530 ADDRESSES AND STATE PAPERS

Traditionally the Federal government has been responsible for the
general, the state for the specific, and local government for the particu-
lar. I believe that this system is valid in scope and substance to confront
the problems of our cities. Seed money for a particular anti-poverty
program is purposeless unless continuity can be guaranteed. It is dis-
heartening and disruptive when it is prematurely terminated. Seed
money in the general areas of mass transit, pollution control, urban
renewal and satellite city planning would be constructive and effec-
tive.

In Maryland the problem of our cities means first the problem of
Baltimore; but it is also the problem of Cambridge, Salisbury and
Hagerstown; of Frederick, Annapolis and Cumberland. I believe, in
the past year State government has made tremendous strides in pro-
viding the fundamental resources and tools to resolve urban problems.
Fiscal reform has brought both additional revenue and alternative
revenue resources to the political subdivisions. Federal and State ap-
propriations have been made for the planning and engineering of
rapid transit systems for both the Baltimore and Washington metro-
politan areas. The 1967 General Assembly tripled State aid to sub-
divisions to extend water and sewage facilities and enacted model air
quality control legislation.

We have come far but not far enough. We have moved fast but not
fast enough. If 1967 was a year to firm up foundations, 1968 must be
a year to capitalize and construct. We must broaden employment op-
portunities by assuring that Maryland's industries have an opportunity
to expand and by attracting more commerce to Maryland.

Fiscal reform must be extended to provide greater equity and uni-
formity to Maryland businesses. The reduction and elimination of
miscellaneous nuisance taxes is essential to place Maryland's commerce
in a competitive position, to assure that industry as well as individuals
bear a tax burden related to income rather than inventory or gross
receipts. Taxation is most constructive when it is applied against net
profits rather than volume or property.

As fiscal reform in 1967 redistributed general revenues with recog-
nition to the special needs of the metropolitan and urban subdivisions,
comparable adjustment in motor vehicle revenues dedicated to road
maintenance and construction will be recommended in 1968.

The health of Maryland's citizens and economy depends upon the
quality of air and water resources. Therefore, I shall present an in-
tegrated pollution abatement program to the 1968 General Assembly