The states-graphic. (Brownsville, Tenn.) 1???-1984, 1917-08-17
DEFICIT OF MILLION
DOLLARS FACED BY
STATE OF TENNESSEE
Financial Condition Left in Iangle-
1917 Legislature Failed to Provide
Revenue to Meet Increased Appro-
priations Found Necessary to Main
tain Institutions.

teenth general assembly met last Janu-
airy about the first proposition it was
confronted with was that unless some
thing was done to make the states
receipts balance the disbursements the
commonwealth would at the end Of the
ensueing biennial period be face to
face with a deficit of S1,000,00O
This forecast of a probable shortage
in the accounts of the state was based
upon the fact that for several years
its expenditures had far exceeded its
receipts. Moreover, it was known
that when the state tax rate had re-
manned the same, Soc, since 1899, and
that it would not be increased, the
states expenses had been continuk billy
growing with no prospect in sight for
curtailment.
1t was apparent, too, that owing to
the changed conditions the legislature
of 1917 would have to enact laws for
more liberal maintenance of its char
table institutions beside making
largely increased appropriations Tor
other purposes.
As an instance of the way the stbte
had been running behind its expense
account, the report OF the comptroller
for 1914 is cited. For that biennial
period he reported receipts lof
S9,166,87063, and disbursements LOT
S9,779, 579,97, or a balance on he
wrong side of the ledger of over hhlf
million dollars.
For the two years, 1915 and 1915,
the total receipts were $1,249, 4S4 III;
total disbursements 1888, 1902, Tor
deficit of over 100000.
No very high degree of financial
acumen is necessary to forecast the
inevitable result Of such business mdth
DDS.
The legislature completed its session
and adjourned without materially
changing the old assessment bill or DO
ing anything else that would material
ly increase the revenues of the state.
but it did make increased appropria
tons beyond the ability of the state
to pay out Of its present sources of
revenue and at the same time retire
certain of its bonds as is contemplated
by the funding board.
The finance, ways and means com
mittee offered the legislature an as
sessment measure that it was claim
ed would increase the receipts of the
state, but it failed to pass, with the re-
suit that the states resources of reye-
nue. are about what they were in the
last biennial period, and that, too, WITH
largely increased expenses over two
years ago.
Comptroller John .. TAsAs@Nes,-
when speaking Of this matter today
said, with increased expansion and no
material increase in revenue it was a
plain usiness proposition that the
state would at the end of the present
biennial period be confronted with a 1
deficit Of no inconsiderable propor-
tons. He referred to the fact that the
legislature had failed to provide the
state with the means of getting
enough money to pay its current ex-
penses, much less to meet other de-
mands. The tax rate is Just the same
he declared, and there is no material
increase in the revenue possible under
any measure enacted by the last gem
eral assembly. Even if there were, he
went on to say, the increased proper
tons would more than exhaust it and
the state would be no better off in
the way of revenue than it has been for
several years.
mat being approximately correct,
tinanciers say that there is no way to
avoid a large deficit at the close of the
present biennial period.
The pension appropriation and the
per capita appropriation for the main
tenance o. the charitable institutions
are largely in excess of what they for
merly were, and these and other in
creased expenses bound to keep the
state strained to the limit to pay its
current expenses, and at the same time
meet its other obligations.
Tennessee is a wealthy state and
there is no good reason why these con-
ditions should exist. The assessed val
ue OF property in Tennessee is only 40l
per cent of its real value. The actual
value of property in the state is ap-
proximately S1,700,000,000. The reg
ular interest bearing Indebtedness of
Tennessee is about $12,417,OO0. The
value of property owned by the state
is about S5,516,37S. The percentage
of indebtedness as compared with the
taxable wealth of the state is only
IL per cent.
According to those charged with the
states financial interest much prop |,
erty in state, real and personal, es-
capes taxation altogether, and until
these things are remedied there is no |
hope that the state will be able to |
meet its obligations in this or any
future biennial period.
The last general assembly was in
of all these facts early in |
the session ard efforts were made by
certain of the members to stress the |
Of doing something for the
state, but aside from increasing appro-
priations and making new ones little
was accomplished of a nature that
would tend to relieve the common
wealth of it embarrassment.
Appropriations are necessary, but