March 11, 1982 EXTENSIONS OF REMARKS 4067 EXTENSIONS OF REMARKS THE FUTURE IS LONGER THAN 1 not sacrifice the long-term interests of and universities. That wilt eliminate or fur FISCAL YEAR the Nation for short-term savings. As ther reduce federal support for another Dr. Kenneth Ryder, president of 200,000 students in this state alone, a total of 400,000 New York students impacted over Northeastern University, told the sub two years, according to the Commissioner's HON. PAUL SIMON committee, "The future is longer than analysis of the President's proposals. OF ILLINOIS 1 fiscal year." It would be unrealistic to assume that all IN THE HOUSE OF REPRESENTATIVES The testimony follows: of the students now receiving federal sup Thursday, March 11, 1982 TESTIMONY BY PETER K. WARREN, CHAIRMAN, port in New York are truly needy. But it PEPSICO INTERNATIONAL CHAIRMAN, COUN would be even more unrealistic to assume e Mr. SIMON. Mr. Speaker, the Sub CIL OF GOVERNING BOARDS that the mis-users and the abusers of feder committee on Postsecondary Educa I appreciate this opportunity to discuss al student assistance represent a majority of tion has been holding hearings on the with you the subject of federal investment those now receiving such grants and loans. impact of the administration's fiscal in higher education. I am here as chairman My own experience in discussions with 1983 education budget on postsecond of the Council of Governing Boards. The fellow trustees and financial aid administra ary institutions, parents, and students. Council is comprised of some 3,000 trustees tors at independent campuses around our of independent colleges and universities in state would lead me to believe that far During the subcommittee's hearings, New York State. We are business people, fewer than ten percent of students now re we have heard from a distinguished professionals and civic leaders. ceiving federal assistance would lose that group of college presidents including While we are generally in sympathy with aid if a strictly need-based criterion were in our former colleague, Dr. John Brade the Reagan Administration's goal of force. mas, president of New York Universi strengthening our economy by reducing the But let us assume for the sake of argu ty. One of the most important state proportion or our national product con ment that fully 25 percent or one-quarter of ments received by the committee was sumed by government expenditures. Our in all students in New York now receiving fed the testimony Peter K. Warren, chair timate concern and experience with the fi eral aid do not need that aid. This would man, PepsiCo International and chair nancing of postsecondary education leads us allow us to reduce Commissioner Ambach's to the conclusion that the Administration's 400,000 students in New York to 300,000 man of the Council of Governing proposed federal student assistance with whose federal assistance would be wiped out Boards of Independent Colleges and drawals not only go counter to that goal, or reduced over the next two academic Universities in New York State. Mr. but will in fact affect those very people that years. Warren was speaking on behalf of need and deserve help the most. There are only one million students in our himself and 3,000 trustees of private Not only would the proposed student aid entire postsecondary system including all of institutions in one of our Nation's cuts generate what we believe would be an the state university, the city university, the largest States. increased overall tax burden for support of private-proprietary schools and the more higher education, we are equally convinced than 100 campuses of the independent I want to call Mr. Warren's testimo they would lead to: ny to the attention of my colleagues sector. What the administration proposes, A retreat from progress made in voluntary therefore, is a withdrawal of federal re and acknowledge PETER PEYSER's ex integration, sources which would adversely affect one cellent work in bringing Mr. Warren to A weakening of the manpower pool so out of three students in our system. That is my attention. Let me quote briefly vital to the defense or our nation, radical surgery. There are many trustees from Mr. Warren's testimony before A setback for American industry when like myself who have serious doubts the the subcommittee during our March 5 this country is struggling to compete in the international marketplace. American Acadamy could survive such an hearing in New York City: And we certainly believe that President operation. There is too often a tendency to obscure Reagan was right last year when he said in To first address the point that these pro fiscal issues by describing proposed changes his speech at Notre Dame, "If ever the inde posed student aid reductions would increase as "adjustment," be they add-ons or sub pendent