Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1915-12-24
State Mast BorrD~ To Square
Accopnfs.

ACcopnts.
FrDu the Bslfim1ogs Sun.
Harvey S. Chase. oOte1 p1baic sooO7ut-
ant and efcisDey expert. who was EN-
p4oyec b. GOyesnN-elect Harrington. 10
his capacity - State Cornpt1olles. to ex-
anime tie books Of the State Treasury.
ssoertsin the exact coDdition Of TIE pub
lie finances and recommend Necessary
changes 10 policy and nsethod. has sub
united his report 20 the Econorny and
Efficiency Commission, which met al the
osfics d the chairman, Dr.. Frank J. Good-
now. In kcCoy Hall
Nf. Cnsseis repogt. which 10 very thor-
O0sh and comprehensive. shows that the
deficit In the treasury was Sl.4ee .555.sI at
the end Of the last fiscal year. September
30, 1915. The report also shows that the
money which gees U the sinking funds d
intact. bat the deficit has encrosched upon
other dedicated funds. The exact amount
Of the en1oschnent 10 $171s6s1l. The
amount due dedicated funds. other than
The payment 70 the sinking funds. was
a.Ois7eSJO7 On September 30. against
which there was available cash amount
ing to$s4e. 300. 80. leaving due 1851.
the amount Of the enGoachmenL
N1HY APPROPRIATION UsPAID.
The total deficit Of S1.44e.555.s1 on Sep
TENDER 80 consists Of the eDcroachnent
u $l7l,565.n upon the dedicated funds.
and unpaid appropriations to State and
private hospitals. institutions. universities.
etc, amounting TO Sl.274.ss7.70.
Mr.. Chase after giving the exact amount
Of the deficit and explaining where the
burden Of IL rests, points out that II the next
legislature sppropfiates as much money
70 be paid during the current fiscal year
az the last one appropriated to be paid
during the then current fiscal year. the
total deficit on September 80 next would
be 100000. He says that II win be nee
essary. 10 his judgment. for the State 10
borrow money by issuing bonds % lift the
deficit and sseeests that. II the deficit
reaches 100000. 10-year serial bonds
for that amount be issued one-tenth Of
the amount. Or $500 900. 70 be called and
paid each year
Mr. Chase says that II is imperative that
the State institute an efectual budget sys
tem-which he suggests should be pre-
pared by the Goyernor-to the end that
there be intelligent understanding Of the
income and outeO Of the State at each
session Of the Legislature instead Of this
wildcat financing" In the State Of Mary
land.
WASTE hUsT BIZ Cur Our.
But while he says a budget system is
imperative II the State Is 10 have intelli-
| gent handling Of It's finances. he makes IL
plain that something more than buds ct
system viii be needed 10 prevent recur-
renee Of the deficit. He says waste must
be cut out Of the States expenditures. 50
that they may be reduced as much as is
practicable and that. on the other hand
the revenues Of the State must be builded
up. He Is now gathering data regarding
revenues and later will submit statement
showing possible new sources or possible
means Of increasing the receipts from
present sources.
He makes comprehensive recommended
tons for reorganization Of the book keep
ing system in the Comptroler's office. He
would have separate accounts for the funds
arising from the three major sources that
Is. he would have one account for the funds
arising from the proceeds Of the sale Of
bonds another for the funds arising from
direct taxation. which are dedicated e
specific purposes and third for funds
arising from indirect taxaton-licenses
fees, etc which are used for the general
expenses Of the government. payment o.
appropriations. salaries and the like. Al
present all the money coming into tn,
State Treasury is put into common pot
Would CLASSIFY APPROPRIATIONS.
Further. he recommends that the appro.
priations be classified on the Treasur,
books. according TO the functions" OF
according to the nature Of the purposes for
which the appropriations were made. That
he explains, would enable the officials. IN,
members Of the Legislature and the citi
zens to know just how much money wal
being spent for schools. for policing. fo
conservation Of natural resources, for con
servation Of public health. etc, anC
whether the work was being done economi
cally and efficiently The classification,
which he recommends are those used b,
the United States Census Bureau in il.
tabulation Of the expenditures Of cities
and States.
Among other recommendation for the
improvement Of the States book keeping
which Mr. Chase offers are
"Centralizing in the Comptroler's Office
vouchers for all expenditures Of the State
funds; not merely acquisitions for advanc.
ing OF cash.
"Vesting in the Comptroller greater au-
thority to disapprove demands upon the
Treasury
Doing away with the practice OF carry
ing forward from year TO year unexpended
balances Of appropriations for current ex
penses
Bringing into the books Of the Comp
troller controlling accounts Of the revenues
and expenditures Of all boards and CON-
missions which operate on fee basis or
otherwise"
LACK Or BUDGET CAUSED MIDDLE.
To revert to the deficit Mr.. Chase calls
attention in his report to warnings as to
the States financial methods which were
given by Mr.. Harrington in his report as
Comptroller for 1914 and by the Comptroller
as long ago as 1907
lie continues
1T is evident from my examination Of
the conditions that the reason for the
/ orouyfh NJ the da6etan.taa Ia ska .....-.t