and documents with great care, for, as I remarked in my message to
you three weeks ago, the budget for fiscal 1964 will be one of your
primary concerns during the remaining days of this session. The
program which I am submitting to you attempts to carry on policies
set by my Administration four years ago — policies based on sound
financial doctrines and a prudent management of all public funds.
It is my hope and my determination to continue these policies for
another four years. The proposals which I am offering for your con-
sideration call for a total fund expenditure of $603, 764, 121 of which
$299, 111, 104 is in general funds.

It is most gratifying to me to be able to report to the General
Assembly again that no new taxes are required to balance our general
fund budget This, I think, is a result of the sound fiscal management
of the past four years — achieved through the joint efforts of the
Legislature and the Executive — coupled with the strong and stable
economic conditions which Maryland has enjoyed.

While it is comforting to contemplate that we may not be called
upon to impose new taxes at this session, duty dictates that we give
serious consideration to some factors and trends which indicate that
this situation may change in the very near future. During the decade
1953-1963, the general fund budget of our State has increased at an
average annual rate of approximately $17. 5 million. The budget
which I am presenting to you today forecasts the end of that trend,
and in fact increases general fund appropriations in the amount of
$25, 551, 060 over the current year. There are a variety of reasons why
this increase is necessary. For example, $3, 650, 000 was required to
meet the salary increases of State employees which have been recom-
mended by the standard salary board or ordered by the General
Assembly. And aside from these salary requirements, an increased
rate of budget expansion in future years over the rate of the past
decade will be necessary because of accelerating enrollments in our
public schools and colleges, increases in welfare caseloads and hospital
and penal populations, expanding physical plant and stepped-up
costs for retirement and social security.

In weighing the needs of the future and considering the steps
that must be taken to meet them, we of course must attempt to
predict as accurately as possible the revenues we may expect. Current
estimates provided me by the Board of Revenue Estimates indicate
that revenue yields for fiscal 1963 and 1964 fail to meet our budget
needs by an amount in excess of $25, 000, 000. With continued econo-
mic prosperity and strict control over our expenditures, it may be