Albuquerque morning journal., 1922-12-01
BUDGET SYSTEM AS 1T APPLIES
TO THE STATE OF NEW MEXICO

| (The following paper on THE
Budget System" was read by John
Joerns, state educational auditor
before the city superintendents
section of the New Mexico Educa-
| tional association convention here
last week..
Ladies and Gentlemen:
have been assigned the sub
Ject of THE Budget System" I'M
doubtedly all of you understand
the meaning of a budget system.
presume what rs intended is that
should discuss the budget system
as it pertains to the state of New
Mexico.
Under the law It is tho duty of
the local board of directors to pre-
pare estimates of their needs on
or before the first day of May in
each year, and submit same to the
county board of education. 1t Is
likewise the duty of the municipal
boards of education TO prepare es-
Inmates for the municipal schools.
Both the rural school estimates,
and those for the municipal
schools are in turn to be submit
ted to the board OF county COM
missioners for their approval. But
before any board of county COM
missioners can give a final ap-
proval to such estimates, it is the
duty of the educational auditor to
revise and amend the estimates
and certify the result of his revi-
sion to the board Of comfy COM
missloners.
General Misconccption.
If you will carefully read chap
ter 100, Laws Of 1921, which is
the act creating the office of edu-
cational auditor, you will come
to the conclusion that there has
been a general misconception as
to the powers and duties of this
official. Any action taken by the
educational auditor is not final
and is always subject to the ap-
proVal of the state tax commits
sion. The power OF the state tax
commission is to be found in
chapter 1SS, laws Of 1921. Section
3 provides:
1.-The state tax commission
shah have the power to make
NlCll lIl llAtl IlNAGLl 81 Alblls ti6
it may deem advisable or
proper for the purpose Of OBJ
tanning the information and
data necessary to it's action on
such budget estimates. The
state tax commission shall
have the power to approve or
dsapprove, In whole, or in
any part, or to amend or
change such budget estimates
as so submitted TO it, and all
approvals or disapprovals. of
amendments or changes shalt
be made matter Of record by
the said tax commission"
Tho commission may hold pub
lie hearings on budget estimates,
and for that reason lf in any par
ticular case the educational audi
tor refuses to approve a budget in
the manner, and for the amount,
by the school authori-
ties, there is an avenue open for
hearing on the matter before the
tax commission.
In addition to the laws providing
for budget estimates, we have lin
itations which must be considered.
Section 10, Chapter 1888, reads as
follows
"No county, city, town, viii
lage or school dis ~ict shall in
any year make tax levles
which will in any such county,
4 city. town, village or school
district produce on the face of
the tax roll an amount more
than 5 per cent in excess Of
the amount produced on the
face Of the tax roll by tax
lcvies therein during the year
preceding, ."
Unless permission is obtained
from the Tax commission, the ex-
cess amount cannot be levied. How
ever, at the time estimates are
made, there Is no way by which
the assessed valuation for any OF
the subdivisions can be ascertained.
consequently 1t is impossible to
state whether or not the amount
requested will cause a tax levy
which will produce the excess OF
8 per cent, and for that reason
leyies of this chars cter are always
subject to final approval upon the
completion of the tax roll.
The laws Of 1921 provide speci.
fically that levies for school pur-
poses to provide money for special
items, such as building and equip
ment, cannot exceed mills. The
maximum levy for general main
tenance, as you all know, is 18I
mills. Here again difficulties pre-
sent themselves at the time the es-
timates are prepared,
It frequently happens that esti.
-