Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-24
SIC Million More Spending
Is Planned in Maryland
MeKeIdin Says
Budget Won't
Ask Tx Rise

D1AS AAA%SbG, Mu9 Oduss q
(R.-Gov. McKeldin said today
his 1851 budget will call for
increased spending totalling
more than SIS million from,
Maryland's general fund.
1t can be accomplished with
out a general tax increase, he
said and warned against the
Legislature overriding my Of his
1855 vetoes which would upset
our budget balance and would
require new or increased taxes"
The Governor discussed the
budget. which he will present to
the General Assembly February
/, at meeting Of the Baltimore
Rotary Club.
He said SO million of the gen.
eral fund increase will go for
public education and "a million
is earmarked for pay increases
for State employees, whose work
week also would be shortened
from A to 40 hours.
More than $1.2 million Of the
increase is for health services,
including mental hygiene, and
I the remainder will go for man.
datory retirement increases, wei.
fare and correctional institution
purposes. he said.
viii Exceed $500 Million
The Governor said be and
Budget Director James Rennie
Ihad whitfield IS million of the
requests submitted by State de-
lpartments while compiling the
budget. which is expected to
top $500 million.
/ OF the total budget, funds for
general State operations will &C
count for $l44 million. The rest
will be expenditures from Fed
eral funds and State special
funds. such as the gasoline tax,
which are earmarked for spe.
Icial purposes.
l. Gov. McKeldin will be able to
balance the budget through use
of $l5.5 million general fund
surplus which accrued through
larger tax hauls than the State
counted on and through a slight
increase" in the State racing tax.
| He said all of this shows your
State in excellent condition for
1.-THE year ahead"
| He expressed some concern,
however. over possible attempts
j in the General Assembly to
!! enact measures that would up
!, set our budget balance" and re-
ferred specifically to two bills
among the So he vetoed after the
1885 Legislature.
Would Limit Surplus
7 One Of these would limit the
State surplus to S82 million a
year and prescribe that any,
thing over this be used toward
capital improvements and the
State debt-preventing its use
in budget balancing as was done
this year.
Enactment of this bill would
have the effect of removing
much of the Governors respon-
sibility for fiscal planning" Mr..
McKeldin said. 1T would. in
effect, be the assigning of GER
tain substantial State funds be.
fore they become available
even before they existed It
would mean the diversion Of
general funds to a special fund
purpose.
In these years of growth, I
am convinced. it would result in
upward tax-rate adjustments in
every session of the assembly,"
| Another of the vetoed bills
would double the formula under
which the State contributes to
public school construction, add
ing an estimated $4,000, 900 next
year.
! Gov. McKeldin SAID that under
present formula which long has
been considered liberal" the in
centive fund will be $l,428,748,
an increase of nearly $37, 900 over
the current year.
Increases for Teachers
In addition, he said, increases
in teacher salaries and other
State aid to Education will
amount to the State paying out
some So million more this year
than last.
i Existing formulate will provide
for further increases each year
without readjusting those in eff
feet, he said.
He also reminded that the
Grotz Commission on State Debt
and Finance concluded last year
that the political subdivisions
can meet the problem of financ-
ing the construction of the
schools needed until 1860 with
out State aid, and without ex-
ceedlng safe debt limits"