New-York tribune., 1918-12-09
Sage Warns State
Faces Bankruptcy
Or Big Tax Raise
Senator Says $4,000, 900
in Revenue Is Cut Off and
Sl5,OOO,OOO More Asked
in Budget Than Last Year
Special Correspondence

ALBANY, Dec. 9.--With the warning
that the state will either become bank
rupt or the people will have to pay
more taxes, Senator Henry NJ. Sage.
chairman of the Senate Finance Com
mittee, announced day that ine
legislative budget committee had COM
pleted its tabulaton of requests for
appropriations from state departments
and institutions, to be presented to the
Legislature on January /. They amount
to S96,S5S, ,064.49.
Senator Sage points out that the
states estimated resources for the
coming fiscal year beginning July
next, are approximately S12,O0O,OO0
less than for those for the present
fiscal year, largely due to the falling
off of excise revenues, because of the
stopping of the making of beer and
the nation wide war emergency pro-
hlbltlon law, just signed by President
Wilson.
Revenue Cut $4,000 900
In analyzing the states financial con-
THE total requests last wear were
approximately S9S0Oo, ,0OO The final
appropriation last year was SS1,-
625,27l.31. The requests of this year
are approximately 5000 900 more
than the total appropriations of last
year.
"ln view of the fact that our esti-
mated resources for the next fiscal
year are approximately S12.0OOOOO less
than our resources for the present
fiscal year, there is a task for the
Legislature to perform, which is very
arduous and serious one. The decrease
IN resources is not entirely due to
decrease IN current revenue On july
l, 1918, the state had an estimated
cash balance of $l1,084,0OO. 1t is esti-
mated that on July |, 1919, our avail
able cash balance will be S2,S27 ,O0O
Also our estimated receipts from
excise taxes for the present fiscal wear
were S5,75O,000, which is reduced in
the coming fiscal year to nothing
Drastic Action Necessary
ut is absolutely necessary either
tAat our receipts be increased or our
expenditures diminished. The state
VIII either become bankrupt or the
people OF the state must pay more in
taxation. The only alternative to this
is that the activities of the state be
curtalled to large extent
1t is interesting to note that not
withstanding this condition the in
creases requested in the overhead of
the various departments, rot taking
INTO consideration any of the states
building or repair operations or any
thing in the nature of a capital OUTLAY.
amount to $8,046,oO0 over the total
appropriated for the same purposes for
the present fiscal year
"While 1T is true that these esti-
mates were made up before the end
OF the war was in sight and undoubt-
eGly can be reduced somewhat in view
of the changed conditions. this dis
closes a very serious situation
Faces Higher Taxation
But If for the overhead alone of
all these activities an increase of an
Iroxlmately Is per cent is to be re-
ouested of the Legislature each wear
IT Will not be long before our state
udget will be out of all proportion
to the results accomplished
In tins connection | wish to call
the attention of the people of the state
to the fact that each year new laws
are being urged on the Lepislatnro
which will add still further to the state
activities and increase enormously the
expenses without any intelligent sur
eestion or plan to increase the revenue
of the state sufficiently to meet the
added expense.
The greatest task which the Lepis-
iature has this year is not the approval
or disapproval of Federal prohihition
amendment, but it is a sound method
OF taxation and a careful retrenchmont
wherever possible in its constantlv
mounting expenditure"