Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-17
McKeIdin View
Too Optimistic,
Group Told
By GENE GOODWIN


It will take more than a high.
er horse-race-bet tax, and 81
racing days to balance
Maryland's budget next fiscal
year. in the opinion Of one Of
the State Legislatures leading
financial experts.
Delegate Blair Lee II, Demo-
crat of Montgomery County.
said he believes Gov. McKeldin
was estimating a little optimis-
tically" when he announced on
Christmas eve that Maryland's
anticipated deficit for next year
had dwindled from about $35
million to about 50 million.
The Republican Governor said
that in view Of the lower deficit
estimate he would recommend
to the 30-day session of the Leg
islature meeting on February l
that the State budget be ball
anced by increasing the 10 per
cent tax on horse bets and by
raising the number of days that
various Maryland tracks may
run races from $50 to 264 o
year. He said he had not de-
termined how much the tax
should be increased.
Mr. Lee, who was chairman Of
a widely praised legislative SUBJ
committee that recently reported
on an estimated $73 million in
new revenue sources it found the
State could tap, spoke last night
at the annual legislative meeting
of the Allied Civic Group of Sill
yer Spring.
Hyde Also Speaks
Other speakers included Rep
Hyde, Republican Of
Maryland; State Senator Edward.
IS. Northrop. Delegate Warren
Browning and Delegate Charles
w. Woodward. jr., all Democrats
of Montgomery.
The approximately 100 persons
attending heard:
/. Strong opposition expressed
by Delegates Lee and Browning
ito a proposed three-tenths of .
cent increase in the State gas
Ioline tax to finance a Maryland
Port Authority.
2. Senator Northrop predict
that the Legislature will override
Gov. McKeldin's veto of a bill in
lcreasing State incentive fund aid
for school construction By about
I$4.5 million annually. which
would mean about $500, 900 adj
iditional to Montgomery.
| 3. A pledge from Mr.. Lee that
the Montgomery bloc would try
again this year to win legislative
approval of a compulsory auto
mobile inspection system.
Sees Factors Overlooked
Mr.. Lee said the Governors
deficit estimate overlooks two i'm
portant possibilities.
The first is the probability that
the deficit win be increased by
$4.5 million because the Legis-
lature will override the veto on
the incentive fund measure.
ALSO, there is growing feel
ing in Maryland that the State
must put at least some of its
capital improvements program
on a pay-as-you-go basis" Mr..
Lee added.
He said the Governor was esti-
mating on the assumption that
the entire surplus from the cur.
rent fiscal year-now estimated
at about SIS million = will be
available to help balance the
budget.
II. for one, feel that at least
some of that surplus should go
for capital projects" Mr.. Lee
declared.
He explained the bond floated
to pay for State capital projects
are retired by State property
tax, which is in competition
with the main tax source of our
counties and towns" He said he
and many other legislators be-
lieve the State should withdraw
from the property tax field as
soon as possible.
More Than So Million
Although the deficit won't be
anywhere near the $35 million
predicted last summer-because
of unexpected increases in sales
tax and other revenue sources
1t certainly will be much more
than the approximately So mil
lion now estimated by the Gov
ernor," Mr.. Lee asserted.
There will have to be some
other increase in taxes besides
that proposed by Mr.. McKeldin,
and it looks like the Legislature
will have to take the initiative.
Apparently we can look for little
help from upstairs (the Cover
nor's Office"
Both Mr.. Lee and Mr.. Brown
ing expressed favor for a Mary
land port authority to help put
Baltimore's port in a better COM
petitive position with other coast
cities, but they said they oppose
use of the gasoline tax to finance
it.
Mr.. Lee said he feels that,
since Baltimore would derive the
greatest benefit from the pro-
posed port authority. it should
pay the largest share of the cost.
CONVENTIONS