Semi-weekly herald., 1912-05-06
lealeIa,ure to Blame.

NOusiuSIdDle Wouutr ID y OsCuSlOueu
from the iact that the present. or Tor
that matter, any administration OF
state affairs cali give. no adequate
statement as TO finances at any time.
IL the case OF the present administra-
ton the trouble is purely overappro-
prlation. When the legislature met
that the revenues Tor the period wouiu
lie little over S3,OO0,0O0. The legis.
ature appropriated nearly so per cent
ABOVE that amount ana the revenues
mnl hardy reach the estimate. Few
people understand Just when these
revenues are collected. The facts are,
they are collected one year after they
are expended, with the exception OF
the funds that are derived over the
counters IN the various state offices
which collect fees Tor certain kinds OF
work. To illustrate: The assessors Of
the state value the property of the
state this spring Later in the year
the state auditing board will meet and
place the 4 mill levy against the prop
erty to be used for state purposes
The county officials viii collect thai
mill levy next year and send it to
the state treasurer. In the meantime
the officials at the state house have
been spending the money. This year
salaries are paid out of that money,
but it must be done on a borrowing
warrant against the 1912 revenues.
The state treasurer will have no 1912
revenues before next year. However,
he has on hand considerable amount
OF what is termed school funds. These
funds are derived from the sale and
lease OF state lands and only the in
toaning of these funds can be expend-
ed. The warrants Issued by the state
auditor draw 1 per cen interest. The
stale treasurer cashes these warrants
with this school fund and holds them
as security until next year when the
lunds are paid by the various counties.
AT the present time the counties are
remitting the funds OF 1911, and the
state treasurer is redeeming the sal
ary warrants which he cashed out of
school funds last year.
1t can be seen that at best all busi.
ness must be transacted on an esti-
mate. State Treasurer Kenehan sim
Ply has to take guess as to what
proportion of next years taxes will be
paid. If he cashes larger number
of warrants this year than viii be re
deemed by the cash that comes in next
year he win be in the position of hav-
LIZ excess warrants. This the state
treasurer says he will never do. And
1T is because of This condition that he
declines to pay greater sum than he
is actually sure will be collected. It
is a well known fact that last year the
treasurer was assured that the Moffat
estate would bring at least $50 600 into
the treasury. and acting upon this as
sumption he paid to that estimate. The
result il this year he has TO reserve
enough to cover that oyer-estimats Of
last year.
Had the legislature confined its ap.
propriations to the treasurer's esti-
mate the state would have pulled
through. AS it is Mr.. Kenehan is de-
termined TO keep in the clear. Some
line the people of the state will adopt
a bond issue sufficiently large TO. with
the regular laily collections, run the
affairs OF the state 1or two years on
a cash basis. Then they will adopt al
constitutional amendment preventing
any assembly from appropriating more
money than Is in the treasury when
the assembly is in session, which
would solve the question. The best
way to solve It under present condi-
tlons is to elect Republican business
men to the state offices and to the
legislature who Will not oyer-appropri.
ate these estimates and who will not
double the payroll Of the state in less
than three years.