628 ADDRESSES AND STATE PAPERS

current year. Of the $37. 7 million increase in proposed General Fund
spending, f 35. 2 million goes directly back to the political subdivisions
in either shared tax revenues or State aid payments.

HIGHER EDUCATION

Higher Education continues to receive a high priority from this
administration, despite the emphasis on economy in the new budget.
On top of the 15 percent increase granted higher education in the
current fiscal year, I am recommending an increase of 10 percent for
the University of Maryland and 13 percent for State colleges in the
1969 operating budget. In addition, 39 percent of the $51 million
capital budget is allocated for construction projects at our institutions
of higher education.

As we continue to anticipate the demands placed on college facilities
by the steadily rising tide of student enrollments, we must prepare
to meet a comparable need for increased student aid. The 1969
budget paves the way with appropriations for a greatly expanded
Higher Education Loan program. It has become increasingly obvious
that the present, expensive State scholarship program is totally in-
adequate to meet, either in dollars or the number of students accom-
modated, the demand for student aid. Even if our present program
were continued at current levels, the scholarships would provide only
$26 million in student aid over the next five years. With increasing
college costs and enrollments, it is estimated that the need for stu-
dent financial assistance will approach |85 million by 1973. The pro-
posed Higher Education Loan program will — even by conservative
estimates — provide $84. 5 million at a cost of only $16. 5 million to
the State, the balance being liquidated by the Federal government and
the repayment of loans.

This means that no child in Maryland will be denied the oppor-
tunity to attend college solely because he or she cannot afford to go.
Presently only one out of three applicants can receive, in part or in
whole, a State scholarship. An expanded Higher Education Loan pro-
gram can guarantee student aid to nine out of ten applicants. The
relatively few denials would be for academic reasons.

It is, therefore, within your power to guarantee every academically
qualified high school graduate a college education, and also assure
that he can attend the college or vocational school of his choice, in
Maryland or outside the State. Although the student will be required
to repay the loan over a period of ten years after graduation, at a
modest interest cost of 3 percent, I believe this expanded program