BUDGET MESSAGE 35

only will this improve contacts with our more than one million citi-
zens of that area, but it will also serve as a base for the new position of
National Relations Officer. This individual, reporting directly to me,
will replace a consultant with rather vague obligations and will have
primary responsibility for maintaining liaison with federal officers and
agencies — a responsibility which is growing rapidly in importance.

FISCAL REFORM

The most pressing problem facing all of us this year is that of fiscal
reform to more equitably distribute the tax burden and to provide
local governments and the State with resources necessary to meet the
legitimate needs of our citizens. The 1964 interim report of the Com-
mission on State and County Finance documented those needs, and it
is not necessary for me to restate them here. Shortly after the election,
with the knowledge and approval of the legislative leadership, I ap-
pointed a special committee chaired by Senator Harry R. Hughes to
recommend a program of fiscal reform which could be implemented
this year. At the time of the preparation of this message, that special
committee has not yet issued a report; but, as soon as their recommen-
dations are available, I shall transmit to your honorable bodies my
proposals for such action. Most of us are in agreement that it is im-
perative to enact a fiscal reform program this year.

There are two additional problems of State finance which I wish to
discuss with you — the provision of current revenues as a down-pay-
ment on capital construction costs, and the problem of recurring State
surpluses in the face of precariously balanced budgets.

DOWN-PAYMENT ON CONSTRUCTION COSTS

The State of Maryland is the fastest growing state in the East. That
growth causes a continuing need for new capital facilities. This is
evidenced by the recent history of capital construction appropriations
which follows:

Fiscal Year Capital Construction

Appropriations

1962-63........................... $22. 4 million

1963-64........................... 26. 2 million

1964-65........................... 28. 1 million

1965-66........................... 31. 6 million

1966-67........................... 40. 6 million

1967-68 (recommended)............ 52. 0 million