The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-28
BY FOSTER EATON,
United Press STAFF Correspondent

Copyright, 1882. BY United Press)
ATLANTA, Jan. 23.-Governmen-
tai economy in the southeastern
tier Of states, from Virginia TO Loui-
siana, is being undertaken in the
historic spirit Of reconstruction days.
A combined deficit of more than
50,000,0 900 c%onfronts the admins
trations of eight states, while a
ninth, Virginia, is out Of the red.
Drastically reduced revenues and
legislative extravaganza Of other
years produced the situation which
has slowed up the machinery Of
government and forced a general
1ccounting.
In every state programs have been
launched to meet the immediate
emergency in such a way as to in
sure a sound foundation for the
future.
Budgets have been curtailed
sharply, governmental "frills"
slashed,- salaries reduced. pay rolls
pruned. Pay as you go" is the
watchword.
Georgia, with an inherited deficit
Of S 5000, 900, has taken the most
drastic action and its sponsors, from
Governor Richard B. Russell Jr. on
down, believe it worthy of emula-
ton by all other states.
Georgia Calls a Halt
Under a law enacted at the last
legislative session, it will be i'm
possible for the state to legisiate
itself into debt beyond its assured
capacity to pay. Means to wipe out
the existing deficit over a period of
years have been worked out. APP
preparations, under a new budget
bureau, are 100000 below last
(year.
The situation in other states:
Virginia-Without a deficit, the
Old Dominion's assembly convened
Jan. IS and, on suggestion of Gov
ernor John Garland Pollard, the
senate voted a 10 per cent reduc-
ton in members salaries. Similar
action by the house is expected.
Governor Pollard voluntarily sub
mited to a similar reduction and has
recommended that public school
teachers salaries be reduced.
North Carolina-"Cost of govern
ment must be reduced and the bud
get balanced" said Governor o. Max
Gardner, who, with other state off,
Gals, is ~effecting a 80 per cent re-
duction in budget expenses. Some
salary reductions and personnel
elimination have been effected.
Florida Diverts Funds
South Carolina-With a deficit Of
approximately SIS, 0 900, Governor
I. c. Blackwood has asked the legis-
lature to enact a two-mill tax on
property and an increase of / cent
a gallon on gasoline. The appro-
priations bill slaShes salaries of state
employees, while an additional saving
of So, 900 is planned through cur
tailed expenditures and elimination
Of departmental activities.
Florida-Despite a deficit, Cover
nor Doyle E. Carlton believes addi-
tional revenue will be unnecessary,
particularly because of savings eff
fected by centralized buying and
economies in state departments. The
last legislature reduced the state
mileage from IA to AS, provided for
an extra cent tax on gasoline and
other new taxation. Last fall, $780,
900 was diverted from the road de-
partment to the general fund, and
a similar amount is expected to be
diverted during the next three
months from the gasoline tax.
Alabama Far in Red
Alabama - A special state audit
places Alabama's deficit at approx
mately $780, 600, 000-the highest in
the southeast-as a result of which
Governor Benjamin Meek Miller
plans this spring to call a special
session of the legislature to wipe it
out through a state income tax and
a 2-cent increase in the gasoline
tax, an indicated revenue source of
$4,000, 900.
Governor Miller also is demand