group 21 to 65 — proportionately small. Meanwhile, the boom in
births has increased the size of our under-21 group, and improved
medical services have increased the number of our citizens over 65
years of age.... For these reasons, then, state and local govern-
ments expanding at a much faster rate than the federal government.
This is one of the most important political facts of our post-war
era.... This places a greater burden upon state budgets as each
year passes. Aid to local localities accounts, in large measure, for the
financial difficulties of the state. In the 1920's and until the time of
the depression, localities were spending roughly twice as much as
the states. Since the war, the two have been spending about evenly.
With each passing year state aid is accounting for a greater percent-
age of local revenues. In our own State of Maryland, these trends
are quite pronounced. Our State revenues and our State expendi-
tures have grown by leaps and bounds since the war. So has the aid
to the localities.

It is worth restating, in this connection, that the only tax adjust-
ment the State has made since fiscal 1959 was made solely to aid the
localities in financing their programs of health and public welfare.
Now, I do not wish to be misunderstood on this score. I certainly
am not registering any complaint about the situation. I simply am
trying to state some facts — some facts we need to understand in
developing a proper approach to the problem which confronts us.

Federal, state and local governments are partners in one business
—the business of providing for the security, the happiness and the
general welfare of the citizens of this country....

I would leave you with this thought. My Administration over a
period of four years has demonstrated its concern and I believe its
understanding of the ever-growing financial burdens and responsi-
bilities of its municipalities. I have always felt that government
should stay close to the people. For that reason, municipal govern-
ments always have seemed to me to be bulwarks of democracy.

I congratulate you for the splendid work you have done in the
past, and I pledge you my fullest cooperation in meeting together
the problems ahead.

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