Milford chronicle., 1931-01-16
Redemption OF Funded Debt

! Inc tundeQ QeDC or the State to
day is $3,716,785. OF this sum, 50,
905,000 is the value of highway
bonds outstanding an d$811,785 is
composed of miscellaneous loans. OF
the latter amount, commitments to.
falling $453,785 mature within the
next biennium. This sum is payable
out of the general fund. However
S198,7S5 of this amount constitutes
only a transfer of monies between
State accounts; the school fund to
receive $178,785 and the sinking
fund $4,000.
Like unto this rather unusual sit
uation of the State owing itself
money, permit me to call your at
tention to a loan of $4,000 made by
the trustees of the University of
Delaware in 1877 and insured by a
certificate of indebtedness of the
State without a date of maturity,
perpetual in other words, on which
S263,940 has been paid in interest
since the money was borrowed. AS a
matter of seemingly better business,
1 recommend that you authorize the
return of this money to the trustees
to be reinvested by them.
Mention has earlier been made of
cash in bank, to the credit of the
State, and 1 would like to be GER
tain you understand that this bal
ance, the largest in the history of
the State, is only certain of earning
2 per cent, whereas the interest re-
quired to be paid ON the funded debt
is slightly over per cent. In view
of this 1 respectfully suggest that
part of the. surplus be used to fur
ther reduce the bonded debt. The |
direct beneficiaries of such a policy, |
is adopted, will be those citizens |
who still remain in need of improV- |
ed roads, as the highway fund will !
profit by an annual saving of $685.
900 in interest and fixed charges for
every million of road bonds redeem
ed. To obtain a better understand
ing of the proposal, it is important
you should note the comparative in
come and expenditure statement of
the governors budget wherein the
estimated available cash surplus as
Of July l, 1882 and 1888 is shown to
be $14,027, ,903.65, and $15,371 ,69504,
In consequence of
these figures I recommend that ST.
100000 be appropriated from the
general fund July /, 1881 and ap-
Piled to the reduction of the funded
lebt and that any monies belonging
o the general fund in excess of 3d. ;
100000 at the close of the fiscal year
1882, or as much of the excess as
nay be needed, be used for the
anne purpase.. believe you will {
gree with me that this recOmmen-. {
lation is wise, ultra conservative !
md involves no risk to the States ]
iscal position.
The General Budget
From experience 1 frankly say to 7
syste mis- wrong that re- /
uires the governor to appoint COM S
lissioners and then makes it his C
uty to pass upon their budgets. The Fl
cry fact that such appointments go il
} those in whom the executive has C
Onfidence and that they are often S
ccepted as a favor to him, should c.
lsqualify him for any part in bud a
ct hearings with commissions. I'm d
uestionably, final approval of the e.
ldget is a responsibility the chief bI
Secutive ought not to be relieved I
:, but a Budget Board of which he CT
as not a member might better pre- to
de at the hearings and their rec OF
be acted ON by the ia
Dvernor. ST
Certain features of the budget as m
'epared for this session of the Gen
al Assembly should be recounted
+ your information and your at J..
ntion directed to changes that W W
We been made in those of former ~
ars. -
Generous recommendations were - ~
ssed in certain instances where m ll'
e institutions to benefit are not up il' m
the standards our State ought to 81 81
lintain, and in other budgets no ~
cable reductions were made. In uo
ief, appropriations recommended gu gu
: the biennium. exclusive of debt SO Su
vice, total $4,464,951.07-$817,- 20 ""
'.65 less than the sums requested, GU GU
] 1921, 1873 more than two years III III
Allowances to thethree industrial S. S'n.
lools have been increased by ~ ~
cunts equal to the estimated pay ~
nts to be due from the counties. Ille
he total debt service of the next Ies
} years, $1,082, ,7S4.6O, which pro- i Sn.
es for county highway and bridge w
IDS maturing over the period has re e
n included. .t- VI
pecial accounts have been elm Jeo
ted for the following revenue g gIe
ducing departments: Fish and oCa
ne Commission, Board of Health, noC
te Librarian, Ferris Industrial ing
Ool, Colored Girls Industrial toI'
ool, Industrial Accident Board, 'ng
aware Colony, Brandywine Sani- Il
UNI and Edgewood Sanitarium, ~
budgeting their total cost of Op- teIil
ions. Income received from these Gu
artments and institutions after n ino'
e 80 next will be credited to the poa
eral fund; during the next two wa "ai
IS this will approximate $25O,00O. 1I., IeI
hould be noted that the loss of i noil
income to departments and n IIlel
missions initiates the aforemen- "l
ed increase in the budget by just a noe
amount. am.
eference has been made to gov 1eiiiIi
mental agencies with income nA''
III does not reach the custody of
state treasurer and which is not Duo %
rYised by the state auditor but tHa