ASSESSMENT AND LEVY OF 1905. The assessable basis of the State, $705,561,456, continues to show a very healthy increase $24,817,662. Of this increase Baltimore City shows a gain of $20,539,991. When we consider that the assessable basis of the State twenty years ago-1885— was only $478,468,028, it will be readily seen how fast the State has increased in material wealth and prosperity. This wealth, however, as far as the State's revenues are concerned, is useable only for the Public Schools, School Books, and the Sinking Funds. PUBLIC SCHOOLS AND FREE SCHOOL BOOKS. Statements L and M show the receipts and disbursements on account of these funds. There was distributed during the year to the Public Schools of this State, the unprecedented sum of $1,195,565.22, or a gain of 62 per cent., by far the largest amount ever disbursed. During the year this fund has felt the full operations of the law of 1904, Chapter 584, whereby the rate was changed from 1011⁄2 cents to 15 cents on each $100. If this rate remains it must necessarily produce more revenue, for as the basis increases each year, so must the collections, not only on account of such increase, but necessarily so from arrearages. Therefore, we may readily expect to see this fund in the next two years approach the million and one-quarter mark, provided the present rate is maintained. There was disbursed during the year on account of Free School Books the sum of $150,000, although the tax of 134 cents produced but $127,832.33. The amounts, therefore, distributed to Baltimore City and the several counties from these two funds were $1,345,565.22, the taxes levied therefor being 1634 cents, or within 14 of one cent of the whole State tax for the years 1901, 1902 and 1903. In addition to this, the State paid during the year just closed $32,600 to Manual Training and Industrial Schools. $32,500 to Academies and High Schools, all of which came out of the general Treasury, while there was distributed on account of the Free School Fund the sum of $48,566.49. In view of these facts, it does appear that the State is doing its full measure, if not more, towards maintaining the Public Schools of the State. Anything further than this, in my judgment, should be provided for by local revenues. Indeed, I am fully convinced that the entire State Public School Tax, now 15 cents, and 134 cents for School Books, should be reduced to 15 cents, and from the revenue thus produced deduct first the sum of $100,000 for Free School Books, distributing the same as now provided by law, the remaining sum, which will be over $1,000,000, to be distributed in accordance with Chapter 584 of the Acts of 1904. This would reduce the State tax rate 134 cents without injury to Baltimore City or any County in the State; indeed Baltimore City contributed to these two funds $141,896.68 more than it received. The advocates of the new School Law asked for such a tax rate as would produce $1,000,000 per annum. Fifteen cents will not only do this but care for the Free School Books as well, and I therefore recommend your Honorable body to pass such a bill, and thus relieve the taxpayers of this 134 cents. PUBLIC HIGHWAYS. The Legislature of 1904, by Chapter 225, provided for the improvement of the public highways by an Act entitled “An Act for the improvement of the public highways of the State and to provide the means therefor." Unfortunately for the success of the measure, the only means provided therefor was a direct appropriation from the State Treasury as follows: "Section 16. And be it enacted, That the sum of two hundred thousand dollars annually, or so much thereof as may be necessary, be and the same is hereby appropriated out of any money in the Treasury not otherwise appropriated, for the purpose of carrying out the provisions of this Act." I have endeavored in these remarks to present to you the full and true condition of the Treasury of the State. From such presentation, it becomes very manifest that the Treasury cannot stand this very large appropriation, and the Commission was so advised by me. While the question of "good roads" appeals to every intelligent citizen, and wisely so, yet the means to provide for their construction is the vital one for your consideration. The State cannot meet this appropriation now with its present revenues and obligations. Therefore, it is for your Honorable body to provide other sources of revenues materially reduce the present level of expenditures. or In my judgment, it would be unwise to levy a direct tax, which means at least an addition of 3 cents to the present 231⁄2 cents. Unwise, because the present State tax is now too high, and for the further reason it would be manifestly unfair to Baltimore City. While the said City enjoys the benefit of the very large appropriations to the various institutions within and near its borders, yet its people have contributed of their substance, and willingly so, far more towards maintaining the Public Schools than they have received, and to call upon them now to contribute more than half of the expenses in building highways throughout the counties of the State, while they receive nothing in return for their own streets would, in my judgment, be manifestly unfair. Therefore, to make this Act effective, you must either provide other sources of revenue, by direct or indirect taxation, or reduce expenditures. CONCLUSION. If, in your judgment, you deem it wise that the State tax rate should be changed, permit me to respectfully offer this suggestion: Under the new Charter of Baltimore City, the tax levy is made up and imposed in the month of December for the year succeeding, while a large percentage of the taxes is paid in the January following. Inasmuch as the State taxes are levied and collected at the same time, it therefore becomes manifest that the City authorities might levy a tax the rate of which the next Legislature might change. This condition did occur in December, 1903, the City levying at that time and collecting in January the State Tax of 17 cents for the year 1904, while the Legislature in March passed a different tax rate-222 cents. In order to avoid this confusion, if you should deem it best to change the rate, it could be done by making the rate effective for and after the year 1907. It has been my endeavor in these remarks to present a plain statement of the financial condition of the State. While the exhibit is most satisfactory, demonstrating clearly the healthy condition of the Treasury, yet it is as clearly shown that the revenues of the State are barely sufficient to meet its demands. May I therefore urge upon you the strictest economy, not only in the matter of the expenses of your Honorable body, but also in weighing carefully every appropriation that shall come before you, to the end the results of your deliberations may be crowned with wise, beneficial legislation. I cannot close these remarks without expressing my warm appreciation of the wise and intelligent interest manifested in the fiscal affairs of the State by his Excellency, Edwin Warfield, Governor of Maryland, whose long business training and sound judgment has rendered to the State and to me invaluable aid. To the Hon. Murray Vandiver, State Treasurer, with whom I have been associated for the past two years, my thanks are also His long experience as a financial officer of the State has qualified him to be of great assistance to me. To my Chief Clerk, Harry J. Hopkins, Esq., I am especially grateful. His long experience in the Comptroller's office hast qualified him to render me assistance I consider invaluable. To him and the several clerks in my department whatever merit is herein found is gratefully shared. Respectfully submitted, GORDON T. ATKINSON, Comptroller. |