The Owosso times. (Owosso, Mich.) 1897-1926, 1920-04-02

tinuing to be burden upon the enter
prises and industries Of this country.
When reform has begun there, it's
Influence will begin to radiate to the
remotest corner of our republic"
Governor Lowden declared that the
first step towards reform is the crea-
ton OF q budgetary machinery with
power vested In the Secretary Of the
Treasury similar to that conferred
upoa Ne Director of Finance of ILL
nois, an Office created under Gov.
Lowdens administration.
Declaring that business methods
had saved Illinois from financial ruin.
reduced taxation and cut out admin
istrative red tape. Gov. Lowden con-
favorably in national administrative
affairs.
When I became Governor, said
Gov. Lowden, "a little over three years
ago, there were something like 125
boards, commissions and other In
dependent agencies Of government.
These were wholly independent OF
one another with overlapping func-
tons, with needless overhead expense,
with a duplication of effort, and with
competition among themselves in the
purchases they made for the state.
Upon careful study we found that
xll tho functions performed by these
numerous boards, commissions and
officials fell into nine groups. Within
so days after l became governor we
abolished them all by one act of the
legislature, known as the civil admin
istrative code. At the head OF each
Of thsss departments we put an in
dividual and not board or commits
sion. Among the departments was
department OF finance. That depart
ment was charged with general super
vision OF the financial affairs of the
state and was In addition required
to prepare q budget.
I'm its supervision of all the ex-
penditures Of the State II necessarily
acquired the information which en-
abled II to know what the State really
needed for the next appropriation
period. 1t was given the power. when
estimates were received by any spend
Ing department, to eliminate any item
or reduce any item. If 1t found that
such item was unnecessary or too
large. Therefore. when our General
Assembly met year ago In January,
for the first time In the history Of the
State Il had before It business-like
statement Of the resources and needs
Of the States for the next two years.
ITO pay for the expenses of our
state government. outside the state
revenues that we derive from inherit.
ance taxes and corporation taxes. and
that sort of thing, we levy general
property tax. In 1917 our tax rate for
state purposes was ninety cents on
500. Municipal taxes and county
taxes were going up all the while Just
as they were elsewhere. I am talking
now about the State government,
those departments that are under the
Jurisdiction of the state officers. In
1918 we were able to reduce the tax
rate from ninety cents to seventy-five
cents. Last December, when we met
again to fix the tax rate for the ensu-
ing year. we were able to make q fur.
Their reduction of twenty per cent in
our tax rate. This reduction OF thirty
three per cent in our tax rate In two
years was due to this consolidation OF
the 1875 boards and commissions into
nine departments with a director at
the head OF each and the establish.
inent of q budgetary system"
Gov. Lowden said that while we had
gone forward In the efficient conduct
of business, while our individual
achievement in various files had been
large, we had, refrigerated In govern.
ment since the, time of Alexander
Hamilton.
isn't 1t about time" he asked, chat
we give some attention to the public
business, because 1t affects every other
business and every individual In the
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