Combined address and budget message of Governor Ernest Vandiver, January 11, 1960

12:00 O'clock, Noon, Monday, January 11, 1960. (NEWSPAPERS. RADIO&. TV. PLEASE OBSERVE NOON EMBARGO.)
(Combined Address and Budget Message of Governor Ernest Vandiver to be delivered before a joint session of the Georgia General Assembly meeting in the House of Representatives' Chamber at the State Capitol in Atlanta. The Governor's address was telecast and broadcast over statewide networks of television and radio stations.)
LIEUTENANT-GOVERNOR BYRD, HOUSE SPEAKER SMITH, MEMBERS UF THE SENATE AND OF THE HOUSE OF REPRESENTATIVES. STATE OFFICIALS. DISTINGUISHED VISITORS AND MY FRIENDS THROUGHOUT GEORGIA:
One year ago this General Assembly and the Vandiver administration embarked upon a working partnership to restore morality, economy and efficient operation to State government.
The theme of our efforts during the past 12 months has been cleanup and economy.
The theme of our efforts at this session and throughout the year is reorganization and progress.

Last year, this administration and this General Assembly were among the very few in the country not raising taxes.
This year, the Vandiver administration again will not ask for any new taxes.
We-will, however, present to the people a program of positive, constructive accomplishment in education, mental. health, general public health, highways, welfare and in other rircas of essential services unmatched and unsurpassed in scope and potential in Georgia history.
We will present a program
to meet the needs of a growing and prosperous state to put the General Assembly you, my friends -back in the business of appropriating money a program that this administration and this General Assembly can carry to the people in the legislative elections this year in full confidence that it will meet with their overwhelming acceptance and approval.
Now we are moving toward an even greater Georgia.
FULL STEAM AHEAD!
Administration measures to be presented here, together with legislation enacted by you last year, will mark this Assembly as a hard-working one which keeps the people's interests first and foremost and which keeps full faith with the citizens of Georgia.
ECONOMY PAYS DIVIDENDS
The past year has demonstrated that economy, reorganization and more effective budgeting procedures pay rich dividends. These are areas in which the most dramatic results have been achieved for the benefit of the taxpayers of Georgia.
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You ask: How have the 1 59 and '60 hu<lgets been balanced without new taxes?
The answer, simply stated:
ECONOMY -- definite, traceable economies $7,000,000.
INCREASED REVENUE DEPARTMENT COLLECTIONS through efficient enforcement of State tax laws and due to an expanding economy from January through December, 1959 $25,600,000.
PURCHASING SAVINGS -- in calender 1959 due to competitive bidding and businesslike management $3,600,000.
That is over 36-million-dollars in one year alone that prudent administration has made available for use in financing essential services.
These are figures that the taxpayer can understand and appreciate.
They prove that only the economy and good management policies of this administration saved us from bankruptcy.
IMPROVEMENTS FINANCED
During 1959, the Administration was able to balance the budget by July 1 and also during the year made many significant advances.
Among these were: acquisition of the Whitehall Plantation property at the Savannah State Port; authorization for construction of new area vocational trade schools to be located at Albany, Augusta, Columbus and Rome; carrying forward educational, welfare, mental health and institutional programs on a current basis; providing $8,000,000 for emergency highway construction and maintenance; making long-needed repairs at State Parks; going ahead with the Stone Mountain project; expanding the Girls Training School at Adamsville and the Georgia School for Mental Defectives at Gracewood;
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acquiring property for farm market expansion at Macon, combatting the white-fringed beetle; inaugurating in the Agriculture Department a new program of seed producing and processing, and other forwardlooking projects.
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I am humbly proud of what has been accomplished.
I am deeply grateful for the full support of this General
Assembly which has stood foursquare with us in our program.
It could not have been done without the active cooperation of the press, the radio and the television stations of the State in keeping our people constantly informed.
It could not have been done without the help of the people, and I would like to express my everlasting gratitude to all the people of Georgia for the wonderful backing you have given me in such generous measure.
STATE OF THE STATE
I am gratified to report to you that the state of our great State of Georgia IS EXCELLENT!
During 1959
. . industrial development and expansion of existing plants moved far ahead of 1958.
business established all-time records.
.. . gainful employment topped the million mark for the
first time
