STATE OF THE STATE MESSAGE 627

corporate income taxes to produce $18. 8 million less than had been
projected for their normal growth in earlier revenue estimates.

Recently published November sales tax figures show some improve-
ment. I am hopeful that when the Comptroller and the Board of
Revenue Estimates take another look at the picture and report to
me in early March, the outlook will continue to be brighter.

Of one thing we can be certain now: The graduated income tax
that you enacted last year is the most solid pillar of our revenue
structure. It represents the best growth resource available to the State
and to local governments to support future services. It is my personal
belief that the income tax will yield more in the coming fiscal year
than the amount now estimated for it. With the local surtax, this
would mean that local governments could expect even more relief
from property tax burdens than they can presently foresee.

It is also appropriate to observe that, had we based our fiscal re-
form program on the sales tax, we would be in real trouble at this
moment.

THE 1969 BUDGET

With the uncertainty of how rapidly the yield from the graduated
income tax will expand, or how much the growth of the sales tax
will be curtailed, we must proceed with caution into the next fiscal
year. I have directed State agencies to pull in their belts, to live within
the income available. I am sure that you share my commitment to
the taxpayers of Maryland that there will be no further increase in
income taxes this year, or any adjustment in the sales tax, to meet
spending desires.

These decisions are reflected in the budget bill which is being in-
troduced today in both houses, and in my printed budget message
and the budget books which you will receive immediately after this
address.

Lest there be any concern that this is a budget of austerity in a
time of affluence, let me repeat that it is not. You will find that it
provides increased services to our citizens in carefully selected pro-
grams, and that its overall total of one billion 150 million dollars in
State and Federal funds is $82 million more than appropriations in
the present fiscal year.

The General Fund, that portion of the budget over which we can
exercise the greatest degree of administrative control, shows the lowest
percentage increase in the past 20 years. The General Fund total of
$660. 1 million represents an increase of only 6. 1 percent over the