vation, with this added comment: "This remains as our principal
task" I believe that history will record that in the main this objective
was fulfilled — that your State government met the obligation it has
to develop fully the human and natural resources of the State and
at the same time has preserved its financial integrity. The fiscal
soundess of the State is, and has been, a primary concern of mine,
as most of you know.

But financial soundness must be matched by a vigorous and healthy
social and economic climate in which the people of Maryland may
earn a living, raise their families and enjoy all the many advantages
that it is possible for them to have in an affluent society. This means
that if they are to enjoy to the fullest "life, liberty and the pursuit
of happiness" they must have good schools, good hospitals, good
roads, plenty of recreational facilities and the many other services
that government can provide. It is our responsibility, as servants of
the people, to secure for them, now and for the future, the fruits of
our great and abundant society. This is our goal in the 70 days ahead.
This is our goal of the future.

THE BUDGET

The adoption of a budget — the mapping of a plan for the financial
operation of the State for another year — will occupy a greater portion
of your time at this session, and it is to this subject that I should
like to turn at this time. The budget which I am submitting to you
today increases in substantial proportions the appropriations for
services to the people and at the same time requires no tax revision.
This means that during the entire eight years of this Administration
expenditures have been balanced with revenues without the necessity
of raising general fund taxes for State purposes.

Several factors have contributed to this fortunate condition, but
from my point of view the three main ones are these:

1. The State of Maryland, with most of the country, has enjoyed
a period of continuing, unprecedented prosperity.

2. Our tax structure, dependent mainly upon sales and income
revenues, is sensitive to economic conditions and therefore our
revenues up to now have tended to rise along with the expand-
ing economy.

3. We have practiced, I think, a prudent management of the State's
finances and an efficient operation of State departments, agen-
cies and institutions.

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