construction activity abounds all over the State such adjectives as "bustling" - "booming" - "stable" "brightes t era " - surging " - tt on the upgrade,' and others are being used to describe busy Georgia people and Georgia progress.
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It is to hold this banner high -- it is to further this progress -- that the Vandiver administration presents its program.
ECONOMY AND REORGANIZATION COMMISSION
Since we met here last year, the Economy and Reorganization Commission, created by this General Assembly, and composed of members representing all walks of life, has formulated its final recommendations for your consideration and legislative implementation.
Permit me to express my appreciation to Commission members and to the Commission staff for the hard work and long hours spent in discussion and intensive research.
As a result of this Commission's study, several definite conclusions were apparent to me and to all of its members.
Georgia never can expect to achieve completely sound fiscal operations, proper budgeting or to attain maximum efficiency in its departmental operations until the following conditions are met:
1. The people's elected representatives in the General. Assembly have restored to them -- their rightful responsibility of appropriating money.
2. An Appropriations' Dill is enacted at least biennially.
3. The Governor and the members of the General Assembly have available to them accurate, sufficient information upon which to carry out their responsibilities to the people.
To bring about these objectives, the Vandiver administration proposes:
First, strengthening the Finance Commission, as recommended in the Economy and Reorganization study, by expanding its membership and frequent consultation where the utmost cooperation is essential between the Governor and the members of the Legislature.
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Second, to authorize the Governor and the State Auditor to employ such staff assistance as they may deem desirable to perform fact-finding duties for the Budget Bureau and the expanded Finance Commission.
Third, we may as well recognize that the so-called gasoline and tag tax allocation amendment, since its adoption, has had the effect of preventing the enactment of appropriations' bills.
Why?
Simply because passage of an appropriations' bill would necessitate taking lar~e amounts of funds away from other departments affording vital services to the people.
The amendment's practical effect has been to put the Legislature out of the appropriating business.
At the same time, highway needs have suffered.
There is strong sentiment to repeal the amendment outrigh~.
My proposal to you at this session does not do that.
Instead, it is a positive approach to a critical problem.
I ask you -- the 1960 General Assembly of Georgia -- to join me in presenting to the people for their approval a selfexecuting constitutional amendment for better roads. It would require the allocation from the Treasury for highway, rural and post roads construction, maintenance and grants to counties of an amount not less than the previous year's receipts from the State gasoline excise tax.
This proposal forms the basis for the Vandiver road program.
If adopted, by you and by the people, it will continue year after year after year.
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The end result will be more adequate financing of the Highway Dcpartment,which can be done under this plan without neglecting the educational, health, welfare and other responsibilities of the State and will put back into the hands of the General Assembly the right of determining what shall be appropriated for the agencies of the State, including the Highway Department, as to amounts over and above the constitutional mandate.
Its passage will make it possible for the Vandiver administration to present an appropriations' bill to you for your consideration next year.
That is something I would very much like to do,
INTEREST ON IDLE FUNDS
Certainly, one of the most important of the economy recommendations was brought on by the obvious injustice of the State's not receiving reasonable earnings from its idle funds.
The banking industry, through its Association, designated a Georgia Bankers' Association Committee to advise with the Economy and Reorganization Commission on this matter. In its report, the bankers committee solidly endorsed good management in government and expressed the belief" that all idle funds of the State should be invested in a secure, liguid and economical manner."
That must be done.
Certainly, income derived from this source can be put to good use. It is estimated by the Commission that between $600,000 and $2,000,000 can be realized annually depending upon the interest rates to be established.
Of almost equal importance nre the recommendations in regard to the State government's insurance of its properties. Here, too, a representative, industry-wide group furnished able and thorough assistance to the Commission. After weighing an excellent
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set of recommendations made by the insurance group and after considering other staff findings, the Commission concluded that "A careful classification, inventory and evaluation of State properties, real and personal, are necessary before a sound program can be developed."
