davidaulloa/AmericanStories huggingface dataset:
Evening star., 1963-01-17
EDUCATION

The budget estimates expen-
ditures will go up by $16o mil
lion to SIS billion. But it pro-
vides for a doubling of new
obligational authority mostly
appropriations to a total of SO
billion for education, much of
it to be spent in later years.
This program also is to be de-
tailed in a later special mes
sage.
The budget message said: "A
key objective of the coordinatcd
program being proposed is to
strengthen the qualify of in
Struction and subject matter
strengthen the quality of in
taught in our schools through
ca buttressing of research in
education and Improvement of
course content, Cb) expansion
and improvement of teacher
training programs, Co i'm
provement of community IL
brary services for people of all
ages. and I'D strengthening of
public elementary and second
airy education"
The budget provices 1851
a SAL million increase,
for assistance to schools in
Federally affected areas. 1t pro-
poses a one-year extension of
provisions due to expire June
80 relating primarily to chill
dren whose parents work on
Federal property but live on
private taxable property.
Evening star., 1963-01-17
California 6. o. P.
Leader Accused
OfAiding Liberals

SAN FRANCISCO, Jan. II
(AP) Fractional strife in Cali
fornia's Republican Party has
erupted again with charges that
state Central Committee
Chairman Caspar Weinberger is
rigging tho State for a liberal
push in 1864.
Mr. Weinberger denied the
charges, made In Arcadia. a
Los Angeles suburb, by former
State Assemblyman Bruce Rea-
gan last night who said.
/. California @. o. p. leaders,
including former Vice President
Nixon, are setting up now TO
back New York Gov. Rockefeller
Evening star., 1963-01-17
VETERANS

Payments to the public" for
veterans benefits and services,
under the cash budget concept,
decline by 1889 million, mainly
because of a reduction of 1927
million in life insurance divi-
dend payments which are being
speeded up into the 1863 fiscal
year. But expenditures under
the administrative budget will
go up by SCI million to $5.5
billion.
Recalling that the last Con-
gress approved a cost-of-living
increase in disability compen-
Sation rates for veterans, the
President recommended a sim
liar increase in benefits for the
children and dependent parents
of vterans who died as a result
of military service.
Evening star., 1963-01-17

Continued From Page Al
amples of improved productivity
and cost reduction:
Veterans AdministratiOn-Six
million insurance policies we're
handled in 1850 by over 1900
employees; now the same num-
Der is being handled by 5000.
Treasury - Nearly three
times as many checks and
bonds are now being issued per
employe compared with ten
years ago.
Farmers Home Administra-
tiOn. A 35 per cent increase
achieved in two years in the
number of loans processed per
employe.
Bureau of Old-Age and Sur
vivOrs InSurance-Output per
worker will increase during the
current year by SIS per cent at
a saving of l,700 more employees
and about $40 million.
Patent 0ffice-An increase
in productivity Of l3 per cent
in processing patent applica-
tions in fiscal 1862.
Defense - Savings Of $3.50
million this year alone in the
cost Of logistical operations.
Corps of Engineers - I'M
provements completed in 1862
have eliminated 1900 jobs and
reduced annual costs by Sl3
million.
Post Office - Savings this
year expected to reach $40
million.
Internal Revenue Service
Savings Of about S4.2 million in
fiscal 1868.
Atomic Energy Commission
Greater efficiency in producing
special nuclear material will
save 81 million this year.
Evening star., 1963-01-17
INTERPRETIVE REPoRT--
President Switches Signals

and his party will come, if ever,
we'll after the 1864 election,
Then he hopes the economy
will have generated enough
steam to drop unemployment
to the 4 per cent level and pro-
vide a balanced Federal budget
with cash for big domestic pro-
grams.
The formula of pinching PEN
nies now so you can spend big
later is obviously one that
would appeal ony to a man
who figures to be around when
the dividends start rolling in.
Calculated Risk
The President is taking the
calculated risk that his over
all performance in office will be
good enough to win reelection
without balancing a budget,
cutting deeply into unemploy-
ment or making much headway
on improving education and
other public services.
All this represents a vast
shift in tone from the first two
years of the Kennedy admin
iStration.
Formerly, the President has
been scrambling to patch every
pothole in the domestic econ
omy. Positive government action
to boost minimum wages, aid
depressed areas, add to farm
income, spur the housing in
dustry and so on, would spark
the whole tagging economy, he
argued. That, in turn, would
provide the revenues needed to
improve defense, move ahead
in space and meet accumulated
domestic needs.
1T is now clear" Mr.. Ken
nedy conceded in his message
today, that the restraining ef-
fects of the tax system on the
economy were not adequately
recognized"
No longer does the President
argue that everything can be
done at once. Faced with the
! difficult choice between guns
Evening star., 1963-01-17
Record $52.2 Billion
Requested for Defense

