Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-26
Income Tax Cut
Is Ruled Out
In Maryland
Assembly Trims
MeKeIdin Budget :
Only ST Million
By Gene Goodwin
Stor Stoff Correspondent

~ SSUG SVOuWU
Star Stuff Correspondent
ANNAPOLIS. Feb. 26.-There
will be no is per cent cut in
Maryland income taxes this year.
But the State real estate tax
will not go UP quite as much as
Gov. McKeldin originally pro-
posed month ago.
That's the verdict today of the
Maryland Legislature, which. try
as it may. has been able to find
only about 81 million worth Of
fat in the Governors record
breaking proposed $3.50 million
spending program for next fiscal
year.
The House Of Delegates last
night adopted, without dissent,
the recommendations of it's Ways
and Means Committee for a ST.
OBJ 1902 slash in the Governors
budget. The budget bill is sched-
uled for final passage in the
House either tomorrow or Mon
day. with quick Senate approval
expected to follow.
The cuts were agreed upon by
the Senate Finance Committee
and the House Ways and Means
Committee.
BY picking up an additional
$370,000 of surplus funds ex-
pected to be in the State treas
ury at the end of this fiscal
year on June 80, the two COM
mittees were able to decree a
1.5-cent reduction in the State
property tax rate of 11.89 cents
per 500 Of assessment pro-
posed by the Republican Gov
ernor.
In other words. the tax rate
for the 1855 calendar year will
be 1899 cents. That's still about
twice as high as the 1854 State
property tax rate of SGT cents.
Democrat Reports.
The State real estate tax,
which makes up a small portion
Of the total property tax paid by
home owners and businesses, il
used to retire State bonds.
House Democratic Floor Lead
er C.. Awdry Thompson of Dor
chester County told the lower
chamber last night that the
House and Senate budget-cut-
tiers were not able to trim as
much from this budget as the
Legislature had done last year.
The Governor followed the
budget-trimming precedents set
by the 1853 Legislature" he de-
clared. land there's not much
fat in it -
That's the reason committee
members were unable to dig up
the more than 81 million neces-
sary to extend the Is per cent
income tax cut MarylanderS
have enjoyed for two consecu-
tive years.
Hardest hit by the budget cuts
was the Department of Public
Welfare.
Contingency Fund Halved.
The House cut in two the
100000 contingency fund the
Governor had sought for the de-
partment in his supplemental
budget to handle what he called
an increasing caseload. The
committees. however. freed an
other $4,000 to handle larger
relief rolls by denying higher
grants per case for needy chill
dren. The object. according to
Mr.. Thompson. is to care for
more persons. rather than pro-
vide more per individual.
Mental hygiene was cut sl34,-
600 in personnel payroll, but
that won't mean a reduction in
force. Mr.. Thompson said. The
cut is possible because of the
large personnel turnover at men,
tai hospitals. which leaves many
positions untitled for varying
periods Of time.
The new Patuxent Institution
for Defective Delinquents. ex-
pected to open July /, was cut
100000 in personnel and oper-
atlng costs. MI. Thompson said
this was done deliberately to
prevent the new institution from
becoming dumping ground for
overloads at penal institutions.
The Governors request for
S43.910 for Is new tax assessors
was taken out, and his appropri-
alton for so new State Police
troopers was cut to Is.
The University of Maryland
appropriation was trimmed by
100000 for non-faculty job va
cancies. mostly at University
Hospital in Baltimore.
One small but interesting piece
of pruning was the $4,000 taken
out of the requested $4,000 ap-
preparation for subversive activi-
ties control in the State Law
Department. That leaves the
division. which is directed by
Marven H. Smith. special as
sistant attorney general. with
$500 more than it is operating
on this fiscal year.