Montgomery County sentinel., 1935-08-15
Public Works Has
Adopted Plan On
S3,OOO,OOO Pool
State Board Passes Resolution
To Keep Amount Remaining
In Treasury

The Board OF Public Works of the
State of Maryland, at a meeting held
last week adopted a resolution re-
garding the $3,OOO,OOO "pool" set
aside by the Budget Act of 1888 for
the fiscal years 1884 and 1895. The
resolution follows in full:
The City of Baltimore claims the
sum of $823.OOO.OO for the year
1884, and the sum of $444 10000 for
the year 1885, from the fund of
$3, 3,000,000.00 set up in the Budget
Act of 1888 for the fiscal years
1894 and 1885 and commonly referred
to as the "pool". In 1888 the City
of Baltimore was in great need of
cash to care for it's unemployed and
applied to the State for loan of
$8, 100000, to be repaid at stated
intervals. AT that time the City's
credit would not permit it to borrow
such sum, it having already bor-
rowed to the margin of seven per
cent of its assessable basis, beyond
which further borrowing was not
considered practicable, nor would it's
bonds have found favorable mar
ket. Because of these and other. diff
ficulties, the State, through legisla-
tive enactment, came to the relief of
Baltimore by authorizing bond issue
of $4,000, 100000, to be paid to the
City without obligation on the part
of the City for repayment, and lev
led State tax for servicing said
bond issue of five cents (5c) per
$4,000, which tax must be continued
each year for period of is years
the life of the bonds. In order,
however, that the five cents, increase
in the State tax rate should not be
projected as an additional burden
upon its citizens during the years
1934-35, drastic cuts affecting sal
aries and other important State
agencies were made by the State in
it's budget and, thereby, the $3,O09,-
10000 "pool" was created. It was
provided that one-half of this "pool",
or $1,500, 100000, should be paid to
the Counties of the State for tax
reduction purposes, which was done;
the; other 81 500, 10000 was appre-
priated by the legislature ITO pay
ment of interest and principal on
bonds issued for emergency relief OF
the unemployed in Baltimore City,
in accordance with legislation PRO-
viding therefor, the balance, if any,
in the discretion of the Board. of
Public Works, to be held in the State
Treasury for the purpose. of future
interest payments or the amortiza-
ton of said bonds, or to be paid,
through the Board of Public Works,
for further unemployment relief in
Baltimore, and if not needed for that
purpose, then for the reduction of
direct taxes in the City"
The entire proceeds of the 12,0O0,-
10000 bond issue, together with a
premium of $738, $1,000 realized from
the sale of the bonds, totaling $12,-
738y610.00, were given to Baltimore
City without any obligation on the
part Of the City for repayment. This
was and still is a State obligation
in its entirety-an outright gift 10
the City. The relief thus afforded by
the State to the City placed the City
in the favorable position of not being
required to expend a single dollar
of its own money for relief pur-
poses, it's entire relief needs being
carried by the State and Federal
governments.
4 It is conceded by the City that the
sums claimed are not needed fo1
relief purposes, but it is asserted
that the claims are only for the pur-
pose Of effecting a reduction in the
City's tax rate. The so-called pool
will terminate on September 80
1885, at expiration of the 1885
Budget Act. The result of the en-
tire transaction is that during the
fiscal years 1884 and 1885 the State
of Maryland has paid $12, ,738, ,610.0C
to Baltimore City and $4,000, 10000
to the Counties, which payments are
in ratio of more than to 4 in
favor of the City. On October 1
1885 there will remain unpaid $11,
OIL 100000 of the unemployment reliet
bonds ISSUED for the benefit of Bal
timore City, which will require, ovel
the period of the years 1886 II
1949, inclusive, interest payment
amounting to $3,427, $4,000, which
together with the principal amoun
of the bonds now unredeemed, amour
TO $14,498y $4,000, all of which is 1
direct obligation upon the State an,
must be paid from direct propert.
taxes.
For the $4,000, 10000 received b.