The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-10
CUT EXPENSES To
MEET INCOME IS
k|LBY'S A D \ c {
Rigid State Budget System
Would Mean Solution of
Many Financial Problems,
Says Governor
STATE CAPITAL .:IREAU /
THE AGE-HEitALD :
Montgomery Aiu Jan,

THE AYE EhAl4D 7
Montgomery, Ala, Jan. 9 J
Provisions requiring the establish
ment and maintenance OF budget
system whereby the states expendi-
lures may be based on its income
should be placed in the state con-
stitution. This suggestion was made
by Governor kilby today in his fl
nal message to the legislature. Gov
ernor kilby said the budget system
would mean the solution of many fl
nancial problems of the state and
would keep the outgo within the in
come.
The budget system was established
by Governor Kilby and the result
has been the elimination of the
states indebtedness. Governor elect
Brandon has already announced that
he will favor the continuation of the
budget system during his administra-
ton.
"Of prime Importance and far
reaching effect was the adoption of
a budget system said Governor Kill
by. THE budget law provides for
a commi ssion composed of the gov
ernor, the attorney general and the
state auditor, charged with the duty
of preparing and submitting to the
legislature within Is days after it
convenes in regular session a bud
get for the ensuing four fiscal years.
plete plan of proposed expenditures
and estimated revenues for the ensu
ing quadrennium. 1t is provided fur
Their that the governor shall trans
init to the presiding officer of each
house bills for all proposed appro-
priations of the budget, clearing
itemized and classified, and secure
their introduction in each house as
soon as practicable. A further and
most important provision is that the
legislature will not alter said bills
therein unless by a vote of two
thirds of the members elected to
both houses. There are other wise
provisions in the law designed to
prevent the over appropriation of the
public funds. This system or some
other with similar purpose should be
incorporated in the constitution of
the state, thereby forever keeping
the expenditures within the income.
Difficult Question.
THE tax question is difficult, COM
pick and vexatious. The most intel
ligent and painstaking examination
and unselfish consideration are es-
sential to its wise solution. Prog
ress was made by the legislature of
1918 with results as satisfactory per-
haps as could be expected under our
constitution. An amendment to the
constitution broadening the powers
of the legislature so that it might
classify property and apply lower
rates to personal property than the
rates applied to real property would.
my opinion, produce general salts
faction. The higher rate applied to
nerGOnal IN ha IT.
resistible temptation to many owners
of such property to conceal it from
the assessor, whereas a lower rate
would be likely to bring hundreds of
millions of values out of hiding and
greatly increase revenues. However,
this legislature must work under the
constitution as it is written and
therefore any suggestion for the
classification of property can be
adopted only for the use of sue
ceeding legislature. l recommend the
submission of such amendment
1T is a matter of congratulation
and just pride that l am able to state
that our finances are in a healthy
and prosperous condition. 1t has not
been necessary to borrow any money
since November, 1920, when the last
loan was negotiated. A considerable
sum of interest money has been
saved. The state has discounted all
bills subject to discount and quite
a sum has been saved in that way.
AT the close of the fiscal wear
September 80. 1922, the state was free
of floating Indebtedness, $500, 900
of the bonded state debt had been
retired and good working balance
was in the treasury. / refer to the
auditors report for details.
The confidence of the public in
the credit of the state was favorably
shown by the terms on which
100000 of the issue of $4,000, 900
road and bridge bonds were taken.
Those bonds bearing AZ per cent
interest were sold at a slight pre-
MUM over par and accrued interest
Refers to Tax Report
II call your attention to the ex-
cerpt from the very able, clear and
satisfactory preliminary report of the
state tax commission, embracing the
period from October l, 1919, to Sep
TENDER 80, 1922 1 heartily approve
the suggestions of the commission
for the levy of an income tax and
for the amendment of the laws gov
erning the assessment of property. l
earnestly commend them to your ia
vorable consideration, firmly believ-
ing that when you fully realize the
>
vide the funds necessary for the
proper conduct of the government
you will hesitate to destroy the only
system of assessment that has ever
produced anything approaching
equalization and substitute therefor
a system such as has been suggested
and which would, in my judgment,
produce what would be practically
government by voluntary contribu-
ton. Names of officers may be
changed without damage to the as
sessment machinery. but the destruc-
ton of the principle underlying the
present system would prove Glsas-
trous. 1t would mean a stoppage of
all progress and backward move
ment all along the line. 1t would
mean one of two things, viz: either
reduced appropriations for education,
for Confederate soldiers, for the in
sane hospitals and other eleemosy-
nary institutions and for practically
all other purposes, or the creation
of a huge floating debt and conse-
quent injury to the credit of the
state"