The Waterbury Democrat., 1938-06-25
Upson Opens Fire On
 Recent Appointments
Reviews Financial Condition of City in Statement
 Criticizes Record of Mayor, Ex=Controller Leary

Survey of 8 situation in the city which relates to the financed crisis said to be confronting because of increased welfare costs, and a rec ommendation that the firm of Grif- fenhagen & Associates be employed to make a special report on possible economies were included in a state- ment issued today by Republican Town Chairman J. Warren Upson at 10 o'clock today.
 The statement and recommeda- tions are as follows:
 "The people of Waterbury have been deeply concerned over the financial condition of the city since the publication of the Grif- fenhagen report last winter The budget of the city of Waterbury is concerned with two things: first, the expenditures necessary to run the city, and, second, the income to provide funds to make these expenditures. Insofar as the expenditures are concerned, it has been obvious for the last four months that the appropriations to take care of the department of public welfare in Waterbury were entirely inadequate. The additional amount required has been Vari- ously estimated, and now a re- serve available to the city from a 10 per cent wage cut has been set aside to meet this necessary expenditure. Whether or not this will prove adequate, nobody knows, but 1t is piously hoped that 1t will.
 Looking at the budget from the other side, namely, from the view point of funds available to spend, the Griffenhagen report demon- strated that the budget would be short over $300,0o0 because that amount of money had been im- properly taken from the 1888 in- come to ake care of 1887 bills, has been out of balance to that and so we know that the budget extent for the last four months. In addition. an item set up as available for melting the 1888 bud- get from the surplus resource sink ing fund is no longer available, which further renders the budget out of balance.
 From a discussion at recent joint meeting of the committees of the Board of Aldermen and the Board of Finance. it appears to be admitted that the income of the City will be about $500,ooO short of the amount needed to take care of appropriations in the 1888 bud- get. All this is on the assumption that tax collections in 1888 will prove to be as good as they were in 1886 and 1897, and it is obvious that the chances are against this being true.
 The Board of Finance has been working for three months to de- wise a means to meet this short- age. During the first part of June, its committee reported a possible savings of about $126, 100000. How ever, the Board of Finance has not even made the savings effective. The mayor, during the same period, has also been wracking his brain to devise methods by which the expenditures of the city may be reduced. and he has fin- ally come to the conclusion that $l8,09l.0 .00 may be saved. It is perfectly obvious, therefore, that both the Board of Finance and the mayor cannot make any sav- ings that will balance the budget. Moreover, it is obvious that the Board of Finance and the mayor are allowing the city to drift into a situation in which the city's bills cannot be legally paid, be- cause there will be no money with which to make payment.
 The citizens of this city have universally condemned the poli- cy of MT. Leary, which was to take funds from the following year to make Up the deficit of the preceding year. It is clear, therefore, that by the last three months of this year, no funds will be available to pay the city's bills, and probably its credit will be seriously impaired. The only constructive suggestion to meet the situation has been made by the Board of Aldermen. The board has attempted to investi- gate the conduct of the depart ments in the hope that economies might be effected to restore the budget to balance. For three months, the Mayor effectively blocked this procedure by a suc- cession of vetoes. However, at last, about the first of June, it became possible for the Aldermen to take action. The Aldermanic committee reviewed the situation, and 1t was clear that experts were necessary in consultation having Investigating powers de- rived from the Board of Alder men to analyze present expendi- lures, present needs of the city, and make constructive and in- telligent report as to how eco- monies could be effected. The Board of Aldermen thereupon suggested employment af 0Sif~ fenhagen or some othey suitable investigating firm to do this work and asked the Board of Finance