The Birmingham age-herald., 1923-08-26
N0 NEW SOURCES IF REVENUE FOUND EXCEPT MILL TAX
No Appropriations For State Activities Can Be Increased
 Under Present Outlook
STATE CAPITAL BUREAUl
 THE AGE-HERABD !


 If no new sources of revenue are found and the state appropriations are not cut, the state will face an annual deficit of more than s1,50O,- coo during the next Quadrennium. This conclusion has been reached by the state budget commission as a result of an investig Stion of hnan- ctal records of the state which has been made for the purpose of mak- ing a report to the legislature, ac- cording to information Saturday aft ernoon.
 Governor Brandon declined to dis cuss the situation other than to state that the budget commission is making an effort to revise all fig ures and 10 adjust the wide differ enee between anticipated revenue and anticipated expenditures.
 The budget commission must make report to the legislature next week. This report must indi- cate the anticipated revenue from all sources during the next our years and must suggest appropriations which will keep the states expendl lures within the income. At this time the budget committee does not know how this will be done.
 One thing appeared certain Sat urday following the work of the DAh6eN NOAAAAAi4SSACA4s
 No New Revenue Sources.
 That the appropriations for the various activities of the state will not be increased during the present session of the legislature unless other sources of revenue are found. Up to this time no new sources of revenue have been proposed other than the levying of a special four mill tax for educational purposes. If this tax should be levied by vote of the people under the bill intro duced in the two houses during the week, the appropriations can be made larger for the various activi- ties because the special educational appropriations which have come from the general fund In the past will come from the special educa- tional fund created by the special tax.
 Governor Brandon has declined to agree to any increase in any appro- priations without 0 provision which would make the increase available on the approval of the governor. In this wayy, he will retain a check on the treasury and will decline to make the increased appropriations avail able until the states income wilt warrant.
 Because of the condition of the states finances it is not regarded as probable that the governor will agree to the appropriations of the net revenue of the agricultural de- pertinent for the advancement of agriculture or the net revenue of the conservation department for tho de- velopment of the states natural re- sources.
 The general agricultural code which is still in committee of the house and mad not moved peg since it was introduced, provides that all funds collected by the department shall be used in the work of the de- pertinent. In the past only small portion Of the revenue has been used iu the department and the remainder has gone into the general fund. This is likewise true of the funds col locted by the department of conser- walton. The bill proposed by the re- cess committee on conservation pro vides that all revenue obtained by the department snail Oe used in the enforcement of conservation laws.
 n estimating that the annual de- flcit about $1,5OO,000 the budget com mission, according to information, has figured that the revenue de- rived from ad valorem taxation will be. slightly less Tn the future than # was during tda last year. This is caused by slight reduction in the assessments for taxation.
 Many Expenses Faced.
 The budget commission, in reach Ing It's conclusion regarding the states financial condition, did not take into consideration the amount which the general fund, from which must be paid interest on highway bonds. must he created sinking fund for the retirement of the high way bonds and must be paid the cost of maintaining the system Of roads now being constructed by the state and federal gov ernments.F
 In repaying to the highway fund the amount borrowed by the general fund. the governor believes 1t IS necessary to increase the gasoline tax to 8 cents a gallon. A bill in creasing this tax was introduced in the house Friday by Representative Alfred NJ. Tunstall of Hale. It pro vides that the additional 1 cent shall be use by the governor in reDaylns to the highway fund the amount DOT rozved and in meeting the cost or maintaining federal aid roads,
 The state will be unable to use any nortion cs the original 2-cent tax after October 1. The entire amuont' less the actual cost of collecting the fax. will be apportioned equally among the 67 counties and will pc used bv them in constructing anu i i.,c~ roads