February 16, 1975

illus of Sec Kissinger with Saudi King Faisal

The greenhouse, traditionally a luxury available only to the rich, is popping up all over suburbia these days, and even in a few apartment buildings.

Morris B Abram, chmn of Moreland Act Comm that will investigate nursing homes, says he is considering advisability of moratorium on bldg of nursing homes, ceiling on ‘escalating’ costs and channeling of their Medicaid funds to home care services, news conf; says unit will focus on allegations of frauds and ‘unconscionable profits,’ ‘dehumanization’ of patients and fate of ‘60 Kaplan rept; says he will conduct hearings in Albany, Rochester and Washington; illus of Abram and comm staff dir Amitai Etzioni (M)

Mayor Beame discloses that deficit in NYC's anticipated $12‐billion fiscal ‘76 expense budget is expected to be about $1.68‐billion; warns that 1 of revenue‐raising measures necessary to close deficit would have to be 10% increase in city's real‐estate taxes; such an increase, 74c for each $100 of assessed value over current rate of $7.35, would be largest single real‐estate tax rise in city's history; however, realty tax rise and series of projected economies and revenues would erase only half of budget deficit and would still leave $883.9‐million gap; Beame holds gap would have to be bridged by state and Fed aid; notes that if Fed and state funds are not recd by city in next fiscal yr, budget would have to be cut where costs are not mandated‐‐educ, higher educ, police, fire, sanitation and hosps; series of Fed and state revenue‐producing proposals outlined by Beame include Fed and state take‐overs of existing programs as well as changes in revenue‐formulas; they would bring in sum estimated at $1.29‐billion, more than enough to trim deficit; Beame is wary of prediciting amt city might get; state legis leaders say they believe city will receive little of aid it is seeking; Vice Pres Rockefeller spokesman asserts city will have to recognize this is period of ‘austerity’ as Pres Ford has said; City Councilman Matthew J Troy Jr expresses doubt city will receive ‘even qr of it’; City Budget Dir Melvin N Lechner assists Beame in outlining for press city's fiscal plight; Beame holds deficit would be offset by proposed increase in real‐estate tax, which would bring in estimated $350‐million in additional money, by growth in gen revenues because of increases in sales tax and income revenues, and by increases in various fees now under consideration by City Council; there would also be repetition of postponement of rainy‐day fund appropriation for next yr and by decrease in what city will contribute to union pension funds; Beame asserts these measures will total $770.6‐million; notes that city could realize $631.4‐million from Fed Govt through 5 programs he has proposed; these include establishment of Fed agency to enable cities to borrow money at low cost, expansion of Fed Comprehensive Employment Training Act, take‐over of welfare programs, increased Fed aid for drug‐control programs and reimbursement to city for costs incurred as result of security provided for UN; welfare proposal is most expensive‐‐$400‐million‐‐and there appears to be reluctance on part of Fed Govt to assume these costs; Beame asserts that Fed recognition of concept of income maintenance makes him ‘hopeful’; adds that proposed state programs would mean $658.4‐million for city; Beame's and Lechner's budget briefing for press is followed by identical presentation to City Council and Estimate Bd; briefing will be repeated for city agencies and civic and good‐govt groups before Beame submits final expense budget to Council on Apr 15; Council is empowered to grant Mayor mo's extension for budget submission (L)

The troubled Knicks are committing too many fouls and slumping in the third period. Those flaws sent them to a 108‐106 overtime defeat at the hands of the Washington Bullets before a capacity crowd of 19,694 at Madison Square Garden last night.