European Stars And Stripes (Newspaper) - February 6, 1986, Darmstadt, Hesse                                Thursday february 1986 the stars and stripes Page 9 budgetw8z. How fhe budget would affect. Education Washington a the Reagan administration i Cocking deep cuts wears Day to the department of education Bud gel wednesday proposed an end to All fed Era help for 1 million College students and a halt to interest free Loans for classmate still eligible to borrow. It asked Congress for an immediate $1 billion Cut in the department of Educa Tion s spending authority for fiscal 1986 or. To Cut save a total of $2.6billion in fiscal 1987. Most education pro  financed a year in Advance soothe 1986 Cut in budget authority will trans late to $1 billion less in Aid next War. The Economy measures which would programs. The 1986 budget would have been si8.2 billion but the Gramm Rud Man deficit reduction Law is scheduled to squeeze s171 million from school programs on March i. A wide Range of smaller programs including $122 million in Aid for libraries would be wiped out or sharply curtailed. But at the same time president Reagan and Secretary of education William j. Bennett asked for no cuts in the $3.7 billion chapter 1 remedial program for the disadvantaged and si43 million in Aid for Bilin Gual education. The $1.3 billion Aid to handicapped Chil Dren program would face $44 million in rescission in 1986 but no deeper cuts in 1987. In a last minute budget addition Bennett proposed spending is million this year Only on Christa Mcauliffe scholarships in Honor of the teacher who perished in last week s space shuttle challenger catastrophe. The Grants would help teachers study under math and science scholars. Currently 5h million College students half of those eligible get one or More Federal Grants Loans work study funds or other Aid. The Reagan budget would reduce that number to 4v4 million. All students would have to undergo a new tougher evaluation of their need. The subsidies in the guaranteed student loan program would be curtailed but not eliminated. Students now pay no interest while they Are in College and Only 7 to 9 percent afterwards. Students would be charged interest at the Treasury Bill rate currently around 7 percent from Day one and they would pay the to Bill Rae plus 3 Points after col lege. Students would either have to Start Mak ing repayments while they attended classes or borrow More to cover the added interest costs. Funding for Pell Grants outright fed eral gifts of up to $2,100 a year based on students need tuition and other expenses would be Cut by $400 million to $3 Bil lion. More than 2.6 million students now get the Grants. Some 2 1 million would get them under the Reagan plan the administration is also proposing to create a new College run program of unsubsidized Loans with repayments Contin gent on the Borrower s future income. Undergraduates could borrow $2,500 to $4,500 and graduate students up to $ 10,000 a year with repayments pegged to their actual income in later years. No one would have to pay Back More than 15 percent of his or her annual income but they would eventually have to retire the whole debt however Long that takes. Vocational education which got $842 million last year and is slated at $813 Mil lion after next month s automatic Gramm Rudman cuts would lose $210 million in 1986 rescission then be Cut to $408 million for 1987. The administration would rescind $202 million in College work study and supple mental educational Opportunity Grants All $73 million from a state student incentive Grant program and $182 million from National direct student loons. It is seeking $75 million for Magnet schools to further integration marking a reversal of its previous opposition to con Gressional funding for Magnet schools. It also will request $75 million in 1987 for teacher training in an initiative that would revamp an existing $52 million pro Gram to train teachers solely in math and science. Programs Washington a president Reagan asked Congress wednesday to require employable adult welfare recipients to look for jobs increase premiums for medi care insurance and put a Cap on medicaid spending for the nation s poor in 1987. The proposal would require All employable applicants and recipients of the nation s largest welfare program. Aid to famines with dependent children to look for work As a condition of eligibility. At the same time the president s proposed budget for the labor department would eliminate the 19-year-old work incentive or win program aimed at helping Wel fare recipients find jobs. The $202 million win program would be Cut $46 million immediately with the idea of ending it completely in Early 1987. The president asked for a similar work requirement pro vision for welfare recipients in his last budget but con Gress did not go along. Unmarried minor mothers who leave their parents Home would not be eligible for Ardc under the 1987 budget proposal. And when an Ardc family s youngest child reaches age 16, the employable Parent no longer would be eligible for Ardc although the child s Benefi would continue. The Resh of Reagan s 1987 budget proposal which still must be approved by Congress is an increase in spending for medicare the Federal health insurance program for the elderly and disabled and for medicaid the state Federal program for the poor. The budget message also allows for a 3.7 percent Cost of living increase for social Security. Beneficiaries next january. But it includes a $23.6 billion Cap on medicaid spend ing an