Evening star., 1941-07-08
Record Surplus
.IsPredicted
In Maryland
AII-Time High
OF Sc, SOC, 900 Seen
For September 80
BY the Associated Press.

by INC hSSOClGltu TlCSS
ANNAPOLIS, July Deputy
State Controller Joseph O'C. Nc
Cusker made two predictions today
as budget reversions headed toward
the s75O,0O0 mark and State income,
alcoholic beverage and gasoline tax
revenues seemed destined to break
all records.
He predicted that:
/. The States general fund sur
plus on September 30, the close Of
the fiscal year. would reach an all
time high of $500, 0,000-s348,O ,O45 over
last years record-smashing surplus
and s1,1O7,335 over estimates.
2. Instead of the surplus dipping
to S2,200,000 at the end of the fiscal
year l943, as forecast by State
budgetary experts. it also would be
around s6,5OO,00O"
Mr. McCusker, however, qualified
his predictions with ifs" He said
goal No. would be attained if alco-
holic beverage receipts continued on
their present trend in the remaining
three months of this fiscal year.
Goal No. 2. he added. could be
realized If income and alcoholic bev-
erage tax collections continued to
soar in the next two fiscal years and
savings of State departments and
institutions out of their appropria-
tions continue.
Revenue Has Increased.
A s6.500,O00 surplus on September
30 and September 80, l943, are both
possibilities because estimates of
State officials on the income and al.
coholic beverage tax yield so far
this fiscal year have been found to
be "ultra-conservative," he said,
adding that revenue from both levies
have been greater than anticipated
for this year.
Although the Accent gasoline tax
is the States biggest revenue pro-
ducer and is now surprising last
years receipts. its yield will not
affect the general fund surplus. Cas-
oline receipts go into a special fund
for operation of the Commissioner
OF Motor Vehicles Office. State po-
lice and construction and repair of
highways.
State officials estimated the gen.
eral fund surplus at the end of the
current year would be s5,392 SOS.
They anticipated liquor. wine and
beer levies would raise $4,687 ,029 by
September 80. or 1925 900 more than
1940's receipts.
Liquor Revenues Up.
But alcoholic beverage collections
in the first nine months Of this fiscal
year were $5s5j921 higher than thoNe
of the comparable 1910 period. Mr..
McCusker' Said If collections con-
tinued through September on their
present trend, 1941 receipts would
exceed those of 1910 by S735 900.
State officials also estimated State
income tax revenue this year would
total $500 900 but after calculating
the amounts due by taxpayers in the
next three installments, Mr.. McCus-
ker said the $500, 900 goal would be
exceeded by at least s661 ,000."
Their expenditures rigidly con-
trolled by the State Department OF
Budget and Procurement, State de-
partments and institutions have
saved 1852 $50 out of their appropri-
ations for the first eight months Of
this fiscal year. These savings go
into the general fund surplus.
Budget Was Increased.
When Gov. OConor and his fiscal
experts made UP the State budget
for, 1923, they reduced the in
come and real estate levies for the
next biennium but increased the
budget.
This was made possible, they an
nounced, by use Of the record
smashing surplus OF $6,151 ,955,
which had accrued at the close Of
the 1910 fiscal year, and succeeding
fiscal year surpluses, to Offset tax
reductions.
They anticipated that the tax
reduction program would cut the
general fund surplus to $2,200, 900
at the close Of the 1943 fiscal year.
Mr.. McCusker said the 1923
budget increased general fund ap-