Bisbee daily review., 1912-03-20
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AaNtA fASt Af treasury presents a situation for which an immediate remedy will have 10 De provided. When the state of- ncers took charge on the l4th day of feoruary, with four and one-half months of the present fiscal year re. maining, and with little prospects of an appreciable accession of funds be- lore next December, the general fund showed a balance of about $lO7 900, a sum entirely inadequate to meet the demands which will of necessity be made upon it. The reasons for the smallness and insufficiency of this balance are not of chief moment at this time but it is not out of place to say in passing that the condition may be partially explained by the fact that the territorial board of equalization, in making the tax levy for the fiscal year ending June 30, 1912, reduced the levy from seventy cents to siXty-five cents, on each one hundred dollars, thereby materially reducing the revenue, while the ex- pense of maintaining the states in stitutions. owing to a rapidly growing population is increasing year by year. This reduction of the tax rate at a time when it was neither wise nor yudicious, and incapable of justifica- cation on any grounds except that of political eXpediency-a state cam paign being then imminent-has left the general fund as well as several of the special funds. in a most un- promising condition On the first day of the present month, the general fund showed a balance on hand of S10l .39.37 If it were not necessary 10 take into account at all the unusu- al and unavoidable expense incident to the transition from territorial to state form of government. the re- adjustment and remodeling of rooms Of the capitol to accommodate officials heretofore noneXistant or housed elsewhere, the extra clerk hire, oc- cassioned by the large volume of new business. the expense of this legisla- tive session and the salaries and eX- penses heretofore paid by the fed eral government the balance in the general fund based upon former aver ages would be eaten up by the end Of the fiscal year, June 30, and there would be nothing whatever on hand with which to pay the expense of iAdlhAdtuln- Alit oAeAAN 6VfI4 AAAAANAANs between that time and December. when taxes will begin to come in. Then add the unusual and extraordin- ary expenses have just enumerated to the ordinary demands which will be made upon the general fund. and 1t is not difficult to see that the finan- cial status Of the state so far as i'm mediate requirements are concerned, .f fs-Es, 4=,-xH avarr snfh hnr or fiffther illustration were necessary to show the extraordinary handicap we are confronting it might be shown that at the begining of the present fiscal year. July 1, 1911, the general fund contained a balance of SID. 499.74 Deduct from this sii.452.21, which was taken from the general fund to wipe out deficits of that a. mount in the prison and asylum funds and there is still d surplus in the general fund from the preceding year, of S132O4T.45. with which to main tain the state government until the receipt of the taxes in December. Con trast this with a certainty of ue- felt at the close of the fiscal year on the 3Oth of next June Of from SI5+ GOO to $1GO,000 and l think my mean ing will be made quite clear. II not one more comparison of figures Will make it so. On February 2S, lSll the general fund showed a balance on hand of 195,56064. Leave out ol consideration then, the unusual and extraordinary expense menuoned above compare this balance with the balance Of $lOl. .63g.37 shown by the books of February 29, just past, and the discrepancy amounts to SsioZl' 27.
 1T not q full one. this is clear statement of the financial status ol the state. as it relates 10 the current and necessary general requirements and discloses a condition which calls foy. vour most careful attention, and for wise and prompt action
 Limitation Of Debt.
 A conflict Of construction exists ir tbe case Of Section 5. Article TX, oi tbe constitution. limiting the state'' indebtednes to three hundred and ? fifty thousaud dollars. While in m, ouinion this was meant to refer only to unsecured indebtedness. caused bS insufHciency of revenue to maintain inc runuing expenses of the govern meut and was not intended to include inc states bonded indebtedness, q will be prudent to submit a constItu tionaI amendment clearing this am bieuitv. and , so recommend.
 Fund Bonded indebtedness.
 From the report of the state audi TOT. | gather the information tha Arizopa's bonded indebtedness, eXciu sive of the funded debt Of counties and towns, at this time amounts II round figures to one million dollars These bonds. owned in eastern cen ters of capital. are bearing in practl calIy every instance, five per cen interest. Not only is this interes rate. to my mind unnecessarily high but Arizona is losing considerable sum Of money which might just al well be kept at home. My plan II this: that you enact a law authoriz ing the refundng of the states bond ed indebtedness, by means Of an is sue of bonds bearing four per cen interest the bonds 10 be in smai demouinatiOns-say of $500, or eFcl
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