April 25, 1978
Page 11428
MIDDLE-INCOME TUITION ASSISTANCE
Mr. CULVER. Mr. President, I wish to inquire of the distinguished chairman of the Budget Committee.
One issue which Congress will undoubtedly address in this session is how to provide some additional financial assistance to middle-income families hard pressed by the rising costs of higher education. What does the resolution assume for middle-income tuition assistance?
Mr. MUSKIE. I appreciate the Senator's question, and we have had some discussion about it.
The first concurrent resolution includes $0.5 billion in revenue losses for a college tuition tax credit targeted on full-time undergraduate students. The resolution also includes $0.1 billion in spending for the refundable portion of the credit.
Mr. CULVER. I am told that the House Budget Committee has assumed an alternate program of expanded scholarship, loan, and work study assistance targeted to middle-income students. If the tax credit is not enacted, would the $0.5 billion in revenue reductions and $0.1 billion in spending, assumed in this budget resolution for the tuition tax credit, be available for such a spending program?
Mr. MUSKIE. I cannot commit myself, nor the Budget Committee, to a position with regard to any specific legislation which was not assumed in this resolution. However, assuming the budget resolution conference agrees to the tax credit, but the Congress subsequently rejects it, an alternative form of tuition assistance for college education which did not increase the total size of the Federal budget beyond the $600 million included for the tax credit would not do violence to the spirit of the budget resolution. This assumes, however, that the Finance Committee would not use for other purposes the $500 million in tax reductions and $100 million in increased spending that it would have available under the budget resolution for the tax credit approach. The revenue, outlay, and budget authority levels contained in the budget resolution would also have to be adjusted in the second budget resolution in order to take account of this change. And, I am sure the Senator realizes that this $0.6 billion is only about 40 percent of what is necessary to fund the spending proposal advanced by the President or the Human Resources Committee.
Mr. CULVER. In other words, in both Houses of Congress, the budget resolutions envisage additional financial assistance to middle-income students for the costs of higher education. Whether it will come in the form of tuition tax credits as the Senate resolution predicts, or as expanded scholarship, loan, and work-study programs as the House resolution envisions, remains to be determined.
Mr. MUSKIE. Yes.
Mr. CULVER. The resolution of that question, as I understand it, will begin in the conference committee on the first concurrent budget resolution and then continue later in the session as the two Houses make decisions on the substance of the alternative approaches.
Mr. MUSKIE. Yes.
Mr. CULVER. I thank the Senator.