Evening star., 1950-12-28
StateCan Hold
Line on Taxes,
MckeIdin Says
Economy Plans Will
Kill Many Department
Bids for More Money
BY the Assoeioted Press

BY the Assoeioted Press
BALTIMORE, Dec. 28.-"We
can hold the line" on Maryland
taxes and spending. Gov.-elect
Theodore r. McKeldin feels.
"There will not be any tax in
crease from my knowledge of the
budget at this point" Mr.. Nc
Keldin said yesterday.
The Maryland Republican will
take office January 10-one week
after the predominately Demo-
cratic General Assembly con-
venes for a three-month session.
The Governor will send the
budget bill to the Legislature.
The legislature can cut it, but
cannot increase the figures.
MIR. McKeldin's ''hold the line"
statement came shortly after the
State Board of Revenue estimates
predicted that General Fund
revenues for the year starting
next July / would amount to
$77,315,526. That would be
100000 more than the board
forecast six weeks ago.
Would Block Increases.
However, State departments
supported by general funds have
asked $2,468.444 to operate in that
fiscal year-some SIS million
more than will be coming in un-
der the present tax rates.
Mr.. McKeldin made it clear that
if his hold the line" idea is car
ried out, most departmental bids
for more money than they now re-
ceive would be killed off. He added
it might also require some shift
ing between general funds and
dedicated funds.
He indicated that Streamlining
of the State government would be
one of his first projects as Gov
ernor.
Mr.. McKeldin had announced
previously he will appoint a spe-
cial commission to survey State
departments. He disclosed at his
news conference that he will di-
rect department heads to make a
desk-to-desk investigation of their
own agencies.
State Engineer Selected.
!. His choice as State engineer
to succeed John B. Funk is Nathan
L. Smith. director of public works
in Baltimore County and a key
figure in Mr.. McKeldin's 1943-47
administration as Mayor of Balti-
more City.
2. He is wary of expanding con-
struction at State institutions.
8. The present State Roads
Commissions long-range program
for new highways "gives me more
concern than anything"
He said it 'is such a tremendous
program that it cannot be car
ried out the way they have
planned the thing" Cost esti-
mates have ranged from $500 mil
lion to $500 million.
Reindollar Explains Situation.
Robert M. Reindollar, until
Tuesday chairman Of the Roads
Commission, said yesterday that it
is up to the 1851 General Assem-
bly, to decide whether the highway
modernization program will be
continued. 1t costs about $40
million annually.
It is up to the Legislature to
decide in 1851, Mr.. Reindollar
said, because highway funds will
be spent before the 1852 Assem-
bly, meets"
Failure to modernize the sys-
TEN would saddle the taxpayer
with increased costs when Mary
land "is finally forced to avert last
minute vehicular strangulation by
vast expenditures" he warned.
Gov. Lane relieved" Mr.. Rein
dollar as commission chairman so
that the veteran career man could
be retained as consultant to the
commission and thus stay on the
State payroll. He needs only two
more years service to become ELI
gible for full pension.
McKeldin to Consider Move.
Mr. McKeldin said he would give
full consideration to Gov. Lanes
proposal to make Mr.. Reindollar a
consultant.
But he said he is against hiring
special consultants for State agen-
cies except on something extra
ordinary"
Mr.. Reindollar, the governor
elect continued, would be valuable
in planning highway construction
perhaps at $4,000 a year, but
$4,000. now"
A $4,000 salary had been men
toned for Mr.. Reindollar as con-
sultant. He received $4,000 an
nually as chairman of the roads
commission.
He has been connected with
Maryland highway programs since
1908.