MARVIN MANDEL, Governor

3865

distribution among the states of revenues derived
from import duties on petroleum and petroleum
products , if the President and the Congress find it
necessary to increase the taxes on gasoline and
crude oil, to compensate them for revenue losses
incurred through reduced gasoline consumption caused
by these import duties.

President Ford, as part of the Administration's
program to combat energy problems and inflation, has
signed a proclamation to impose import fees on crude oil
and refined products. One result will be a major
increase in the price of gasoline and crude oil for
highway users.

Maryland joins the President and Congress in seeking
answers to the complex problem of energy shortages,
rising prices, increasing unemployment and inflation.
Maryland has already felt a significant decrease in
highway revenues due almost entirely to the decline in
gasoline sales resulting from supply shortages and higher
prices at the pump.

Many other states also affected by the reduced sale
of gasoline have greatly slashed the number of highway
construction projects or have declared a moratorium on
new construction.

Since the Federal Government's action is designed to
effect a very large increase in the per gallon price of
gasoline, Maryland will suffer in two ways. The price
increase will reduce consumption. As a result, highway
revenues will drop further from their already lower
levels. Such reduced revenues, coupled with construction
cost increases in today's inflationary period, may
seriously impair state highway programs and may cause
increased unemployment. Furthermore, with the per gallon
price of gasoline raised greatly, states effectively
would be prevented from enacting additional state
gasoline taxes at this time.

If the President and the Congress find it necessary
to increase the [[price of]] taxes on gasoline and crude
oil, they should take action to ensure that states
receive back from the Federal Government an amount
roughly equivalent to state revenue losses due to reduced
gasoline consumption. Such a return could be financed by
allocating to the states a portion of the funds generated
by the import fees on crude oil and refined products;
now, therefore, be it

RESOLVED BY THE GENERAL ASSEMBLY OF MARYLAND, That
the Maryland Congressional Delegation be urged to support
legislation providing for a distribution among the states