HOUSE COMMITTEE HEARS MORE BAD NEWS ON REAGAN'S BUDGET - Cont.

Sep 28, 2026

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This excerpt reports congressional hearings in which a panel of university economists and lawmakers discussed the negative effects of President Reagan’s budget proposals. Experts criticized proposed cuts to education and youth job programs, warning they would worsen unemployment pressures and reduce opportunities for young people. The text also covers additional criticism of student aid loan income cutoffs and the low level of allowed tax-advantaged college contributions, alongside a call for better program evaluation and expanded education and training.

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House Committee Hears More Bad News on Reagan's Budget

(Cont.)

Colleges Must Take Steps to Protect Privacy of Employee Records

Permanent Research and Development Tax Credit Urged

Vol。13,No。37 Friday,February 22,1985 # HOUSE COMMITTEE HEARS MORE BAD NEWS ON REAGAN'S BUDGET President Reagan's proposed cuts in education and youth job programs areshortsighted and could add to the country's fiscal problems,a panel of uni-versity economists yesterday told the House Education and Labor Committee. "With 8 or 9 million still in our official unemployment figures…certain ef-forts to reduce the deficit are particularly likely to do more harm than good,"said Northwestern University Professor Robert Eisner of Reagan's plans forabolishing the $617 million youth Jobs Corps program next year. Expansion Needed "Cutting programs for jobs and training will compoundour problems,"adding to the rolis of unemployed Americans who need publicassistance,he said."We should be looking for expanded programs for educa-tion,training and placement for the young leaving school." Eisner,who spent more than two hours answering questions ranging from laborissues.to world trade,also told the committee that the United States is"wasting huge amounts of [human]resources"by cutting education aid. Reagan wants to slash $2.4 billion in education spending in fiscal 1986 fromthe current $17.9 billion education spending(HED,Feb.5)。"We must see to itthat the millions of youngsters not getting adequate education,dropping out ofschool …turning to crime,get adequate attention,"Eisner added. Long-run PayoffsProfessor Peter Gottschalk of Bowdoin College in Maine,agreed that the administration should take a closer look at proposals to cutprograms like the Jobs Corps,which he said pay off in the long run by keepingpotential welfare recipients off the public dole. "Programs that not only require work but also provide work opportunities shouldbe implemented,"he told the committee."By helping the poor help themselves,we would achieve the goals of welfare recipients and taxpayers alike." As at the education committee's recent field hearings in Los Angeles,NewOrleans and New York,none of yesterday's witnesses defended even a portion ofReagan's budget cuts. Office of Management and Budget Director David Stockman and "his computers …·set to work crunching the numbers,"Eisner explained."The resulting domesticcuts were then set forth with little attempt to measure the impact on the mi1-lions of people involved." Added Nancy Barrett,economics professor at American University,"Continued in-creases in defense spending and Draconian cuts in non-defense programs as pro-posed by the administration will not be accepted politically.…Social pro-grams have already been cut to the bone."(more) February 22,1985 # HOUSE COMMITTEE BEARS MORE BAD NEWS ON REAGAN'S BUDGET(Cont.) But although yesterday's panel appeared slanted towards the views of Democratswho control the committee,even legislators in the president's own party arecriticizing his new budget figures. At a separate appropriations subcommittee hearing Wednesday,Rep.GeorgeO'Brien,R-Il1.,told Education Department budget staffers the proposed $32,500income cutoff for student aid loans was "rather harsh."He said,"All we aregoing to end up with is all the horsey-set children going to expensive schoolsand all the ordinary stiffs going to the less expensive colleges." O'Brien also said Reagan's proposal allowing parents to set aside $1,000 an-nually toward a child¹s college education is“painfully low.”He said parentsare"going to have to whomp up $32,000 [for college expenses]in these $1,000increments.…While that is possible it certainly isn't realistic."--Robin Wilson # COLLEGES MUST TAKE STEPS TO PROTECT PRIVACY OF EMPLOYEE RECORDS Protecting the confidentiality of employee personnel records is an increasing-ly difficult task as colleges move to multiple computer systems,according toPurdue University's personnel chief. But colleges have a duty to protect personal employee information,and there-fore must do everything in their power to avoid improper dissemination of thatmaterial,Stan M

FAQs

Who testified about Reagan’s budget cuts in the House Education and Labor Committee hearing?

University economists testified, including Northwestern University Professor Robert Eisner and Bowdoin College Professor Peter Gottschalk.

What were the main concerns about cutting education and youth job programs?

Speakers argued the cuts would harm job and training efforts, increase fiscal and social strain, and reduce adequate education and attention for young people.

What additional issues did legislators raise beyond education and jobs cuts?

A separate appropriations hearing criticized a student aid loan income cutoff as harsh and said the annual parent contribution allowance toward college education was painfully low.

Sep 28, 2026

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