Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1926-06-15
STATE FINANCES I
CONTINGENT FUND
WHAT GOVERNOR SAYS

Freeport. June Hoover nor
Brewster addressed the Woman's
Republican Club here this evening
and devoted part of his address to
the Contingent fund and State Fin
ances.
On June first, 1925, there was a
cash balance in the Treasury of ST.
5S1, 422.71, he said. At that time the
reserves in the nature of trust
funds drawable against this cash
balance amounted to $2,329, 1860.
This showed a shortage in cash to
cover the reserves of S74S,O7409. On
June LIST, 1926 the cash balance in
the Treasury was $3.50, 00O.S4. The
reserve funds on the same date
amounted to $S,576.106.2S. This
showed a surplus of cash above the
reserve of $99,S94.56 or an improve
ment in one year in the cash posi-
ton of the Treasury of sS50,O00000.
A continuation of present policies
thus assures tax relief. If we have
been able to save nearly million
dollars this last year We shall GER
tainly be able to this next year.
Meanwhile under legislative au-
thority s342,O0O.OO has been set
aside from cash as a sinking fund
and invested in the bonds of the
State and s115,000.00 has been paid
from cash for the account of re-
serves for Soldiers bonus bonds. In
addition there is over 100000
remaining unexpended from the
amounts set aside for the now great
ly restricted State contingent fund.
The books of the State are closed
on July first so that it is not pos
sible now to determine the extent to
yyht0h Ja1 It'll ~,
further improved by the large
balances which will be shown upon
that date. The very healthy condi-
ton of our finances, however, is con-
clusively shown by the comparison
upon June first and the increased
activities now terminating in the
various sections of the State seem
certain to reveal a progressive SWELL
ing of our revenues and conse-
quently definite guarantee of taxa
ton relief in an amount which may
be conservatively estimated at ten
percent.
There is large assurance that the
next twelve months will be even
more satisfactory than the last and
this will mean that our cash posi-
ton will have become so favorable
that 1t may perhaps be translated
into an even more substantial light
ening of the burdens now borne by
the citizens of our State without
failing properly to provide both for
maintenance and construction at
such institutions as shall be in need.
The last Legislature wisely re-
stricted the State Contingent Fund
but left unchanged the provision
that compensation for injuries to all
State employees should come from
this source. The present Governor
and Council have appropriated from
this fund $4,000 for the board and
care of neglected children as the
Legislative appropriation did not
suffice and an emergency seemed to
exist. Aside from these expendi-
lures and from the payment of obli-
cations incurred in preceding years
the present Governor and Council
have authorized during eleven
months disbursements from the
State Contingent Fund to a total
amount of less than $4,000. This has
been made possible because the var
ious departments and institutions
have voluntarily instituted a 1000 re-
serve within their legislative appro-
priation to care for any emergencies
that might arise. The practical aboli-
ton of the Contingent Fund is the
chief factor in the nearly one million
dollar improvement in our cash re-
serves. 1t is believed this policy
will commend itself to the citizens
of our State and that they will ex-
press most hearty approval of an adj
miniStration that has so accurately
reflected their thought upon govern
mental economy at this crucial time.