With all this, then, it has been possible for us to carry on State
operations, with an orderly increase in State activities commensurate
with the needs of the times, without an adjustment of the tax struc-
ture or an increase in the tax rate.

You will observe that the budget which I am submitting to you
today, totaling $883, 046, 701 in all funds, $435, 583, 826 in general
funds, increases expenditures substantially over the budget for the
current year, and indeed is the largest budget in the history of the
State. This, in my judgment, is a healthy sign, reflecting as it does
the growth of our State, the prosperity of our people and the deter-
mination of Marylanders to remain in the forefront of the march of
progress. The essential services of health, education and welfare —
services which affect directly the lives of our citizens — as usual ac-
count for most of the increases in expenditures which we have had
to allow. For example, of the total general fund increase of $60, 335, -
808 recommended for fiscal 1967, 37. 9 per cent is allotted to education
and related purposes, 21. 5 per cent for health, hospitals and mental
hygiene, and 12. 7 per cent for public welfare, training schools and
camps.

The enormous increase in the population of our State — one of
the fastest growing in the entire country — accounts for most of the
increase in the cost of government, affecting as it does almost every
category of appropriation. For example, the population explosion will
increase public school and college enrollments by an estimated
38, 085 next year over the current school year. It also increases popu-
lations in other State institutions, such as hospitals, prisons, training
schools and so on. Moreover, apparent to all of us is the desire of
Americans to have more, to live better. This means, among other
things, demands for higher salaries, for greater security through
retirement and social security provisions, for more recreational
facilities and for more time to enjoy them.

Affecting this budget as no other budget before is the tremendous
increase in Federal aid for health, education and welfare under the
Great Society programs. These will be cited in more detail later in
the message, but just let me say now that it is my thought that Mary-
landers must be given every advantage under these programs, in-
cluding Medicare of which provision is made in this budget for
Maryland's full participation.

This session of die General Assembly will be called upon to con-
sider the Cooper-Hughes tax report. The original basis for this
report was a study made by the Commission on State and County

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