2100                             Joint Resolutions

Whereas, The total outstanding bonded indebtedness of the vari-
ous subdivisions for school construction is approaching one billion
dollars ($805,813,274 at the end of Fiscal 1968), which represents
nearly 6% of their total assessed wealth; and

Whereas, The annual expenditure for school construction is in-
creasing regularly as evidenced by the following data

Total Statewide Expenditures Expenditures for Large County

Million                           $19.4 Million

22.5 "
21.9 "
30.8 "
28.5 "; and

Whereas, Such regularity of increase in capital expenditures sug-
gests that a major portion thereof represents a recurring annual
cost, and could therefore be reasonably considered to be a current
obligation; and

Whereas, The annual cost of servicing such debt is increasing
rapidly, having reached in 1968 a total of $66.4 million, (including
$25.9 million in interest payments) or nearly 60% of the total
amount expended for construction for that year, and if annual
expenditures continue at present levels, a point may be reached at
which debt service costs will exceed annual capital costs financed
on a current, or pay-as-you-go basis; and

Whereas, The Governor has appointed a commission to study
the entire problem of financing education in Maryland; now, there-
fore, be it

Resolved by the General Assembly of Maryland, That the General
Assembly requests the commission appointed by the Governor to
study the problems in the financing of educational costs in the
State to give attention to the increasing annual cost of school con-
struction along with corresponding heavy increases in debt service
costs, and that it attempt to determine the feasibility of shifting the
payment of all or a portion of such expenditure from borrowed
funds to current appropriations; and be it further

Resolved, That if pay-as-you-go financing is found to be feasible,
in order to achieve such goal the commission is requested to develop
either an appropriate State funded program, or one involving an
equitable State and local sharing of costs; and be it further

Resolved, That copies of this Resolution are sent to the Governor
of Maryland, the Chairman of the Gubernatorial Commission on
financing of education in the State, and the State Superintendent
of Schools.

Approved April 22, 1970.

No. 37
(Senate Joint Resolution 54)

Senate Joint Resolution requesting the Board of County Commis-
sioners of Allegany County to appoint a Commission to study