Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-11-08
GOVERNOR BAXTER DECLARES
THERE IS NO MYSTERY ABOUT
THE STATE CONTINGENT FUND

vance. The other half is estimated
or guessed by the Budget Commit
tee and Legislature. We can tell
exactly what is coming into the
Treasury from the mill tax levied
against the cities and towns if they
all pay their State taxes, but when
it comes to the railroad, bank, and
insurance taxes. and to other in
direct income, the Budget Committee
and Legislature estimate or guess"
what the State is expected to re-
ceive. Sometimes good "sucsses"
are made and sometimes poor. In
1920 the Budget Committee "guess-
ed" that tile State would receive
100000 more than actually was paid
into the State Treasury and this
left the 1921 administration some
what short of funds.
This Hospital example shows that
many of the "lapses" are mere book
accounts and never could or will be
cash. If all the estimates or "Gues-
ses" of the Legislature on indirect
income proved to be accurate, and if
all of the States bills were collected
then the lapses would be cash.
Moreover, some of the funds in
the State Treasury are specially set
aside or Gear marked" for certain
definite purposes. Even in such
| cases, that money is not all in the
Treasury at one and the same time
because 1t does not all come in at
once. On July list, 1928 we had in
the Treasury $2.100,O00 and on that
date the State assumed an additional
liability for approximately $4,000, 900
in appropriations. That would seem
, to show that the State was in
solvent, but it was far from it. 1t
] is true that income had been pro-
vided to meet this 100000, but the
years income is collected gradually
and at different times from the
| railroads, banks, and municipalities.
AS the months go by the income
! comes into the Treasury from the
various sources and the expenditures
, go out in the same way. The gen
| eral cash on hand however must al
ways be kept at sufficient point to
| meet the monthly expenditures and
| this has always happened during the
present administration. Moreover,
! the ear marked" funds have ALWAYS
| been available when needed. and the
| State pays it's bills promptly and
takes the discount.
AS an example of what mean
by ear marked" funds, 1 refer to
money received from the sale of
bonds issued for State highways:
| this now amounts to $1,2OO,OOO. The
Memorial Bridge. Soldiers Bonus,
| war and State Pier loans are other
items that come in this class. These
today total s1.495.3461S and there
are certain items of income in
addition to this that are set aside
Tor special purposes. such as tho
School Fund, Highway Maintenance
FUND. and others. On july 1st Of
each year the State theoretically is
maple for all these funds but it re-
all in. 'iieNi
The law does not. nor could il, re-
qulre that the State Contingent Fund
shall always be represented by cash.
l. am hopeful that the estimates or
euesses' made by the 1923 Legisla-
ture VIII materialize. but there is some
oouot about it as the inheritance taxes
are not keeping up to the average of a
year ago. That also is the case in GER
tam other items of the States in
come. We had cash in the Treasury
and in banks. November LIST. 1929
amounting to $1,T9S.54S.9O. In this is
included certain of the "ear marked''
FUNDS, together with general cash on
which the State does its daily bust
ness. '"S'
The payments that have been made