I would think that most of you have learned already that this operating
budget of approximately $520, 000, 000 is the largest in the history of the
State, but I hope none of you have concluded from its size that those of
us responsible for its creation have been wasteful of the money you pay
to maintain your government. Maryland is one of the most rapidly
growing states of the Union. Its population increased by 30 per cent
from 1950 to 1960, and there is every reason to believe that this growth
will accelerate in the years ahead. This growth in population is accom-
panied by an ever-expanding economy and drastic changes in the
social complexion of the State, including a transformation from a mostly
rural to a predominantly urban society. Seventy per cent of our people
now live in the metropolitan areas of Baltimore and Washington. Under
these circumstances, it would be extremely unwise, and probably dis-
astrous, to think in terms of reducing the State budget or even of main-
taining it at a constant level. Even if we forsook progress and advance-
ment—and heaven forbid we should ever do this—a sizable budget
increase would be required merely to maintain the status quo.

The budget we adopted in Annapolis this year supports the programs
we have undertaken and allows for a healthy expansion of many services
deemed essential to the well-being of the people. Schools, hospitals,
mental institutions, correctional institutions, parks, nursing homes, high-
ways—institutions and services too numerous to list—benefit under its
provisions. Apart from the money it spends for its own housekeeping
and maintenance of services, the State has assumed the responsibility
for financing much local-government activity. As a matter of fact,
counties, cities and towns of the State next year will receive more
than half of the money the State collects from you in taxes. Moreover,
as a result of rather serious financial straits in which some of them
found themselves this year, the State in the budget for next year boosted
its assistance to Baltimore City and the twenty-three counties, partic-
ularly in the areas of public education and public welfare.

To sum this all up, if you live in a period of dynamic growth, it is
unreasonable to expect your government to remain static, whether it
be at the federal, the state or the local level. So much, then, for the
fiscal program formulated at this session of our General Assembly.

What about general legislation affecting the State? It is not possible,
in the time allotted me here, to discuss at length or in detail the great
quantity of legislation handled by the General Assembly at this session.
I can do no more than give you what I consider to be some of the high-
lights of the session. Two legislative acts bring under regulation for the
first time in Maryland the non-federally-regulated building and loan

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