Evening star., 1932-04-01
BY DAVID LAWRENCE
State Budgets.

State buogcS.
OF the total cost of government In
| America, which now amounts to about
10000, 900, 900, the Federal Government
spends 1000, 600 900. the States about
1000, 100000 and the cities about ST.
600, ,000,000 a year.
Back in 1890 all Of the States Of the
Union had an annual budget of only
SIT 100000. This jumped to $l82,-
100000 in 1908, and was more than
doubled q decade later, namely in 1913,
when the figures stood at 1888, 900, 900.
This has been the story every decade
For, in 1928, we find the annual budget
and, judging by the way the States
have been spending money, we shall, in
1888, have a State budget total Of So
600, 1000 900 unless the present depression
brings a halt.
While there Is some consolation in
the fact that the Federal Government
has since the war kept its expenditures
from increasing at the same rate that
State and local expenses have been
going up, this does not erase the fact
that the general trend in governmental
expense in all divisions, Federal, State
and local, has been rising steadily
1t has been suggested that perhaps
the increased figures do not give a true
picture because the purchasing power
OF the dollar was down during the years
Of prosperity and that some comparison
ought to be made with a year like 1881
when the dollar bought considerably
more than it did in 1929. In terms of
1913 dollars, however, the total COM
bined expenses for Federal, State and
local government would have amounted
to about $4,000, 100000 instead of s12,-
SOC, 100000 spent by all three budgets
IN 1928. Even this amount is exactly
three times the combined Federal,
State and local budgets of 1918.
The Federal Government, however,
did much better job in the last dec
ade than did either the States or the
local governments. The washington
authorities cut the Federal debt from
$26, 600, 900, 900 down to SIG. 1000. 900 900
and managed to have surpluses prac-
tically every year until the end of 1929.
The States and local governments dur
Ing the same period increased their
debts by about $4,000, 1000, 900, which.
curlouSly enough, was almost exactly
the amount the Federal Government
had cut off of its debt in the same pc
riod Of time.
Examining State Budgets.
Examining the State budgets. we find
that about 36 per cent of the annual
expenditures goes for highways and that
education absorbs another 80 per cent.
Ihus, we see that rs per cent of all ex-
penSes OF the State governments go into
two main divisions, education and high
ways, and the remaining "a per cent
is divided among such items as general
government, protection, special welfare
and economic development,
Social welfare takes nearly Ia ner
cent and protection is next with 9 Der
cent. The actual cost of administra-
tlon is between and per cent.
Wnat these percentages mean, how
ever, can best be understood by taking
typical budget of about 81, 900 900 600.
About 1868 100000 is spent for high
ways and about $523, 3,o00, 900 for educa-
ton: Social welfare costs about s24o,-
100000 and protection, which includes
the regulatory functions Of the state
governments, amounts to about s17O.-
o0o.Ooo. General government takes
ment about s7o,000,OOo. Debt redemp-
ton and interest cost $4,000, 900 an
nually and miscellaneous activities abb
sorb the rest.
Inere has been a CORRESPONDING rise
In the total amount of debts in the last
oecaoe. This means that the States
nave not been able to carry on their
extensive improvements, especially for
highways, on current revenues. They
nave had to borrow and the market for
tnelr securities has been aided by the
TACT that the Federal Government could
not tax State bonds and that tax-ex-
tnips in t Securitles were popular, especially
IN the early days of the last decade.
Inc total bonded debt of the States
Is In the nelghborhood of $4,000, 600, 900
as compared to total debt of the cities
close to $12000,000, 900. Between 1922
and 1928 the debt of States, as well as
the debt OF ;ities, practically doubled.
Half Of Bonds for Highways.
we analyze the purposes Of this
debt In the States, we find that practi-
cally 30 per cent of the bonds were is
sued for the purpose of building high
ways, and that the States themselves
built relatively few buildings. Less
than 4 per cent of the total of the
State debts went for school or college
buildings. But it is significant that only
IA per cent Of the debt was incurred in
veteran relief and maintaining soldiers
and sailors homes.
If we take the item Of soldiers and
sailors relief and homes, we find that
approximately $2,80o,oo0 was spent by
the States in this category, which is a
relatively small sum spread over the 4s
States of the Union. 1t is obvious that
the Federal Government with its billion
a year has been bearing the principal
burden for the care and relief of the
veterans.
Distribution of State expenses varies.
of course, with the different sections of
the country. Thus In the Middle At
lantic States the proportion Of the State
debt due to highways is 72 per cent.
while in the South Central States 1t is