The Waterbury Democrat., 1938-07-11
Good Government
 Association Lauds
 Work Accomplished
for Current Year Commended d-FinanciaI Pic. ture Reviewed in Communication to Public

put the 1888 budget far out of balance.
 I. Relief.
 II. A prospective additional de- hcit of $3OO0O0 in 1888.
 III. The Floating Debt arising from the deficit in the year 1887.
 Summarized, the plan of the board of finance is:
 A. To take care of the relief problem by the pay cut.
 B. To eliminate the impending 1888 deficit by other economies in the operation of the city.
 c. To pay off the 1887 deficit by collection of back taxes, assess ments, etc., through the Surplus Resource Sinking Fund.
 The details of the plan, as inter- preted by the Citizens Good Gov ment association, are as follows:
 l. Relief: On account of the sudden business depression, it was obvious that the sum set up in the budget for the department of public welfare was inadequate. A ten per cent reduction in all city salaries and wages was made ef- fective June 1st, which will result in an estimated saving of $192, 2,000. On the recommendation of the board of finance and by order of the mayor, this has been definite ly set aside for welfare purposes and is to be used for nothing else. The board believes that this ad- ditional sum will be sufficient for the remainder of 1888.
 2. The Additional Deficit. The budget deficit arises from the in- clusion in the income for 1888 of $300,00O receipts from the Surplus Resource Sinking Fund, which was to be used for running expenses. The inclusion of this resource was an error because the Surplus Re- source Sinking Fund can only be used to pay cash deficit or in- debtedness of prior years and can- not be used to meet deficit or ex- penses of current year. It is nec- therefore, either to raise ad- dition revenue or reduce expenses. The administration quite properly IS making efforts to accomplish the latter. The first survey by the mayor and his department heads resulted in saving of about $18,000. The committee of the board of finance recommends ad- ditional economies of $126,0O0 which they believe are entirely practicable. These two items amount to $144,000, leaving a bal ance of $156,O00 to be realized by further economies or additional income. The committee has not finished its work, and believes that such economies can be made with the help of Griffenhagen & Asso- ciates, who have recently been retained for the purpose.
 III. The 1897 Deficit. According to the revised figures furnished by the controllers. office this de- felt on January fst, 1888 was as follows:
 Cash Deficit, due to 1897
 Bills paid from 1888
 Resources ....... $357, ,370.35 Addition to 1897 Pay
 roll,, paid in 1888. ... 20,539.29 Bills unpaid as of Dec.
 31, 1887 ............. 135, ,497.69 Total Deficit on 1887
 operations .......... .$513, ,407.3 .33
 In addition to this sum, there are several bond funds which have Been overdrawn condition which in several cases has existed for many years, Gin at least one case prior to 1929). The practice ap- parently has been for the Legis- lature to authorize the sale of bonds for specific purposes and i'm provements. Some of these bonds have never been sold, but the work has been done, using money ob-