8 REPORT OF THE COMPTROLLER OF THE TREASURY

The BONDED DEBT of the State at June 30, 1946,
was $20,902,000.00. The General Assembly at the 1945
Session enacted Chapters 747 and 996 authorizing the
Board of Public Works to issue and sell State Bonds in
the amount of $4,625,000.00 for construction in connection
with the State's Post War Construction Program, and
$2,000,000.00 for the construction of a new State Office
Building in Baltimore City. If and when these bonds are is-
sued, they will increase the bonded debt as it will exist at
that time.

The ANNUITY BOND FUND, which is the account
maintained for servicing the bonded debt, had a credit
balance of $2,189,355.92, at the close of the last fiscal
year. This amount represents taxes collected for the pur-
pose of paying interest on and redeeming the State Debt
and will be used, along with taxes on real and personal
property to be received in the future, in liquidating the
bonded debt.

I feel that it is important at this time to renew the recommenda-
tions I have made on several occasions in the past for annual budget-
ing. I believe the most constructive thing we can do in administering
the fiscal affairs of the State is to amend our Budget Law so that
annual budgets will be prepared and approved, which will keep the
State's fiscal affairs in about as current a condition as possible. It
has been impossible in the past, and particularly during the past
decade, because of changes in economic conditions, to accurately
estimate the State revenues and make State appropriations as much
as two and a half years in advance. I strongly urge that steps be
taken to amend our Constitution to provide for preparing the legis-
lating our fiscal affairs on an annual basis, rather than a biennial
basis.

I desire to record in this Report the fact that the Budget for the
fiscal year which will end June 30, 1947, as passed by the General
Assembly at the 1945 Session, does not appropriate the necessary
money to take care of the current operating expenses of the State
for that year. You are probably aware, from the publicity which
has been given the matter, that the money appropriated for salaries
of State employees for the fiscal year 1947 will have to be supple-
mented by the General Assembly at the 1947 Session, because of
the necessity of increasing salaries of State employees during the
year, and also because of increased operating costs of the various
State institutions and departments. All of this, of course, has been
due to changes which have taken place in economic conditions,
which have affected the business of the State as well as the business
of individuals and others, and unless the appropriations already in
existence for the fiscal year are supplemented at the 1947 Session
of the General Assembly and additional money made available for
use during the year, the appropriations, in many instances, will
become exhausted during the middle and latter part of the year
and the State Treasury will be without authority to continue the
payment of salaries and expenses of the agencies which will be run-