The Republican journal. [volume] (Belfast, Me.) 1829-current, 1921-03-24
GOV. BAKERS MESSAGE
TO STATE LEGISLATURE
Economy-BiIls Now Presented
Total $40, oOO,o 900.

NOFSiAof Sudll from TINE W IlHue
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, | 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 | 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-
ative prerogativess acquired after
long service in Eoth 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 vetos 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 ybu gentlemen Of
the Legislature restsi 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 stu 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
that if all these become law. our ap
preparation bills would total 10000
600. The State spent s2,423 ,50202 in
1905, and s13,344,93625 in 1920, but
the property, from which the money
was taken IN the form; of taxes, has
not increased in eqda proportion.
State taxes have riseh during that
period from rs mills i to $50 mills.
and if our people are to be given re-
lief from this ever-increasing burden,
that relief must come | ,om this Leg
&c, II
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 fof this report
we should be without She plans of
the architect, and if as the building
progresses it becomes necessary to
alter certain details Of these plans,
our doing 50 does not letract from
their value
The States income for the calen-
dar wear 1920 was SS,o4t87O.60; the
estimated income to be deceived for
the Is months re~iod fri pm January
1921 to June 1922. according to the
schedule submitted herewith is. Sill
276 93294. The first tenn shows the
income for period of II months
while the second is for Us months
The proposed change in the fiscal pc
Rod and in the due datei of certain
corporate taxes, producef situa
tion that makes comparisons difficult.
Of necessity it is difficult to esti-
mate in advance the Stalks 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 - months
period from June 80, 1921. to June
80, 1922, than it was for the calendar
year 1920. If a temporary business
depression causes a decrease in rail-
road earnings, the taxes accruing to
the State from these earnings may
not equal the Budget estimates, and
it viii 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 revenue of $3.50, ASCOT
in 1917, while in 1920 the IA mills
produced a revenue of $4,1SS,34476
These figures show an increase from
direct taxation in that period of ST.
057 $3.50. The increase of the cash
expenditures of the State from 1917
to 1920 was out of all proportions to
the increased income received by the
State from direct taxation during the
same period, as the cash. expendi-
lures in 1917 were $7,796,254G7 while
in 1920 they were $13,344, 93625. In
other words the States income from
direct taxation in 1920 was 80 7/10
per cent more than in 1917, while the
cash expenditures Of the State in 1920
were II per cent more than those of
1917 Had it not been for the marked