Evening star., 1947-02-07
Assembly Gets
Lanes Budget
of 81 Million
~ Million Extro
Revenue Needed,
Governor Says
By Mox Fullerton
A..oeia,.d Press ssaff Writer

Assoeiaisd Press stuff Writer
ANNAPOLIS, Feb. THE Mary
/ land General Assembly went to work
today on a $91 ,00o, 900 budget, well
knowing that even this record outlay
Of State funds may have to be in
creased 40 per cent.
Gov. Lane appeared before joint
House-Senate session last night to
present his message on the budget
and declare that, even as matters
now stand, at least $29, ,000, 900 in
additional revenues are needed in
the two years beginning next
June 80.
p This did not take into considers
ton some additional ilnponderables
such as the Marbury report for an
overhauling Of the State educational
system. While the Governor made
no mention of what might happen
some State House observers thought
extra revenue needed might rise to
81, 2,oOo. 900, or $21 100000 year.
Balanced Under Laws.
The budget submitted by the Gov
ernor calls for appropriations from
general funds in the next two years
OF $91 ,055 ,543. This is in balance
under current laws, but 1t takes no
cognizance of the far-reaching Sher-
bow Report for distribution of State
money to counties and cities, or any
other money bills which might pass.
Italsc means using up the exist
ing State surplus and borrowing
from the postwar construction fund.
The Governor told the Assembly
that the general revenue estimates
for the next two years amount to
5,188, ,121.48, and the rest of 1t
would be made up by using the
81, ,260, 1885 postwar construction
fund and the existing $9,906, ,327.57
general fund surplus, along with
$4,000, 900 in transfers from special
funds. "
The $si i,o55,543 is only part of
what will pass through the States
hands for spending, since Gov. Lane
recommended appropriations from
special funds Of SIC, 1858 ,200.63 for a
grand total Of $167, ,408, ,743.63. Spe-
cial funds come from sources other
than taxes.
That represents an increase over
the current biernium of $22, ,708 ,628
in general funds and $15,590, ,714.34
in special funds, for total increase
Of $38, ,299, ,342.34.
But these new financial burdens
must be shouldered, the Governor
said, If the State, its institutions and
its departments are to meet their
obligations. Costs in everything
have increased. he pointed out.
Actual requests for items in the
budget totaled $100,616,271 from
general funds, and he managed to
pare So, $50, ,728 from that.
He pointed out that the Board OF
Revenue estimates and its advisory
council would report to him soon
and he would then make his recon-
mendations to the Legislature. The
type Of new taxes to be sought will
be included in these recommended
tions.
Cites Extra Needs.
Gov. Lane told the legislators
that extra revenue needs would
amount to $29, 1874, ,442.73, because:
"Our additional revenue needs
must include funds necessary to i'm
plement a report of the Maryland
Commission on the Distribution OF
Tax Revenues (Sherbow Commits
sion) In the amount OF $15,172,-
088.7s; funds necessary to restore
budget requests for the 1948-49
biennium In the amount of $5,731,-
$50; funds necessary to restore the
transfer from the postwar construc-
ton fund in the amount OF $780,
993. .95; and funds necessary to pro-
vide minimum Of additional work.
ing fund against the economic un-
certainties for the next biennium in
the amount of $4,000, ,000."
Gov. Lane told the assembly he
was opposed to an unbalanced
budget and that too-drastic cuts
would be detrimental to the State
and its subdivisions. He favored ad-
ditional money as the only alterna-
tive.
Among the increases Gov. Lane
proposed was $4,634,849 for the five
hospitals for mentally diseased, to
increase their personnel and pro-
vide better treatment for the pa
tients. This would bring the total
appropriation to $l1 1904 ,693.
The University of Maryland and
State Board of Agriculture would
get an increase of $7683, ,204, with
$5,508, ,2O4 to come from special
funds. The total asked for the uni
versity is $16,95s, ,633.
Public education would get an In
crease of $6,282, 1892, of which $5,-
403,172 would 60 to public schools,
because of increased salaries and
othsr factors. The schools total for
two years would be $23, 1877 BIS.
The public welfare department
would have an increase of s., 1886, ,108,
for a total of $25, ,737 ,078 from State,
Federal and local sources.
Legislative comment on the budget
message was generally favorable, al
though most legislators said they