington a president Carter s chief economic adviser said tuesday the administration might have to pull Back from its commitment to a balanced budget and that further tax cuts or new Job creating expenditures May be needed if the Economy slackers sharply. The administration s economic policy is not based on putting balanced budgets ahead of everything else. Nor does it reflect Blind Faith in forecasts of a Strong private Economy said Charles l. Schultze chairman of the president s Council of economic advisers. Although Schultze made Clear he believes a balanced budget is still possible he appeared to be moving a Small step away from Carter s commitment to a balanced Federal budget by 1981. Other Carter economic advisers also have begun to downplay the commitment to a balanced budget As the Economy has shown signs of slowing in recent months. Schultze acknowledged there have been some disappointments in the Economy in recent months especially sluggish investment activity. But he said he thinks predictions that the Economy will slow sharply or slip into a new recession Are unwarranted. To be sure there Are questions about the economic Outlook at the present time he said. But i believe the underlying factors that promote recovery Are still  he made his remarks in a speech prepared for a meeting of the american newspaper publishers association. In a related speech labor Secretary Ray Marshall said it is Al ready Clear that a bigger Effort is needed to find jobs for unemployed Blacks and youths. He said the administration May seek to expand its efforts under the comprehensive employment training act under which 725,000 jobs already Are being created. Marshall went beyond Schultze s Call for stimulus in the event of a Sharp decline and said at least a limited boost is needed now. The evidence is already Clear that we Are not meeting our goals with respect to Black and youth unemployment and that additional stimulus targeted on these groups is necessary Marshall told the National Alliance of businessmen. But if private investment is not sufficient to move the Economy toward lower Levels of unemployment and capacity utilization of Plant and equipment we must be prepared to increase Public in vestment in order to accomplish this  in fact Marshall added i think a credible Public commit ment to promote the necessary economic growth to reduce unemployment stimulate business conditions and minimize inflationary pressures would stimulate consumer and business  Ohio Church fires foe of female priests Columbus Ohio up the Rev. G. Wayne Craig whose opposition to female priests led him to push for his Church s secession from the National episcopal Church was fired tuesday night As Rector of St. Paul s. The St. Paul s vestry the Parish members who manage the temporal affairs of the Church ousted Craig As of oct. 12, but said he could direct 9 30 . Services on sundays until his Dis Missal takes effect. The vestry said Bishop John m. Krumm of the Southern Ohio Episcopa Lian diocese will take Over the 8 . And 11 . Sunday services during the transitional period. By terminating Craig s contract the Church vestry agreed to keep on paying him about $40,000 in salaries and fringe benefits Over the next two years. The firing will not affect a Parish vote on whether to secede from the episcopal Church. Ballots have been impounded by the Franklin county common pleas court and results Are to be announced sept. 21. Puffing on a pipe and chatting with sympathizers after the vestry meeting Craig said it was sort of an anomaly that he was fired. He said he has prom ised All along to resign if the Parish voted to stay with the National Church. This has Cost them my salary and All by acting now he said. The Rector said he had no intention of going anywhere besides Columbus but said it was premature to discuss How Many parishioners he d take away from St. Paul s if he establishes his own Church. He added however he Felt the majority of the congregation was tradition Alist and like himself opposed the year old Episcopalian policy of Ordina Tion of women and modernized prayer. Rev. G. Wayne Craig More control by president urged postal workers meet with Carter Washington a groups representing postal employees saying manage ment of the mail system is deteriorating each year Are asking president Carter to seek greater control Over the postal serv ice. The seven organizations representing supervisory employees As Well As unionized workers say postal management is cur tailing services and in some cases letting private businesses take Over functions for Merly provided by the government. The groups made their Appeal tuesday in an Oval office meeting with Carter. But the president made no promises leaders of the employee groups said afterwards. He said he would devote attention in the next several Days to the problems of the postal service said Emmett an Drews president of the american postal workers Union. A statement released by the groups said the postmaster general should be appointed by the president to assure greater  the postmaster general now is appointed by the governing Board of the postal service whose members in turn Are named by the president. Since the Gover nors Are appointed to nine year terms a president has Little Opportunity to control postal  the next decade if action is not forthcoming the postal service would be left with economic and social options which would be limited to the delivery of no profitable mail to Remote areas Agri cultural produces and Large hard to handle packages the critics said. The administration has several times postponed testifying on legislation that would give the president the Power to appoint the postmaster general and would in crease postal appropriations. The House testimony is now scheduled for next week. The employee groups also urged the president to abolish the postal service s governing Board and the postal rate com Mission. They said the Board simply acts As a rubber stamp for the postmaster Gen eral while the commission complicates the rate setting process. They suggested retaining six delivery Days per week instead of eliminating one Day As the postal service is now consider ing and restoring All previously curtailed service. Debt which should climb to $780 billion by the end of 1978. The interest amounts to $114.2 million a Day. The Law says that by thursday night Congress must impose a limit on Federal spending for the 12 months that begin on oct. 1. The legislation also must set a mini mum level of taxes to be collected during that period. Once those targets Are in place it will be out of order for Congress to spend More than the ceiling or Cut taxes below the minimum. However like other restrictions that Congress imposes on itself the budget rules Are flexible. If for example the Economy continues to deteriorate and a tax Cut is called for the budget totals could be amended and the tax Cut approved. In fact this was done earlier this year to accommodate Carter s economic stimulus pro Gram. In sending his proposed 1978 budget to Congress Carter forecast that the Economy will grow during the year by an inflation adjusted 5.3 per cent resulting in National goods and services Worth $2.125 trillion and an unemployment rate of 6.3 per cent. Senate budget makers called those predictions far too optimistic noting a decline for three straight months in a key economic indicator a sluggish growth rate and no substantial improvement in unemployment. They predicted 4.6 per cent growth and a jobless rate of 6.6 per cent by the endow 1978. The House assumed 5 per cent growth and 6.4 per cent unemployment. The unemployment rate was 7.1 per cent last month. Carter May plug loophole in deductions new York a the tax program president Carter plans to submit to con Gress next month is Likely to include a limit of about $10,000 on deductions for Mort Gage interest the new York times said wednesday. In a Washington dateline Story the times said the tax program is not yet final but the mortgage interest limit and other elements appear almost certain to be included. One such element is a plan for a Federal subsidy to local and state governments if they Issue taxable Bonds. It is said the plan is to give a subsidy of 35 to 40 per cent of the interest paid on the state and local Bonds the times said. At present such Bonds Are exempt from Federal income tax creating what is regarded As a severe loophole some individuals with enormous incomes can escape Federal taxation entirely by investing Only in tax free securities. The Federal Aid would in effect subsidize the higher interest rate that states and municipalities would have to offer to at tract investors to their taxable Bonds. The tax program is expected to result in a $15 billion Revenue loss the first year for the Treasury with about .$10 billion of tax Relief going to individuals and $5 billion to business. Charitable donations the newspaper said no changes Are expected to be proposed in the deductibility of charitable donations. Neither is a proposal expected to collect Federal taxes on appreciation of Stock real estate and other assets on the death of the owner. Carter is expected to propose some limit on deductions for business meals and entertainment. And a proposal to Cut individual and corporate tax rates is expected the newspaper said with the minimum individual rate Down to about 10 per cent from 14 per cent and the maximum to 50 per cent from 700 per cent