J. MILLARD TAWES, GOVERNOR                           615

personal and mixed property whether in possession or expectancy
and including also all liabilities and relating generally to such trans-
fer and to the State's appropriations to Miners' Hospital.

Whereas, Since a 1948 survey by the Hospital Survey Commis-
sion of the Committee on Medical Care of the State Planning Com-
mission recommendations have been made that after completion of
a building and renovation program at Miners' Hospital responsibility
for operation of the hospital should be transferred to local interests,
and that building and renovation program has been carried out; and

Whereas, On June 6, 1956, the Legislative Council adopted the
following report relating to Miners' Hospital:

Continued State operation of Miners' Hospital. At a long hearing
held previously on this matter, it was developed that (1) this is the
only general hospital in the State which is operated and maintained
by the State, and (2) any sudden withdrawal of State support would
cause havoc in the public health facilities of the community. Accord-
ingly, the recommendation is that this matter be held on the Legisla-
tive Council agenda until next year, and that letters be written to the
hospital officials and to local government officials in Frostburg and
Allegany County, notifying them that the matter is being held in
abeyance by the Legislative Council for a period of one year, in order
that during that time, in accordance with the assurance and repre-
sentations made by such officials at the time of the hearing above
referred to, they may recommend some definite plan and time for
transferring the hospital from State to private operation; and

Whereas, at the 1957 Legislative Session the House Ways and
Means Committee and the Senate Finance Committee arrived at a
policy which was embraced by an understanding arrived at between
committees and the Board of Directors of the Hospital and together
with representatives of Allegany County; the substance of this agree-
ment was that in order to provide for a period of orderly transition
from operation as a State institution to operation as local institution
beginning with the 1959 fiscal year the State general fund appropria-
tion each year would be reduced by 25 per centum from the 1958
fiscal year level of appropriation with the result that the 1959 fiscal
year level of support would equal 75 per centum of the 1958 appro-
priation, the 1960 level would be equal to 50 per centum and the 1961
level would be 25 per centum, and there would be no direct general
fund appropriation for the fiscal year beginning July 1, 1961, and
ending June 30, 1962; this plan has been adhered to in budgets sub-
mitted to the General Assembly for the year ended June 30, 1959,
and June 30, 1960; and

Whereas, Transfer of the hospital to local control would enable
the hospital to be eligible for State aid appropriated to the State
Department of Health for local public and private general hospitals
for their in-patient and out-patient programs; and

Whereas, Analysis of the finances of Miners' Hospital indicates
that beginning with the fiscal year starting July 1, 1960, and ending
June 30, 1961, it would be more advantageous financially for the
hospital to participate in the State-aided institution program than to
receive the level of support that will then be available under the
phasing-out program recited above, this leading to the conclusion that