The Madisonian. (Richmond, Ky.) 1913-1914, 1914-01-13
CARE URGED IN
EXPENDITURES
BY GOVERNOR McCREARY IN MES
SAGE TRANSMITTED TO GEN.
ERAL ASSEMBLY.
OPPOSES RAISE IN TAX LEVY

Many Matters of Vital Importance To
the Commonwealth Are Discussed in
the Governors Message-Favors a
Tax Commission.
Western Newspaper Union News Service
Frankfort, Ky.-In a message con-
tanning approximately $4,000 words,
transmitted to the general assembly,
Governor McCreary reviewed the past
two years of his administration and
recommended legislation, including
that providing 2 state tax commits
sion; but cautioned against eXtrava-
sance and firmly opposed an increase
in the tax levy or the issuance of
state bonds.
On this point he sets forth a state
ment from the auditors office showing
that the balance in the state treas
Ury December 81, 1918, was only
Sl06, 1855 less than the aggregate of
outstanding warrants, and including
the amounts paid into the state by the
railroads in the 1912 franchise suits,
the revenues for the fiscal year, end
ing June 80, 1913, exceeded expendi-
tures by $4,000
of the forty-eight states in the
United States all have bonded indebt-
edness except twelve, and Kentucky
is in the list of states which have no
bonded Indebtedness.
State Finances.
Il am very earnestly in favor of
wiping out the Indebtedness of Ken
lucky, and believe it can be done in
less than three years with proper
economy and with the enactment Of
proper legislation on the subject of
revenue and taxation. And we must
not overlook the fact, that while the
rate Of taxation in Kentucky is so
cents on the hundred dollars, only
2l12 cents of this tax is set apart
Tor the general expenditure fund, out
OF which the general expenses of the
state, including all specific and annu-
al appropriations, are made. The
school tax takes 20 on the hundred
dollars valuation each year, the sink
ing fund cents, and the State Uni
Tersity y cent.
Much has been said about increas-
ing the rate of taxation or issuing
state bonds. 1 wish to state, positive
~, that l am opposed to increasing
The tax rate OF issuing state bonds.
Tax Commission.
With reference to the proposed tax
commission, he says:
i am in favor of, and heartily com
mend to the general assembly, the
creation of a state tax commission,
20 consist Of three men well inform
ed on revenue and taxation, who shall
have general supervision OF the en-
tire system of taxation, both state
and local, including the license taxes
and the inheritance taxes.
Il recommend that, in addition to
the three tax commissioners here
fofOre specified, the auditor, treas
urer and secretary of state shall al
so be members of the state tax COM
mission until January /, 1916, with
the same power and authority as
given to the other tax commissioners,
except that they shall draw no salary
as tax commissioners
He advises that: "All gratuitous APP
preparations and enlarged expendi-
lures should be set aside pending the
enactment of those necessarily Incl
dent to the state government. There
should be distinctions between mat
ters which are deserving and those
less deserving. The affairs of the
state should be administered with
strict economy; and the first prin.
ciple of good public finance is that
10 expenditures for any purpose, ex
cepting in great exigencies, should
be permitted, unless such expenditures
for any purpose, excepting in great
-eXigencies, should be permitted, un
less such expenditures lie within the
limits OF the public revenue, AL
bills appropriating money should be
referred to one committee in the Sen
ate and to one committee in the
house of representatives
The governor recommends the ex
tension of the rural school term tt
eight months and a return to the
system OF state adoption of tex
books.
lie praises the State university anC
the two normal schools, the Norma
and industrial institute (colored)
and proposes an illiteracy commits
sion, after showing that "illiteracy il
our state was reduced $4,000 in the
last decade" This commission is tt
study the conditions of adult litter
ates. The governor adds that no ap
preparation of money is needed.
He recommends extension of the
scope of the farmers institutes, Will