that "it is essential to the progress of this state that both levels of gov-
ernment be adequately financed in a manner which is, at once, pro-
gressive, responsible, equitable and reasonable in its demands upon
the taxpayer. " And while the study commission it established is to be
called the "Commission on State and County Finance, " the awareness
of the General Assembly of your interests is evidenced by the fact that
the resolution provides that two of the ten members of the Com-
mission be recommended by the Maryland Municipal League and
that they represent the incorporated cities and towns of the State.
The Commission is charged with the responsibility to investigate the
whole field of state and local government relationship and to report
back to the General Assembly its findings and recommendations at
the earliest possible date after next January 2.

From its study we hope to find the guidance that is needed to
enable us to move along swiftly toward our goal — a healthful and
amicable financial relationship between the State of Maryland and
the counties, cities and towns within its boundaries. Since World
War II, some drastic changes have been taking place in American
government, on the state and local levels. While the federal govern-
ment concentrates its expenditures more and more in the domain
of world politics—in defense, foreign aid and on diplomatic fronts-
state and local governments are being burdened with ever greater
obligations.

As an example of the growing demands upon state and local gov-
ernments, we ought to look for a moment at the trend of govern-
ment spending. Between fiscal 1950 and 1960, discounting inflation,
general state and local government expenditures in the United States
increased by 55 per cent—from $34 billion (in 1960 dollars) to $52
billion. During the same ten-year period, federal budget expendi-
tures rose by only 37 per cent....

We can point to many factors which have contributed to this
steady growth in the obligations and responsibilities of state and
local governments. The deferment of construction and maintenance
programs, first by the depression of the 1930's and later by the war,
thrust upon us an enormous burden. The population explosion of
the past sixteen years obviously has hit hardest at the state and local
levels. The expensive services of hospitals, schools, and public assist-
ance and sanitation are, almost exclusively, obligations of state and
local governments. Normal population groupings have shifted. The
low birth rate of the I920's and 1930's has left the productive age

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