Senator BARTLETT. If this provision were not eliminated then it would get the amount of money now received plus a chance at the other?

Mr. GARDNER. Yes, sir.

Senator COTTON. Specifically, and I don't want to take too much time, what are the other programs or one or two of them under which the land-grant college is expected to make up for its losses, and in the case of mine it is $164,000?

From what source are they going to get that $164,000 back in addition to what they have been receiving? What would be the program? Mr. GARDNER. Do you mean over and above?

Senator COTTON. Aecording to your figures they are going to lose $164,000 and you suggest, however, that that will be made up for or more than made up for by other Federal sources.

Mr. GARDNER. One program that has not been a part of their past experience will be the Higher Education Act of 1965 which will get underway.

Senator COTTON. How is the amount of that money determined and what is it given to them for?

Mr. COHEN. In the case of higher education facilities, there is in the 1965 act an expansion of the 1963 legislation, so it would be used substantially for the same purpose.

Senator COTTON. And those purposes are what?

UNDERGRADUATE ACADEMIC FACILITIES

Mr. HUITT. Under the new program which extends the 1963 act, Senator, there will be authorizations of $460 million for undergraduate academic facilities. This would include buildings and things of that kind. In addition, there would be $60 million for graduate academic facilities, and $300 million in loans for construction, so this is a total of over $800 million.

Senator COTTON. If it is for facilities, that means buildings and equipment?

Mr. HuITT. Yes, sir.

Senator COTTON. So there again in the impacted areas you are replacing certain payments that they can use for their running expenses and use to hold down their expenses by earmarked funds that they only use for new or renovating or expanded physical facilities.

Mr. KELLY. There is a whole series of authorizations, Senator Cotton, and it is hard to tick them off at your fingertips, but I would like to include them.

AUTHORITY FOR OTHER ASSISTANCE

They go beyond the facilities. We have the authority to help and assist in the establishment of their libraries. We have authority to assist in a whole series of efforts, such as moving in the area of continuing educational programs.

With respect to some of the smaller and the more economically hard pressed institutions, we have authority to assist them as developing institutions to bring them up to an acceptable level.

There is authority to develop teacher programs for the Teacher Corps activity and then for certain specialized programs in such areas as foreign language, mathematics, and science.

What I would like to do if I might is just enumerate a little further. One of the problems we have in responding to your question is telling how much a given institution will get is that the land-grant funds are provided by a specific formula so we know that a given institution will get so much money. These new authorities establish a competitive relationship in which the institution must come forward with an application and a program.

However, there is a distribution in equity by States, and State commissions will review and act upon the applications, so we have a reasonable certainty that this will result in aid for these same institutions, but we can't give you a precise figure until after the fact.

HOUSEKEEPING EXPENSES

Senator COTTON. The point that disturbs me is this: If a landgrant college, particularly one that is fairly large and long established, so it is not a case of developing a small, struggling institution-the land-grant college is able to avail itself and does avail itself of these programs, it means new buildings, expanded facilities, libraries, but the money does not go into the hand of the colleges to help them hold down the tuition and expenses of a student.

This amount that is being cut out, small as it is, can be used for the housekeeping expenses that will enable them to continue to hold down the cost to the student.

In many instances, when you put money in and have new facilities, new buildings, expanded laboratories, more library facilities, that is fine. They are holding out more benefits for their students, but actually you are increasing their overhead because they have to maintain and staff those new facilities while this money, small as it is, goes right into the spot where it is needed to give boys and girls from poor communities and from poor families a college education a little less expensive than they are going to get at Harvard, Yale, or any of the big private institutions, and I just think we are cutting it where it hurts the

most.

FUNDS NOT COMPLETELY OFFSETTING

Mr. KELLY. There is a certain truth to your statement that these are not completely offsetting funds. But it is true that if an institution is given student aid, if they are permitted to award scholarships and establish work-study programs, this is in lieu of their having to put their own resources into this kind of student assistance.

When you assist them in construction of needed facilities, this means that they are either able to do something they would not otherwise be able to do or they would have to put funds into this that would have to be recovered in some way.

Simply stated, you either are going to have inadequate library facilities for the student or the institution's resources are going to have to go into their library. The library will be paid for either by the State putting up the funds or the student putting up the funds. That is why I say that with the amounts of money involved, there is a high degree of offset, though as you have indicated, it is not a precise offset.

Senator COTTON. And the student aid is attributed to the more needy students.

Senator COTTON. We are up against the situation where our State university finds itself compelled to raise its tuition by $100. I do not know how many students they have, but it is a fairly large number. In fairness, I want to add the Governor and the legislature are kicking the ball back and forth as to who is to blame for not giving additional money to the running expenses of the college, so there is local blame there.

But right at this point along comes a situation where they lose $167,000 more under this particular program that they have depended upon and it goes into the pot to hold down the tuition to furnish eduIcation to those students.

Now, with the exception of your statement about student aid that would go to certain individuals and I am not decrying those benefits, I welcome them-but many of those benefits that they are going to receive presumably to offset this decrease is likely to add to their overhead annual cost, because if you build a new building you have to have a janitor and you have to staff it and you have to take care of it, If you expand your laboratory it means more personnel. If you increase your library it means more personnel, and the place that screams when little Johnnie Jones from a remote community, from a poor family is trying to go to college and is finding out what it is going to cost, the tuition and the cost of the student is where it bites, and here we are expending all of this money to make college education available to more, and then, in this comparatively small amount, we are cutting out a traditional allocation that goes right straight to the purpose of making it available to students from poorer backgrounds. There is no need to prolong this.

