"The Contract with America is really a Mafia or execution-type contract," Daniel J. Wuenschel, executive director of the Cambridge Housing Authority, told the council.

In addition, the consolidation may hurt privately-financed affordable housing projects since rental subsidy would be reduced.

In a dramatic statement, Dr. John G. O'Brien '72, the new city commissioner for health and hospitals, said that the city's public health-care system would be destroyed if all Republican proposals were implemented.

"The combination of the Contract with America and the closing of the budget deficit would lead to the closing of Cambridge Hospital," the city's only public hospital, O'Brien said.

"Even in the best scenario, we are not going to support our current services," O'Brien added.

The commissioner recommended that the city take a two-fold response to cuts. Cambridge must "be very creative in minimizing the damage," O'Brien said.

In addition, he said the council must reach "a consensus" on where cuts would be made given that additional tax support is not possible.

But several city councillors criticized the hospital's continuing $60 million expansion project.

"I don't see how we could continue spending any money on the expansion of the hospital until we get a clear idea of what's happening in Washington," Councillor Michael A. Sullivan said.

The city might be left "with a $60 million building standing there vacant," Sullivan warned.

O'Brien disagreed. "It's important for Cambridge Hospital to develop facilities in order to make it competitive with other hospitals," the commissioner said. He said the advanced care and free access offered by the hospital make it less vulnerable to cuts.

Councillor Francis H. Duehay '55 sounded one of the few optimistic notes.

"The premiere place of the Cambridge hospital may save it with the state and the Democratic administration," he said in an interview. "It may be one of the few that can make it. We should not give up so quickly."

The council will await further House action before issuing any recommendation, Healy said.