In light of this finding, it recommended:
That responsibility for administration of the State's insurance schedule be assigned to the State Supervisor of Purchases;
That he be authorized to employ the personnel necessary to carry out the inventory and to initiate the development of a sound insurance program.
I join in this recommendation.
STATE WITHHOLDING
An administration proposal, which bears the endorsement of the Reorganization Commission, is to install a system of withholding of State income taxes.
Let me emphasize, as strongly as I know how, that THIS IS NOT A NEW TAX! THIS IS NOT A REVENUE RAISING .MEASURE!
It is an improved method of collecting an existing tax.
Let me urge that you refrain from amending this proposal without consultation with appropriate revenue authorities and that you refrain from defeating its purpose by the introduction of unrelated material.
Every one of the sixte~n states which has enacted withholding laws has written us that they arc working successfully -that public acceptance has been excellent that collections have increased -- that evasion has been minimized that administration of the income tax laws has been vastly improved and -- that the system is much easier on the taxpayer.
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PRISON PROGRAM AND INDUSTRY
The foundation for effective rehabilitation of prisoners must be a work program in which each inmate is given an opportunity to devote a full day's work to a meaningful task.
That is the goal of the Vandiver administration for Georgia's Prison System.
In an excellent study of prison needs, the Economy and Reorganization Commission recommended, among other things,
the use of a revolving fund for prison industries;
creation of a prison industries operating administration; and,
that products of such industries be sold only to public instrumentalities.
Legislation should be adopted at this session to implement these proposals.
PERSONNEL REORGANIZATION
Another Commission bill of far-reaching importance, which I recommend, calls for improved personnel administration. It provides for a complete reorganization and strengthening of the State Merit System.
Other economy and reorganization bills -- about thirty in number dealing with a wide variety of subjects will be presented to you and will complete the Commission recommendations.
I urge their speedy enactment.
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Defore entering upon a discussion of budget plans for the 1960 - ~1 fiscal year, there arc two other matters of general interest and importance which I should like to discuss.
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STATE - COUNTIES - CITIES
First, I have said on several occasions -- and I repeat now -- it is the avowed policy of the Vandiver administration to help our counties and cities directly -- and to help them indirectly -- to help themselves. All reasonable proposals to accomplish these objectives have my sympathetic support. I sec no reason why any impediment should exist in the Constitution of Georgia to prevent this General Assembly or future General Assemblies from making grants to our incorporated towns and cities on a formula basis to assist them in carrying out those projects which are, in fact, of statewide interest and concern.
"EDUCATION PACKAGE"
Second, there will be presented to you an "Education Package" of three bills and one proposed constitutional amendment which have the hacking and support of educational leaders in the State. Their purpose is to strengthen education, to strengthen local control and to strengthen local participation and responsibility. I commend them to your careful consideration as essential steps in the direction of better education for Georgia.
BUDGET AND FISCAL
Let's look ahead now to July land consider financial plans for the coming fiscal year.
Let's sit back and take a look at the ledger.
For reasons already stated, it is not possible to have an appropriations' bill this year. However, the administration will offer an amendment to the second or contingent section of the 1956 Appropriations Act, carefully thought out within the limitation of anticipated revenue, to meet the critical needs of the State for the 1960 - '61 fiscal year.
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No one now can predict with accuracy what the revenue situation will be next July 1st or what the surplus will total on that date.
We do know that none of the estimated increase in revenue that will be realized by withholding payments which could start coming in July 1st would reflect in the net operating surplus to become available for '60 - '61.
We know also that, while the net operating surplus at the beginning of the present fiscal year, last July 1st, was $30,066,162.12, it was necessary for budget authorities to allocate from this fund $24,002,745.47 immediately to finance essential State needs. Today, considering other allocations for emergency items, only a little over five million dollars remains in the net operating surplus available for expenditure in this fiscal year. To me, and to other budget authorities, this is a dangerouslylow cushion to have under a $350-million-dollar a year budget since this only represents about five days operating money.
