But criticism of this kind is only part of the story. The other part is that no other country in the world has expected so much of education and received so much from it. We have good schools, strong colleges, and dedicated educational leaders who are striving for quality. As we focus our attention on the aspects of education which the Federal Government is joining the State to improve, we should not forget the achievements of our schools and colleges. After all, our Nation is the product of our people, and our people are the product of our schools.

Now with your permission, I would like to focus a little more closely on the appropriations requested for fiscal year 1967. There are many ways to look at the programs for which we are responsible. Knowing that you will wish to discuss each requested appropriation in detail, we thought that it might be helpful for purposes of an overview to group our requests in certain broad categories.

SUPPORT OF EDUCATIONAL SERVICES

Roughly half of our dollars in fiscal year 1967 will be used for the direct operational support of educational services, through local school districts, through public libraries, and through institutions of higher education. This major proportion of our funds, amounting to approximately $1.8 billion, will provide for support of eduactional activities during fiscal 1967, in contrast to the future benefits of construction and research funds. Chief among these federally supported activities is the assistance to educationally deprived children. We are aiming to improve the eduactional opportunities of some 7.5 million children from low-income families. Approximately $1.2 billion will be for this purpose. In addition, 5.8 million students will be enrolled in vocational and technical education programs; public library services will be made available to 2.5 million people currently without any such resources; developing institutions of higher education will be helped by providing funds for cooperative arrangements with more established and developed institutions; and a new emphasis will be directed toward the solution of community problems through the recently enacted community services and continuing education program.

CONSTRUCTION ACTIVITIES

In fiscal year 1967 over $863 million, or 25 percent of our budget, will be directed toward the construction of facilities. These construction funds will be applicable to all levels of education-elementary and secondary schools affected by the impact of families employed by the Federal Government, undergraduate and graduate institutions of higher learning, facilities for vocational education, public libraries, research facilities, and facilities for the handicapped.

AID TO INDIVIDUAL STUDENTS

Funds for aid to individual students next year will total $428 million and account for 12 percent of our program. This includes undergraduate scholarships, graduate fellowships, and financial assistance to students in higher educational institutions as well as in vocational schools. The fiscal year 1967 budget reflects a proposed change in the financing of student loans rather than continuing Federal contributions to college loan funds. It is not intended to reduce the amount of loans, only to change the manner of funding. This will, of course, be explained more fully by subsequent witnesses.

TEACHER PREPARATION AND EDUCATIONAL RESEARCH

We are proposing $227 million, some 7 percent of our funds, to improve teacher preparation and to help bring teachers to schools desperately needing them. A major contribution to this end will come from the Teacher Corps. Current plans call for the placement of 3,750 teachers in schools by this fall, with additional numbers being trained during fiscal year 1967. Training of teachers of the handicapped will be increased. To meet a critical shortage in this particular area, 5,000 teachers began training in September 1965, 6,500 are scheduled to begin training in September 1966, and 9,100 in September 1967.

Approximately 3 percent of our program will be devoted to educational research in fiscal year 1967. A total of $107 million will enable us to continue research already started and to begin new investigations to benefit education in the future. Research will be conducted in many fields of education including vocational education, improvement of education for the handicapped, and curriculum development. We are making particular efforts to bring the results of research into action in the schools. We invest in research a smaller proportion of our budget than is usual in business. In my view, these efforts should grow in the years ahead.

DEVELOPING ADMINISTRATIVE CAPABILITY IN THE STATES

In the next fiscal year we plan to devote about $45 million to the development of greater administrative capability where it counts-in the State educational agencies that administer a majority of the programs financed through the Office of Education. More funds, in fact, will be provided to State educational agencies for administrative purposes than to the Office of Education itself.

OPERATING THE OFFICE OF EDUCATION

To operate the Office of Education we will require approximately $40 million. This is slightly more than 1 percent of our total appropriation request. In fiscal year 1967 we plan to develop a comprehensive field staff which will bring more services of the Office closer to the State and local educational agencies. The impact of the new programs of the last 2 years, together with the issuance of regulations, guidelines, and operating procedures, imposes an obligation on our part to assure that assistance to State and local administrators is readily available.

In a discussion such as this, bound up with striving for a satisfactory budget, we may lose sight of our objectives in a forest of dollar signs. These objectives are simple: To help the States, local communities, colleges, universities, and private institutions which constitute our diverse educational system to do more for students and to do it better. I am now ready to discuss with you questions that you may have and, at your convenience, my staff is ready to discuss the individual appropriations that you wish to review.

Thank you very much.

Mr. FOGARTY. Thank you, Doctor.

