Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-01-19
Finances of State
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+ finances OI OCdCc
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ton failed to leave on January Of the
present year, sufficient cash on hand
in the state treasury to cover its
cash reserves by s351.363.39, it was
learned today from figures available
in the office of State Auditor Ebert
u. Hayford of Farmingjale. These
reserves are supposed to be kept in
tact.
"A cash balance of $1.ssO.4s4.19.
was shown January /, 1925, by the
former state administration but at
the same time cash reserves in the
nature of trust fund; were required
t. be covered which were not pro-
vided for to the extent Of $1,741,19I
IS.
On the six months from July I,
1924, to December 81, 1924, the ex-
penditures from the State Contin-
gent Fund by the former adminis-
tration reached a total of $436,119.6S.
In other words, the expenditures
from the State Contingent Fund in
the last six months exceeded by
$S5,75629 the deficit now appearing
in the cash reserves or trust funds.
January 1. 1921, at the close of
the Milliken administration the re-
serves were fully covered and there
was in addition a cash balance OF
$1.194,629.21. The reserves at that
time amounted to S4.365, 46S.42 and
they We're covered by cash, totalling
$3.50, 7O2.63.
Among the items included in the
cash reserves, which now have pass
ed the other side of the vanishing
point, are funds for state highway
maintenance. dog license refund.
Maine Forestry District. retirement
of War Loan Bonds, Soldiers Bonus
bonds, State Highway Loan Fund,
Memorial Bridge loan. Federal Vo-
cational Education. State Pier Loan
and lands reserved for public uses.
Figures on file in the state audi
tors office show a steady increase in
cash expenditures from July !. 1922.
to December 81, 1924. For the year
from July /. 1922, to June 80, 1928,
these expenditures were s15,1Q6,361.-
ga; from July /. 1923 to June 80, 1924,
they were $16,078.29371: while from
the six months from July I, 1924 to
December 81, 1924. cash expenditures
were 11,297,913.77.
THE cash expenditures OF the state
for the last six months of 1924 are
estimated at the state auditors office
to be II percent in excess OF the eX-
penditures for the first six months
of that year. 4 little more than half
of that excess Is accounted for by
the school fund returned to cities
and towns, which is paid in the last
Ealf Of the year"
Statement by the Auditor
The State Auditor, Mr.. Hayford
was asked by the Journal for an in
terview and readily granted the re-
quest saying that he would be glad
to assist in any way in arriving at
Misunderstanding Of the States fl
Eancial situation.
What are the reserve funds of the
State, Mr.. Hayford?"'
Funds such as the proceeds Of
bond issues designated for certain
purposes, such as the State highway
loan fund, the balance remaining Of
the bond issues for the payment Of
the soldiers bonus and for the con-
struction Of the State Pier at Port
land. These are some of the princi-
pal reserve funds.
The fees from registration of au-
tomobiles are also set aside for the
payments of interest on the bonds
and the paying of bonds as they ma
ture and the balance is to be expend-
ed for the maintenance of the high
ways.
There are other reserve funds
that originated in the early DAYS of
the States history. viz: The Penob-
scot Indian fund, which dates from
1880, a which time the LEGISLATURE
authorized the sale of the two Indi-
an townships. The proceeds of this
sale were deposited in the Treasury
and the State annually pays the in
terest to the Indians for the benefit
of the tribe. There is also a Passa-
maquoddy Indian Fund. which had
ITS inception In like manner. In 1850
the Legislature authorized the sale
OF ten townships of land and proyid-
ca that the proceeds should 60 to
bulId up permanent school fund for
me benefit of education in the State.
RMS was designed to lay broad
foundation for the States education
al structure but the money was used
elther Just before or in the hard DAYS
or the Civil War. so that this fund
mas not existed In cash for from 60
20 20 years, and l am recommending
IN my report to be submitted to the
LEGISLATURE IN a few days that the
provisions of law relative to the
permanent school fund be repealed.
as no obligation attaches to any
person or to any municipality on
account of the same. The law pro-
woes that interest on this shall be
added to our State school fund rails
ed by current taxation and annually
distributed to the cities and towns
ana this mas always been done.
;, Ihese old funds are so far back
mat they have not been taken into
consideration, they are so old a leg
acy or the past, although an at
tempt was made in which | was in
terestcd in 1917 to have these old
funds restored. There is hardly n
city or town in the State which has
not funds of a like nature. which
rave been a legacy for the municip-
aiity' The income OF which is resery-
ca Tor specific purposes. In nearly
an these cases the principal of the
lund has long since been expended
me municipality annually raising nv
taxation the interest on these funds
TO be applied to the object of the
20 you think the comparison that
mas been made between the State
financial showing for the year be-
ginning Jan. l. 1921 and Jan. /. 1go5