of Governor Herbert R. O'Conor 23

I have recited this resume of the financial history and present status of the
University in order that you may have it before you in considering the budget
which I am submitting to you. It seems, not only timely to me, but imperative
that the State determine the policy it will pursue in the field of higher educa-
tion in the State and the extent of its support of the University and the other
colleges and schools, during the next several years.

From the comments of Governor Ritchie, in his several Messages to the
General Assembly, it is apparent that he foresaw the gravity of the problem
which lay ahead in the field of higher education in the State—all of which
strengthens my conviction that some yardstick must be found to determine the
State's financial support of the State-aided colleges and schools and the future
development and expansion of the University in relation to the ability of the
State to carry the total cost.

The University has requested for the years 1940 and! 1941, for maintenance,
$1, 535, 293. 50, and for new construction and capital outlay $290, 000. 00 for 1940
and $200, 000. 00 for 1941.

After much consideration of the entire problem and study of the cost of
the many activities of the University, I have included in the Budget a recom-
mended allowance to the University of $1, 164, 135. 00 to be used as follows: the
sum of $100, 000. 00 especially dedicated to the continuance of the campaign for
the control of Bangs Disease, and the sum of $40, 000. 00 especially dedicated to
the continuance of the campaign to control the spread of the Japanese Beetle;
and the University for its Educational and other diversified activities the sum
of $1, 024, 135. 00 for each of the years 1940 and 1941. This, together with stu-
dents' fees, Federal funds and other income will give the University a total
operating budget of approximately $3, 364, 000. 00.

You will find a recommendation noted on the budget sheet relating to the
University of Maryland—that the University be allowed to allocate this sum
of $1, 024, 135. 00 to the various Departments on a pro rata basis—or, as nearly
along that line as possible, as the Board of Regents and the President of the
University deem advisable, subject to a Budget Amendment to be submitted to
the Board of Public Works for its approval. In recommending this allowance
for Educational and other activities of the University, I have included for 1940
and 1941 the sum of $75, 000. 00 in each year more than I would have recom-
mended if the University was not facing a deficit, on September 30, 1939, to
which I have previously referred. With this additional sum included, I feel
that it is the responsibility of the University to readjust its operations in such
a manner as to enable it to absorb from this additional allowance during the
next binennium any deficit which it may actually have at the end of the present
fiscal year.

In view of the present extensive construction program in which the Uni-
versity is now engaged, I recommend no allowance from the proposed State
bond issue for new construction or capital outlay.

State Roads Commission

The State Roads Commission derives all its income from gasoline taxes, net
receipts of the Commissioner of Motor Vehicles, after payment of salaries and
departmental expenses, and the net receipts of the Traffic Courts and Maryland
State Police after payment of their respective salaries and departmental ex-
penses. While no part of their income is from General Funds, the salaries