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.