III.

But more than our exchange of international payments is out of balance.

The current Federal budget for fiscal 1961 is almost certain to show a

net deficit. The budget already submitted for fiscal 1962 will remain in

balance only if the Congress enacts all the revenue measures requested--and

only if an earlier and sharper up-turn in the economy than my economic

advisers now think likely produces the tax revenues estimated.

Nevertheless, a new Administration must of necessity build on the spending

and revenue estimates already submitted. Within that framework, barring the

development of urgent national defense needs or a worsening of the economy,

it is my current intention to advocate a program of expenditures which,

including revenues from a stimulation of the economy, will not of and by

themselves unbalance the earlier Budget.

However, we will do what must be done. For our national household is

cluttered with unfinished and neglected tasks. Our cities are being

engulfed in squalor. Twelve long years after Congress declared our goal to

be "a decent home and a suitable environment for every American family," we

still have 25 million Americans living in substandard homes. A new housing

program under a new Housing and Urban Affairs Department will be needed

this year.

Our classrooms contain 2 million more children than they can properly have

room for, taught by 90,000 teachers not properly qualified to teach. One

third of our most promising high school graduates are financially unable to

continue the development of their talents. The war babies of the 1940's,

who overcrowded our schools in the 1950's, are now descending in 1960 upon

our colleges--with two college students for every one, ten years from

now--and our colleges are ill prepared. We lack the scientists, the

engineers and the teachers our world obligations require. We have neglected

oceanography, saline water conversion, and the basic research that lies at

the root of all progress. Federal grants for both higher and public school

education can no longer be delayed.

Medical research has achieved new wonders--but these wonders are too often

beyond the reach of too many people, owing to a lack of income

(particularly among the aged), a lack of hospital beds, a lack of nursing

homes and a lack of doctors and dentists. Measures to provide health care

for the aged under Social Security, and to increase the supply of both

facilities and personnel, must be undertaken this year.

Our supply of clean water is dwindling. Organized and juvenile crimes cost

the taxpayers millions of dollars each year, making it essential that we

have improved enforcement and new legislative safeguards. The denial of

constitutional rights to some of our fellow Americans on account of

race--at the ballot box and elsewhere--disturbs the national conscience,

and subjects us to the charge of world opinion that our democracy is not

equal to the high promise of our heritage. Morality in private business

has not been sufficiently spurred by morality in public business. A host

of problems and projects in all 50 States, though not possible to include

in this Message, deserves--and will receive--the attention of both the

Congress and the Executive Branch. On most of these matters, Messages will

be sent to the Congress within the next two weeks.

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