The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1892-12-28
STATE FINANCES.
Some Extracts From the Report of
Controller Colgan.
The Last Two Years Expenditures
Exceeded the MISREPRESENTATION
of the school Fund-Etc.

L
The biennial report of State Controller
z. p. Colgan has just been printed, but
will not be ready for general distribution
for several days. From advance sheets
the following extracts are made:
In the report of my predecessor for the
fortieth and forty-frst fiscal years 1t was
shown that at the end Of the torty-hrst
fiscal year there remained balance IN
the General Fund OF Sl,7ZI,35s 10. ms
large balance was accounted Tor IN
various WAYS, and after reviewing ana
summing up the various items properly
chargeable against this balance, he con
cludeS by stating that after these de-
lnands shall have been paid, there would
remain TO the credit of the fund an estl-
mated surplus OF $1,000, which could De
deducted from the amount necessary 10
be included in the next tax levy. In
volved in the receipts into this fund dur
ing the forty-second fiscal year were the
following:
On May Z, 1891, from the United States
Government, as Calitornia's portion OF
the Direct War Tax" the sum of sos,
Of the Legislature, there was transferred
from the Estates of Deceased Persons
Fund" the sum of $4,000.
In making the tax levy for the forty
third fiscal year the three items just
mentioned, aggregatng So, 246 49, were
taken into account and deducted from
the necessary amount to be raised for the
General Fund. Involved in the disburse-
ments from this fund for the forUy-second
and torty-third fiscal years are the fol-
lowing items:
For the support of aged persons, or
>phans, etc, for the thirty-fith, thirty
sixth, thirty seventh, thirty eighth,
sthirty-ninth, fortieth, forty-tirst, forty
second and forty-third fiscal years,
Sl.lS7, SIS 81; and for the payment OF
bounty on coyote scalps, Sl32, $50; a total
of 81, 800, 345 81.
ION the State Treasury, with no provision
made to meet it, could have but one Se-
suit. AT the close of the forty-third fiscal
year the balance in the general fund had
been reduced to the extent of $3.50, l66 Is
as compared with the balance at the close
of the forty first fiscal year. October II,
1892, the fund became exhausted, and at
the close OF business, November 80 1892
it was overdraWn to the extent of $780,
75S II.
Under ordinary conditions there would
have been in the general fund at this
time balance of about 3325, 900, instead
of the present deficiency.
This condition of affairs is not the re-
suit of oversight or miscalculation on the
part of the Legislature in directing the
amounts to be raised by the tax levy.
With the large balance already in the
general fund, and the extraordinary re-
ceipts to flow in during the latter half of
the forty-second fiscal year, the levy was
sufficient to meet all ordinary expenses
of the State Government.
1t is entirely due to the unprecedented
demands made by many of the counties
for aid granted by the State for the care of
aged persons, orphans, etc, which should
have been paid in former years under
prior administrations, but which, owing
10 an imperfect knowledge of the law,
have never before been presented.
COMPARISON OF RECEIPTS AND ExPENDI-
TURES.
From the foregoing exhibits it will be
seen that the disbursements of the two
fiscal years exceed the receipts to the ex-
tent OF S2S4,912 IS, as follows:
Receipts for iorty-secondfisc
Receipts for forty-third fiscal
100000 A
Total receipts for forty-second
and forty-third fiscal years SO, 541I49 rs
Excess OF expenditures over
receipts for the two fiscal
years----.-.......-.- 2S4, 972 So
,826,12a 58
Expenditures for the forty
second fiscal year-............... s. ,92S,S16 81
Expenditures for the forty
thlrd nscal year.................-. T,S91,306 p
Total expenditures for forty
second and forty third
uScaI year ) ] 8, S26,122 5S
The revenue for the support OF com
mon schools arises from property tax.
poll tax, interest upon unpaid principal
due from sales of lands granted by the
General Government to the State for edu-
cational purposes, known as State school
lands; from interest on bonds held in
~ l. So. II
mon schools, anu from the sale of Geo
logical Survey Reports. The money
arising from these sources is known as
the State school fund. The Controller is
required by law to report on the first
Monday i'll January and July of each
year to the Superintendent OF Public In
struction statement of the securities be-
longing to the school funds, of the mon
eys in the State Treasury subject to APP
portionment, aud the several sources
from which they accrued.
The money is apportioned by the Su-
4perintendent and paid out upon Con-
troller's warrants, issued upon presenta-
ton of the superintendent drafts, in
favor of the Several County Treasurers.
For the forty-second fiscal year the tax
levy for school purposes was 81, SJ3, $40.
The actual amount collected from prop
erty tax was S2,O20,9l0 GS-an excess Of
SI27, 40 IS.
For the fOrty-thirdlfiscal year there was
levied for school purposes 81 1855. III.
There was collected Sob, us 81 The
receipts from other sources, including
transfer of Sl32, 534 IS from the grammar
school course fund, amounted 10 SSH
623 %. These amounts. together with the
balance for the forty-second fiscal year,
aggregated s., PAS, 775 81.
The amount necessary to be raised for
school purposes for the forty-fifth and
forty-siXth fiscal years, according to the
number of census children reported to
me by the State superintendent is 81, IA
Sos, or 500, 279 per year.
STATE SCHOOL LAND FUND.
Into this fund are paid the proceeds
from the sales of State school lands.
Under the Constitution 1t shall be and
remain a perpetual fund, TO be invested
for the benefit of the common schools.
Heretofore in purchasing bonds the
Board of Examiners, under whose au-
thority this fund is invested, has often
been compelled to pay premium and
accrued interest. When the bonds were
redeemed the amount of the face value
thereof was turned back into the fund,
but not so the amount paid as premium,
etc.
In this manner the fund has been de-
pleted to the extent Of SlS9. f26 IS. Since