The Republican. [volume] (Oakland, Md.) 1877-current, 1938-03-24

for two reasons.
First, | believe that it is the opinion
of large majority of our citizens that
the taxes and fees levied upon auto
mobile drivers and owners should be
used for the purpose originally in
tended.
Secondly, the State roads system in
Maryland cannot afford to have a dol
lar deducted from the funds intended
for the building and maintenance of
the highways of our State.
Diverted In Other States
This definite statement of policy is
made in the face of what has been
done in Maryland for six years of fis-
cal stringency, and well knowing that
many State governments are commit
ted to permanent program of diver
sion of automobile income.
The tax is one of the least eXpen-
Sive to collect and the almost univer-
sal use of motor vehicles indicates a
fair and equable spread of the burden.
Florida has, for long, time, built and
system from "gas" tax money. New
York diverts approximately half of it's
motor vehicles collections to general
government purposes. Many States
are using the taxes collected from the
motorist for emergency relief or other
fiscal necessities.
While the use of one dedicated fund
government function in cases of an
or another to the support of some
emergency is, after it has been legally
enacted by the representatives. of the
people, not a high crime and misde-
meanor, l still maintain that Mary
lands road income should be used on
the roads.
Cites Richie Action
There is no doubt but that the late
Governor Richie, when he first pro-
posed the diversion of highway funds
to other than highway purposes, felt
that he was acting for the best inter
ests of the people of Maryland. Gen
eral Treasury income had been de-
creasing when in 1888, Governor Rit-
chic presented his biennial budgets to
the legislature
In those budgets he proposed to di-
vert to the General Treasury the sums
resulting from budget cuts in the high
way departments in order to present
balanced budget to the General AS
oC1ilply' GONClIOI IClOCIliC ALSO pro-
posed a diversion of highway funds to
the annuity bond account to compen-
safe for 3-cent property tax rate re-
duction.
Proposed Tax On Retail Sales
At that time Governor Richie saw
the necessity for indirect tax levies
and proposed to the Legislature taxes
on the retail sales of:
Estimated to yield
Cigarettes .................... 81 ,125,000
SOFT drinks Observation-Disclosures 1.63lOO
Slgars ...:......,.......,,..... 49O,9O0
S Smoking tobacco .......,,, 4 48s 800
Total. Observation-Disclosures. 81 .062 400
He also suggested an increase in the |
tax on pari-mutual betting and added: |
Other commodities should also be
considered and studied as posi-
BILE subjects for special taxation.
These indirect taxes were not levied |
and no restoration made. In spite of |
Governor Ritchie's diversion Of high
way funds to the General Treasury
and to the annuity bond fund. the end
of the 1934-1935 biennium approached
with the State Treasury surplus gone,
a threatened deficit of $2,300,000, and
an indicated shortage of 100000 in
the annuity bond fund.
Balancing The Budget
This was the situation when | took |
office, and even after severely cutting
the already drastically reduced allow
ances for departments and agencies
of the State, the General Treasury in
come had fallen away to such an ex-
tent that there was no other altern- |
ative than to continue the device of |
using highway funds to effect a bud |
getary balance.
In so doing l carried in mind the |
fact that Governor Ritchie's recon-
mendations for additional indirect
taxation had not been accepted, and
this made it incumbent on me temper
arily to use current income from any
available source rather than make an
unbalanced budget presentation with
an already created Treasury deficit in |
corporated therein.
Urged More Indirect Taxes
| recommended, as Governor Richie |
had done, additional indirect taxes to !
make RESERVATIONS for drastic cuts and
transfers. In my message to the Leg-l
islature of 1885, l said;
In view of the fact that additional
revenues must be raised through
new taxation, | recommend that
provision be made out of such
revenues for the establishment
of an emergency reserve fund of
$5O0,000 for each of the years,
1886 and 1887, to be placed under
the control and jurisdiction of
the Board of Public Works and
to be used for those State agen-
cies which may be unable to
maintain essential services.
:. AS you are aware, no ap-
preparation bills can be consid-
cred until the budget bill has
been finally acted upon by both
Houses.
Revenue measures, however, may
be considered at once, in order
that such additional expenditures
as you may prescribe may be in
corporated in the supplemental
budget.
Partial Restoration Made
Partial restoration of diverted high
may funds was made by the Legisla-
ture of 1885 from bond issue and not
from additional indirect taxes which
advocated, and thereby there was re-
-AaraJ 70 4Lo I,;ob,yox, Jn,1arA M ~, -