652 ADDRESSES AND STATE PAPERS

A. I sincerely hope it will never be necessary for the State to actually
get into the hospital business. I can see a potential if we cannot solve
these problems through this course that someday a State agency — a
regulatory agency of the nature of the Public Service Commission —
may have to come into being to regulate the hospital area. But I am
hopeful that the private sector interested in health, given this oppor-
tunity, will be able to solve the problem without governmental inter-
vention.

Q. I am thinking more of hospitals operated by the City — the City
Hospitals, and I believe one or two of the counties operate hospitals.
A. Well, I don't see any immediate indication that that would come
about. No.

WELFARE DEPARTMENT - BUDGET DEFICIT

Statement by the Governor

I have one other subject I'd like to mention to you briefly because
I was tremendously distressed by this headline concerning the soaring
welfare cost in a projected $2 million seven hundred and some thou-
sand dollar deficit. We have checked into this very thoroughly and let
me say that the Welfare Department has never asked me to make ar-
rangements to fund this deficit. Let me also say that the deficit started
out to be a projected $2 million seven hundred thousand dollar deficit
and then as conversations went forward with the Welfare Department
as a result of my request, it was successively reduced — let me give
you the figures here — successively reduced from $2 million seven to
$1 million nine; and then last Friday, at a further meeting with the
Budget Director and the Welfare Director, I was informed that the
projected deficit in all likelihood will be less than $1 million. What-
ever it is we certainly have an intention to do something about it, as
is evidenced if you will look at the budget message this year on page
59. I read from it on welfare: "The budget as submitted does not re-
flect the impact of a new health and welfare Federal legislative pro-
gram except in the area of day care. The Department of Public Wel-
fare is currently reviewing and evaluating the legislation to determine
its impact on this budget. Later in the session I shall report to you
their findings for possible inclusion in the supplemental budget. " So
we are aware of the impact of this staffing legislation and we are still
attempting to get decent figures to decide what kind of supplemental
budget is necessary, if any. So the alarm that's been reflected from
statements that have emanated from welfare sources — incidentally
to my mind very harmful to the general peace and harmony of the
Baltimore community — are grossly over-exaggerated, and already we
can report that the projected $2, 766, 626 deficit is under $1 million.