plane will continue with $81
million left over from the cur
rent fiscal year, but the Penta-
gon obviously has no in
tention of producing more than
the three prototypes on order.
No Long Range BOmbers
No more long range bombers
are on order. Today the Air
Force has about 1.400 strategic
bombers. BY the end of the next
fiscal year it will have about
ZOO. In 1866 there will be 700,
according to a defense official
about 600 heavy B-52s and
100 light but super-sonic B-58s
In that same year, which will
mark the real eclipse of the
manned bombers about 1,100
ICBMs will be ready for use.
Limited war forces would re-
main about the same in size,
but get more and better equip
ment under the new budget.
The Army will be given an
extra $4,000 men on a tempo
rary basis to experiment with
new concepts Of airborne lin
ited war.
The Army plans to form a
small "air assault" division and
experiment with conventional
war techniques involving Army
owned helicopters and small,
cheap and rugged fixed-wing
planes.
Military Requests Cut
All four military services
were disappointed to some de-
gree with the budget. Defense
Secretary Mcnamara and his
staff cut about Sl3 billion from
service requests.
Here are some Of the other
major items that survived:
Continued development Of a
substantially improved" anti
missile missile, the combined
Nike Zeus and Nike-X.
A fallout shelter program
that would continue the mark
ing, stocking and construction
Of shelters.
An expansion Of counter
guerrilla forces TO be used TO
train and advise American al
lies.
Missile x Is designed TO sup
plement the Zeus anti-missile
missile. II could intercept
enemy ICBMs at relatively low
attitudes, using the braking eff
feet Of the atmosphere TO dis
tinguish between heavy nuclear
warheads and light decoys.
Zeus could handle high-alti-
tude interruptions, while Mis-
sile x picked up the warheads
that got past Zeus. Or Missile
x could be used Just 10 protect
important underground COM
mand posts. The one disadyan-
tage Of the system is that 1t
could create nuclear explosions
In the atmosphere which could
burn the ground below.
Mr. Kennedy also asked for a
four-year extension Of the
draft, which is due TO expire
June 30.
Evening star., 1963-01-17
TRANSPORTATION

Largely because of highway
trust fund operations II the Fed
eral payments TO the public for
fiscal 1864 are estimated at
practically double the ad-
ministrative budget expendi-
lures S6.7 billion 10 S34
billion.
The President renewed rec
concentrations that Govern
ment promotion, regulation and
taxation policies be revised to
assure equal competitive OPP
portunity for all major types
OF transportation"
Studies are progressing" the
budget message said, ION the
feasibility OF developing a
supersonic air transport. How
Evening star., 1963-01-17
HOUSING AND URBAN

Federal cash payments for
housing and community devel-
opment programs are estimated
to rise by $3.50 million TO a
total Of Sl.l billion. But "ad-
ministrative budget" expendi-
lures in this field drop $249
million, from $525 million to
s276 million.
Legislation is again being
proposed" the budget message
said, Ito provide both long
range and emergency Federal
aids TO revitalize urban mass
transportation, requiring new
obligational authority of 500
million In the first year and
totalling $500 million over q
three year period"
Evening star., 1963-01-17

and butter, he has chosen guns
or more accurately, missiles
and the moon.
Must Meet Criteria
Domestic programs will con-
tinue to feel the economy ak in
years to come, the budget mes
sage makes clear. I'VE shall .
include in our fiscal program
only those expenditures which
meet strict criteria of fulfilling
important national needs" the
President said.
Spelling that out, Treasury
Secretary Dillon said the bud
get will not balance-and the
squeeze on domestic spending
will not end before fiscal
1866 or 1867. Significantly, he
added that unemployment can
not be expected to drop to the
4 per cent Jewel before then,
either.
This is perhaps the most no
table change of all IL. the Pres
ident's position. Previously, Mr..
Kennedy has described 4 per
cent unemployment as an "in-
terim goal" which he expected
to reach this year at the latest.
mo doubt, a massive in
crease in Federal spending
could also create jobs and
growth" he said in the state
of-the- Union message, but in
today's setting. private con-
sumers, employers and inves-
tors should be given a full OPP
portunity first"
Some liberal Democrats and
labor leaders, noting this
switch, have accused the Pres
ident of talking like a Repub-
lican and a conservative one
at that"
Others, more sympathetic to
his change in tack. see the
new Kennedy" as calmer, more
confident.
Whatever the merits in this
argument, one thing is plain.
Mr.. Kennedy expects the favor
of the voters in 1864 to let him
make haste slowly.
Evening star., 1963-01-17
Moon Drive Lifts Space
Budget to $5.7 Billion

