BUDGET MESSAGE 641

Under the Medicaid program an average cost for hospital in-
patient care ranges up to $77 per day. The Health Department
estimates that by paying for 12, 000 ambulance trips per year at
a cost of |264, 000, we can save 59, 248 general hospital patient
days. While I am advised that this may not be reflected in a
cash reduction since other Medicaid patients may fill vacated beds,
it will nevertheless allow more persons to use hospital facilities
and reduce the continuing pressure for construction of additional
hospital beds.

SOUND INVESTMENT IN NEW PROGRAMS

We will introduce separate legislation designed to convert five State
scholarship programs into a greatly expanded, low cost, guaranteed
educational loan plan. We have included this proposal because we are
convinced that it will provide greater services to the students and re-
sult in savings of millions of dollars to the State of Maryland.

Even though Maryland now offers scholarships valued at $3. 4 mil-
lion, there is ample evidence that the number of available scholarships
does not come close to meeting the demand for this type of educa-
tional aid. Although approximately 35 percent of our college bound
youth apply for scholarships, only about 10 percent, or one in every
three, can be granted this assistance under existing programs. It is not
unreasonable to assume that persistent demands will be made upon the
Legislature to increase the number of available scholarships in the
future.

The cost of higher education is rising. If this trend continues, even
our existing programs, now costing approximately $3. 4 million an-
nually, could cost the State of Maryland $7. 8 million per year by 1973.
If we resort to additional numbers of scholarships or scholarships of
greater monetary value to meet this trend, the potential demand upon
the fiscal resources of the State will be staggering.

Funds, once applied to a scholarship, are lost to the State as a fiscal
resource. These funds, however, if applied to a guaranteed loan pro-
gram, can ultimately provide a revolving fund to guarantee future
student loans. A sound loan program can be made sufficiently flexible
to incorporate forgiveness provisions to meet developing needs in pub-
lic service whether they be for teachers, nurses, doctors or any other
vital service.

Our projections indicate that need for student financial assistance
will approach $85 million by 1973. Under the provisions of this ex-
panded higher education loan program, an investment of $16. 5 million