Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1921-03-16
GOV. BAxTER'S MESSAGE
TO STATE LEGISLATURE
Urges That Body TO Practice Strict
Economy-6lils Now Presented
Total SO, O0O, 900.


The Constitution of our State under
Act v, Section 9, provides, that the
Governor shall from time to time
give the Legislature information Of
the condition of the State, and recon-
mend to their consideration such
measures, as he may judge expedi-
emit" Acting under this constitution
al authority, l come before you with
certain suggestions which may be of
assistance to you in determining the
financial policy of our State for the
ensuing fiscal period of 21a years.
At the outset l desire you to under
stand that l am fully aware of the
division of power between the legis
lative and executive branches of
government, and assure you that my
brief service as an executive has not
dulled my keen appreciation of legis
lative prerogatives, acquired after
long service in both Senate and
House.
You members Of the Senate and
House have the power to raise money
as we'll as the power to spend it.
Fundamentally the financial structure
of our State is Of your making, and
you can build it either upon rock or
upon sand The Executive, by the
exercise of the veto power can dis
approve the passage Of a law, but he
has not the power to initiate law, and
his assent or dissent can be exer-
cised only after you have taken posi-
tive action. Upon you gentlemen of
the Legislature rests the responsible
ity for the funds that come into, and
that are taken out of the Public
Treasury.
The financial condition of the State
of Maine was sound when we took
control on January 9Th last; it is for
us to keep it sound as long as we hold
these positions of trust conferred up
ON us by the people.
The bills and resolves already pre-
scented to the Legislature call for a
greater expenditure of public money
than was ever asked for in the his
tory of the State, and it is estimated
preparation bills would total 100000
600. The State spent $2,423,502.02 in
1905, and $13,344,936.25 in 1920, but
the property, from which the money
was taken in the form Of taxes, has
not increased in equal proportion,
State taxes have risen during that
period from 2.5 mills to 7.5O mills,
and if our people are to be given re-
lief from this ever-increasing burden,
that relief must come from this Leg
islature. Today l ask you to practice
strict economy and to sacrifice some
of the measures in which each and
all of you are interested.
The report of the Budget Commit
tee which has been before you since
the opening of the session has proven
of great value in the discussion OF
State finances. The items which make
up that report are the foundation
and plans upon and by which we shall
erect our completed financial struc-
ture. If it were not for this report
we should be without the plans of
the architect, and if as the building
progresses it becomes necessary to
alter certain details of these plans,
our doing so does not detract from
their value.
The States income for the calen-
dar year 1920 was $S,045,870.60 the
estimated income to be received for
the IS months period from January
1921 to June 1922 according to the
schedule submitted herewith is, SILL
276,93284. The first item shows the
income for period of II months
The proposed change in the fiscal pc
Rod and in the due date of certain
corporate taxes, produces situa-
ton that makes comparisons difficult.
OF necessity it is difficult to esti-
mate in advance the States income.
The Budget Committee has expressed
the opinion that the taxes of rail-
roads, express, parlor car, telegraph
and telephone companies will be
$778,245.S4 greater for the II months
period from June 80, 1921, to June
80, 1922, than it was for the calendar
year 1920. If temporary business
depression causes decrease in rail-
road earnings, the taxes accruing to
the State from these earnings may
not equal the Budget estimates, and
it will not be prudent to base expendi-
lures on this somewhat fluctuating
source of revenue. The increase in
the States income comes from two
sources: first, from an increase in
the valuation of the real and personal
property of the State; second, from
an increase in the excise of franchise
taxes. The first is usually referred
to as direct taxation, and the second
indirect. The State tax of mills
produced a revenue of $3.50, 486.07
in 1917, while in 1920 the IA mills
produced revenue of $4,188,344.76.
These figures show an increase from
direct taxation in that period of 81
O57,858.69. The increase of the cash
pypendit1IrpS Of the State from 1917