Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-07-26
GOVERNOR HOPEFUL
Of FINAL SOLUTION
OF STATE FINANCES

With the passage by the house last
week of the resolution authorizing a
discount of the rental of the Western
and Atlantic railroad for the next
five years to pay the deficit in the
state treasury, and the expected
passage of the resolution by the sem
ate during the coming week, Cover
nor Hardwick, on Saturday, was able
to see daylight ahead of him in his
announced determination to place the
finances of the state on businesslike
basis
Governor Hardwick's problem re-
solves itself into three propositions
which follow each other in what
might be termed chronological order.
as follows:
/. To pay the deficit which has &C
cumulated in the treasury.
2. To limit legislative expenditures
for 1922 to the revenues Sof the state,
a policy which has not been observed
in the past, and which is responsible
for the present deficit.
3. To reorganiZe the revenues of
the state for the future, so that
there will be enough to provide for
the departments and institutions.
The governors first problem, he
stated Saturday, will be solved when
the senate adopts the resolution
passed by the house authorizing him
to discount the Western and Atlantic
rental for the next five years. He eX-
pressed himself as confident that the
senate would adopt the resolution
during the coming week.
The condition of the treasury at
the present time, as ascertalned by
the governor from figures furnished
him by Comptroller w. A. Wright
and Treasurer w. J. Speer, is sub
stantially as follows:
Condition of Treasury
for 1921,
made by the legislature
in 1919, and to be paid
out during 1921. ........S 9;S4o,OO0
Deficiency appropriations
for 1921, which will have
to be made by the pres
ent legislature at the
present session ........ 100000
Special deficiency approprl-
alton for state Sanitarl-
UNI for the insane, which
will have to be made. 100000
Total obligations of the
treasury for 1921. IL, 264 900
Estimated revenue from all
sources for 1921 ........$ S,S22,OO0
Leavinga treasury deficit
for 1921 of. 2,442,OOO
This is the amount, or approx
mately the amount, which must be
raised in cash. from sources outside
of adj valorem taxes and special
taxes, to pay the treasury def1c1t
and start the next year with clean
financial slate. No additional al
valorem taxes can be raised this
year because the states tax rate is
limited to mills, and because the
taxable values for 1921 have been
made up and cannot be revised. NO
additional special taxes can be
raised this year because the law NIX
ing special taxes is already written,
on the statutes, and most of the spe-
cial taxes for the year have already
been paid. Hence the governor
problem is to raise the amount OF
the above-stated deficit from sources
outside of and differ ent from these
two sources.
Accordingly he has asked the leg
islature to pass a joint resolution au-
thorizing a discount Of the rental OF
the Western and Atlantic railroad Tor
the next five years, to produce I'M
mediately a cash fund sufficient to
pay the deficit. The Western ana
Atlantic rental is $4,000 a year. A
discount of the rental for five years
would produce $2,70O,OO0,, minus
Whatever rate of discount the state
had to pay. Governor HardWick f tigiii
ures that the whole transaction Will
net the state about $2,400,OOO. This
in round figures, will cover the deficit
in the treasury and enable the state
to begin the next year with clean
financial slate.