Milford chronicle., 1931-09-18
GOVERNORS ADDRESS ON STATE FINANCES

years operating eXpenses-it is es-
timated that the surplus which was
over S5,000,000 on July l, 1881, will
exceed $6,000,000 on July 1, 1888
and this after another cut in the in
come tax in each of the next two
. years. In the final analyscis if it is
found that reduction is possible in
the 1881 tax due the State on per-
sOnal incomes l should like to see
the amount saved the taxpayers,
turned into fund there will be to
aid the needy and unemployed this
winter; but such wouldn't be pos
sible without an act of the Legis-
lature and then, too, the tax isn't
due until March Is, when the winter
| is nearly over. In any event, l be-
lieve tax reduction of the kind or
large part of it would find its way
into the Golfers of a relief fund as
| those possessing an income these
days are the ones who will be the
chief supporters of such fund.
Earlier 1 mentioned the Highway
fund as one of the four the State
has. To this fund is credited all the
iAAOACJ ANCCANCu LlOlil JctAGD lGNlGu
for the operation of automobiles.
These include the gas tax, the auto
mobile registration tax and the fees
for operators licenses. The income
from these amounts annually to
about $2,O00,OOO which is supple
mented by Federal Aid of from
100000 to $600,000 For the past
two and One-half years the High
way Department has operated en-
tirely on pay as you go basis, hav-
ing met all its expenses with cur
rent income in addition to which it |
lent its support to the passage of a |
bill in the last Legislature which /
dropped the fee for operators per-
mits from $500 10 Sl.5O which
meant n saving to our citizens of |
approximately $4,000 and a loss in
revenue of the same amount to the
Department. When you hear that
the Highway Department for the
year has $2,000,000 to spend, the
natural thing to suppose is that it
will be spent for new roads. Such
is only partly the case as there are
other demands upon these funds
such as $4,000 for maintenance of
roads; 100000 for interest and
amortization of highway bonds as
well as $350,000 to pay the interest
on approximately S7OO0,O0O of
county highway and bridge bonds.
General Fund Carries Loan
"TO the Sinking Fund is credited
each year, with the exception of
100000, all Inheritance and estate
taxes and the annual payments from
the highway department for the
of it's outstanding
bonds, the rate of 21s per cent or
S25, 900 per million, the issues being
40 year bonds. 1t is this fund that
supplied the money in the last two
years to retire the eight million
some odd thousand highway bonds
mentioned.
when it comes to financing the
real running expenses of the State, I
The General Fund is the war horse
hat carries the load 1t furnishes
he cash for practically everything
roads and schools and in
he case of the latter, furnishes the
money with which to run the Uni
,ersity of Delaware and the Color
I'd College at Dover. Old Age Pen
lions are paid out of it, all appro-
)riations for new buildings
han schools, come from it, it sup
DOrts all the Welfare Homes, meets
he public pay roll and literally
peaking, supplies the money to run
he State.
"The source of largest income to
he general fund is the charter bus
ness, this together with the fran
hise taxes, which as / said while 1
go went to the school fund, amount
o almost five millions a year. If any
f the other states, through better
ervice, can get this very lucrative
usiness away from us, it will be
erious day for Delaware l am cor
ect in saying that this money goes
} run the public schools and the
-elfare institutions of the State, it
ill always be needed and when II,
le charter business fails to pro- 7,
uce it the citizens of the State will
ave to. To raise five million more
on income or personal =
roperty taxes from our citizens
ould be a dangerous undertaking,
nd simpler procedure is to make
elaware an even more attractive
lace for big business to incorpor-
.e. A step in this direction will be
le creation of separate Supreme n
Ourt toward which the last Legis-
ture moved when it passed an act
amend the Constitution to allow
r such a tribunal Similar action IV
? the Legislature is necessary, and
hope will be forthcoming.
In conclusion may I tell you I II
I'VE been considering asking five or 7
X bankers in the State to make up
committee to study the banking n
nditions in Delaware, giving con- bo
1eratiOn to our banking laws and M
render their report with recon- mr.
to the next Legislature. n,
lould the members of this asso- tb,
alton be in accord with such a
ggestion, I shall be encouraged to
Oceed with it.