Of course, I am sure that you understand that increases.
in revenue cannot be applied to surplus until all current bills are paid. Budget authorities cannot spend money they don't have.
It is gratifying to report to you today that the current rate of State expenditures of approximately $350,000,000 annually is well within the current rate of State income.
The DUDGET IS BALANCED.
I am sure that you want to help me keep it that way.
CAPITAL IMPROVEMENT NEEDS
With the increase in State income and a generally-improved outlook on State finances, I have concluded, in view of major capital needs which no longer can be deferred, that the wisest course for us to follow would be to provide adequate amounts now to huild permanent improvements, financing them through the authority method.
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We should contrast strongly the lliffcrcnce bct:.t!en ii,1provemcnts of a purely temporary nature and those of a permanent nature when considering deferred financing. I still strongly believe that it is unwise to finance through the authority method temporary improvements that would be worn out four times over before their cost is paid.
I am submitting to you several amendments to existing
authority acts which will be required to implement the proposals which I will make to you. I ask your earnest consideration of the passage of these acts.
These proposals will enable us to take care of school and college capital outlay needs.
They will make it possible for us to undertake immediately the construction necessary to transform ~lilledgeville State Hospital into a great teaching institution; to construct necessary buildings for the prison system and improve other State institutions.
THE PROGRAM
For those of little faith who doubted that economy would work -- for those of little faith who scoffed at the idea that honesty in government would pay dividends -- here is the Vandiver administration program for the next fiscal year:
COMMON SCHOOL EDUCATION
I propose for education the largest increase since the
Minimum Foundation Program was activated in 1952 - an increase of $19,016,323.88.
I propose a $200-per-year, average salary increase, for our school teachers, to become effective immediately at the beginning of the fiscal year, July 1st, to cost, $6,500,000.
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I propose an immediate program of $60-million-dollars in new school construction to provide a modern classroom for every Georgia child, costing $5,500,000* annually to amortize.
Educational authorities estimate that there are in excess of 100 counties with provable classroom needs at this time. These requirements must be satisfied first.
I propose an immediate program for expending j?8-milliondollars in new area trade school construction, to augment the program already begun by the Vandiver administration. (*amortization cost included in above.)
I propose that we provide $50 additional maintenance-andoperation funds, per state-allotted teacher, to assist local school systems, costing $1,560,000.
I propose the construction of an experimental educational television station for the Department of Education at a cost of $500,000 at Waycross.
UNIVERSITY SYSTEM
I propose for higher education a $12,370,000 construction program to meet top priority capital needs, costing $1,000,000.00 annually to amortize.
This would include the following:
University of Georgia A new Coliseum Pharmacy Building Annex to Forestry Building
Georgia Institute of Technology Engineering Iluilding Annex to Chemistry lluilding Annex to Physics Uuilding
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Georgia 'State Co]]cge of Business Administration Gymnasium and Auditorium
Medical College of Georgia Annex to Library
Middle Georgia College Health and Physical Education Building Dormitory for Women
Fort Valley State College Science Building Home Economics Iluilding
These, may I remind you, are in addition to a $12-milliondollar capital expansion program undertaken last year by this administration for the University System.
And this does not include another $7,000,000 in new selfliquidating dormitory projects, for which an application now is pending with the Housing and Home Finance Agency.
For University System operations in the coming year, I propose an increase of $1,500,000.
In addition, for the Talmadge Memorial Hospital at Augusta, I propose an increase of $500,000 for operations and the opening of 100 new beds.
TEACHER RETIREMENT
For State contributions to the teacher retirement fund, to
match teacher contributions, to make the fund actuarially sound, I
ask you to authorize an additional $750,000.
MENTAL HEALTH
It is my fondest hope that when the annals of 1959 are recorded, it will be remembered as the year in which the forgotten patients at Milledgeville State Hospital were remembered by this General Assembly and the Vandiver administration.
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It is my hope that history and time will record our works,

