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gate Stern pointed out, the history is these
bond issues are passed almost as a matter
of course by the legislature so that the
three-fifths would be no protection. I pre-
dict if this amendment passes all our bonds
from here on will be for 25 years. Not only
because of the fact it imposes a smaller
annual charge but because these bonds be-
ing tax exempt are very popular with the
investors and the longer the better. That is
the reason the bankers and the investment
brokers favor the longer term. They will
undoubtedly put pressure on the Legisla-
ture to give them what they want.
I think this has been a great salvation
and a wonderful thing for the taxpayers of
Maryland. To extend it to 25 years would
be a great mistake, in my humble opinion.
THE CHAIRMAN: Delegate Stern.
DELEGATE STERN: How much time
remains?
THE CHAIRMAN: Two minutes.
DELEGATE STERN: I will take those.
I would like to answer some of the state-
ments made by the majority. The majority
has told you here exactly what I said would
happen at the legislature that the debt limit
would rise. The people like Dr. Willis who
come with school programs, Prince George's
County, Montgomery County will come
with school programs and that the first
bond issue would have to be increased to
cover these programs and we will raise our
debts. Our debt ceiling will reach a point
that although schools will be built long-
after Dr. Willis leaves the county the fol-
lowing- students will not have the school to
go to because we will not be able to borrow
at an economical rate, our rating will go
down, that the interest cost on 25 years will
be prohibitive in and of itself, that like
Judge Henderson has said certainly the in-
vestors want 25 years. We have been told
25 years offers highest interest rates. Cer-
tainly they would prefer to buy bonds at a
higher interest rate. We have had no
trouble, no trouble on our bonds at 15 years
at a lower interest rate.
Delegate Case tells us over the years it
is probably cheaper. He is absolutely right.
I worked it out. Three bond issues 25 years
75, 15 bond issues, 15 years, 75 years, in-
terest between the two 25-year bond issues
is $4,585 less using the rate on the chart
but the difference is that we have used $5
million in that 75-year period instead of
$3 million for the same long period of time.
I urge you to vote for this amendment,
keep the limitation we have had. In the
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words of Judge Sherbow, do you want to
make a change or do you want to keep
what we have?
THE CHAIRMAN: There is now avail-
able a period of uncontrolled debate. In
view of the very complete presentation by
both the majority and the minority the
Chair would hope this would be kept to a
minimum. Are you ready for the question?
(Call for the question.)
The question arises on Amendment No. 1.
The Clerk will ring the quorum bell.
The question arises on Amendment No.
1, a vote Aye is a vote in favor of the
amendment. A vote No is a vote against the
amendment.
Cast your votes.
Has every delegate voted? Does any dele-
gate desire to change his vote?
(There was no response.)
The Clerk will record the vote.
There being 44 votes in the affirmative
and 61 in the negative, the motion is lost.
The amendment is rejected. There is one
other amendment of which the Chair has
knowledge or two other amendments with
respect to this section.
Delegate Mentzer, do you still desire to
offer your Amendment C?
DELEGATE MENTZER: I would rather
offer it tomorrow morning.
THE CHAIRMAN: Let the Chair ask
you this: How long do you think it would
take for the presentation of your amend-
ment? You are entitled to 10 minutes,
would you take that long?
DELEGATE MENTZER: No, I am sure
it would not take more than five.
THE CHAIRMAN: Delegate Grumbacher,
do you still desire to offer your Amend-
ment B?
DELEGATE GRUMBACHER: Yes, I
would like to.
My amendment will not take time. It is
the reconsideration that takes all the time
with mine. (Laughter.)
THE CHAIRMAN: The Chair would like
to dispose of this. If you feel very strongly,
Delegate Mentzer, you would rather present
your amendment tomorrow. Very well,
thank you.
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