REPORT

OF THE

COMPTROLLER OF THE TREASURY

OF THE

STATE OF MARYLAND

December 1, 1939. .

To His Excellency,

HERBERT R. O'CONOR,

Governor of Maryland:

In compliance with Section 9 of Article XIX of the Annotated
Code of Maryland, which directs the Comptroller to submit an
annual report of the fiscal affairs of the State, I hereby submit
this, my first annual report since assuming the duties of Comp-
troller, of the fiscal affairs of the State for the fiscal year ended
September 30, 1939. It is also significant to note that my first
annual report is being written in the new State Office Building
recently completed by the State in the City of Annapolis, and
which has just been occupied by various other Departments of the
State Government.

I call your special attention to Statement "D", Balance Sheet
as of September 30, 1939, from which you will observe a general
fund surplus of 14,4:67,725.16. We have made a careful and con-
servative estimate of income anticipated for the fiscal year 1940,
and have taken into account appropriations contained in the 1940
Budget, and estimate that the general fund surplus on September
30, 1940, will be $4,246,580.04. This amount is shown in Statement
"KK" of this report.

In connection with the estimate of general fund surplus at Sep-
tember 30, 1940, I wish to direct your attention to the expected
receipts from the Income Tax Law enacted by the General Assembly
of 1939. The General Assembly estimated the yield from this tax
at $8.000,000.00. Of this amount approximately $1,600,000.00 will
be distributed to the political sub-divisions of the State in accord-
ance with. Section 12 of the Revenue Act of 1939. The balance of
approximately 16,400,000.00 will go into the general funds of the
State. The total cost of the relief program of the State Department