I began work on the budget shortly after I was elected Governor
last November with this as an objective: To provide the citizens of
Maryland with State services that are essential without increasing their
taxes. In order to do this, I was compelled to slash some of the
requests for appropriations that had been made by the departments
and agencies of our government. As I reported to the General Assembly
today, more than $13, 000, 000 was cut from original requests.

In my best opinion, the program I presented is a sound one. The
State can continue to grow and prosper under it. At the same time,
the citizens of the State are given a much-deserved respite from further
taxation.

ADDRESS, NATIONAL GOVERNORS' CONFERENCE,

SAN JUAN, PUERTO RICO

August 4, 1959

The article in Fortune Magazine, which the Chicago office of this
Conference so thoughtfully mailed to each of us, contained this
statement:

"It's a lucky governor or mayor who isn't facing a budgetary crisis
who hasn't found himself obliged to reach in every direction for new
sources of revenue. "

I do not wish to seem gleeful in the company of those who may
be less fortunate, but I am constrained to state that I am one of those
"lucky" governors mentioned by the authors, Robert Lubar and Charles
E. Silberman, in this very fine series of articles on tax problems.

The State of Maryland faces no budgetary crisis, and is, indeed, in
reasonably good financial condition, supported by what we believe to
be a sound tax program.

My first budget as Governor, appropriating some $205 million in
general funds, was approved by the Legislature and became effective
last July 1. It is a budget which we balanced without imposing new
taxes or increasing the rates of existing levies.

Moreover, it is in no sense an austerity budget, although it does
call for strict economy in the operation of governmental agencies and
functions. There has been no impairment of State institutions and
agencies and no curtailment of services and programs. We are spending

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