636 ADDRESSES AND STATE PAPERS

Authorization of an alternative major source of revenue was
provided for subdivisions which previously had to depend almost
exclusively on the property tax.

As a result, while enacting considerably increased local budgets,
seven subdivisions were able to lower property taxes, and 14 main-
tained their existing rates. Twelve subdivisions inaugurated kinder-
garten programs, and virtually all local governments were able to im-
prove their public safety efforts.

While the principal goal of last year was an expansion of ability to
provide local services, this year's objective is a determination to live
within the income available and not place further burdens on the gen-
eral taxpayers.

Therefore, while you will find the overall budget of $1. 15 billion is
$82 million more than that of the current fiscal year, the General Fund
increase over which we can exercise a true measure of administrative
control, is preshrunk and tight. The General Fund total of $660. 2
million represents an increase of only 6. 1 percent, the lowest growth
in this critical area of State spending in the past two decades. The
lowest increases during the three previous administrations were 8. 1
percent in the 1963 fiscal year, 6. 9 percent in fiscal 1954 and 1955,
and 7. 1 percent in fiscal 1951.

Of the $37. 9 million increase in proposed General Fund expendi-
tures, $35. 2 million goes directly back to subdivisions in either shared
tax revenues or State aid payments. Thus we have held increases in
proposed State expenditures to an absolute minimum from this Fund
which is financed principally from the sales and income taxes.

But lest there be concern that this is a budget of austerity in a time
of affluence, it should be remembered that last year's budget repre-
sented a substantial increase in State spending and that the State is
continuing to provide over $1. 1 billion in services to its citizens.

I will also be submitting to you at this session several important new
State programs which are critically needed to meet pressing problems,
but these will carry their own means of support within the legislation.

One will be the most comprehensive and substantial effort ever
launched in this State to combat water pollution. Authorization of a
massive, long-term bond issue will be requested to finance the pro-
gram.

Another will involve full implementation of the community mental
health program initiated in 1966, including a broadscale attack on the