colleges and universities are re rather than decrease the total tax burden tractions. That terminology has been em placed by tax supported institutions, the for higher education ... Like most corpora ployed by the Administration to describe struggle to preserve academic freedom will tions and individuals, we measure tax the federal student aid revisions it has pre have been lost." burden based upon the total of federal, sented to the Congress. There is too often a tendency to obscure state and local levies. Unlike other vital What we are discussing here is by no fiscal issues by describing proposed changes public services where a dollar of state and stretch of the imagination a mere adjust as "adjustment," be they add-ons or sub local tax expenditures might replace a ment. It is a radical funding reduction predi tractions. That terminology has been em dollar withdrawn by Washington, in higher cated on a radical change in federal policy. ployed by the administration to describe the education much more than a dollar would To better understand this, allow me to federal student aid revisions it has present be required from the states and other share with you some figures compiled by ed to the congress. sources to fill the gap. our State Education Commissioner, Gordon What we are discussing here is by no The reason for this larger state and local Ambach. They may better enable us to per stretch of the imagination a mere adjust contribution is that a significant proportion ceive the order of magnitude of the changes ment. It is a radical funding reduction predi of our higher education enrollment is in in proposed in federal student aid just for New cated on a radical change in federal policy. dependent colleges and universities: 20 per York State. To better understand this, allow me to cent nationally, over 40 percent in New For the 1982-83 academic year, we are share with you some figures compiled by York State. The independent sector will be considering a withdrawal from New York of our State Education Commissioner, Gordon most disproportionately impacted by the $459 million of federal funds for student Ambach. They may better enable us to per proposed federal student aid cuts. It is the aid. This would represent an elimination or ceive the order of magnitude of the changes sector whose students rely most heavily on reduction of federal aid presently being pro proposed in Federal student aid just for federal assistance, the sector receiving mini vided to 200,000 students in this state. New York State. mal state appropriations. Mr. Warren's assessment of the For the 1982-83 academic year, we are Leaving aside university-based research effect of the administration's higher considering a withdrawal from New York of contracts which are largely defense and education budget proposals on student $459 million of federal funds for student health related, federal expenditures for aid. This would represent an elimination or postsecondary education follow a pattern of access and institutional diversity are reduction of federal aid presently being pro 96 cents for student aid and the balance for clear. I also believe his assessment is vided to 200,000 students in this state. institutional support. However, in state and accurate and representative of people The following academic year, another local expenditures the configuration is ex in the business community who have $201 million will be lost in federal student actly the opposite: 96 cents goes to institu spoken out on this issue. We should aid by those enrolled in New York's colleges tional appropriations for state universities
e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 4068 EXTENSIONS OF REMARKS March 11, 1982 and community colleges, only four cents for sibilities with regard to management and de cated and trained young men and women student aid. livery. On the contrary, it specifically aimed who will provide a long-term capability that Government assistance for students is and its policy recommendations to provide equal would realistically have to be respected by should be based upon relative financial opportunity for students to overcome bar our potential adversaries. Hardware alone need. Students at independent campuses riers to access caused by family economic will not do that job. Cutting access to our today represent essentially the same income circumstance. It also deliberately cautioned colleges and universities would put a crack profiles as their peers enrolled at govern against the federal government invading the in that reservoir which would be costly, per ment-operated institutions. But their need states' constitutionally guaranteed responsi haps impossible, to patch should America is greater because their tuition charges are bility for oversight and management of face a future crisis requiring rapid mobiliza much higher.
