Imperial Valley press., 1921-07-28
OPPOSE ALL
B D n DS IS
ADVICE Of
SENATOR
State of California Is Too
Deep in Hole to Entertain
Spending Program for
Any Purpose.

State Senator Joseph A. Rominger
of Long Beach is flat-footed and un-
ashamed in his opposition to the pro-
posed amendment to the state consti-
tuition which has control of the power
development Of the state for its sub
ject. and while he doesn't mention it
specifically in communication ad-
dressed to the editor of The Press, he
puts forth some sound reasons for op-
position to anything that looks like
bond issue. Senator Rominger's long
service in the legislatuer makes him
especially competent to talk to the
taxpayers on state eXpenss and taxa
tion. His letter follows:
Because there should be built up
throughout, the country very firm
intention on the part of the people to
limit government expenditures, both
within the nation and the state, l am
taking the liberty of calling your at
tention to the very serious financial
condition which California faces dur
ing the next two years, in the hope
. that any proposed new projects re-
quiring funds may be at least delayed
until it is possible to cut down some
of the enormous expenditures and con-
seuuent taxes with which California is
faced
am rather of the opinion. if real
appreciation is had in California as
to what our financial condition really
is, that there will be an even stronger
reaction against the expenditure of
funds than there is at the present time
Frankly, the condition is very serious.
and | believe that the facts should be
widely disseminated
In spite of the fact that under the
provisions of the King Tax Bill Cali
fornia will collect from corporations,
banks, insurance companies and fran
chises the largest state tax in history,
the state has entered upon new fiscal
year confronted with a constructive
deficit of more than $2,917 ,845.25 for
the biennial period. This is shown by
a recapitulation made of all of the ap-
pOrtionment measures passed by the
legislature and sign2d by Governor
Stephens, which total $91 600 O,326.O9.
A deduction of $2,635, 900 from this
figure, however, should be made be-
cause this amount of money authorized
by the present legislature will be paid
in future years. This leaves a net
authorized incumbrance on revenues
and surplus for the present two year
period of some $89 100000.
The total estimate of revenue for
the general fund is less than $50. .OOO,-
900, while the budget estimate of sur
plus totals $7,OO0.0O0. with possible
underestimate of POSSIBLY million
more, and therefore provides the state
government with total funds for the
next two years of 87,000,000. which
leaves a constructive deficite of at
least $2,000,000.
The King Tax bill estimated by
the State board of equalization to
bring in $33.954 ,544.S5, during 1921.
as against $22 ,342 ,961.66 last year, or
an increase of more than $11 600 900.
As result of this condition., and
faced with the knowledge that no ad
ditional taxes can be raised from the
corporations for at least two years,
and with the fact that the people of
California will certainly not stand for
any additional taxation upOn private
property, the state of California faces
q period in which state officers and
legislators must realize once and for
all that retrenchment in state eXpendi-
lures must be made. and that new pro-
jects requiring expenditures will not
be tolerated by the voters.
AS a result of this condition, there
is very little chance that the coming
special session of the legislature will
be permitted or will for one minute
desire to consider any legislation what
soever requiring the expenditure of
funds.
1T is also equally certain that the peo
pie should look with extreme disfavor
upon any proposed additional bond is
sues.
Whether we like it or not, this fact
Continued on page two.)