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State Universities Wrestle with Budget Problems
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WASHINGTON-State univer-
sities, including some of the na-
tion's top institutions, are wres-
tling with serious money prob-
lems these days as cautious legis-
lators whack away at education-
al requests.
The money squeeze comes when
Americans, more than ever before,
are demanding excellence at all
levels of schooling. It comes as
colleges are preparing for record
enrollments. And, ironically, it
comes when private universities,
have never had it so good finan-
cially.
As a result of the scarcity of
funds, tuition at state schools is
climbing-faster than the schools
want it to. And these schools are
looking even more longingly to
Uncle Sam, who already dispenses
large amounts of Federal money
to both public and private insti-
tutions.
Reverse Trends
The legislatures' tight-fisted at-
titude is a reversal of trend. Since
World War II, lawmakers have
treated state schools generously.
Why the change of heart?
The attitude of Ralph Fisher,
chairman of the finance commit-
tee of the Ohio House of Repre-
sentatives, is typical. "We are in
a period of re-evaluation," he
says. "Cuts in appropriation re-
quests are not an attack on edu-
cation. They merely reflect peo-
ple's feelings that spending has
become so great in all areas that
we must have a two-year period to
hold the line."
Ohio's legislature has approved
no new taxes, and trimmed most
state services. It is considering
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putting a $250 million bond issue
on the ballot next year to let the
people decide how much building
the state universities should do.
Half Gained
In Oregon the legislature grant-
ed just over half of a requested
$21 million increase in operational
funds for state schools. The Uni-
versity wanted nearly $18 million
for construction this year; it re-
ceived about $3.8 million. In Utah
the state schools asked for $31
million for buildings. Gov. George
D. Clyde recommended $3 million,
and the legislature approved $18
million.
Still the legislatures did not
turn their backs on the schools.
Indiana's operations appropria-
tion was up 28 per cent over the
previous biennium, Arizona's 31
per cent, Kentucky's 50 per cent,
Pennsylvania's 29.5 per cent, and
Tennessee's 31 per cent.
The national average increase
for operations is 28 per cent, with
action on funds completed in about
half the states. But this is some-
what misleading; it includes a
huge "catch-up" appropriation by
New York, and does not count
funds for construction. College
officials say the increases are
needed to mark time and do not
help prepare for the big growth
to come.
Low Point
This fall marks a relative low
point in admissions. Most of the
freshmen were born in 1945, last
of the low birth-rate years. In
the fall of 1964, the first of the
post-war crop of children go to
college. Soon they will begin rais-
ing families to create another
wave.
The big complaint legislators
have is that state universities do
not set high enough tuition, or
fees, as they are usually called.
State schools typically charge be-
tween $200 and $350 per year for
students from the state and about
$300 more for out-of-staters. This
compares with tuitions of $1000
to $1500 in most private schools.
Out-of-state students would
lessen the exchange of ideas and
understanding between states,
Ohio's Mr. Fisher replies; "The
few dollars more won't make much
difference to those who can afford
to go out of state. They are com-
ing because they want some par-
ticular offering."
Fees, Costs.
As for in-state students, he be-
lieves - they and their families
should sacrifice a little more be-
cause other taxpayers must. "In-
flation itself is making a differ-
ence," he adds. "These fees are
not in keeping with other costs
today, and with what other col-
leges are asking."
Some schools have found they
have no choice- but to increase
fees. Indiana and Purdue univer-
sities raised tuition $50 a year for
Hoosiers and $100 for out-of-state
students, and promised further in-
creases of $25 and $100 next year.
Non-resident tuition has gone up
from $630 to $900 at the Univer-
sity of Oregon and Oregon State.
But most schools are resisting
large increases. The Association of
State Universities and Land-Grant
Colleges, in an official statement,
said: "The process of making stu-
dents pay an increasing propor-
tion of the costs of higher educa-
tion will, if continued, be disas-
trous to American society and to
American national strength. It is
based on the theory that higher
education benefits only the indi-
vidual and he should therefore pay
immediately and directly for its
cost-through borrowing if neces-
sary. This is a false theory."
Society Benefits
The universities argue that so-
ciety benefits from the higher
productivity and higher income
that result from a better-educated
citizenry.
"I am worried, as are most edu-
cators, about the possibility that
we will price ourselves out of the
market," says Fred H. Harrington,
president of the University of Wis-
consin.
Low tuition helps attract out-
standing students. State universi-
ties no longer are a haven for
youngsters who can't get into a
better school, if they ever were.
Since World War II, the University
of California has earned recogni-
tion as one of the world's great-
est schools. Michigan, Wisconsin,
Rutgers, Indiana, and Virginia, to
name a few, are ranked among the
nation's best.
