REPORT

OF THE

COMPTROLLER OF THE TREASURY

OF THE

STATE OF MARYLAND

December 7, 1942.

To THE HONORABLE

THE GENERAL ASSEMBLY OF MARYLAND:

It is my pleasure to submit to you, as provided by Section 9 of
Article 19 of the Annotated Code of Maryland, this report of the
fiscal affairs of the State for the period from October 1, 1941, to
September 30, 1942, or what is known as the fiscal year 1942.

The form of the report follows that for the preceding year; in
fact, there has been no material change in the form of report during
the past several years. I believe we have succeeded in showing a
complete picture of the State's financial operations as briefly as
possible. It is recommended that you look over the Table of Con-
tents in the front of the report so that you will be able to know
what is in the report and where to locate it.

Since my last report to you, that for the year ended September
30,1940, many things have happened which have had their effect on
the State's fiscal and administrative operations. In that report, I
called attention to the unexpected increase in the Surplus Account
and mentioned the reasons for the increase. Again I find it necessary
to report an unexpected increase in the Surplus Account at Septem-
ber 30,1942. At that date the surplus was $10,348,597.55, the largest
ever at the close of a fiscal year, and an increase of $3,532,039.41

over the amount estimated at the beginning of the year. This in-
crease is due principally to revenues exceeding estimates, particu-
larly alcoholic beverages taxes, income taxes, and taxes on racing and
insurance premiums. There were decreases in the motor vehicle titl-
ing tax and the Maryland Estate Tax. Also, the reversions of appro-
priations exceeded the estimate by $880,518.95, a large part of which
excess was in the budget for welfare.