Evening star., 1932-01-31
GEORGIA BALANCES
TWO-YEAR BUDGET
Young Governor Leads Way
in "Pay-as- -You-Go" Plan
by Reorganization.
BY MILLARD FERGUSON.

Special Dispatch to The Star.
ATLANTA, January 30.-The State
of Georgia has balanced its budget for
the next two years. 1t has reduced
the number Cf its State departments
frsm 1O2 to 18. And it is continuing
its program Of highway building with
out issuing penny in bonds.
This is the result Of 'pay-as- YOU
&C. plan that was first applied to high
way construction and, since the be-
ginning Of the new year, has been ex-
tended to all departments of the State.
Today Georgias bonded idebtedness
is only $4O00000-a small amount
compared to the obligations of most
States-and this debt was incurred
owned Western g. Atlantic Railroad.
This road, still the property Of the
State. has a value many times the
amount of the bonded debt.
Under the leadership of Gov. Rich
ard B. Russell, ir., the Legislature
adopted a program of economy at its
session last Summer. Since legislative
sessions in Georgia are held biennially
appropriations were made for the next
40 years.
In addition to balancing the budget,
was reduced 10 to Is per cent to insure
that appropriations could not under
any circumstances exceed the States
income. AS a further step to cut eX
peuSeS. reorganization measures were
adopted under which Gov. Russell has
eliminated "a State departments. In
reducing the departments from 102 to
l8, he has sought to increase efficiency
as well as to lessen expenditures.
In MI off OF q
business basis, Gov. Russell has spon-
S0red new quarterly budget system
whereby payments to the various State
departments are made by the State
treasurer every three months. Such
payments must first be approved by the
Governor and the State auditor. The
purpose CT this plan is to prevent un-
due expenditures at the first of the
year, with a resulting deficit at the
close CT the year
Georgias 'pay-aS- you-go" plan first
proved successful as applied to high
way construction. Through a gaso-
line and vehicle motor license tax
Georgia is completing a system of roads
reaching to all parts of the State.
When this program Of road building
was begun, advocates of bond issues
urged that the State incur an indebt-
CdneSS of from rs to 100 million dol
lars in order to expedite the conStruc
ton of highways. Such efforts failed
and Georgia held to its plan of paying
for its roads as it built them. The next
effort was made to divert to other
purposes part of the gasoline tax
s., aside for road construction.
Legislative bills to this effect were
defeated and the highway construc-
ton program continued.
Two facts are pointed out by ad-
vccates of the "pay-as-you-go" plan.
First that the present system fur
ni-hes means by which the State is
ra0idly completing a comprehensive
system of highways. Second, that
Georgia is escaping the burden of in
dcbtedneSS that is proving a grave
problem in various other States.
Gov. Russell, who is only "a and the
Youngest chief executive in the history
of Georgia, is now applying the pay
as-you-go" plan to the States finances
in general by insisting on balanced
budget and a system of economy and
efficiency in all State departmer 5
one of the results of the ''pay-aS-y u
go" plan is that today Georgia's tax
rate is one of the lowest in the Union.
(Copyright, 1922