The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-01-03

Receipts during the year. 2,OI2,I3l IS
Total receipts during the
year, with balance on ono oo
hand. -. ..... ...'' 9A,@oo,Io' Vo
Disbursements during the ,o
year. 49, ''''9%, lf",i ~
Transfers, adjusting ac- ,,-oo an
counts, etc.,. f%,ooo Ia
Leaving balance on hand
Aug 81, 1891. ....... 1884 80
The report goes on to show that the
cash balane on hand Aug. 81, 1894, was
S3S. 1885. There was outstanding
against this balance registered warrants
amounting to $430993.57. Mr.. Mccall
saws the state should at all times be in q
position to protect her credit ana pay all
adjusted claims and demands when pre-
scented at the treasury; and to enable
her to do this she must have suiilcient
money in the state treasury. The leg
islature does not seem to understand the
difference between a cash balance and
u surplus.
The bulk Of the taxes reach the state
treasury during the period OF four
months, leaving eight months to be pro-
vided for, during which time the DIS
bursements greatly exceed the receipts;
If we have not cash balance ON hand
sufficient to pay warrants when pre-
scented against tnc IuHu, lnc tOuultiOh VI
affairs will be as they are now; the state
will be unable to meet her obligations,
and the officers and employees of the state
will have 10 sell their warrants at a dlS-
count. The purchaser reaps the beneht
of this condition of affairs, for the state
will have to pay the warrants. dollar lor
dollar. Why not make provision, before
hand for taking care of the states imam
cial integrity? 1t is very easy to do so:
IS;,gt GnH ont how mnph money is needed
TO run the government efficiently and
economically, and when this IS done,
levy a tax sufficient to meet the demand.
No taxpayer will object TO paying the tax
on his property which is judiciously eX-
pended for the best interest OF the stare.
Our tax rate, Is cents on the 500 valua-
ton, il too low to meet the just demands
against the general revenue fund, as evi,,
dences the present condition of this fund
in the state treasury; and the only way
I see now to relieve the pressure IS to
increase the tax rate; and the sooner 1t
is done the better it will be for the peo-
ple, for each year will find us getting
further and further behind.
In my report in 1890 1t was shown that nat
the tax of 20 cents on the SlOo
valuation had provided ample reye-
nue. to meet existing appropria-
tions, and l cautioned against the reduc-
ton of the tax, as shown by the following
extract, viz:
at is not n wise policy to pile up cash
balance in the state treasury, ana IL Is
equally unwise to attempt too rapid re-
duction of taxes because of healthy cash
balance. The state is growing, values
are increasing, yet II should be remember
ed that the demands upon the state Tor
appropriations may grow in proportion
"To the casual observer 1t may seem I'M
necessary, If not unwise, to carry large
cash balance, and ii would Indicate That
the present rate Of taxation for general
revenue PURPOSES might stand n reduction;
but great care should be exercised in TINS
matter. The state treasury should Mt All
times carry sufficient cash balance. TO
tide over any emergency that might arse
Demands for extraordinary expenditures
will no doubt be considered by the legis-
lature which are not included in the esti-
mates for appropriations in this report
for the next two years. In view OF THIS
fact, the question should be carefully CON
sidered before any action is taken looking
to further reduction of the present low
rate Of taxation"
Yet Notwithstanding this caution, the
Twenty-second legislature reduced the
tax rate to rs 23 cents on the 500 Yalua-
ton for 1891, and 10 cents thereafter.
The deficiency that confronts us is not
caused by eXravagant appropriations, but
arises from the fact that the tax levy was
below n rate that would provide sur
6cient amount to meet the efficient and
economical demands of the state govern
ment. -.
There is but one way to meet the diff
fieulty, and that is by increasing the tax
rate. 1 do not recommend the issuing OF
bonds, for the reason that we can only is
sue 500, 900, and this would only increase
our bonded debt, without giving material
On August 81, 1888, the cash balance
to the credit of the general revenue was
$345, 1929. 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 25 cents, to provide for the expenses of
the government and also TO provide for
the deficiency which twas apparent wou'd
occur under the reduction made the pre-
vious year. Thus we see that the reduc-
ton of 8 cents in 1884 consumed the bal
lance on hand and caused deficiency
which occurred in February, 1886, when
payment was suspended for Il short time
and made 1t necessary to increase the
rate 1-2 cents i'll one year.
In 1883 the state received from the
United States government an indemnity
fund of $500, 5i1.52, which made the cash
balance on hand August 81, 1888, ST.
80, 1851. This indemnity fund was dis
tributed among the people by rebate of
three-ffths of their taxes for that year.
the rate being made 10 cents instead of
-. This reduction brought down the
cash balance on August 81, 1889, to S42S,-
410.5S. The balance on hand August II,
1891, was S1.007, 1887. The reduction
of the tax for 1891 from 20 cents to 81 IL
cents reduced this balance on August 81,
1892, to S450,332, thereby consuming all
the revenues collected for one year, and
$500, S61.ST, has wiped out the cash bal
ance and caused deficiency on August
81, 1894. about $500. 900. The actual cash
balance on August 81, 1894 was S3S, 443.-
So, against which balance there was out
standing registered warrants amounting
to S430, 993.5I, and the amounts due on
transfers from the revenue fund to the
school fund for the purpose of adjusting
the accounts and also registered war
rants called for payment and not yet pre-
scented, to swell the above amount TO over
$4,000.
On August 81. 1898, instead of having
n cash balance on hand to pay the eNpen-
SEES of the government until the 1870 taxes
begin to be received, there will be de-
ficiency, all of the 1894 taxes being con
sumed in the payment of the present de-
ticiency.
There is an prevalent and erroneous
idea that a cash balance means surplus.
But such is not the case A surplus
means the collection of more revenue than