The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1915-01-07


in the affairs of private or corporate
enterprises there would be feG sol
vent concerns. and yet applying this
fallscious theory mt this time. the
balance in the general revenue fund
on the last day of the calendar year
is large enough to overwhelm that ar.
gument because no deficit could be
shown even by that method Of book
keeping
Departments Made self-Supportlng.
A considerable factor in the salts
factory condition of the finances Of
this commonwealth has been the pas
sage OF laws which make every de.
partment, with regulatory authority,
self-supporting. Not only does socie-
ty benefit by governmental regulation
along prudent lines, but the institu-
tions upon which official limitations
are visited profit themselves; so the
laws in question sprang from the
thought that these organized agencies
nf business should bear the cost
rather than impose 1t upon govern
ment Insurance companies, public
utility corporations, building associa-
tions, 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 800.
| The $1,000 assessment is divided by
statute among the local and state gov
ernments. The 800 was levied for
the purpose of maintaining the cost
of regulation. The excess of collec-
tions over the expense of the entire
license machinery has been sufficient
to enable us to turn into the general
revenue fund within the last year
| $750,0O0
Necessity of Business Methods.
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 of
the new order, government has been
unaccountably slow in departing from
the beaten path. Within the last two
years the budget department has been
| created by the state, and the gentle
man in charge, Mr.. Heffernan,
| brought to this very arduous respon-
sibiity, not only broad and success
| full experience as an efficiency man
and business expert, but he was
| trained in the methods of the bureau
of municipal research in New York
end came to us we'll equipped in
budgetry work In a recent report to
the executive department he says:
mo commercial corpora ton, with
out reference to size, could survive a
period of II months if its fiscal policy
were the same as that which OBJ
tanned in the state of Ohio prior to
your incumbency in office F0f dn in
dividual 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 arpropria-
ton year, a college year and one de-
partment operating under the calen-
dar year. The appropriation year be-
gan February 16. The legislature as
sembles by constitutional provision
the first Monday in January, and of
necessity the appropriation bill has
been prepared in haste in order to
have it available on the 10th of Feb
ruary AS result the appropriation
committees of the senate and house
| have never had sufficient time to an
alyze the estimates coming from the
departments and to legaliZe disburse-
ments in harmony with correct busi-
ness principles. The fiscal year, un-
der section 260 of the general code,
for all departments. institutions, pub
lie works and buildings of the state,
ran from the 18th day of November
to the 18th day of the next Novem-
ber, both inclusive. The apprcpria-
ton year, as already noted, began
February Is and ended February Is.
New Plan for Appropriations.
The last general assembly changed
both the fiscal and the appropriation
years, and the new fiscal and appro-
priation years begin July and run
| until June so. Inasmuch as the fed
eral government has precisely the
same arrangement and practically
| every state as well, comparisons can
now be made with some guarantee Of
coherency. The old plan, too, has
been unfavorable to the schools The
common schools, normal schools and
universities begin in September and
end in June. Under the old system
comparisons were unsatisfactory,
either in the consideration of enroll.
ment or fiscal affairs, because part
of two years had to be taken into ac-
count The time fixed for filing an
nual reports in midsummer is more
advantageous for the reason that it Is
ordinarily the slack season. Under
the old plan this work had to be done
during period of great departmental
| uCIlNIIy. dS q
state Ohio has made her appropria,
tions in lump sum. There has never
been a segregated budget. Its neces.
sity was not so pressing in the days
when the state was poor and the rev.
enues were derived by direct taxation.
Government was a smaller affair in
the industrial and social activities.
The approximate expense was easily
computed and the direct tax levied on
the state duplicate was made just
large enough to meet the bills. Con-
ditions, however. have changed The
state levy is only made for the uni
versities, the school fund and what
is known as the irreducible debt. the
expenses of the departments being
| borne by excise or indirect taxation.