582 ADDRESSES AND STATE PAPERS

they're functioning in the way that they were intended. Yes, I think
it is entirely possible that they may come up with some modifications.
I don't know exactly what they would be considering, but I would
expect that they will continue to keep the matter under study and I
know Mr. Lauber on my staff will keep in close touch with Dr. Cooper
and others who are interested in this to make sure that they plan
functions in a reasonable fashion.

Q. Governor, what effect is the Federal government launching mas-
sive programs such as welfare, health, highways and so forth and yet
pulling back on some of these funds or congressional reductions hav-
ing on the fiscal policy of the State?

A. It's having a chaotic effect on not just the State of Maryland, but
on every state in the country. It's a subject that preempts just about
every discussion that begins spontaneously when governors of the
country get together. The problem is very simply that these programs
are begun — they are overpublicized — they are underfunded —
people get used to the "seed money" so to speak, and then the Fed-
eral government steps back or out of the picture and leaves the State
with the program that's been operational and has interested large
numbers of people, and the State has to come up somewhere with the
money to do it. In addition to that, in programs like the recent
amendments under Medicaid we reach a situation where Congress
passes a law which creates a deficit in the current budget. We're look-
ing at about a $5 million deficit right now in health services, and if
we have to provide the same level of services we are facing maybe a
|15 million additional expense next year. We've been left with only
one alternative — cutting back on some of the programs that we have
a right to cut back on. This new health law at the Federal level pro-
vides that we must pay 100 percent of the audited hospital costs, and
hospital costs are skyrocketing as everyone knows; they are going up
about $1 a month in Maryland. So where you have a $77 a day cost
in two of Maryland's principal hospitals and the State is stuck with
paying those audited costs, we've got to cut back somewhere else in
the health program to make money to meet those needs. It's a tough
problem.

Q. Governor, one of your major appointees in Prince George's
County forfeited collateral over the weekend on charges of being
drunk in public. Does he still have your confidence in his ability to
perform his duties?

A. I have the matter under investigation at the present time and
expect to take some action on it very shortly.