Absorb Growth
While improving their stand-
ards, state universities and colleges
must absorb most of the enroll-
ment growth. Private colleges ex-
pect to expand a little, but many
do not think they can retain their
identity if they open wide the
gates.
The 1948 college enrollment of
2.4 million was split almost equal-
ly between public and privateJ
schools. Last fall about 2.6 million
of the 4.1 million students were in
public institutions, and the 1970
enrollment of 7 million is expected
to divide 70-30 in favor of public
education.
Harrington told a Senate Edu-
cation subcommittee last week
that operations cost alone for pub-
lic institutions would rise from $4.3
billion in 1962 to $15 billion by
1980.
While their percentage of the
load is declining, the financial
backing of private institutions is
growing. A man in a rare position
to assess the trend is Arthur S.
Flemming, Secretary of Health,
Education and Welfare in the Ei-
senhower Administration.. He has
been president of a private school,
Ohio Wesleyan University, and is
now president of a public school,
the University of Oregon.
"There are three main reasons
for the strong new financial po-
sition of private institutions,"
Flemming says. "First, the foun-
dations have been very generous,
Ford being the leading example.
Second, business and -industry
have taken an entirely different
attitude toward giving to col-
leges. Here in Oregon and in al-
most every state there are orga-
nizations to assist these contribu-
tions. Third, there has been a
stepping up of alumni giving, or
what are often called loyalty
funds. Alumni have responded
more in recent years than they
had ever thought of doing before."
Columbia University in New
York City, for example has com-
pleted $31 million worth of new
buildings in the past five years,
and has $82 million more under
construction or planned over the
next five years.
Push Federal Aid
State universities have joined
with private schools in pushing for
expanded Federal aid to higher
learning. Federal help for colleges
has been a fact for years, through
special grants and loans for dor-
mitory construction. But Presi-
dent John F. Kennedy's educa-
tion proposals, now before Con-
gress, call for more. Most like-
ly to succeed: A provision for
matching grants and loans to uni-
versities for classroom and library.
construction, areas where the leg-
islatures have been mose reluctant
to vote funds.
"The Federal Government must
participate more fully in support
of higher education," Flemming
says. "For one thing it has pre-
empted the greatest source of gov-
ernment revenue, the income tax.
More important, higher education
is a national responsibility."
But the Oregon president does
not believe the states are ignoring
their duties. "The legislatures are
faced with tremendous demands
for services in all directions. They
are forced to tap new sources of
revenue todkeep, up with the de-
mand, and they must exercise
judgment in how the money is to
be spent."
copyright, 1963, The National Observer
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UNITED STATES
253 tests, including 100 since Russia broke moratorium
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A-Test Ban Debate Rises
As Nations Ponder Problem
U.S.S.R. BRITAIN FRANCE
126 tests including 71 since moratorium 23 tests 5 tests
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By SID MOODY
Associated Press Newsteatures Writer'
To test or not to test?
No nuclear power yet has the
answer.
Thedebate has been going on
for years. So has the testing.
To date there have been at least
407 nuclear tests. The United
States, the first nuclear nation,
has held the most - 253. The
Atomic Energy Commission fig-
ures and other announcements
total 126 tests for the soviet
Union.
Inexact Figures
That total is not exact. All Rus-
sian test figures are approximate
since some announcements are not
clear whether a single test or a
series were involved.
Great Britain has exploded 23
nuclear devices and the French 5.
France, determined to continue
with its program to become a
major nuclear power, has indi-
cated it will not stop testing al-
though Algerian pressurenh a s
made continued testing in the
Sahara politically risky. . The
French have reportedly decided to
build a new test area at Mururoa
Atoll in the Tuamotu Archipelago
east of Tahiti.
Negotiations over a test ban
.treaty at Geneva have gone on for
41/2 years and several times seemed
close to fruition only to break
down again. On April 24 President
John F. Kennedy and Prime Min-
ister Harold Macmillan appealed
to Premier Nikita S. Khrushchev
urging an early agreement.
Still Secret
The Soviet leader's reply has
not been made public. But after
it was received, Washington can-
celled three small explosions it
had scheduled this month at the
AEC test site in Nevada.
That some progress is possible
has been proven by the testing
t oratorium which lasted from
November 1958 until the Russians
broke it late in 1961.
Up until the moratorium, the
United States had held 153 tests,
in Nevada and at test sites in the
Pacific. Russia had conducted 55
tests from its first explosion in
1949 until 1958. Seventy-one have
been held since by the -Russians.
The United States has held 100
tests since the moratoriuMn ended.
The latest extensive United
States series was at British-held
Christmas Island southwest by
800 miles from Hawaii.
France has remained aloof from
the Anglo-American efforts to
reach a test-ban agreement, com-
plicating any efforts to reach a
settlement. Should Red China
perfect a nuclear device, an event
freely predicted in the West, the
chances of recorking the nuclear
genie will be even more remote.
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