The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-03-07

|
Yet, notwithstanding this caution, the
| Twenty-second legislature reduced the
valrat on for ISL, AM 10 cents there
after. The deficiency that confronts us
is not caused by eXtravagant appropria-
tions, but arises from the fact that the
tax levy was below a rate that would
provide a sufficient amount to meet the
efficient and economical demands of the
state government. .....
There is but one way to meet the
difficulty, and that is by increasing the
tax rate. | do not recommend the issu-
| ing of bonds for the reason that we can
only issue 100000, and this would only
increase our bonded debt, without giving
material relief.
On August 81, 1898, the cash balance
| to the credit of the general revenue was
$345, 254.23. In 1884 the legislature re-
duced the tax rate from % IL TO II IL
cents on the 500 valuation; this rate
proved insufficient, and in 1885 the legis-
lature was compelled to raise the tax
rate to 20 cents, to provide for the ex-
penses of the government, and also to
provide for the deficiency which was ap-
parent would occur under the reduction
made the previous year. Thus we see
that the reduction of cents in 1884 con-
sumed the balance on hand and caused
a deficiency which occurred in February,
1886, when payment was suspended for
a short time and made it necessary to
increase the rate IL cents in one year.
| In 1888 the state received from the
| United States government an indemnity
fund of 1922, 541.52, which made the
cash balance on hand August 81, 1888,
81 ,259, 126.71. This indemnity fund was
distributed among the people by a rebate
made 10 cents instead of 20. This re-
duction brought down the cash balance
ON August 81, 1889, to $42S, 410.5S. The
balance on hand August 81, 1891, was
81, 007, 1887. The reduction of the tax
for 1891 from 20 cents to 16 % cents
reduced this balance on August 81, 1892,
to $3.50, 1882, thereby consuming all the
revenues collected for one year.. and
$3.50, S61.S7 of the balance on hand. A
| further reduction of the tax rate after
| 1891, has wiped out the cash balance
and caused a deficiency on August 81,
1894, about 100000. The actual cash
balance on August 81, 1894, was $685.
443.S5, against which balance there was
outstanding registered warrants amount
ing to $430,9 93.57, and the amounts due
on transfers from the revenue fund to
the school fund for the purpose of ad-
justing the accounts and also registered
warrants called for payment and not
yet presented, to swell the above amount
to over 100000.
| On August 81, 1895, instead of having
a cash balance on hand to pay the eX-
}penses of the government until the 1895
taxes begin to be received, there will be
a deficiency, all of the 1894 taxes being
consumed in the payment of the present
deficiency.
| There is prevalent and erroneous idea
that a cash balance means a surplus.
But such is not the case. A surplus
means the collection of more revenue
than is necessary to run the government.
Under our system of taxation nearly all
the taxes are received at the treasury
during the months of December Janu-
airy, February and March, and these
are the only months when the receipts
exceed the disbursements. Wherefore
on May /, each year, q cash balance is
necessary that, together with the light
receipts of the summer months, or until
taxes begin to be received again. This
necessary balance should be from $780,.
600 to 81, 100000, and would vary in ac-
cordance with the appropriations made
by the legislature. The aim and intent
of the levy and collection of taxes should
be to realize an amount necessary to pay
the expenses of the state government
and no more. The present rate is toe
How for that purpose.
Thus it is evident that the legislature
besides making provisions for the ordi
nary expenses of the government, inter
est on public debt. etc, will be confronted
with large deficiency to be provided for
The appropriations asked for by the heads
of departments, state institutions, judi
ciary, etc, for the next two years begin
ing March l, 1895, aggregate $5,251,
l0S540. (See table SO Summary, page
1872 of this report.) The net receipt,
estimated by this department, under pre-
sent tax rate and laws, for the two year;
ending August 81, 1895, and August 81
1896, amount to $3,S63 ,359.50. (SeC
table 50, pages 173 and 174.) Should thu
legislature make the appropriations ask
ed for, there would be deficit for thu
two years of $685., 1850, besides tina
already existing.
The history of the states finance show!
that when the tax rate was reduced il
1881 to II IL cents, in 1885 it was founC
necessary to increase the tax to % cents
the deficit caused by the reduction a
that time being only for few days, ant
not near so large as it is now.
If the appropriations are made a!
asked, the tax rate will have to be RAISED
to 30 cents for the year 1895, and drol
back to % cents the next, and thel
gradually decrease until the level il
found, so that the receipts will be equa
to the disbursements.
Texas is a growing state, and as j
grows and develops the expenditures will
naturally increase, and the tax rat
should be sufficient to provide for its de
, mands. ...... . ..
, Before completing this article, Tn
Statesman reporter called on Chic
/, Bookkeeper Virgins of the comptroller
department, and obtained from him al
estimate of the probable revenue receipt
from a 30 cents tax levy and the pre-
sent revenue laws, which estimates will
be $3,013000. Thus it will be seen tina
in addition to the receipts derived iron
an increase tax rate of 80 cents, tina
something like 100000 will have to b
raised from changes in the revenue laws
increases in occupation laws, increase
, in redemption receipts under the Col
, quit bill and other reform measures
but it is believed by many knowing one
, that under no circumstances will it b
!, possible to place the state upon O cas-
, basis by next March unless the tax rat
, is raised to 80 cents and other law
,, amended Then the rate can be reduce
, to % cents for the next year, and DO.
! sibly 20 cents for each yer thereafter
Will the legislature do it?
Il ---o-----
! HOBOINFECTED