Evening star., 1949-03-25
CountiesGreet
.Lane'sSchoo|
Plan Cautiously
Governor Proposes
$4,000, 900 Fund
For Building Grants

Gov. Lanes proposal to set ur
a $20.000.000 school construction
fund from which grants would he
made to Maryland counties ano
the city of Baltimore drew eau
tious comments today.
The Governor advanced the
plan last night to counter pro-
posals that the State quadruple
its contributions to the school
construction incentive fund.
Under his latest recommends
ton. the State would contribute
up to $50 per pupil, provided the
counties put up SO of their own
for each ST from the State. In
Montgomery County this would
mean a maximum grant of ST.
260,54 and in Prince Georges the
sum would total $1,642,800
G. Gardner Shugart, superin-
tendent of schools in Prince
Georges, said that while Gov.
Lanes latest plan is fairly good
in helping solve the immediate
problem" he believed on first
consideration that his county
might fare better over a long
period if the quadrupled incentive
fund were approved.
Fund Encourages Building.
The incentive fund encourages
counties to push school construc-
ton by augmenting local revenues
with State money. If a county
levies as much as 5 cents per $10O
for school building. the State adds
enough to assure at least $40 per
child.
The quadrupling proposal would
raise the tax requirement to 20
cents and the State guarantee to
$40. Since Prince Georges al
ready has a school construction
levy of about IS cents. that county
would get a much larger State
appropriation without changing
the local tax.
First comments from Mont
gomery County were more favor
able to the Lane proposal. One
Board OF Education official said
that the grant would be IAN
enormous help" although none of
it could be used for debt service.
In that respect, he said, the
quadrupling plan is more ad-
vantageous.
Mrs. Dorothy S. Himstead,
member of the County Council,
said the Lane plan, taken with
other proposals pending. prob
ably would provide Montgomery
with all construction money it
could use within the next year.
She referred to a bill which would
raise the county's debt limit from
Id to 10 per cent. and a proposal
tby the Governor for q $50, ,000, 900
s"credit pool" from which the
counties can borrow. y. !,
+ ''Credit Pool" Planned.
+ Gov. Lane said in statement
that his grant plan would guar
antee the construction through
out the State of no less than $50
100000 of the immediate needs
for classroom space"
The credit pool" would be set
up to enable the counties
OF which are close to or at their
debt limit-to borrow from the
State as much as their State-col-
lected taxes would enable them to
replace in Is years.
A State bond issue would be
necessary to raise the $4,000 900
needed for the new funo. The
State pays for its bonds with re-
ceipts from property taxes, but
Louis ODonnell, assistant to the
Governor, said no raise in the
real estate tax would be nee
essary for two years.
No New Taxes Seen.
No new real estate taxes would
likely have to be levied to handle
the money. in the $5O,0OO 900
credit pool" since the State is
only backing up the counties with
its credit.
The Governor announced his
program after comforting with a
majority of the Senators, Budget
Department officials and DR..
Thomas G. Pullen, State superin-
tendent of schools.
The Senators had previously
sponsored the measure to quad
ruple the incentive fund. The
Senators also had called for a
$50, 100000 State bond issue to
help out counties which can find
no buyers for their own bonds.
School Needs Studied.
Gov. Lane said he decided on
the matching fund after a study
OF school construction needs.
He said "the backlog of class
room shortage is compounded by
the impossibility of building dur
ing the six-year war period, the
rapid population growth in certain
areas because of war-created con-
ditions and the bumper crop OF
school babies now coming OF
school age"
DR.. Pullen estimated the sub
divisions have authority at the
present time to issue $107, 900 ,00O
in school construction bonds. An
additional $150,0O0.000 will be
needed in the next five years. he
computed.
u. Of Virginia 10 Build