81 per cent. Some individual
projects were cut back, either
because of "phasing out" or
for economy's sake. One being
phased out is the Mercury
manned flight project. Another
is the Tiros weather satellite,
sharply reduced in funding to
make way for the more ad-
vanced Nimbus.
Associate Space Administra-
tor Robert c. Seamans said
Mercury in all probability will
end in April with a one-day
flight by Astronaut L. Gordon
Cooper. There is no Mercury
money in fiscal 1864.
Gemini Funds Up
The largest single increase in
NASA's budget-nearly fourfold
- was $1.2 billion for the
Apollo three man spacecraft
development program.
An intermediate manned
flight program, Gemini, with
two-man flights scheduled be-
ginning early next year, is
funded for $306 million, up
from $233 million in the
current period. Cost of Gemini,
which will continue through
1865, is estimated at $3.50 mil
lion.
More than $1.3 billion is
allocated for launch vehicle de-
velopment for the manned
flight program. About 56 per
cent will go for the Advanced
Saturn, the 26O-foot monster
that will boost the Apollo
spacecraft moonward. The basic
Saturn, roughly two-thirds the
height and one-fifth the power
of the advanced model, will get
less money this year-S131.6
million against s228.6 million.
An intermediate Saturn
booster, called Saturn-B, will
have its funding more than
trebled. from $18.8 million to
$685. million. 1t will be used on
Apollo missions to the moon
and back without landing.
The total manned space
flight" ALLEGATION in the NASA
budget is up 81 per cent over
fiscal 1868. from SIT billion
to $3.2 billion. Auxiliary prof.
ects and construction will
boost the total above the $4
billion mark.
Surface Determination
Unnamed space flight
principally orbiting satellites
and lunar and planetary probes
will receive a 38 per cent
boost to about three-quarters
Of billion dollars. Included is
the addition Of 10 Ranger
Evening star., 1963-01-17

moon probes for a total Of 18
yet to be fired
This extension of the Ranger,
plus increases in funding for
the Surveyor advanced noon
probe project, are aimed at
gaining information about the
moons surface prior to manned
landing attempts.
More than $1l0 million will
be earmarked for the "Centaur"
upper stage rocket which is
needed for difficult missions to
the moon and planets. Gen.
taur has flown only once
(never under its own power)
and then unsuccessfuly.
Atomic rockets, viewed as es-
sential for manned missions
beyond the moon in the post
1870 period, are being funded
on wait and see basis" This
is a Joint NASA-Atomic Energy
Commission venture into which
Acc will put roughly S10O mil
lion in addition to NASA's $50
million. This is part of S254
million being spent by Acc on
space activities.
| NASA will ask Congress for
$500 million for construction,
an increase of only 8.5 per
cent over fiscal 1868. The lions
share is for manned space
flight facilities. including $217
million for development Of
Apollo Launching Complex SO
at Cape Canaveral. and Sill
million for test stands and as
sociated construction at a new
center in Southern Mississippi.
Boston Area Research
The agency also will ask for
land acquisition money for a
new electronic research
center in the greater Boston
area. DR.. Seamans said about
SO million would be requested
for purchase of up to 1000
acres" for an eventual S5c mil
lion complex hiring about 1000
persons.
The Manned Spacecraft
Center at Houston, Tex, an
nounced two years ago as a
$50 million center on 1000
acres, will get S37.7 million in
construction money next year.
This will bring the cumulative
cost of the site-now encom-
passing 1920 acres almost to
the $3.50 million mark.
Nearly 1000 jobs will be
added at NASA installations,
raising the personnel ceiling to
32.5O0 Jobs.
In addition to NASA's re-
quest, roughly $5 billion in
Federal research and develop
ment expenditures are clearly
identifiable as more or less
scientific in nature.
OF special interest to WASH
ington is a request for SIC mil
lion for the final group OF
buildings for the National Bu-
reau OF Standards at Gathers
burg, Md.
Evening star., 1963-01-17

as the @. o. p. presidential
standard bearer In 1864.
2. The liberal wing OF the
@. o. p. controls the party In
California.
3. That conservative leaders
are being removed from party
posts and Mr.. Weinberger is
responsible for this blacklist
ing.
MIR Weinberger called the
charges absolutely false" He
said In San Francisco:
1T is too early now 10 back
anyone for 1864. q. I'VE are
not blacklisting anyone. %, We
need more people In the party.
&c. We have got TO get bigger
II we are going 10 win"
Evening star., 1963-01-17
GENERAL

