Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1901-01-17

his message TO Lu6 ISSloA"' |
session today and devoted speclal az
tantion to the problem OF taAaIloh' Ia
part he SAID: z,ooe.o,, IN
..The efforts of my predecessor 70
;r+roduce better business metnods
into the financial system OF the staIe
arC.,,1.,.,,nan+ has resulted in emphaslz-
no MANY defects and institutlng some
Improvement in the management VI
state funds. So long as the aunlh-
istratiye and legislative departments
narsjst in attempts to shift, eacn up
on the other, responsibility lor Lax
tavies TO meet deficiencies which ootn
helm TO create. there must be abundant
onnortunity for improvement. Under
the law the fiscal year OF the sCate
ends September 80, and all regular
official reports are for the term emu
ING on that day. This fact, with
few others closely related to 1t, pc
lieye to be responsible for much OF the
pubIic misunderstanding OF state
finances and for most Of the mlslead-
mo information concerning state al
fairs upon which legislators nave
been obliged to rely for guidance. re
Dorts for the fiscal year show balances
upon a date within few weeks AFTER
the receipt of large amounts OF reVe-
me as license fees from corporations,
etc. but months before the close Oh
tbe administration term-monthS IN
which extraordinary disbursements
including legislative expenses IN each
biennial term, must be made before
considerable revenues are again re-
ceiyed. The usual and natural result
of this system is found in misleading
official reports, showing handsome
cash balance at the close of the fiscal
wear. and four months later a new ad-
ministration finds itself confronted at
the beginning of it's term Of life with
nm alarming deficit as the foundation
for new appropriations by the Ieglsla-
t,lre and the natural and steady
growth in ordinary current expenses.
Take, for example present condl-
lions. At the close of the fiscal year,
SeDtember 80, 1900, the balance in the
general fund was $496, 408.74. At the
end OF the calendar year and admins
tratiOn term, January Z, 1901, the gen
eral fund balance was only $l5l, 833.H.
OF this last balance, $4,000 is derived
from advance payment OF railway Ii
cense fees which do not become due
until the month of March. The state
aid to free high schools, amounting to
S97 ,607S3, due December l, 1900, Is I'M
paid-although the warrants therefor
are in the treasury department-be
cause available moneys in the general
fund are required to meet current eA
penses. These items, when properly
deducted, leave net balance Of $4,
1854 in the general fund. Legisla
tive and other expenses payable with
in the next few days will aggregate
more than 100000, and there is no ap
preciabe amount Of receipts due tC
the general fund from any source be
fore the time for payment of corpora
ton license fees and state taxes
which was changed from February tC
March by the last legislature. Besides
this inevitable deficit there is an addi
ti0nal deficiency of 1928, 50574, being
the amount of appropriations by the
last legislature the payment of which
has been refused on account of lack OF
means in the general fund. In briet
you have a legacy of over 100000 ex
cess appropriations from the last legis
iature to take into your considerations
and the administration begins business
with a considerable treasury deficit in
sight in lieu of the balance which
might be expected from the condition
of the general fund at the close of the
fiscal year as shown by the annual
Official reports available to the public
for purposes OF information.
Statistics show that in four years
out of the last ten there was an excess
of disbursements over receipts even
at the close of the fiscal year. 1t is
not difficult in view of the system that
has been in use to believe that the
trust funds of the state have been in
requisition Tor general fund purposes
during the greater portion of all those
years 1t may not be practical to
make the fiscal year of the state end
with the calendar and administration
year, so far as the general official re
ports are involved. 1t ought to be pos
sible for the legislature to require
complete reports of the financial con.
clifton of the state government to be
published at the beginning Of the
calendar year. These will afford
great assistance to legislative com,
mittees. In addition there should be
required more accurate estimates for
disbursements, the same to be made in
detail for each department of state
government.
Taxation
"The creation of commission to
make such investigation as the char
acter and Importance Of the subject
demand, to report to the legislature
the results OF its examination, and
TO make recommendations in aid of
just and efficient tax laws. could not
fail of public approval. Chapter 2O6,
Laws of 1898. authorizes the appoint
ment of tax commissioner and two
assistants to the commissioner, for the
purpose of investigating the tax sys-
tenn of this state, reporting thereon
to the legislature, and formulating and
recommending legislation. l am
advised that no complete plan of re-
vision of the tax laws will be pro-
posed in the report made at the open
Ing Of the session. The disappoint-
ment experienced on this account will,
l Believe, be lessened by the aid which
you will doubtless receive from the
commission during the session in