The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1915-01-08

cit OF S1,000.000 was created. II thin
Principal we're adopted In the AFFAIRS
Ct private or corporate enterprises
there would be few solvent concerns,
ard yet, applying this fallacious the
ory at this time the balance In the
general revenue fund on the last day
OF the calendar year is large enough
to overwhelm that argument because
no deficit could be shown even by that
method OF bookkeeping. A consider.
able factor in the satisfactory condi.
ton OF the finances of this common
wealth has been the passage of laws
which make every department, with
regularly authority, self.supporting.
Not only does society benefit by gov.
.ernmental regulation along prudent
lines, but the institutions upon which
official limitations are visited profit
themselves; so the laws in question
sprang from the thought that these
organized agencies of business should
hear the cost rather than impose II
upon government.
Benefits Are Obvious.
Insurance companies, public utility
corporations, building associations,
banks, brokerage enterprises, etc.,
are not unwilling contributors to the
public funds because the elements OF
benefit to them and justice to the
public are too obvious to be denied.
The law licensing and regulating the
liquor traffic provided that, in addi.
tion to the regular $1,000 fee, there
should be registration cost of 500.
The $1,000 assessment is divided by
statute among the local and state gov.
ernments. The 500 was levied tor
the purpose of maintaining the cost
CT regulation. The excess of coilec.
tfons over the expense of the entire
license machinery has been sufficient
tc enable us to turn into the general
revenue fund within the last year
$i50,000.
The genius of man has evolved
principles of business in organization
and accounting which clearly demon
strate the tremendous economic
waste that flowed from old methods;
and yet with no lingering scepticism
oil the new order, government has
been unaccountably slow in depart.
ing from the beaten path. Within
the last two years the budget depart
ment has been created by the state,
and the gentleman in charge, Mr..
Heffernan, brought to this very ardu.
Gus responsibility, not only a broad
and successful experience as an effi-
cheney man and business expert, but
he was trained in the methods of the
bureau of municipal research in New
FORK and came to us well equipped
in budgetary work. In recent re-
port to the executive department he
says:
No commercial corporation. with
out reference to size, could survive
period of twelve months if its fiscal
policy were the same as that which
obtained in the state of Ohio prior
to your incumbcncy in Office. For an
individual or corporation to continue
business as the state of Ohio in the
past has conducted her activities
would mean bankruptcy
First of all, it was found that the
state had fiscal year, an appropria-
tion year, a college year and one de-
partment operating under the calen.
dar year. The appropriation year be.
gan Feb. 16. The legislature Assem-.
bIes by constitutional provision the
first Monday in January, and of ne
cessity the appropriation bill has
been prepared in haste in order to
have it available on the 18th of Feb.
ruary. AS result, the appropriation
committees of the senate and house
have never had sufficient time to
analyze the estimates coming from
the departments and to legalize dis
bursements in harmony with correct
business principles.
Lump Sum Appropriations.
The fiscal year, under Section 26O
OF the general code, for all depart
ments, institutions, public works and
buildings of the state, ran from the
10th day of November to the 18th
day of the next November, both inclu-
sive. The appropriation year, as al
ready noted, begun Feb. 16 and ended
Feb. Is. The last general assembly
changed botn the fiscal and the ap-
years, and the new fiscal
and appropriation years begin July |
and run until June 30 Inasmuch as
the federal government has precisely
the same arrangement and practically
every state as well, comparisons can
now be made with some guarantee OF
The old plan, too. has
been unfavorable to the schools. The
schools, normal schools ana
begin in September and
end in June. Under the old system
were unsatisfactory,
either in the consideration of enroll
nlent or fiscal affairs, because a part
OF two years had to be taken into ac.
count. The time fixed for filing an
nual reports in midsummer is more