New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-11-10
4 RECKLESS USE or CITY FUND

crnmcnt is found i'm the practice of the Board Of
Estimate and AppOrtiOnmcnt of making transfers
ofuncXpendcd balances Appropriations are fire.
qucntly made for a worthy object in excess OF
the amount required for that purpose. The UNI
expended balance is then made available for
other uses by the department heads. This can
only be done, however, by consent of the Board
of Estimate. If the discussion on that subject
in the Board on Thursday, and the stand taken
by President Asten, of the Tax Department,
will force Il change of policy in regard to this
matter, a great deal will have been gained.
The practice is perncious one and ought to
be stopped. 1t goes against the plain intent OF
the law. The city charter requires that depart
mcnt heads snail regulate their expenditures for
amy purpose or object 80 that the same shall
mot in any one year exceed the amount apprO-
"pratcd by the Board of Estimate and Appor-
tonmcnt for such purpose or object Making
an appropriation for one purpose and using 1t
for another is evidently not what the law con
trmplatcd. Nor was it intended that an unex-
pended balance of an appropriation should be
made available at any future time for the use of
a department. But the Board of Estimate III
spite of the protest of its only Republican mem
Der. recently transferred to the use of Commits
sioncr Thompson, at his request, an uncxpendcd
balance of an appropriation made twelve years
ago.
I'm recurring the department heads to submit
detailed estimates for their expenditures for the
ensuing year, and in rendering 1t obligatory
upon the Board of Estimate to make the appro
priations in advance of the fiscal year in which
they are to be- expended, it was clearly intended
to limit the annual outlay for any purpose to the
appropriation made for that particular year. In
that way only can there be anything like an
economical administration of the city govern
mcnt If that were not the meaning of the law
il would be difficult to explain the use of max
ing appropriations in advance of expenditures.
The Board of Estimate and AppOrtiOnmcnt
however has been cncOulagnga different theory
of financial management. There were uncXpend-
eel balances of appropriations for 1882 and pre-
vious years on the books of the Finance De
partmcnt at the beginning of the present year
to the amount of about SlOOO,OOO. 1t APP
pears, however from the statement of Presl-
dent Asten that this fund of uncXpcndcd bal
anccs does not represent money i'll the city
treasury, but only portion of the uncollected
taxes, the greater part OF which consists OF
worthless claims. Hence any sum that Is APP
propriatcd from that fund has to be raised by
the issue of revenue bonds. In other words, the
department heads rccklcssly incur obligations
i'm excess of their appropriations and then, to
meet the outlay, the city debt is increased by
n process of making transfers from fund that
exists only on paper. Already this year that
fund has been depleted by transfers to the extent
of nearly half million dollars. Never before
has this practice been carried so far. Mayor
Grace regarded these transfers as contrary to
fine spirit of the law, and during his term there
were few made
II is clear that the existence OF tins alleged
fund. to be drawn gu at will, isa standing men
ace 10 frugal government. Cncxpcndcd bal
anccs, against which there are no outstanding
obligations, should be covered into the city
treasury at the end of each fiscal year In the
Federal Government they lapse at the end OF
fine second year. and similar law governs the
State treasury. But in this city they are car
ricd ON the books of the Finance Department
indefinitely. No balances have been covered
into the city treasury for the last hitecn years
If one city officer efficiently and economically
manages his trust, so rs to leave uncxpcndcd
mart of his appropriation, under the existing
practice his successor will probably use that
balance and the taxpayers will get no benefit
from il. TO state the facts is sufficient to con-
denim the practice in the eyes of business men,
Heads of departments should be made to rogu-
late their expenditures 80 as not to exceed APP
preparations. The whole service is now demor-
allied by the practice of rewarding reckless adj
minisration by transfers to meet expenditures
in excess of appropriations.