Daily Kennebec journal., 1914-02-23


To His Excellency, William T. Haines,
Governor, and the Honorable Execu-
tive Council.
Gentlemen:
The law of 1907 establishing the Of
flee of State Auditor provides that the
Auditor shall on or before the first day
of February, biennially, submit to the
Legislature report showing a full
and accurate statement of the finan-
cial condition of the State for each of
the two preceding years. Believing
that the people of the State should
annually have report of the appro-
priations, receipts and expenditures of
all state departments, l hereby submit
brief summarized statement of the
financial affairs of the State during
the year 1913.
Before proceeding with the statisti-
cal part of the report given below,
which includes a statement of income
and expense and receipts and pay
ments, wish TO call attention to the
appropriations made by the Legisla-
ture for 1911 and 1912 as compared
with those made by the Legislature for
1918 and 1914, showing the principal
increases; also the amount of State
Taxes assessed and when such tax is
received. This is a subject upon which
much has been said. The tables includ
ed in this report give the facts re-
lating to the time taxes assessed in
any given year are received by the
State Treasurer. They also show the
large amounts received for State
Taxes during the years 1911 and 1912
as compared with other years.
/ also call attention TO Chapter 21l
of the Public Laws of 1913, which
went into effect July l., 1913, by which
all fees or income received by any in
stitutinn, department, board or COM
mission Of the State must be paid to
the State Treasurer, and ell bills of
any institution must be audited before
being paid This applies TO the Au-
eusta and Bangor State Hospitals and
the Maine State Prison, their receipts
going TO the State Treasurer and all
their bills going through the state
Auditors office. The accounts OF the
latter institution were audited at the
close Of 1918 for the first time by the
State Auditors office.
I also call attention to unpaid blils
left by the Democratic Administration
which were included in the deficiency
appropriation bill of 1913; also to other
unpaid bills which did not go into the
deficiency bill and for which no ap-
propriation was made but was paid
out Of money IN the treasury, such as
the Augusta and Bangor State Hos
pital bills for 1912, forestry fire bills
of 1911 and other deficiencies OF those
wears. The correction of the accounts
of the Penobscot Indian Trust Fund
by legislative Resolve of 1913 added
s15 7G3.sG to their fund and increased
the State Debt that amount, 1t was
Just act correcting an error OF many
years standing.
The new law creating Highway
Commission and providing for issuing
bonds for State Highway Loan adoS
TO the expense as well as receipts 1or
that department In this connection l
uisb 70 add that before the new high
wav law went into effect July 18th the
Governor and Council gave to cities
and towns from the automobile Incense
fees received between January L, 1915
and July u, 1918 the sum or Sllo,Zz1.oo,
to help build good roads which was a
free gift from the State, the only con-
dition being that the work should pe
done to the satisfaction of the state
Highway Department. In giving the
debit statement l have separated the
regular State Debt from the State
Highway Loan Debt. AT the present
time as very little of the Bona money
has been expended, it would not MAKE
much difference, but as time goes on
and several hundred thousand ooiiars
will be expended each year from uie
sale of bonds, it will make conslderapie
difference. On that account 1t Is pee-
Ter to separate the two SO the average
citizen can more readily see ana uiiu-
arstand the financial condition of the
state from year to year without being
confused bv this Indebtedness from
tho State Highway Loan Bonds. Whlie
II is true the bonds will be llapliitS
of the State, they are different from
all other bonds issued, as they wiz
he no burden to the tax payers. Inc
law rrovides that the principal anu
interest of those bonds shall be palu
from the receipts of the autonoplle
license fees. The necessary amount 70
bonds and to pay the serial oonos as
they severally become due each year
;s set aside from the automoplle IL
cense fees. the balance of the recelpts
going to maintain state highways
n is a we'll known fact that the Leg
ature of 1911 made practically no
concentrations for new public pulid-
ings or improvements in any educa-
tionaI or State institutions; the Same
nolicy was pursued toward all chari-
able institutions. When the Legisla-
ture of 1913 met there was an increas-
cd and legitimate demand for extra
appropriations on this account. rms
also extended to highways ana
bridges. With the necessity OF these
improvements in view and also lfonl
the natural increase Of the business OF
the state, the appropriation bills Tor
1918 and 1914 exceeded those of 1911
and 1912 by .sS6.242.2S. The princi-
pal part of this increase was for the
following departments: Adjutant Gen
erals Department, 2o,43s.51; Charita-
III, I,s+;tutions s24 900 90: Commission