Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-01-10
Has Maine AnyNeed of Budget?
twrittsn by r. Ernest Holman. c. P. A.,
Chairman Maine Board Of Accountancy,
for the Kennebec Journal

Chairman Maine Board of Accountancy,
for the Kennebec Journal.1
There Ii absolutely no need for a bud
get-ths money and time spent in the
preparation Of q budget is absolutely
wasted IF we are content with the sense
less. slipshod and systemless methods
employed today in the. raising and ex-
pending Of public funds.
However, It seems that we are not con-
tent. and that a great wave OF govern
ment planning and accounting reform Is
sweeping this country, as it swept, years
ago. the countries across the sea.
FOREIGN countries, under the stern pinch
of necessity, found It necessary to make
a scientific study Of the cost Of govern
ment.
The vast importance Of having well
defined financial plan by which to conduct
our public business Is rapidly dawnng on
the minds of American citizens. we
spend In this country, more than sS'WV'-
100000 annually in the conducting OF tns
affairs of government.
The appropriations by Congress, our
state legislatures and our municipal bod
les. constantly show decided increases.
These increases bring home sharply the
question, do we get the results We
should for the money we spend?'
Waste Everywhere.
According to the findings Of body OF
United States civic experts who nave just
made an exhaustive study OF the cost OIL
Government in the cities OF this country
having a population of 10000 and over
s.01 oIo 600 is wasted every year by lneh'-
Giant administration. The loss Is over
90 nor cont of the expenditures of the
average city The mayor OF one OF our
largo western cities said to the writer re-
,ent,v that If he could save GO per cent.
OF the waste Of the city's money .n"'
",hey'' could have the graft IA '"e'
conditions exist in our cities no. Si'o
nous must Re the figures for waste III
our larger units of government 'i'e
states. This awful waste OF the puoiic
money has led to municipal accounting
reform and In our more progressive
,,,tes Ohio Indiana. Illinois and WIS
consin to the adoption Of the budget
What a Budget Is.
The budget system has been established
and is designed to give:
ct
~, tho executive branch of the govern
ment:
81 A statement Of the present hnanclal
condition and estimate of future needs Oh
every state department and state lhstltu-
;.on;
Sd A basis for future planning work;
am A means by which the work OF the
executive branch of the state government
which spends the money, is brought lhto
close co-operation with the legislative
branch which appropriates 1t.
The budget introduces no radical IDEAS
It is merely a reform In the methoo OF
doing business. 1t simply substitutes sSs-
tenn for chaos-an orderly and intelllglble
method Of doing the same things, that we
are now doing in a careless. hap-hazard
manner.
The Machinery Of the Budget.
The machinery of the budget is very
simple 1t merely provides records of the
expenses THAT HAVE OCCURRED.
that shall be a guide in the appropriation
OF money to provide for similar expenses
WHEN THEY OCCUR AGAIN. For in
stanceAand an illustration of ONE de-
ments,-the legislature is asked to make
an appropria ton for the support of 4
state institution. Under our present sys-
tenn no one knows for certainty wheth-
err this particular state institution Is run
economically or eXtravagantly. Here is
where the budget system steps in and
aids. The sheet in the budget for the
state institution in question gives the
legislature the following information:
LIST proper classification Of it's ex-
pense accounts A distinct segregation OF
operating. maintenance. repair and
capital expenditure accounts. The same
expense called by the same name and en-
tered in the same classification all the
time.
I'd A column showing what each ex-
pendture and each total classification
amounted to In 1914.
Sd column showing the same data
for 1915.
4th A column showing the same data
for 1916
9Th column containing the amount
the institution believes it needs for 1917.
9Th A blank column to be filled in after
the legislature mas made its final appro-
priations for the institution.
eth a column showing the increased
asked for in 1917 and the reasons there
tor.
Std y column showing the decreases
IN the amounts granted ana the reasons
therefor.
9th y column showing the average
number of inmates each year for the
pas three years. and the number of In
mates when budget was made
10th Columns showing the inventories
on hand (say December 1su for each Of
the three years
llth statement Of the institutions