The Republican. [volume] (Oakland, Md.) 1877-current, 1937-01-21
GOVERNOR H. W. NICE
ASKS FOR $64,OOO,OOO
81, 100000 Annual Boost for
State Institutions and Salary
Increases
GAS TAX IN GENERAL FUND

The budget which Governor Harry
w. Nice plans to submit to the legis-
lature for the fiscal years of 1888 1898
will call for total appropriations Of
about $64,000,000, an increase Of ap-
proximately 100000 over the cur,
rent budget figures, it has been learned
from authoritative sources.
The increase Of approximately
100000 for each of the fiscal years
Of the proposed budget, is made neces-
sary to take care of additional appro-
priations for care of the insane, teach
ers and classified service pay restora-
tons and additional beds for negro tu-
bercular patients.
Must Divert Revenues
Although the total budget figures
will only be boosted by about $2,0OO,-
600 for the two-year period, it will be
necessary to divert approximately
100000 annually from special funds
to general funds to bring the budget in
balance.
This policy Of diverting special
funds, such as gasoline tax and motor
vehicle revenues into general funds, is
being carried on by the governor. For
instance, the current 1887 budget has
paper deficit" Of $3,237,000 in the
general fund account. In other words,
the expected general fund receipts of
$1O,050,O00 for 1887 fall $3,237, 900
short of the amounts appropriated
from the funds by the budget.
This paper deficit" is now being
cared for by diversion of gasoline and
motor vehicle revenues, and by bond
issue returns. The proposed increase of
$1,000,0O0 annually in the total appro-
priations of the Forthcoming budget,
will necessitate the diversion of this
additional sum, and the continuing of
the diversions of the present budget.
Special Taxes Increase
1t was pointed out, however, that
the about 100000 in annual diver
sions for the 1889 fiscal years, will
be Offset by about 100000 annually
in increased revenues from special
taxes. The returns Of the state four
cent gasoline tax for the last calendar
year were higher than at any time in
the history of the tax. Liquor tax re-
7ceipts also increased, and motor vehicle
returns are reported on the upgrade.
The governor is known to feel that
these increases in revenues really be-
long to- the departments and activities
to which the special taxes are original
ly allocated. In order to restore the
proposed diversions, and give these
departments the benefit of the revenue
increases, he is understood to be ready
to recommend series of indirect taxes
for consideration of the legislature.
This phase Of the budget situation,
it was pointed out, would be covered
by the governors budget message. The
governor is known to be unalterably
opposed to any increase in the state
real estate tax. His budget message,
therefore, will probably include sug-
gestions for an income tax; sales tax;
continuation of the special relief taxes
now in effect, cigaret tax, and the
legalizing Of bookmaking.
It was also learned that the COVER
nor will not include the appropriations
for relief purposes in his budget, but
that this will be treated as a separate
subject, with separate legislation and
taxes.
The budget must be submitted to
the legislature by January 81. The gov
ernor will deliver his budget message
when it is presented.
Moves in past session to legalize
book making-which, it is estimated
would produce 100000 annually in
taxes and other levies on book max
ers-have come close to success. In
ono instance the Senate dafnated such