in humanity's good name, for providing the machinery and the means

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for a far-reaching program for the treatment -- the psychiatric

treatment -- and the care of those suffering from mental illness.

The public interest in improving the hospital is at an all-time high. Mrs. Vandiver and I want to thank the many organizations and groups which have responded to our appeals for recreational and other materials for the patients. Particularly, do we want to thank the many communities which participated in the motorcades of gifts just before Christmas to make it the best ever at the institution.

You and I have visited there recently.

We know the needs.

We know what must be done.

Now it is up to us.

HOSPITALS AND TREATMENT
For Milledgeville State Hospital, I propose that we begin immediately a large-scale building program, aggregating $6,460,000, to provide adequate housing, treatment facilities and diet preparation for the patients there, as well as quarters for the new in-service psychiatric trainees.
This program will include:
Construction of a new central diet kitchen to prepare uniform, hot meals for the whole far-flung institution.
Two new 500-bed hospital units.
One new 500-bed treatment building.
A new 200-bed wing for the Arnold Building. A new staff dormitory; and,

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A new 15-unit apartment building for staff and training personnel.
The program embraces also a long-needed sewage disposal plant to be built in cooperation with the City of Milledgeville and Baldwin County.
The Vandiver administration requests immediate authorization for an Intensive Treatment Hospital in the Atlanta area with 100 beds to be built-at a cost of $2,750,000. This hospital would include service facilities for 200 beds so that the institution could be expanded later.
For Milledgeville State Hospital operations, I propose an increase of $1,300,000 to be used to provide additional physicians and psychiatrists, more nurses and attendants, added occupational therapy and recreation specialists, better property control, -additional housekeeping and business personnel and to provide stipends for psychiatric residents and nurse trainees.
As a part of the overall Mental Health program, I also
propose an increase of $200,000 for the Intensive Treatment program throughout the State in the coming fiscal year.
GRACE WOOD
At Gracewood, I ask that we move forward to provide the physical plant necessary to make the institution effective and serviceable to the greatest number of people within the limits of its proposed optimum capacity of 2,000 white children and 1,000 colored children. At present the Graccwood School can care for only 1,300 white children and 100 Negro children.
There are now more than 600 children on the waiting list.
I ask that $3,000,000 in new construction be undertaken at Gracewood as soon as possible to reach its full capacity. I ask that the outlay for operations for the institution be increased by
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$396,000, to take care of a projected increase of 300 in the patient load there in fiscal '61.
PUBLIC HEALTH
For general operations in the state Hoal th Department, I propose that we provide an added $485,000. This money would be used for administrative stipport for institutions and grants to local health units.
An additional $1,010,000 will be needed for debt service outlay, making a total increase of $3,149,000 for better health in Georgia.
HIGHWAYS AND MAINTENANCE
To meet acute maintenance needs, as far as budget resources
will permit, I propose that we raise the amount budgeted for-highway
repairs in the coming fiscal year from $15,000,000 to $20,000,000.
All federal aid and debt retirement can be met next year within the present budget.
As strictly state-aid highway construction, I propose an additional $5,000,000 for this purpose for fiscal '61 which will give us a state-aid road program of $14,500,000 in calendar 1960.
CORRECTIONS AND REHABILITATION
For some years Georgia has had the problem of an expanding prison population. Little has been done to meet the problems created by this expansion.
At the main Reidsville prison, the housing situation is critical. We have 2,500 male felony and misdemeanor prisoners in a semi-security institution which was constructed for a maximum capacity
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of only 1,500.
Here, step by step, is the initial program which this administration supports to improve prisoner rehabiJitation in Georgia.
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REIDSVILLE
I. Construction at the Reidsville Prison this year of two new security wings, 240-capacity each to be built with inmate labor to cost $500,000.
2. Shifting of the remaining 152 female prisoners at Reidsville next month to suitable quarters at the Milledgeville State Hospital for productive work there.
3~ Alteration of an existing building at Reidsville to house approximately 400 male misdemeanor prisoners.
4. Construction of a new 1,200-capacity, industrial-type prison at an estimated cost of $4,000,000, including industrial equipment and a classification center.
To make its immediate construction possible, legislation will be presented to you to create a State Penal and Rehabilitation Authority. You will be asked to provide in the '61 budget the sum of $400,000, to cover amortization of this amount.
STATE HIGHWAY PATROL
With a reorganized State Highway Patrol, and its members working many hours of overtime, the death rate on Georgia highways last year was the lowest per mile traveled the State has experienced since record-keeping began in 1937.
To reduce the death rate still further, I ask you to join
me in authorizing the expenditure of an additional half-milliondollars annually to add fifty new troopers to the present strength of the State Highway Patrol.
TRAINING SCHOOLS
For Training Schools, a $500,000 annual institutionol improvement fund, together with an additional $200,000 for operations. will make it possible for us not only to improve the effectiveness of the educational, training and rehabilitation programs at these
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institutions, but also to effectuate long-neglected, major improvements in the housing, teaching, training and recreational facilities of all of them.
ARCHIVES BUILDING
For the purpose of preserving valuable State and county records, it is my recommendation to you that an additional $300,000 be authorized for the State Office Building Authority for the early erection of a State Archives and Records Building.
STATE PORTS
Georgia's ports have a tremendous potential and their activity affects every section of the State. The docks at Savannah were jammed during December and the flow of commerce is at full tide.
Our neighboring states of Alabama and South Carolina recently plowed into their ports $22,000,000 and $21,000,000 respectively. We must meet the competition and pull more trade into our own State harbors.
To do this, I propose to budget $4,000,000 for two new cargo berths and $75,000 for another expansion at Savannah Docks; $425,000 for building up the old Savannah Terminal, an4 $250,000 for construction and land purchase at the Port of Augusta.
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I have laid before you the administration program for the coming fiscal year.
I do not ask for any new or increased taxes to finance it. With your authorization, it will be financed, as far as possible, within the limitation of current income and whatever surplus may be accumulated between now and July the first.
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By keeping our eyes on those most essential activities vital to the State's growth, you and I can get this mighty job done for the people.
GEORGIA SCHOOLS
During recent weeks events have moved us closer and closer to the threat of open conflict between Federal authority and State authority over operation of Georgia's public schools.
Georgians do not want to sec a head-on collision between
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Federal and State sovereignty which will harm all and benefit none.
It can be avoided by the exercise of good judgment-and common sense by our people -- with the races in Georgia working in harmony and voluntarily under our traditional pattern of segregation for concrete advancement in those programs which I have outlined to you today.
I call upon the responsible people of this State through unified public opinion -- both white and colored -- to make it certain that Georgia will not be the victim of conditions like those which exist in Washington, D. C.; Detroit, Michigan; New York; Chicago; that even now are plagued by racial tension, conflict, hatred, bitterness and violence.
A people distraught by internal upheaval cannot make any kind of progress.
Let me assure the mothers and fathers of Georgia that this General Assembly and the Vandiver administration are dedicating their full talents and energies toward permitting the continued education of your children in segregated schools and, if it should become necessary, I will keep this l.cgislature in session constantly to help me in piotecting the welfare of our children.
Let me assure the teachers of Georgia that this General Assembly and the Vandiver Administration will see to it that our State's contractual obligations to them will be carried out.
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Let there he no mistake about this on the part of anyone:

