In the future we expect incomes considerably higher than before the war.  Higher incomes should make it possible for State and local governments and for individuals to support higher and more nearly adequate expenditures for education.  But inequality among the States will still remain, and Federal help will still be needed.

As a part of our total public works program, consideration should be given to the need for providing adequate buildings for schools and other educational institutions.  In view of current arrears in the construction of educational facilities, I believe that legislation to authorize grants for educational facilities, to be matched by similar expenditures by State and local authorities, should receive the favorable consideration of the Congress.

The Federal Government has not sought, and will not seek, to dominate education in the States.  It should continue its historic role of leadership and advice and, for the purpose of equalizing educational opportunity, it should extend further financial support to the cause of education in areas where this is desirable.

(l) Federal Government personnel.

The rapid reconversion of the Federal Government from war to peace is reflected in the demobilization of its civilian personnel.  The number of these employees in continental United States has been reduced by more than 500,000 from the total of approximately 2,900,000 employed in the final months of the war.  I expect that by next June we shall have made a further reduction of equal magnitude and that there will be continuing reductions during the next fiscal year.  Of the special wartime agencies now remaining, only a few are expected to continue actively into the next fiscal year.

At the same time that we have curtailed the number of employees, we have shortened the workweek by one-sixth or more throughout the Government and have restored holidays.  The process of readjustment has been complicated and costs have been increased by a heavy turn-over in the remaining personnel—­particularly by the loss of some of our best administrators.  Thousands of war veterans have been reinstated or newly employed in the civil service.  Many civilians have been transferred from war agencies to their former peacetime agencies.  Recruitment standards, which had to be relaxed during the war, are now being tightened.

The elimination last autumn of overtime work for nearly all Federal employees meant a sharp cut in their incomes.  For salaried workers, the blow was softened but by no means offset by the increased rates of pay which had become effective July 1.  Further adjustments to compensate for increased living costs are required.  Moreover, we have long needed a general upward revision of Federal Government salary scales at all levels in all branches—­legislative, judicial, and executive.  Too many in Government have had to sacrifice too much in economic advantage to serve the Nation.