President Johnson's Plans To Aid 'Overheated Economy' May Affect Education Programs - Education Council Update

Sep 21, 2026

Uploaded by Eliana

Summarizes how President Johnson’s plans to cut federal expenditures to cool an overheated economy may have serious consequences for higher-education programs. It details implications such as funding for the college housing program and Title III facilities funds being tied to sales of certificates of participation, and notes a likely effect from a proposed ten percent reduction of about $3 billion in the 1967 presidential-controlled budget portion. It then announces key ACE staff appointments and backgrounds.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

AccessFree to download

President Johnson’s federal budget reductions and possible education impacts

Funding implications for higher education programs

ACE staff appointments and effective dates

Singletary’s career and previous roles

Caffrey’s career and education technology work

x Higher EducationCouncil Warns Tax ChangeMay Have Unintended Effectand* * *Berkeley Seminar BeginsNational AffairsFor ACE Interns Sept.10 American Council on Education ·1785 Massachusetts Avenue,N.W.,Washington 36,D.C. September 9,1966 Volume XV,Number 30 President Johnson's plans to cut Federal expenditures in an effortto restrain the nation's overheated economy—discussed in hisLabor Day speech and described in his Sept.8 message to theCongress—may have serious implications for Federal programs President's Plans To Aid'Overheated Economy MayAffect Education Programs affecting higher education,although details have not been spelled out. In his Congressional message,the President said he was taking "strong measures toreduce lower priority Federal expenditures and added:"Determination of the exact amountof reduction in that limited portion of the fiscal 1967 budget under direct Presidential controlmust await Congressional action on the remaining appropriation bills.Our best presentestimate is that a reduction of ten percent—approximately $3 billion—will be required fromthat portion of the budget.'" Also in his address he referred to sales of certificates of participation:'The Secre-tary of the Treasury has reviewed all potential Federal security sales and is taking actionto keep them at the minimum in the months ahead.This should help reduce current pres-sures on the money market and on interest rates." There are thus these implications for higher education: 1.The total funding for the college housing program—a proposed expenditure of$300 million—is based exclusively on the sale of certificates of participation. 2.A total of $100 million of the funds for Title III of the Higher Education FacilitiesAct are based on sales participation. 3.A reduction of $3 billion in that part of the 1967 budget under Presidential controlwill almost certainly have an effect on programs relating to higher education. Efforts are being made by the Council to determine more specific implications of thePresident's message. Two major appointments to the American Council on Educationstaff were announced this week by President Logan Wilson.Dr.Otis A.Singletary,chancellor of the University of NorthCarolina at Greensboro,was appointed vice-president of the Singletary,Caffrey NamedTo Major Positions on ACEStaff Effective This Fall Council effective Nov.1,and Dr.John G.Caffrey,program director for education withthe System Development Corp.,Santa Monica,Calif.,was named director of ACE's Com-mission on Administrative Affairs effective Oct.12. Dr.Singletary will succeed Dr.Allan M.Cartter who resigned to become chancellorof New York University Sept.1.Dr.Caffrey's appointment follows the resignation inAugust of Dr.Edward L.Katzenbach,Jr.who accepted a position as manager of the Ray-theon Company's education division. Dr.Singletary,44,was appointed chancellor at North Carolina July 1,1961.FromOctober 1964 to January 1966 he was on leave to serve as President Johnson's appointmentas the first director of the Job Corps. During his five-year administration at Greensboro,the university was changed in statusfrom a college for women to a coeducational institution,enrollment was increased by 65 per-cent,and admission standards were raised.Also initiated were major revisions in require-ments for the B.A.degree,a four-year honors program,an international studies program,and three new doctoral and nine new master's degree programs.Since 1961 more than$11 million in new facilities have been completed or scheduled for construction. Born at Gulfport,Miss.,Dr.Singletary received the B.A.degree in 1947 at MillsapsCollege where he became a member of Phi Beta Kappa.He earned the M.A.degree in 1949and the Ph.D.in 1954,both at Louisiana State University. Received Teaching Awards Following two years as an instructor in the NROTC program at Princeton University,Dr.Singletary in 1954 joined the faculty at the University of Texas whe

FAQs

How could President Johnson’s budget reductions affect higher education programs?

The document links potential impacts to reductions in the presidentially controlled portion of the 1967 budget and to education program funding mechanisms tied to certificate sales.

What role do certificates of participation play in higher-education funding?

The college housing program funding and Title III funds are described as based exclusively on sales of certificates of participation.

Who were appointed to major positions on ACE staff, and when would they take effect?

Dr. Otis A. Singletary was appointed vice-president effective Nov. 1, and Dr. John G. Caffrey was named director of the Commission on Administrative Affairs effective Oct. 12.

Sep 21, 2026

Uploaded by Eliana