of Governor Herbert R. O'Conor

19

Teachers' College, Frostburg, $100, -
000. 00....................................................

For new gymnasium building and
equipment of same at State Teach-
ers' College, Towson, $100, 000. 00 100, 000. 00
To Maryland State School for the
Deaf—for improvements to plumb-
ing facilities and fireproofing stair-
ways and other equipment, $14, 000. 00 14, 000. 00

100, 000. 00

Total For General Construction...... $1, 490, 000. 00 $705, 000. 00 $1, 173, 000. 00

It has been my firm conviction that State taxes on real estate ought not
be increased except in unusual emergencies. Because of the heavy burdens
already assumed by agricultural and business interests through real estate taxes
as well as the heavy obligations being paid by residential and other property
owners of the State, I repeatedly emphasized the desirability of avoiding any
increase in real estate taxes at this time and of working toward their reduc-
tion in the future. This promise was made by me in the campaign and I intend
to fulfill it.

I am pleased to announce that the creation of additional bonded indebted-
ness which I now recommend will not necessitate any increase in the present
State tax rate.

In view of the present condition of the Bond Annuity Account and the
Comptroller's estimate of the normal increase in revenues which will accrue
to this account from the present State levy, the budget which I am submitting
will call for no increase in our present rate of 23. 35 cents.

n

Recommended Appropriations

It is unnecessary and would be unduly burdensome for me to discuss each
of the many recommended appropriations in the budget, but I should discuss
with you particularly the larger and more important ones.
(1) Public Schools

1940 1941

Amount Requested.............................. $6, 501, 117. 00 $6, 638, 545. 00

Recommended Allowance.................. 5, 980, 947. 00 6, 497, 944. 00

Reduction..............................................

Total Reduction...................................

Increase of Recommended Allow-
ance over 1938 and 1939, respec-
tively..................................................

Total—Increase over 1938-1939.....

$520, 170. 00 $140, 601. 00

$294, 814. 00 $693, 692. 00

$660, 771. 00

$988, 406. 00

A major portion of this increase is accounted for by the inclusion in the
recommended allowance of *$600, 000. 00 for 1940 and *$600, 000. 00 for 1941 to
the Teachers' Retirement System, which were paid from borrowed money in
1938 and 1939, and, therefore, are not included in the Budgets for those years.

*Less $492, 002. 00 in 1940 and $102, 601. 00 in 1941. representing total refund to the State
System by the Baltimore City Teachers' Retirement System for previous overpayments ex-
tending over a number of years.