40 ADDRESSES AND STATE PAPERS

sales during November and December 1966. It is still too early to
classify this as a trend, but we must watch the situation to determine
if any downward revision in revenue estimates is necessary.

Second, we must be concerned over the possible impact on State
revenue if the Congress enacts the 6% surtax on personal and corpo-
rate incomes effective July 1, 1967, as recommended by the President.
Just as State tax revenue increased after a reduction in Federal taxes,
so shall we suffer a loss of revenue if this additional tax is imposed by
the Congress. It should be noted that this recommendation by the
President was made after the State revenue estimates had been certified,
and such estimates do not reflect any reduction because of the possible
tax increase.

PROGRAM HIGHLIGHTS

I have described the budget as the meeting place of ideals and
reality. Each year the budget expresses the direction of the adminis-
tration and reflects the will of the Legislature in the allocation of
funds to implement, expand, or continue programs. While it is a
process disciplined by priority and tempered by available revenue, it is
in this area of financing programs and services that the budget gives

expression and reality to our ideals.

Education continues to claim our highest ranking, preempting 32%
of all funds in the total budget. Standards of excellence in education
are predicated upon facilities, programs, and personnel. While the
1968 Budget recognizes all three factors, it is my hope that through
fiscal reform, increased State aid will be available for educational
services.

This year we are recommending new faculty salary scales and an
increase of $2. 3 million in faculty salaries at the State colleges and the
University of Maryland to assure these higher educational institutions
a competitive position in the recruitment and retention of faculty and
administrators.

A major program innovation recommended is $1. 5 million in Gen-
eral Funds to develop and operate a system of educational television.
In addition, $1. 3 million is needed for Capital Funds to construct the
production studio and control center, the initial step required to get
the network under way. Maryland is overdue in providing the cultural
and educational benefits of this service to its citizens.