188 ADDRESSES AND STATE PAPERS

It involves placing everybody in the business community on an equal
footing. It involves not taxing an industry that may have a large gross
profit but because of some unusual activity during the year sustain a
net operating loss—not having them pay a big tax on their gross profit
when they didn't make any money. It involves not pointing the finger
at an industry that has to carry a large inventory against that of an
industry that can get along with a small inventory.

These are things that we have to try to rationalize and study and
make proper so that our State will be one of the most attractive and
equitable states for new industry to come into. And Western Maryland
needs its share of new industry very badly. The Appalachia programs
are geared to this end and I will continue to fight for industry for this
section of the State.

Now one other thing. I have talked to you about spending money
so much. I want to talk to you a little bit about saving money and
what we're trying to do about it. I created under the very capable
leadership of John Lauber, who is the former deputy director of the
Budget of the State of New York, and the former director of the
Budget of Montgomery County, a Task Force on Modern Manage-
ment. The purpose of this group is to go into every one of the over
200 agencies of the State government to make an analysis—to make
those agencies justify and re-justify their existence and what they are
spending money for and whether any useful purpose is being achieved
by their spending such money. I have a feeling that when these studies
are finished there will be millions of dollars saved in costly duplications
that are occurring among the agencies of the State government.

We are looking for a modern structuring—we are trying to make
State government streamlined—and as it has grown into this cumber-
some operation of over 200 agencies, there isn't any doubt that there
are subagencies of one particular department performing the same
functions as subagencies of another one. Some of them can be elimi-
nated; they are virtually useless. We are going to get in there and cut
out all this inefficiency and we intend to save some money.

Before we could get to the point of saving it, we had to create and
produce a task force, a "beefing up" of the Governor's executive staff
so we could make the study. And I took a lot of criticism when I did
this. But I will prove to you by the end of next year that there will be
significant savings in the operation of the State government that could
not have come about had not these staff increases and personnel studies
been launched. Mr. Lauber feels as confident as I do that this is in the