NEWS CONFERENCE 395

really solves anything. I think they are having a great amount of
trouble with it in the Federal government, right now.

Q. Governor, what is the State's position on the South River State
Park?

A. Well, the State takes the position that the money was appropriated
by the General Assembly after the park was put on the master plan
for Anne Arundel County. Now, we're having a great amount of ob-
jections from residents of the area. The State feels that Anne Arundel
County, through the county executive and the county council and the
Department of Planning, should make known whether it wants this
park or not. If it doesn't want it, it should be taken off the master
plan. If it does want it, it should be left on the master plan so that
the State Department of Forests and Parks can continue to develop a
concrete proposal. Assuming that they leave it on the master plan,
and Mr. Ellis goes ahead with his proposal, I will meet again with
the protesters before taking any action in the Board of Public Works
to provide the funds.

Q. Is there any indication by county officials that they want it or not?
A. I have some unofficial indication that they don't want it.

Q. Governor, at the meeting of the Board of Public Works yester-
day, you made a remark that it was fortunate for Maryland that the
Legislature did not vote in favor of going up on the sales tax. Will
you discuss that more fully?

A. Yes, I certainly did. Sales tax revenues have softened to the ex-
tent that the projected growth of 10 percent in the sales tax, that
formed the basis of the Comptroller's predictions, has turned out to
be only a 5 percent growth. This is a net failure in sales tax revenues
of $4. 3 millions for the year ended June 30, 1967. Indications for the
coming fiscal year are that because of the possibility of the 10 percent
Federal surtax, which will cause a 7 percent estimated decline in busi-
ness profits in 1967, the sales tax revenues will continue to soften, as
well as the corporate income tax revenues which may soften to the
extent of another $2 million. This means that had we predicated our
tax program on a sales tax instead of an income tax, we would not
have had the money to fund it and would have had to go back without
any question to the Legislature for additional money so that the shares
promised the subdivisions, which formed the basis of their property
taxes, could be delivered as indicated. Expenses for Medicare appear
to have exceeded the original estimate. This might run between an-
other $10 million to $15 million next year. All in all, because of our