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ues for 1977-78 as now projected, the Governor may have to order a reduction in aid to the localities which I hope will not be the case. Indeed, I hope that the revenues based on a pickup in the economy will enable the Governor to put into effect the pay increase as well as avoid any reduction in state aid to the localities.
The budget bill, as usual, contains a number of compromises but I am glad that the General Assembly was able to avoid any increase in the state income or sales tax.
There is a good possibility that one of the last actions of the General Assembly will be to submit a bond issue proposal to the people for their approval or rejection in the election of November, 1977. The capital projects would be principally in the field of corrections for prison facilities and in higher
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