396 ADDRESSES AND STATE PAPERS

decrease in surplus of $2. 3 million over what we expected to go into
the 1967-68 year with, we are looking at an extremely bleak revenue
picture. I don't think it's critical at the moment because we are still
in the estimating stage and there is some time left before we can get
into a specific pattern, but it concerns me enough to warrant a very
close look and a continuing scrutiny through the next several months.
And if these trends continued without any appreciable increase in
other areas, it may be entirely necessary to cut back on State programs
and leave vacant additional positions that were granted in the budget.

Q. Governor, would you cut back or would you ask for additional
tax revenues?

A. No, I would cut back. We would have to cut back. We cannot
go to the voters. We cannot go to the Legislature. We cannot ask the
voters to assimilate another tax increase next year.

Q. Governor, you mentioned the 10 percent surtax possibility. What
overall effect will the Federal surtax have on State revenues?

A. Well, it's undoubtedly going to cause a decrease in our revenues.
It's going to cause a tightening up in corporate profits and it's going
to cause sales tax revenues to decline. And it's going to have an ad-
verse effect on our predictions. I don't know what we can do about
it, and I'm certainly not well versed enough in the national economic
picture to say whether it's needed or whether it isn't needed. I have
enough trouble trying to keep in mind what the State of Maryland
needs. But if it does have to come about, based on the advice of fiscal
experts of the United States, it may have a very profound impact on
our own fiscal picture here in the State.

Q. In connection with the transportation strike, you mentioned pro-
gram executives and that a study of modern management is under
way. Are these program executives likely to become super department
heads?

A. I would say almost no likelihood of that exists. The entire idea
of having the program executives is that they represent extensions of
my official body, you might say, into the agencies and they will lose
their utility unless they are acting for me and not on behalf of the
agencies themselves.

Q. In July you sat next to Roy Wilkins at the head table and dis-
cussed problems of the Negro community. At that time you pledged
that your administration was doing everything to terminate racial
discrimination throughout Maryland, including the government itself.