Thank you.

Senator HILL. You may proceed, Mr. Secretary.

LIBRARY PROGRAMS

Mr. GARDNER. The Higher Education Facilities Act provides assistance for the construction of college and university libraries; the 1965 Higher Education Act authorizes aid for purchasing library books and materials, training professional librarians, and conducting research and demonstration projects to improve library services.

We are requesting a 1966 supplemental to initiate these library programs, and the 1967 budget calls for greatly increased support, providing for about 2,700 grants for library resources, 800 traineeships, and 70 research and demonstration projects.

We are requesting substantial increases in 1967 for two other programs under the Higher Education Act. The first of these is the new program of grants to States for strengthening community service programs of institutions of higher learning in order to assist in the solution of community problems-in much the same way as land-grant institutions have demonstrated their ability to deal with the problems of the farm. In 1967 we plan to involve 250 higher educational institutions in this program.

The second program is one which authorized grants for cooperative projects to upgrade faculty and academic quality of developing colleges. In 1966, the first year of the program, we expect to support 110 projects; the 1967 budget would provide support for 6 times that

many.

Senator HILL. Are you proceeding pretty well now with 110 projects?

Mr. GARDNER. Yes, sir.

OTHER SUPPORT FOR EDUCATION

In addition to the programs already mentioned, the Elementary and Secondary Education Act provided_authority for a greatly expanded educational research program. In passing the act, the Congress recognized that improvement in educational quality will depend on educational research and the early success of efforts to disseminate its results. In 1965 about $16 million was appropriated for the educational research program; in 1967 we are requesting 5 times that

amount.

In addition to research projects, the request will support educational research training, research centers concentrating on specific problem areas in education, and regional education laboratories.

The regional laboratories will involve State educational departments and local school personnel in conducting research and bringing innovations quickly into practice. By 1967 we plan to support 12 of these regional laboratories and 11 research centers.

FUNDS FOR EDUCATION OF THE HANDICAPPED

Legislation enacted last year also expanded the research and demonstration program in education of the handicapped, as well as the program to train professional personnel in fields related to education of handicapped children. Under our 1967 budget request, more than 9,100 persons would receive training, an 80-percent increase over the number trained in 1965.

FUNDS FOR VOCATIONAL EDUCATION

Up-to-date vocational training is an essential element in our overall education program. In our 1967 budget, we would continue basic support for vocational eduaction at the 1966 level, more than six times the amount appropriated in 1964.

In addition, we are requesting the remaining amount authorized for area vocational schools under the Appalachian Regional Development Act.

The total appropriation requested for vocational education in 1967 is slightly below the 1966 amount because a portion of the vocational education work-study program will be shifted to the Office of Economic Opportunity.

Senator HILL. How much would that be in terms of money?
Mr. CARDWELL. About $15 million.

SUPPORT FOR LIBRARY SERVICES AND CONSTRUCTION

Mr. GARDNER. One of the most successful programs of the Of Education, support for library services and construction provi

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panded opportunities for individual self-development. Since its inception, new or improved public library services have been made available to 65 million persons.

With construction grants, assistance was made available in 1965 to support the construction and renovation of 363 libraries serving an estimated 23 million persons; an additional 400 projects will be supported each year in 1966 and in 1967.

Senator HILL. You say 400 projects for each year. That would be 400 in 1966 and then another 400 in 1967. Mr. GARDNER. Yes, sir.

HEALTH

SOCIAL SECURITY AMENDMENTS OF 1965

I would now like to turn to the area of health.

The Social Security Amendments of 1965 provide for comprehensive health care programs for the aged and for major changes and expansions of child health and other welfare programs.

Of greatest significance are the medicare sections of the amendments which provide a basic program of hospital insurance, extended care, and home health services for the aged, financed through social security; a voluntary supplemental program covering doctors' fees and some other health services and an expanded program of KerrMills medical assistance for the needy aged, dependent children, the blind, and the disabled.

The Social Security Administration has sent information on the medicare program to over 17 million of the 19 million who will be eligible for benefits in July, and another 1 million of those receiving old-age assistance will be reached through local welfare agencies.

To reach the remaining persons, special projects are being undertaken in cooperation with the Office of Economic Opportunity, the Department of Agriculture, and with senior citizens groups.

We are particularly concerned that all eligible persons be given an opportunity to sign up for supplementary medical insurance by the March 31 deadline. In the new medical assistance programs under public assistance, we estimate that increased 1967 requirements will be devoted particularly to health care for dependent children.

The 1965 amendments also provided major expansion in support for maternal and child health services and crippled children's services, and they established a new program of project grants to provide comprehensive health care and services for needy children of school and preschool age. In 1967, we are requesting the full authorization for these programs.

Senator HILL. What is that amount?

Mr. GARDNER. We can supply it for the record. (The information requested follows:)

For maternal and child health services, $50 million; for crippled children's services, $50 million; and for special project grants for health of school and preschool children, $35 million.

MEDICAL CARE ADMINISTRATION

Mr. GARDNER. The new health programs may be expected to have a tremendous impact on the provision of health care in the community.