Evening star. [volume] (Washington, D.C.) 1854-1972, 1954-02-25
81 Million Cut
From Budget Of
Gov. Mcke|din
Senate and House
Efforts Moy Lower
Tax Rute One Cent
By Gene Goodwin
Stor Ssoff Correspondent


ANNAPOLIS. Feb. 25.-Senate
and House budget cutters con-
ferred into the early hours of this
morning and repeatedly agreed
to trim Gov. McKeldin's pro-
posed 1898 million spending pro-
gram by something less than 81
million.
They are not through yet
they're meeting late today-but
chances are they will be unable
to find much more than that in
the Governors admittedly tight
budget for the next fiscal year.
It also was learned that the
House and Senate conferees
agreed in their secret session to
apply the cut to a reduction in
the State real estate levy, which
the Governor proposes to double
to a new rate of 1l.89 cents per
500 of assessment.
It takes a 100000 budget
slash to lower that tax one cent.
Reduction Seen Small.
Presumably. then. the cut
agreed on last night could only
lower the property tax rate a
penny or so.
: The State real estate tax rate
for this calendar year is 5.64
cents. The State property levy
is only a small portion Of the
total property taxes paid by
home owners. Most goes to cities
and counties.
The comforting members Of
the Senate Finance Committee
and the House Ways and Means
Committee today are expected
to start hacking away at the
Governors $40 million capital
improvement budget. but cuts
made there cannot affect this
years tax rate which retires pre-
vious bond issues.
Balk at Building Project.
The Senate Finance Commit
tee. in particular, has shown a
reluctance to go along with some
Of the projects in the capital
improvement program. such as a
new 81 million surgical building
at Brownsville State Hospital
and a 100000 structure at Rose
wood State Training School.
The two committees have to
agree on how much they'll cut
the budget by the first of next
week. Unless the clock is stopped
an old legislative trick-the
budget has to be passed by Mon
day, three days before this 30
day session closes.
What the conferees would like
to do is to be able to cut the
Governors operating budget to
provide the same Is per cent in
come tax reduction Marylanders
have enjoyed for the last two
years.
But the McKeldin budget is too
tight. they have found.
About the only way they can
dig up the more than 81 million
necessary to grant the Is per
cent reduction would be through
some such scheme as that sug-
gested last night by one Demo-
cratic senator.
Stealing a page from Gov Nc
Keldin's book, Senator Bernard
S Melnicove of Baltimore pro-
poses to make corporations pay
their income taxes in one lump
sum. instead of by quarterly in
stallments as many Of them do
now.
BY putting a deadline Of April
is. 1855. on these lump-sum pay
mentS, Senator Melnicove said
the State will get about $50 mil
lion more than it anticipated in
the next fiscal year.
How It Figures.
Add another 81 million by
trimming the budget. he said,
and you've got enough for a Is
per cent reduction in individual
income tax payments, due April
Is.
Gov. McKeldin is proposing
something similar to balance his
budget. He wants to telescope the
collection Of two years gross re-
ceipts taxes on utilities into one
fiscal year. That would give the
State about SIS million extra.
Gov. McKeldin yesterday sent
the Legislature an extra $500. 900
item he wants tackled to his
budget. It would go for a pub
lie welfare contingent fund to
take care of the increase welfare