Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1921-02-16
Contingent Fund

Coming 50 abruptly from the Leg.
islative to the Executive Branch Of
State Government l have not forgot
ten the legislative point Of view. The
Contingent Fund for two legislative
sessions has been under discussion
and has been confused by rumors and
uncertainties. Its origin. its purposes,
and its amount have all been some
what misunderstood. l desire that the
facts be made known both to the mem
bers here and to the people Of the
States at large.
The State Auditor informs me that
on January l, 1921, this fund amount
ed to $786,150.4 against which there
are now chargeable certain items es-
imated to amount to $4,000. This
leaves a net Contingent Fund Of $685..
10000, which is less than go Of the
total cash payments for the years 1913
and 1920 This fund was established
by law in 1915. The Contingent Fund
consists: First, of lapses from appro-
priations not used and Second, of the
amount by which the actual income ex-
ceeds the current expenses for the
year. The fund created from these
two sources, is then withdrawn by the
Governor and Council; First, for emer
gency work that arises after the close
of the legislative session; Second, for
the completion of work that has been
Itarted and for the completion of which
the appropriations made were not suf-
ficient; Third, for work authorized by
the Legislature but for which no def
Unite appropriations were made.
1t is readily seen that where a Leg
islature must estimate the States in
come and expenditures for a period Of
twenty-four or thirty months in ad-
vance, exactness In those estimates
cannot be obtained The Governor and
Council occupy the position of board
Of directors that have frequent meet
ings, while the Legislature corresponds
In a measure to a stockholders meet
ing, held not as often as once a year,
but once in two. If the stockholders
Rave confidence in their directors there
are advantages in having a Contingent
Fund.
Formerly there was a tendency on
the part of heads of departments 10
expend whatever appropriations were
made for them, with the result that
and unpaid balances were carried to
the next administration. Today the
department head realizes that if the
funds eff his department become ex-
hausted he may then apply to the
Governor and Council and state the
reasons why he needs relief. There
also was a tendency in former times
for heads of departments to make
sure of having an appropriation large
enough for all contingencies. A prop
erly administered contingent fund
checks the demands for excessive de-
part-mental appropriations.
1t should be recognized that the
past four years, with rising costs of
labor, maternal and supplies, have been
difficult ones, but in these respects the
outlook for the future is somewhat
more encouraging. During the years
ICIO Gnu IJEo Vl,oi ,vGt .oA W dS spout
by the Governor and Council from the
State contingent fund and $3.50, S59,11
was spent by them from monies in the
Treasury not otherwise appropriated"
the total being $1,S7S,786.93. This was
made possible because the actual in
come received by the State during
those years was greater than the esti-
mated income, and the appropriations
.or these years were based on the lower
figures Of estimated income. Had this
not been so, the special sessions that
were held would have,been called upon
to provide additional income to meet
the States expenditures. The books
of the State Auditor are at all times
open to you. There is no mystery about
them and each and every transaction
for the years that have passed is sub
ject to your inspection. The future
Of this fund lies in your hands.