The general administrative
and law enforcement activities
of the legislative, judicial and
executive branches are esti-
mated to cost $2.2 billion, up
$l53 million.
A big chunk of the increase
$50 million goes to the Inter-
nal Revenue Service to
strengthen its tax collection
activities. Much of the re-
mainder is for construction of
Government buildings begun
earlier.
Evening star., 1963-01-17
BUDGET

Continued From Page Al
his state-of- the Union message
Monday.
He estimated the net revenue
loss to the Government in fiscal
1864 from his tax program at
S2.7 billion. But expanded eco
nomic activity is expected to
bring a rise of $1.4 billion to
1868 in Government receipts.
despite the tax loss.
Sees Growth Spur
Describing his tax cut pro-
posals as designed to help
speed the economy toward full
employment and a higher rate
of growth with price stability"
the President said that unless
we release the tax brake which
is holding back our economy.
budget deficits are likely
to persist"
He held out hope that when
the new tax program becomes
fully effective it will spur eco
nomic growth sufficiently to
produce surpluses that should
help eliminate "the transitional
deficit"
Under present law, the debt
ceiling now is fixed temporarily
at $308 billion, but will go down
to S305 billion on April /, to
$500 billion on June rs and to
S285 billion after June 80. The
President urged extension of
the $308 billion ceiling through
June 80, and said he would ask
a further rise later this year
when he can make a better
estimate of the requirements.
Mr.. Kennedy gave greater
emphasis than any President
ever has to the Governments
cash budget, or what he called
"a consolidated cash presenta-
ton" - taking into account all
Federal payments to the public
and receipts from the public.
Additional COverage
The usual administrative
budget" covers receipts and ex-
penditures of funds owned" by
the Federal Government. The
consolidated cash statement"
covers. in addition, the receipts
and expenditures of trust funds
- principally the social security
and highway trust funds which
are not reflected in the admin
istrative budget.
The President said the cash
budget gives a much more COM
plete picture of governmental
activities and finances.
On this basis, total receipts
from the public in fiscal 1864
are estimated at $112.2 billion
as compared to 1868 billion in
the administrative budget. To-
tai payments to the public are
put at Sl22.5 billion as against
$98.8 billion expenditures in the
administrative budget. The re-
suit is a cash deficit of S10.3
billion instead of the $11.9 bill
lion figured on the usual basis.
In estimating "administra-
tive budget" receipts at 1858
billion for the new fiscal year,
the President counted on ex-
tension for another year of GER
tain excise and transportation
tax rates due to drop or expire
on July /, as we'll as on his pro-
posed income tax cuts. He also
asked that the 50 per cent cor
poration income tax rate be
kept at that level until next
January l instead of dropping
to AZ per cent on July /.
Mr.. Kennedy promised con-
tinued priority for efficiency
and cost-cutting programs in
all Federal operations. He cited
several examples of increasing
efficiency in Government.
The Presidents proposals in
volving defense. space, and
Federal employees are reported
in detail elsewhere in today's
Star.
other major programs may
be summarized as follows:
Evening star., 1963-01-17

ever, the economic and techni-
cal considerations are extremely
complex. A final decision should
await the full information
which the current studies
yield. These studies viii be
completed and the results eval-
uated later this year"
Evening star., 1963-01-17
FOREIGN AID

The administration is asking
S87 million more in economic
assistance appropriations for a
total of $3.47 billion. The major
thrust is directed toward Latin
American countries and the
Congo.
Two years OF planning in
Latin American countries is ex-
pected to result In an increas-
ing number Of well-grounded
requests for aid which will re-
quire some $500 million more
than was requested last year.
Most Of this increase, in the
form Of loans for Latin Amer
lea, is being balanced b, cuts in
grant-aid or gifts. mainly for
Far Eastern countries The ad-
ministration is emphasizins the
trend away from gifts and
toward loans In the foreign
field. officials said.
.srA.-t tAnAa AA.rt
Evening star., 1963-01-17
Kennedy Gears Climb
To '66 Economic Peak