We are just going to ask you general questions today. Then we are going to adjourn until tomorrow. The more detailed questions will be asked when we take up the individual requests.

REQUIRED AUTHORIZATION FOR APPROPRIATIONS

You have quite a large part of your budget for which there is no authorization for appropriations for 1967. I am thinking about the Elementary and Secondary Education Act for instance.

Mr. Howe. Title I.

Mr. FOGARTY. Because many of these programs are being authorized for 1 year or 2 years, a sizable amount of your budget cannot be acted on by this committee yet.

Are you going to expedite the requests for authorization to extend and renew these laws that are running out?

Mr. Howe. Well, the Elementary and Secondary Education Act, Public Law 89-10, is up for renewal and will come before the Congress in the regular course of events for a 4-year renewal, I believe.

Mr. KARSH. The legislative package is now being worked on with the Department and the Bureau of the Budget and it will be up pretty

soon.

Mr. FOGARTY. But you are going to let it follow the normal course of events.

Mr. CARDWELL. This is an area where they are pushing the legislation.

Mr. FOGARTY. Is the request for legislation up here yet?

Mr. CARDWELL. It is being drafted.

Mr. FOGARTY. We cannot do anything until they get the legislation up here?

Mr. CARDWELL. No, sir.

Mr. FOGARTY. When are you going to get it up here?

Mr. CARDWELL. Quite soon, I hope, sir.

Mr. FOGARTY. This month, or next month?

Mr. CARDWELL. I am not certain. The Secretary and the Assistant Secretary will be here a week from tomorrow, and I think they will be prepared to talk about these requests in some detail.

Mr. FOGARTY. Have you any indication from the legislative committees how soon they will start to work on them?

Mr. CARDWELL. No, sir; I do not know.

NEW LEGISLATIVE PROPOSALS

Mr. FOGARTY. Do you have any new legislative proposals in the mill?

Mr. CARDWELL. The budget proposes two major legislative proposals affecting the Office of Education, one having to do with legislation to authorize guaranteed student loans as substitutes for the Federal loans under the National Defense Education Act, and also legislative adjustment of aid to school districts affected by Federal

activities.

Mr. Howe. Does the International Education Act also fall in this category?

Mr. CARDWELL. That is not reflected in the budget.

The international education legislative proposals, which the President sent a message on last week, are not specifically identified in the budget of the Office of Education at this time.

There are funds within the overall budgetary reserves for contingencies which are estimated to be sufficient to cover what activities are actually authorized for 1967.

ORGANIZATION OF OFFICE OF EDUCATION

Mr. FOGARTY. Do you have any plans to reorganize the Office of Education?

Mr. Howe. It has just been reorganized.

I think what we better do is make the reorganization we have just had work rather than restoring it again.

You are aware of the Ink Task Force, and during the past 6 months that has been put into effect. Really, we are continuing that job rather than reorganizing.

CENTRALIZED EDUCATIONAL RESEARCH

Mr. FOGARTY. You have in your budget an appropriation titled "Research and training," which gives the false impression that this is the appropriation that centralizes research and training in education. Do you know how many of your appropriations finance educational research, or educational training?

Mr. Howe. Well, within the Office of Education we have in 1967 about $107 million in total research funds. Some of these are in vocational education and some are in other areas. But if you add up all the pieces of different appropriations we are seeking the total amount of research is $107 million.

Mr. FOGARTY. For research and training?

Mr. Howe. No, you would not put training in this category.

Mr. FOGARTY. Why should it not all be in one place?

Mr. Howe. Research and training, teacher training.

Mr. FOGARTY. All the research and training so we would know how much is being expended?

Mr. HowE. Actually, within our shop it is in one place.

We have a Bureau of Research which administers our research activities, the Associate Commissioner in charge of research, and these funds that come under different enactments are concentrated in that one place in our shop.

I suppose you could argue that there ought to be one single appropriation for all research? Is that what you are suggesting? Mr. FOGARTY. Yes.

Mr. Howe. It would seem to me that it is better to keep these research appropriations related to the acts which set up various different types of activities. When we are talking about developing policies for vocational education, we ought to consult with the people who help us develop those policies about the research aspects, and the same with higher education and our other involvements.

FUNDING ADMINISTRATIVE EXPENSES OF STATE EDUCATION AGENCIES

Mr. FOGARTY. I have noticed a great increase in the last few years in the amount of funds that the Office of Education grants to State educational agencies for their administrative expenses.

Will you please place a table in the record showing by appropriation such grants for the years 1960 through the budget request for 1967! Mr. Howe. I will be happy to do this.

Would you like this by States?

Mr. FOGARTY. Yes.

(The information requested follows:)