89-059 0-85-44 (Pt. 3) 4072 EXTENSIONS OF REMARKS March 11, 1982 lent technological advancement to ing 8:.. J;; .. 0-05-4& (_ .. J) 4094 EXTENSIONS OF REMARKS March 11, 1982 must have the courage to offer viable, language instruction beginning in the limit in half. People who have been constructive alternatives. I offer the early grades. . led to make a longrun commitment to program just outlined as one such al As technology improves, commercial providing their own retirement income ternative. I urge my colleagues to con and economic ties strengthen, and cul may gradually find that the contribu sider this proposal as the start of a tural interchanges draw the nations of tion limits are inadequate to support constructive bipartisan dialog. None o_f the world together, the United States that commitment. us-neither Democrats nor RepublI must insure that the future genera Accordingly, last Thursday I intro cans-can long accept the status quo tion of its citizens are sent well duced H.R. 5741, which would index of economic stagnation.• equipped into the complexities of IRA contribution limits for inflation their environment. Each person must beginning in 1983. This bill uses the be given the opportunity to grasp con indexing mechanism adopted for indi EL., SALVADOR cepts and communicative skills neces vidual income tax brackets in last sary to understanding and effectively years's tax bill. dealing with members of other cul- The only major objection to this bill HON. PAUL FINDLEY tures. . . will probably be the revenue loss it OF ILLINOIS As the emphasis in education durmg would eventually cause for the Treas IN THE HOUSE OF REPRESENTATIVES the Kennedy years focused on science ury. However, close examination re Thursday, March 11, 1982 and technology, our schools must also veals that in the short and intermedi strive to regain the dedication to ex e Mr. FINDLEY. Mr. Speaker, .I am ate term, Government revenue losses cellence in language skills. We must are more than matched by private cap extremely concerned by the cont1~ued not permit our Nation to become inad presence of U.S. military trainers 1~ El ital increases. equate in the ever increasingly crucial For example, this year it is estimat Salvador. I believe that the funct1~ns realm of international affairs and only they are performing could be carried ed that there will be $20 billion of IRA by actively encouraging a renewal of contributions nationwide, of which $7 out adequately by civilian cont.ractor interest in foreign language instruc personnel or by military trai~mg of billion, or 35 percent, will be new sav tion can we hope to compete with ings; that is, savings that otherwise Salvadoran soldiers in the continental other nations. . United States. would not have been made. On the Mr. Speaker, soon the House will other hand, the $20 billion is excluded Maintaining a U.S. military training consider H.R. 3231, the National Secu team in El Salvador only offers a from taxable income, so the revenue rity and Economic Growth Through loss to the Treasury is $20 billion tempting target for terrorists and indi Foreign Language Improvement Act, cates the likelihood of an ever-deepe~ times the average marginal tax rate which is designed to enhance U.S. na paid by those making the IRA contri ing U.S. military involvement. Yet, it tional security and our competitive is clear that public sentiment in the butions. If their average marginal rate ness in international markets by en is 35 percent, the revenue loss is $7 bil United States opposes direct American couraging the study for foreign lan military intervention in El Salvador. lion, exactly balancing the new capital guages. I would hope that my distin raised. If their average marginal rate I would urge the administration, guished colleagues would support this once the Salvadoran elections have oc is less than 35 percent-which occurs legislation, as it would specific~lly ad curred on March 28, to remove the in 1982 at a taxable income of $32,000 dress the interests we defend m cele to $37,000 for a childness married U.S. military training team from El brating National International Lan Salvador and find other mean~ to couple-there will be a net gain of guage Week. funds for the capital markets. extend its support to the democratical The United States must break away ly elected representatives of El Salva from its sense of isolationism and rec After the currently scheduled indi dor.• ognize the benefits of an active inter vidual income tax rate cuts are com action with other nations, as well as pleted next year, the top rate will be the ramifications of deterioration of only about 38.5 percent. Thus if 35 NATIONAL INTERNATIONAL percent of IRA contributions continue LANGUAGE WEEK language skills to the security of our country. We must do all in our power to be new savings, the revenue loss to actively support programs of lan from this bill will be more than offset guage instruction and to provide moti by increased private capital formation. HON. BALTASAR CORRADA This is a simple bill, and I urge my OF PUERTO RICO vation for continued study in this field among our students.e colleagues to support it. I also ask that IN THE HOUSE OF REPRESENTATIVES the bill be printed in the RECORD at Thursday, March 11, 1982 this time. e Mr. CORRADA. Mr. Speaker, in INDEXING IRA ACCOUNT LIMITS H.R. 5741 recognition of the importance of for A bill to amend the Internal Revenue Code eign language training in completing a HON. THOMAS E. PETRI of 1954 to adjust the dollar limitations on rounded education, the President has oF wiscoNSIN the deduction for retirement savings for increases in the cost of living designated March . through 14 as IN THE HOUSE OF REPRESENTATIVES "National Foreign Language Week." Thursday, March 11, 1982 Be it enacted by the Senate and House of The United States cannot ignore the Representatives of the United States of need for a populace which can carry • Mr. PETRI. Mr. Speaker, as one America in Congress assembled, That section 219 of the Internal Revenue Code of on an exchange of ideas with the peo- who supported liberalization of indi 1954 (relating to retirement savings) is ples of other countries and other cul- vidual retirement accounts