Even without these proposed major additions, it would now be time to undertake a thorough reconsideration of our social security laws.  The structure should be expanded and liberalized.  Provision should be made for extending coverage credit to veterans for the period of their service in the armed forces.  In the financial provisions we must reconcile the actuarial needs of social security, including health insurance, with the requirements of a revenue system that is designed to promote a high level of consumption and full employment.

(k) Education.

Although the major responsibility for financing education rests with the States, some assistance has long been given by the Federal Government.  Further assistance is desirable and essential.  There are many areas and some whole States where good schools cannot be provided without imposing an undue local tax burden on the citizens.  It is essential to provide adequate elementary and secondary schools everywhere, and additional educational opportunities for large numbers of people beyond the secondary level.  Accordingly, I repeat the proposal of last year’s Budget Message that the Federal Government provide financial aid to assist the States in assuring more nearly equal opportunities for a good education.  The proposed Federal grants for current educational expenditures should be made for the purpose of improving the educational system where improvement is most needed.  They should not be used to replace existing non-Federal expenditures, or even to restore merely the situation which existed before the war.

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.