Evening star., 1933-01-04
maryland TO CUT
STATE TAX RATE
Ritchie, in Opening Assembly,
Also Asks 10 Per Cent
Pay Cut.
BY GEORGE PORTER,
star Correspondent of The Star.

duction Of the State tax rate from rs
to AZ cents and salary contribution"
of 10 per cent by all State employees,
including teachers, so that the excel
lent credit standing which Maryland
enjoys may be maintained by keeping
the State budget balanced was recon-
mended by Gov. Albert C. Ritchie today
in his message before a joint session
of the House and Senate at the open
ing of the 1888 General Assembly,
The Governor also called for bal
anced budget for 1884 and 1885 on the
basis of current income and resources
and without increases or new sources
of revenue.
He recommended. however, II the
LEGISLATURE felt that additional redue-
tions should be made in the property
tax, that luxury" tax on soft drinks
and tobacco be levied.
Surplus Is Asked.
The total appropriation recommended
for 1884 is Sl7.5S9,455, as compared
with s20.137,735 for the year 1888, but
the Governor asked that a surplus be
provided for the next two years OF not
less than si,8o0,000 to continue "the
sound financial condition" OF the STATE.
Other recommendations which re-
fected trend toward economy IN gov
ernment. as Recognised by the Gov
ernor, called for a reauction OF the
minimum county levies for school pur-
poses for the equalization fund from
81 to so cents, a State loan to relieve
Baltimore City, increase OF the citys
share of the 2-cent gasoline tax Tor
maintenance and reconstruction from
20 TO 30 per cent, and use OF the por-
ton of the gasoline tax now allotted
for county road construction for both
construction and maintenance work.
He suggested the Legislature make
provision for a State convention Ito
obviate the possible necessity of
special session Of the Legislature" II
the question of repeal of the eighteenth
amendment is submitted to the States
by Congress.
Loan is Recommended.
Reciting figures from his budget
which will not be submitted until later
in the session, Gov. Ritchie recon-
mended State loan og sass, 900 for
necessary State construction and for
funding the teachers retirement &C
III loON aii0 4sSO.
OF this fund, $500, 900 would be for
new arts and science building and
S150,000 for new woman's dormitory
al the University of Maryland. College
Park; S128,000 to cover a deficit on the
land for the new field house there. and
$4,000 for certain major repairs in
the military department of the College
Park institutions.
Other State institutions and depart
mentS to benefit from this loan would
be the Springfield Hospital, Brownsville
Hospital, Rosewood Training School,
State Penitentiary and Penal Farm,
Childrens tuberculosis Sanatorium at
Henryton, the tobacco warehouse and
the CO o-rnlissioner of motor vehicles de-
partment, while 100000 would go
toward funding of the accrued liability
Of the teachers retirement fund.
Note Of Optimism.
Striking a note of optimism, in the
first portion of his speech, Gov. Ritchie
for pessimism. In due time we will sur
yive and emerge from this crisis
He warned however, that I'VE cannot
budget returning prosperity which has
not yet begun and, accordingly, an
nounced he, would submit budgets for
1884 and 1885 which assume that busi-
ness conditions will not improve nor
tax receipts increase over what they
were in 1892.
Explaining that the budgets for the
next biennium provide for a 10 per
cent contribution to the State treasury
from the salaries Of State officers and
employees, the executive declared 1t was
with genuine regret that ! find this
rrl-7frihAYtiOF4 m "a Hta% NJ az
existing conditions 1T is right that the
State employees should share a reason
able part Of the burden of balancing
the State budget and maintaining be-
ypnd question the credit of the Gov
eminent from which they earn their
likelihood"
ut Is hoped that when the budget Is
Prepared for the 1885 legislature condi-
tons will have improved sufficiently to
justify the discontinuance of the salary
contributions" Mr.. Richie said.
Begin in April.
The contributions will begin in April.
Although his salary, as well as those
OF several other State officials, Is fixed
by the constitution and not by statute
or budget, Mr.. Ritchie said he would
make his contribution of 10 per cent
from the annual Governors salary Of
$4,000 as well as contribution of
10 per cent from the appropriation for
mansion maintenance.
Inasmuch as there is little prospect
OF the railroads ms ching the State
funds for grade crossing elimination.
the Governor recommended that the
receipts from the l2-cent gasoline tax
levied for this purpose be applied to
the redemption of State road bonds
In recommending that the proceeds
of the l li2-cent lateral road gas tax be
used. for both construction and main
tenance Of all roads. the executive said
this money should be expended by the
State Roads Commission.
II can understand the desire of the
county commissioners to have these al
lotmentS turned over TO them, but !
cannot bring myself to recommend It,"
the Governor said. The money is State
money and should be expended by the
State Roads Commission. Adequate
provision should. of course, be made for
cooperation between the county COM
missioners and the State Roads Com
mission with respect to the selection
of roads to be built or maintained
1T is not my idea that any county
roads maintained under this plan should
be taken over as part Of the State
highway system. The State would
simply afford aid to the counties in
their maintenance work But any
county roads constructed by the State
would be taken over as lateral roads"
Willingness on the part OF the teach
ers Of the State to make a 10 per cent
contribution from their salaries makes
possible the reduction Of the equaliza-
ton fee rate from 81 to 60 cents, the
Governor explained. Although several
organizations have asked that this rate
be cut to 40 cents, with the State
bearing so per cent Of the cost Of the
minimum school program. existing
State revenues do not admit of any
thing like this, nor do they admit of
any increase in the equalization fund
at all, the legislators were told,
Admitting still further tax relief Is
being called for the Governor declared
the only way to obtain it Is through
rpW sources Of raVapue