estimated $1.3 billion less than what is projected for 1987 spending under current Law. It would increase premiums and deductible payments for medicare part b coverage which covers physician Bills. The Premium increase next year would be Only 90 cents per month for individuals but sharply higher for states that use medicare to insure their elderly poor. The deduct Ible would go from $75 to $100. John Rother Legal director of the american association of retired persons said we re very concerned about these proposals because instead of controlling costs All they do is shift costs onto the person who s sick or the person who s enrolled in the program. The serious change is the Rise in the deductible amount which really penalizes people who have to use medical  Many health and welfare programs would face cuts. Ardc would lose $691 million in Federal Money Leav ing it with $7.25 billion. The Ardc program under the proposal would require states to enact the workfare requirements within three years. The budget estimated that the Job search require ments would reduce Benefit spending by $252 million but that the program would require an extra $200 million for administration. Cuts i health and human services total about $1 billion in 1986 under the Gramm Rudman deficit reduction act but major Benefit programs Are either exempt or shielded from Large cuts. I. Of of weft Letl Ipa Ful i Gui i Al a Washington a Reagan wednesday proposed a hefty 18 percent Cut in the agriculture depart ment s budget for 1987, including substantial cuts in direct farm lending crop insurance and agricultural Extension. The president s new budget Abo Calls for trimming the most expensive item of farm spending commodity Price and income sup norts and it proposes savings in the Roo stamp and other nutrition programs. Overall the budget Calls for spending in fiscal 1987 for All food and farm programs of $44.6 billion Down from the Fatima cd $54 i billion to be spent m the current year. The 1986 figure includes a roughly 4.3 per cent Cut already made to meet the require ments of the Gramm Rudman deficit reduction Law. Administration officials had hinted All along that agriculture which has been one of the fastest growing items in the Federal budget Over the past few years also would be targeted to become one of the fastest to shrink under new spending constraints. Among proposals in Reagan s new Bud get Are a Tota of $4 billion for 1987 in fending authority for the Farmers Home administration to keep High risk Farmers in business. Of that figure $1.5 billion would be in direct lending and $2.5 billion in federally guaranteed private Loans. Borrowers will be charged a 1 percent loan origination fee to generate additional Revenue. New user fees also Are being proposed for Federal grab inspection Market news information and animal import and quarantine inspections. Programs to fight fire ants and noxious weeds and promote animal welfare would be terminated under the proposal. Federal support for agricultural Exten Sion which provides education in agriculture Home economics and Community development would be Cut sharply from $331 million in the current year to $179 million in 1987. Crop insurance subsidies would drop from $557 million to $370 million and perhaps even More with proposed legislative changes. Reagan has seen his food and farm spending priorities vastly changed by con Gress in the past. A year ago Reagan proposed a us a budget for the current fiscal year at $38.5 billion a 1$ percent reduction from a near record $45.1 billion then estimated for 1984-85. At that time the record was $46.4 billion in 1982-83. But Congress walked at Many of the cuts and reforms urged a year ago for us a. By last August it was apparent that total outlays for the fiscal year that began on oct. I 1985, would far exceed Reagan s proposal. A year ago the administration had Hopes of seeing a completely Market oriented farm Bill that would bring a gradual end to commodity Price supports and direct subsidy payments. Congress settled on a scaled Down program but stopped far Short of what the administration originally wanted. Foreign Aid a t recommended a 16 percent any increases Are unlikely in View of the Gramm Rudman deficit reduction act. Sen. Richard Lugar r-ind., Senate foreign relations committee chairman told state department officials last week they were courting catastrophe by seeking an Overall hike in foreign Aid. However documents submitted with Reagan s fiscal 1987 budget argued that a $1.2 billion increase in International Security assistance from $9.7 billion this year including Gramm Rudman cuts to $10.9 billion in the year beginning oct. 1 is needed to strengthen Allied and Friendly governments where the United states has special Security  programs make it possible for other govern ments to strengthen their economies and to acquire and use modern military equipment necessary for their de sense the administration said. In addition the budget seeks a modest increase in development and humanitarian assistance of $76 million from $4,902,000 this year to $4,978,000 in fiscal 1987. Overall Reagan s foreign Aid proposal is $15.9 billion in fiscal 1987, compared with $ 14.6 billion this year. The budget documents provided no breakdown by coun try but a state department table obtained by the associated press last week showed major foreign Aid increases in Central America Jordan and the Sudan. In addition the Philippines would receive an 85 percent hike in Mili tary Aid while its economic Aid would be slashed