Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1937-02-06

retard, if not cripple many state de-
partments and divisions II they are
reduced. In fact, most observers feel
that some of the appropriations are
more likely to be increased than re-
duced and that these increases, TO-
gether with any supplementary ap-
preparations which may be authorized
are likely to increase from the aver
age of $37 100000 a year as recon-
mended in the budget bill, to at least
$38,OOO,000 year for each year of the
biennium, without the amount needed
for old age pensions and aid to de-
pendent children.
When the $4,000, 900 year needed to
pay the States share of old age pen
sions and aid to dependent children
is added to this total-and this is on
the assumption that the counties will
have to pay 100000 year of this
old age pensions and childrens aid
expense-the total appropriations
needed, on the basis of the very low
est estimates, is right at $4O,0O0,O00
year, it is agreed. Of this total, more
than 60 per cent, or approximately
$24 100000 year, will go to the pub
lie schools, leaving less than 40 per
cent for all the other State depart
ments, institutions and activities, in
Guiding old age pensions and chill
dren's aid, although the appropriation
for schools is even then about $780,
600 less than the amount the school
forces are demanding.
Limit To Income
But the revenue bill as it now
stands i1on 11,iro no IF = ~ tho
expected surplus of 100000 at the
end of this year and the diversion
of $2,1OO,000 year from the highway
to the general fund, as compared with
the diversion of only $1,000,000 year
in previous years, will not yield more
than $37, 100000 a year, on the basis
of conservative estimates made by
Commissioner of Revenue A. ]. Max
well and members of the committee.
Even the most optimistic estimates
it now stands, including the expected
OF the revenue yield from the bill as
revenue from the liquor tax, amount
to only $685., COO year, still $1,363,-
600 short of the amount needed to
make the revenue bill balance with
the appropriations.
analysis of Reasoning
The expected revenue from the re-
venue bill as it now stands, on the
basis of conservative estimates, is
based on the assumption that the 1895
revenue bill will BRING. in $35, 900 900
this year. To this amount is then
added 81, 100000 year, representing
the additional recommended diversion
from the highway fund, $75O,OOO
year as the new income from the tax
on intangibles, $65O,000 year as the
estimated revenue from the proposed
sales tax of seven per cent on LIQUOR
sales, and $1,5O0,OOO year from the
surplus. This makes a total of $780,
100000. But it is then necessary to
subtract at least $1,5OOOOO from this
total of $39,0OO,O00 in order to adjust
the loss in revenue which will result
from the restoration of the exemp-
tons in the sales tax. In fact, it is
generally agreed that the State will
actually lose $2,5OO,O00 year as
result of restoring the sales tax ex-
employs, but that increased business
and higher prices will recoup half of
this loss, so that the State actually
will not lose more than $1,5OO,OO0 a
yOoA LII OO6A II1C SAC1lPLAO1S. 1ulS
deduction of $1,5OO,O0O from the ex-
pected total of $39,O0O,O0O leaves only
$37, 100000 of actual revenue with
which to meet appropriations of $40.-
100000 difference of $2,500,O00.
In Tabular Form
The above figures in tabular form
are as follows:
Present revenue from 1895
revenue bill .......... $35, 100000
Half of expended surplus 100000
Additional highway diversion 100000
Revenue from intangibles 100000
Revenue from liquor tax . $4,000
Total ............... $39,OOO,OOO
Less loss from sales tax
exemptions .......... 1900, 900
Total net revenue in S ght $37, 100000
There are those, however, including
Chairman Victor S. Bryant of the
House Finance Committee and Chair
man E. v. Webb of the Senate COM
mittee, who believe the above esti-
mates are too low and who feel that.
with business continuing on the up
grade, as well as prices and incomes,
S41oI LAC Otdtc 1uCOul0 lIOL1l the 1850
revenue act at the end of the present
fiscal year will be at least $36,O0O,OOO
instead of $35,00O,0OO. These also be-
lieve that the yield from the intang-
ibles and liquor tax will be greater,
with the result that their estimates as
to the yield of the present revenue bill
are about as follows:
Yield of 1885 revenue bill .$36, 600, 900
Half of surplus ......... 100000
Additional highway diversion 100000
Yield from intangibles tax 100000
Yield from, TO liquor tax :. 785,OOO
Total . sAo1a7 ooo
Loss from sales tax
exemptions ............ 100000
Total net revenue in sight $38, 637 900
These figures show that the finance
committees still have between $1.363.-
700 and $2,500,0OO still to raise in some
manner before they can get the reve-
nue. Dill to balance with the appro-
prlatlons bill, almost. all observers
mere now agree. But no one knows
Wnere they will get it.
FORECECSJ3T sA-1.
by virtue of the po..;e. contained.