the administration expects the
full stimulative benefits of the
tax program to take hold.
The program will go into ef-
feet gradually. If Congress acts
promptly, the first stage will
take effect next summer, re-
ducing individual income taxes
by about SO billion in the sec
ond half Of calendar 1868.
Continuation of these lower
rates in the first half of calen-
dar 1864 would increase the
Governments revenue loss to
$5.3 billion in the fiscal year
ending June 30, 1864. Accelera-
ton Of corporation tax pay
ments and economic stimula-
ton from rate reductions would
trim the revenue loss for fiscal
1864 to $2,7 billion.
Boosts Deficit
That is, the tax program
would boost the fiscal 1864
deficit from $9.2 billion to $1l.9
billion. A similar revenue loss
is anticipated for fiscal 1865.
BY fiscal 1866 or 1867, Mr..
Dillon said, the lower tax rates
would yield as much or more
revenue as the present higher
rates would generate without
the tax programs stimulus.
At that point, he said, unem-
ployment should be down to
4 per cent of the labor force,
factories should operate at the
efficient rate of 80 per cent of
capacity and Federal revenues
should equal or exceed expen-
ditures, balancing the budget.
This timetable lags far be-
hind the Presidents original
hopes. Just a year ago, he
predicted reduction of the un-
employment rate to 4 per cent
by June, 1868.
And even the slower schedule
cannot be met, the President
warned today, without his pro-
gram for net reduction OF taxes
by $40 billion over three years.
While admitting that the
economy's performance fell
short Of his expectations last
year, the President took note
of substantial advances since
the 1960-61 recession hit bot
tom two years ago.
Three Assumptions
The budgets fiscal 1864 rev.
enue estimates are based on
these assumptions about eco
nomic gains during calendar
1858:
Gross national product-to-
tai output of goods and serv-
ices-will rise from 1854 billion
last year to $578 billion in 1868.
The President a year ago pre-
dicted a 1862 GIMP of $40 bill
lion.
Personal income will in
crease from $440 billion in 1862
to $459 billion in 1868.
Corporate profits before taxes
will rise from $500 billion in
1862 to $50 billion in 1868.
Thus, despite the failure to
achieve full use of economic
capacity, the President expects
no recession this year. Mr..
Dillon said the administration
sees no reason for a Sub
tantiar' recession in the years
ahead, although the growth
line will be "wavy."
Evening star., 1963-01-17
BY LEE M. COIN
Star Staff Writer

President Kennedy, now does
not expect the economy to
achieve reasonably full employ
ment and adequate growth un-
til 1866, according to the time
table reflected by the budget
submitted to Congress today.
Mr.. Kennedy started by pro-
posing cautious, selective meas
ures to stimulate the economy
when he took office two years
ago. The recession he inherited
ended, but the recovery has
been weak.
Since mild medicine did not
work adequately, the President
now appears to be prescribing
major economic surgery and a
long course of treatments re-
quiring tax cuts and big budget
deficits.
Just one year ago, submitting
a balanced budget. the Presi-
dent predicted brisk" economic
gains without pump priming
through deficit spending. He
warned, in fact, that a deficit
could cause initiation.
David E. Bell, then the
budget director, described the
budget as mildly restraining"
on the economy. The admin
stration relied on such pro-
grams as retaining of jobless
workers and aid for depressed
areas to promote employment
and business activity.
Activates Theory
Now, the President has
adopted the fiscal theory he
rejected a year ago. According
to this theory, the tax struc-
ture exerts too much pulling
power in relation to Federal
spending.
Rephrasing this theory, the
President argued today that
"the checkrein on private
spending and productive incen-
tives must be loosened if our
economy is to perform at maxi
mum efficiency" He continued:
"Our present choice is not
between a tax cut and a bal
anced budget. The choice,
rather is between chonic
deficits arising out of a slow
economic growth, and tempo
rary deficits stemming from a
tax program designed to pro-
mote fuller use of our resources
and more rapid economic
growth"
Tax cuts would increase the
budget deficit now, the Presi-
dent said, but would strengthen
the economy and so provide 7.
the basis for sharply increased |
budget revenues in future |
years"
Part for Debt
A substantial part of these
should be used to pay off the |
debt resulting from "transi-
tional taX-cut deficits.
Treasury Secretary Dillon, at |
a news conference, m ade it
clear that the administration
expects a long transition before
the budget balances and the
economy performs near full
capacity.
These goals, he said, should /
be reached in fiscal 1866 (the |
year ending June 80, 1867 or
fiscal 1867. That's about when !