The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-04-13
THE sTATE's FINANCIAL
CONDITION.

have been fssued at Charleston, n by
the state auditor, In reply to an in
quiry from the attorney general con
corning the condition OF the states
finances. and the second from h at
torney general, expressing IN oplnlou
as 10 the p~racticaoility of borrowing
funds to meet the States immediate
needs.
The auditors statement shows that
from time to time In the past the state
has borrowed from certain so-called
blank appropriations or special funds
for h purpose Of meeting its ordinary
expenses. These special funds are
moneys paid into the hands OF the
state to be used for specific purposes,
such, for instance, as the workmen's
compensation fund, public service
taxes due counties, the fire marshal
tax, militia, fines, etc. While the state
has the custodianship of these funds,
they are not properly credits against
the states ordinary running expenses.
However, at various. times during the
past forty years the state has borrow
ed from these funds, n later repaid
the loans. The gist OF the long state
ment made by the auditor is to the
effect that a certain amount of money
might be borrowed from these funds
to meet thu ordinary expenses of the
state administration at Charleston,
and the attorney general formally
renders an opinion tina such borrow
ing is legal, and may be properly re-
sorted to. In this connection it may
be proper to point out that the at
torney generals opinion in this case
conflicts with ar opinion rendered by
the assistant attorney general only a
few weeks ago. The state had borrow
ed certain sums from the board OF
public works fund, and from the work
mems compensation fund. On the adj
vice of the assistant attorney general,
that these loans could not be properly
made, the N was returned to
these funds. However, it appears
clearly from the report of The auditor,
and from the report of the attorney
general, that such loans can be made,
n to the extent of these so-called
special funds; therefore, the general
state fund may be ~replenished to tenn
pOrary loans. ,
The auditors statement further sug-
gests that the state may Scrape along
and meet pressing bills without addi-
tional e at the present time,
but that this can only be done through
allowing to lapse entirely over $500, 900
of the appropriations made previous
to July LIST, 1914, as well as the very
large appropriations which the COVER
nor was compelled to veto during the
regular 56SSlOu OIL tue Legislature. III
other words, il appropriations for pub
lie buildings and improvements to
various state institutions, for additions
to their work, and for the increase OF
their usefulness, to the amount of
about $1,750,Q 600, are either cancelled,
allowed to lapse, or entirely ignored,
the state may be borrowing arbitrarily
from funds for which it is the trus-
tee, be able to pay the clerical help
- ~,.al, ~tL@- dana ~ nan NFGnfalG
as are employed in the various state
institutions.
The Intelligencer does not assume
that 1t was the intent OF the auditor
or the attorney general to represent
that as a desirable condition of affairs.
In fact, 1t only emphasizes the COM
plete failure of the regular and extra
sessions of the legislature to meet the
duties that developd upon that body.
II the ordinary revenues of the
state were sufficient to meet h or
! binary expenses of operation. the gov
ernor might be justified in negotiating
a oar to meet an extraordinary emerg-
ency, such an emergency arising when
the legislature is not in session; but
the fact is, that the present and or
binary revenues of the state are not
sufficient to meet the states expenses,
and the deficiencies now existing are
bound to be added to from day to day.
AT the best, loans made from the
special funds of which the state is the
custodian. and which are not to be
used for the states general expenses,
are Of doubtful propriety, but sucn
loans as shown by the auditors report
can only suffice to meet the states
needs for a few months.
The only solution of the states diff
culties is for the legislature to meet
the issues fairly and squarely, and
provide the that the state
needs. The legislature failed to do
this. An element all powerful in the
senate was so bent upon serving the
special interests represented by a
powerful lobby that they not only
blocked any special special direct
taxation, but created a condition that
made it impossible to pass any reve-
nue. measures. The responsibility for
this condition does not rest upon GOV
ernor Hatfield. 1t rests upon no mem
Der of the state administration, in SO
far as The Intelligencer Is informed.
1t rests solely upon b majority of the
state senate that combined to bring
about this situation. By one make
shift or another, the governor may be
able to carry on the state government