Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-04-01

a AAEAg A00A ySeNA0s
The House last night passes
higher than this years SPEND
ing program-but because OF
) a typographical error had to
send it back to the Senate for
concurrence.
With the budget out Of the
way, the Legislature will be
> rushed toward a scheduled adj
journment Saturday night, two
days ahead Of the 90-day dead
line for the session.
The House today was ex-
pected to get the $14.5 million
capital improvements program
Speedy action was slated on it,
In the all-important general
fund program. which deter
mines tax levels. the 1860
budget includes $208 million,
about $40 million more than
this year.
No New Taxes
z The budget nevertheless calls
for no new tax programs for
the coming year.
Marylanders. however, just
began paying a 8 per cent sales
tax January l and have until
April is to file their first years
income tax returns under a 8
per cent rate.
Both the income and sales
tax rates were increased so per
cent by the 1857 Legislature.
The Assembly last year also
imposed new 3-cent-a-pack
cigarette tax.
Gov. Tawes, in calling for no
tax increase in his first year in
Office. is maintaining cam
paign pledge.
But to do this he had to
compromise campaign state
ments assuring State teachers
another $500 pay increase next
fall on top of one they got
last year.
The Governor instead came
up with the $500 increase in
teacher salary minimums with
the State picking up the tab
for $500 Of this raise in mini
NUNS.
The budget to be enacted to-
day provides for $2.7 million as
the States share of the first
year cost of the pay plan.
Tax Woes Later
If the Assembly enacts the
teacher pay plan into law.
Marylanders appear headed
for tax troubles next year. Con-
sentative estimates here are
that the normal budget in
crease because of the teacher
pay costs of more than 500
million in the second year of
the program will leave a SIS
million to $40 million gap be-
tween revenues and expendi-
lures in fiscal 1861.
This would call for a major
tax adjustment. Some legisla-
tors have indicated it would
have to be either in the income
tax or the sales tax fields, and
If it is in the income tax field
area one of the first moves
probably would be to establish
a graduated income tax.
Supt. PulIen Quizzed.
House and Senate fiscal COM
mittee members yesterday
quizzed sharply State Schools
Supt. Thomas G. Pullen, jr.,
on the impact of the teacher
pay plan.
And last night, utter the
three-hour hearing on the
measure, Senate Finance Com
mittee Chairman Edward s.
Northrop said there was still
"a lot of confusion about the
bill"
Both Senator Northrop and
Senate President George W..
Della have indicated they are
not happy about the long
range commitments of the pay
bill when no additional reve-
nues are in sight for f1nanc-
ing it.
Senator Della told newsmen
that he felt the matter might
better be referred to the Leg
islative Council for study dur
ing the next year.
Senator Northrop and House
Ways and Means Chairman A.
Gordon Boone yesterday con-
ferred with Gov. Tawes on the
program.
Senator Northrop was to go
back again today.
There are many objections
to the bill among members of
the Assembly. especially those
serving on the two fiscal COM
mittees. Some delegates have
indicated the teacher pay plan
may have real difficulty getting
out Of committee. But most feel
that Gov. Tawes will be allie
to keep the Assembly in line
with his wishes.
Studies Scheduled
Senator Northrop said his
committee would begin studies
of the bill today and that at
best he did not expect it to
reach the floor before tomor-
row.
The teachers pay bill will
cost the State some $3l mil
lion to $35 million over the next
four years.
Senator Northrop yesterday
directed DR.. Pullen to submit
to the committee a projection
Of costs based on increased en-
rollments. new teachers to be
hired and changes in aSsesSable
bases in the various juriSdic-
tons. The only cost estimates
made available to the Assem-
bly, by the State Department
Of Education have been based
on next years teaching staff
alone.
Assistant Attorney General
James &c Gentry who dro ~