Milford chronicle., 1931-07-03

] WACA VIC ndfC NOAACCbOA
classified, and to a certain extent
interpreted the facts, or have rem
dered to public officials such assis-
tance as they may desire in this in
depreciation. The fundamental test
of our work is the thoroughness and
accuracy with which this function is
performed, regardless of official ac-
tion or inaction after our work is
finished.
"2. It is not inconsistent with the
first principle, however, to take into
account the result of official action
based directly or indirectly on the
leagues work, as a test of the ex-
tent to which public officials recog-
nize the importance and validity of
our findings, and make use of them
as the basi sof official action. Ma
turally, period of time must elapse
after the presentation of league
report, during which administrative
or legislative officials may digest its
substance and determine to what ex-
tent (if any their plans and policies
may be influenced by it. Interesting
illustrations of this operation of the
time element will be referred to
later.
"All that comes within the scope
of government may be divided pri-
marily into three classes: problems
of organization, problems Of person.
mel, and problems of policy and its
execution. These three groups are
susceptible to extensive subclassifl-
cation. So far as fact-finding is con-
cerned in the three groups, they are
all within the field of the Taxpay-
ers' Research League, whether they
lie in the realm of state, country, or
| local government. However, for rea-
sons that seemed good and sufficient
the league has until within the last
year confined its work almost ex-
clusively to,the study of one subdi-
vision of the third group; namely
the financial or fiscal policies and
practices of the State government.
:'In the light of what has happened
in the last four years, it is easy to
forget that when the Taxpayers Re
search League began its study of
State finance, the opinion was wide
ly prevalent that the State govern
ment was poor, that all the States
income, was required for. operation,
that we could for the most part fl
nance permanent Improvements cnly
with borrowed money, and that he
cause of the condition of the State
and OF. the increasing costs of gov
eminent, relief from burdensome
taxation could not reasonably Re ex-
pected. ~
"The reason for this confused pic
ture of the States financial position
is easy to understand, and was re-
peatedly pointed out in some of the
leagues earliest reports. Briefly, the
fundamental trouble was that the.
States cash was at that time split
up among 46 or more different ad-
ministrative funds, at least Is of
which were held separately by inde-
pendent agencies and not even re-
ported to the state treasurer or the
state auditor. This multiplicity Of
special funds increased the amount
of idle cash which the State carried
in fund balances as a margin of
safety or as working capital, thus
holding out of use money which
might have been more economically
used to reduce the States debt, or
more serYieeably employed for need
ed permanent improvements.
Occupied with this was the further
fact that in our State accounting
system, as it then existed, no effort
was made to bring the operation
and condition of all these funds into
a real consolidated statement Show
ing the States financial operations
and condition as a whole. 1t was
impossible for the state auditor to
report all the operations of all the
States funds, or to summarize by
function, character, and object all
the expenditures of the State, or
even to report the total amount of
cash belonging to the State at the
end of the fiscal year Ito say moth
ing of distinguishing between en-
numbered and unencumbered bal
ances)!
,'eThe situation was made even
worse by the fact that there was no
uniform fiscal year for all the States
funds, so that at no time could they
all be brought figuaratiVely to state
of rest for measurement. 1t is al
most superfuous to point out how
impossible it was under these con-
ditions for the executive and the
Legislature to plan and execute
comprehensive financial program for
the State. .,. 49, ..
"It is not reflection on any pub
lie official, but merely an interesting
example of the operation of the
time element to point out that after
these conditions were first publicly
made clear by the league, nearly two
years elapsed before any official ac-
tion was contemplated. Even at the
end of two years, scarcely a single
independent agency having custody
of its own funds was willing to sur
render this custody to the state
treasurer. with the result that the /
Legislature of 1929 refrained from !
any action for the consolidation of !
special funds.
at is to the lasting credit of Off !
cials of the present administration
that following the legislative session
of 1929 they went as far as possible, |
without special legislative enact
ment, in effecting the consolidation
of administrative funds and the i'm
provement of the States accounting !
system. AS a result, the executive =
and the Legislature of 1881 had be-
P0ra &traY,a Txth q xua O v1n dOIihf odIxy tho .