The Boston Globe from Boston, Massachusetts • 8

Boston Sanday Globe March 30, 1969 NSURANG II 0 EOV'I U.O. AGENCY Nixon Aide Reported Questioning Model Cities rZD r-JJ ANNUAL RATE REGULAR SAVINGS Full Freedom No-Restrictions Save Any Amount Save Anytime No Notice Required for Withdrawal MEMBER FEDERAL Savings and Loan INSURANCE CORPORATION Pressures have been building in Congress to expand the program to other cities. And already-selected cities have been pushing for administration action on the programs stalled since Nixon took office. A spokesman said 15 Model Cities agencies are operating on "letters to proceed," a device that enables them to borrow funds until the Federal Government resumes its money flow, ahead for the action phase. "We're really borrowing the money from the City Council, some of whom are not very sophisticated about Federal program said.

Walter Hundley, Model Cities director in Seattle the first city given a go-ahead for the action phse. "They're wondering whether they're ever going to get back their money." six of the 75 "first round" cities. The 75 are expected to begin entering the action phase of their five-year programs this year. Another 75 cities are expected to begin actual programs by late 1970. Richard, Nathan, assistant Budget Bureau director and an urban adviser himself, said the department's projection was "a benchmark." "It doesn't represent anything like commitments to programs or projects," he said.

"It is impossible," Nathan said, "to estimate the cost of the program until the program itself has been defined." One source said at least $11 billion of the projected $27 billion 'would come from already existing programs programs, he said, that would proceed with or without Model Cities. ful that the Romney subcommittee would recommend seeking more than the $750 million the Johnson administration asked for the program in the coming fiscal year. Model Cities' costs are not expected to rise above the $1 billion level until fiscal 1971 when all 150 cities begin reaching the action phase. One source said the $27 billion figure was supplied by Romney's department at the request of the Urban Affairs Council. The department administers the program designed to improve the lot of six million slum residents.

"They were asked to guess," he said. He called the figure the "highest pos- -sible estimate" of the program's cost and said it was based on prejections of the five-year plans submitted by George Romney is expected to recommend to the Urban Affairs Council soon that the program be continued, but confined to the 150 cities already participating. The subcommittee is also expected to recommend a revamping of the program. One study group has suggested that the planning aspects of the program be put on a city wide rather than a neighborhood basis. This would simplify administrative machinery.

Model Cities is an attempt to pull together a profusion of federal, state and private programs with neighborhoods themselves playing a key role in the planning process. If the program is to succeed, its defenders say, full cooperation is needed between federal and state agencies. That cooperation, they add, will be assured only if the President gives a strong endorsement tr the plan. Sources said it was doubt By KEN HARTNETT Anoclmlfd Presi WASHINGTON One of President Nixon's top advis- ers, pointing to a five-year cost projection of $27 billion, is urging that the I Model Cities program be 1 abandoned, sources said yes- terday. The sources said the argu- merits of economist Arthur jBurns run counter to the views of a solid phalanx of Mr.

Nixon's urban advisers. These aides want President Nixon to endorse the pro-s gram, launched by Lyndon B. Johnson'3 Democratic ad-! ministration to attack urban squalor in 150 of the na- poorest neighborhoods. hoods. Daniel P.

Moynihan, head the President's Urban Af-. 'fairs Council, is a defender of the program, the sources said. Both Moynihan and hold Cabinet-level status in White House inner circles. Neither Burns nor Moyni-; han could be reached for comment. But special presidential assistant Martin Anderson, also an economist, denied that Burns was pro- posing the program be abandoned.

"Your sources are misinformed," Anderson said. "They may think he feels that He has asked questions. But not expressed disapproval. He's not expressed either." Anderson said only "vague numbers and no hard estimate" had been given for the program's cost. Yet, he said, the program could eventually cost "tens of billions of dollars." Unanswered questions besides cost include, Anderson said, "exactly how the program is operated in the cities, what kind of programs are being proposed, what is Model Cities trying to do It's" still unclear in my mind." A subcommittee, headed by Secretary of Housing DIVIDENDS COMPOUNDED QUARTERLY OUR DIVIDENDS ARE KOT SUBJECT TO STATE INCOME TAX SEND for FREE SAVE-BY-MAIL KIT 21 MILK ST.

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