The Birmingham age-herald., 1917-03-12
CAUSED BY LEGISLATURES

The foregoing figures 'conclusively dem- onstrate that the present financial condi- tion and deficit in the state treasury were caused by the legislatures of 1907, 1911 and 1915, making appropriations with out providing revenue to pay them.
 In addition to the regular appropria- tions, contingent appropriations amount ing to hundreds of thousands of dollars were made
 Many of these appropriations have never been released If they had been the de- ficit would have been much larger
 The legislatures made no budgets of probably receipts and disbursements.
 It is thus seen that the legislatures of 1907, 1911 and 1915 signally failed to pro vide revenue to pay the increased appro- priations they made.
 This failure was not fully realized from 1907 to 1911, as the s1,S02, GOO cash in the treasury on October 1, 196, were consumed in the payment of the increased appro- priations during that period.
 From 1911 to the present, however, this failure has caused the governors much work and embarrassment to obtain the money to pay these increased appropria- tions.
 The legislature of 1915 spent much time to prepare a revenue bill, but practically it is a failure, as the excess of disburse- ments over receipts is approximately as great IS ever
 The taxable valuation of property for 1916 shows an increase, in round numbers, of $3s, 00,000, but as the average annual increase for the nine preceding years was s2s, ,0oo.O0O, not much additional revenue is derived from this source.
 MUST SOLVE PROBLEMS
 The legislature, which convenes in January, 1919 will be confronted with these problems It will have an actual deficit of over B GOO, 900, one third of the amount of the bonded indebtedness of the state, and an annual increasing deficit of over s400, COO
 How can it solve these problems? The most difficult one will be the present de- ficit How can the money be obtained to liquidate it?
 The assessment for 1916 on a SO per cent basis is, in round numbers, $664, ,0oO,O ,OO0
 On a 100 per cent basis, the assess n1ent would be $1, 100, 900 GOO, an increase of $436, 100000.
 If the assessment of property in the would take three years to pay the deficit, and in that time over S1.000.000 more would be added to the deficit.
 As is we'll known, the tax rate in the state is 65 cents on the s100, but as 30 cents of this goes to the schools, and 10 cents for pensions. only 25 cents is available for general purposes.
 Time has demonstrated that Governor Henderson was exactly right in adyo- eating the bond issue, which was de- feated, as the best method of adjust ing most of the deficit. A bond issue still seems the best, the most practical and the most available method of ad- justing the $3,000,000 deficit that will exist in January. 1919.
 A large amount of interest could be saved, and sinking fund could be pro- vided for the payment of the bonds at maturity.
 Then a budget system should be adopted to make the receipts and dis bursements balance.
 In this connection, the following sug- gestion might be adopted:
 The annual deficit is now approxi- mately $400,000 The discontinuance of the $350,000 annual appropriation to the public schools, out of the general fund, would almost cause the receipts and disbursements to balance, and this can be done at the next session of the legis- lature, without serious detriment to the public schools.
 As previously stated, under the pro visions of the constitution, 30 cents of the state tax, nearly one-half of the tax, goes to the schools.
 HIS uocS tlOt luCluoe lHc dPpIOPlid- tions out of the general fund for rural school houses, high schools, normal schools, agricultural schools, the Ala bama Polytechnic institute, the Girls Technical institute and the University of Alabama.
 All of these appropriations take over half of the revenue of the state.
 Now that the constitutional amend ment has been adopted authorizing 8 to cChnn1u a schools will have sufficient money and the $350,o0o appropriation can be dis continued.
 Of course, these are merely sugges- tions, but there must be solution of the financial problems that now con front the state.
 In conclusion. the people of Ala bama should select their best. most competent and most successful busi- ness men to solve these problems in q statesmanlike manner.
 J. T. GORMAN
 Examiner Public Accounts.
 Montgomery, March 10, 1917.