Semi-weekly herald., 1917-03-05
THE BUDGET SYSTEM
BY Philip B. Stewart, Chairman Survey Committee
SECOND ARTICLE

ton.
Under the proposed law the assem-
bly's and supreme courts estimates
are not subject to the governors re-
vision. Included in the budget is also
a complete and classified statement
OF the states assets and liabilities in
.ach detail as to show its eyast Z.
r.ncial condition. The governor viii
:l.o recommend methods sf rsisinx
NV unusual revenues nee5s-s - es.r-
y out his budget program NJ 9th
er appropriation measure riay b.
considered by the Legislature while
the governors budget bill Is befor,
it. and any additional appropriations
made afterward must be made by
separate bills. each embracing but
one subject.
The budget and efficiency commits
sioner's recommendations, data and
memoranda are in the hands of the
governor several months before tho
Legislature meets. The proposed law
provide for public hearings on the
different items of the governors
budget With each-i is the gov
ernor's explanation Of the reason foi
both the item and the amount. In
fact the budget is made a public due
ument thus minimizing thro force OF
publicity and public discussion, ths
danger OF lobbying and "log rolling
Another important advantage of this
system is that the data and memo
randa Of the budget commissioner re
main permanently in the files of his
office, constituting a most valuabl'
store OF information and material 20
purposes Of comparison in the cor
struction Of future budgets.
After the public hearings provide
fcr. and sitter calm, seasoned dc
liberation of the different request.
for funds and actual needs. the gov
ernor is ready to present his bulge
to the Legislature. How much NOR
business-like is this system whel
compared to the present plan, Time
worry and confusion is saved tn.
legislature. That body loses no cor
troll over the public funds for, if i
50 desires it may strike out or reduc
the items of the governors bulge,
but if il chooses TO exercise this righ
the responsibility is less The gov
eInor simply asks permission of tn
legislature to carry on the financia
iffdrs Of the state in accordane.
it'll the plans outlined in his budget
After receiving the legislatures ap
proval the budget becomes the chief
executives work program.
In those states where the budget
system has been employed the re
suits have been strikingly success
ful. A budget system was adopted
n California. Concerning this sys.
tenn, Governor Johnson, said, "Con-
mon sense demands business-lke
and scientific budget. We have one.
and, mark what | tell you, the time
will never come again in your life
time or mine in California when any
politician will dare to put this gov.
eminent back on the old log-rollinp
basis"
In 1913 Ohio adopted bulge,
plan. Acting under authority of the
law passed, the governor caused to
be compiled comprehensive estimates
Of receipts and expenditures of the
various divisions of the state COVE
ernment and then called the legisla-
ture into extraordinary ses-
sion to repeal the appropriations
passed at its previous session and
re-enact them in accordance with tn,
estimates he had caused to be pre-
pared. The result was reduction
in the amount appropriated of ST.,
100000 and a subsequent saving OF
half million dollars of the total
amount expended under this budget
appropriation.
The establishment of the Budget
system is the very foundation of the
many improvements in our method of
conducting state business which the
survey committee urges be made.
Without sensible, business-like fl
nancial system, there is little hope
of effecting really efficient admins
tration of state government.
In my next article, will deal with
the Survey committees findings and
Recommendations on the administra-
tion of the state school lands and
school funds.