The Georgia Constitution and the laws of this State require that if the Federal Courts should finally order integration in any Georgia school -- State funds for operations of that school would be shut off.

Let us hope that the NAACP will not force the closing of a single school in Georgia.

If those few who are agitating so vigorously, and so vociferously, for mixed schools -- would join us and would work just as vigorously for separate schools -- we would have segregated education in Georgia without any conflict.

But if they do persist, mark this and mark it well:

It is my duty to -- and I will -- uphold the Constitution and laws of Georgia.

We are going to resist -- and --

us --

We are going to resist again and again and again We will exhaust every legal means and remedy available to

And when I say, EVERY LEGAL MEANS AND REMEDY, I mean EVERY LEGAL MEANS AND REMEDY!

For the children of Georgia!

For our heritage!

For our fathers!

To paraphrase the poet -- we may be bloody but our heads will be held high, unashamed and unbowed -- Georgians will continue to he masters of their fate, and captains of their soul.

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Georgia children -- their welfare -- their destiny -- their education stand uppermost in our minds and in our hearts as we approach the vissicitudes and struggles of tomorrow.
Let us hark back almost a hundred years --
The tragic reconstruction era, and the historic days through which we are now passing, -~en a second reconstruction is being forced upon us -- certainly, these are the most critical times in Georgia history.
Surely future historians will record the actions of this Legislature and this administration.
Let it be written that we were men of courage.
Let it be written that we were men of faith.
Let it be said, yes, let it be written, let it ring out through the annals of time that we stood solidly on the rock of that hallowed parchment the Constitution of the United States, as molded by its framers.
Let it be recorded down through the ages that the sovereign State of Georgia has been, is, and will forever remain the good land free from tyranny - a repository of justice - the palladium of liberty.
The eyes of the South are focused on Georgia today.
With firmness in the right, as Almighty God gives us to see that right, appealing to the remainder of the nation for justice and for understanding, let us be on with the task at hand.
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