Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-06-30
DENEEN BLAMED
FOR Cash DEFICIT
Dunno Asserts Former Officials
Set State "Manifestly IN
fair Tax Rate.
TO BE sBRoKE" OCT. l
Estimates ss,ooo,ooo Shortage Before
Next Levy Is Available to
Pay Debts.
TO BE sBRoKE' OCT. I

Springfield, H., June Ex-Governor
Dunno last night issued statement
calling attention to the fact that on
September 80, the end of the present
fiscal year, there will be deficit in
the state treasury of about S13S,o00.
Between the present date and April
l, 1914, when this years tax levy be-
comes available, the state treasury
will have at its command only about
S3,700,060 with which to pay from
S12,000,000 to $15,000.000 of vouchers
which will fall due.
The governor declared this condi-
ton was due solely to the fact that
former Governor Deneen, together
with former State Treasurer Mitchell
and former State Auditor Mccullough
fixed the tax rate last December at a
figure "manifestly unfair and made
Quate to raise sufficient funds for the
legitimate expenses of the state gov
eminent"
INCREASE IN RATE CERTAIN.
Governor Dunno will veto items
amounting to s1,250,000 in the appro-
priations made by the present legis-
lature, but it will be impossible for
him to prevent heavy increase in the
tax rate over last year.
AT the close of the current fiscal
year, Sept. 80, 1913, the state treas
ury will exhibit q deficit estimated at
S137,747O6," the governors statement
reads. The total resources of the
state on that date will be approx
mately $S05,600.94, as against accrued
liabilities aggregating $943,34S. These
liabilities include the pay of employees
of all state departments, and salaries
of state officers, judges of courts and
states attorney, but do not include
state penitentiaries, state reforma
tories and normal schools, for the
quarter beginning July and ending
Sept. 80, 1913.
USUAL BALANCE S4,oO0,oO0.
at has been the uniform policy in
past years to maintain q working bal
ance in the treasury ranging between
S3,500,O00 and $4,500,O00 This has
been deemed a necessary measure of
safety.
The absence Of an adequate work
ing balance in the state treasury at
present is the direct result of the act
of the commission for computing the
state tax rate under the last admin
I istration IN fixing figure 50 low that
t could rot yield revenues sufficient
/ to meet the demands upon the state
/ treasury created 6y the appropria-
/ tons made by the Firty-seventh gen
! eral assembly. This commission was
/ composed Of former Governor Deneen,
/ former Treasurer Mitchell and form
er Auditor Mccullough. The rate was
made in December last. 1t was fixed
ct IS cents per 500 for all state
purposes. This IS cents was divided
into three divisions or classifications,
as follows:
/ General revenue fund. ..... 10 cents
/ School fund. .............. cents
WARNED OF DEFICIT.
in the previous year the rate for
the general fund was fixed at &c
certs per $780, 1t is a matter Of
knowledge that when the commission
decided to fix the general revenue
fund rate at 10 cents per 500 it was
warned TO deficit would result
Zach general assembly is required
to provide sufficient revenue to pay
its own appropriations. but that sur,
plus is lacking which should be in
the state treasury to tide the state
treasurer over until the first tax levy
required to be made under the act OF
the forty-eighth general assembly can
be paid into the state treasury, owing
entirely to the action of the aforesaid
state tax commission in establishing
last December this low rate of 3S
cents
THE levy under the act of the forty.
eighth general assembly cannot be
collected and paid into the state treas.
ury earlier than April / or Is. 1914.
in other words, this means than be
tween the present date and April /,