Milford chronicle., 1940-01-19
WARNED AGAINST
TAX DIVERSION
Danger Point Nearly Reached
Permanent Budget Commit
tee Is Told At It's Meeting AT
Dover On Monday.


Members Of the Permanent Bulge
Commission met at Dover al 2 y. n.
Monday in the Legislative Hall
Those attending were Governor
Richard C. McMullen. James p
Truss, State Tax Commissioner: Pa
gan II. Simonton. State Treasurer
and BENJAMIN l. Shaw, State Audi
Tor.
The diversion OF $3,672.730 in fran
chise taxes from the school fund dur
ing the past seven years has reduced
the surplus Of the current school
fund to near the danger point
This warning was contained In a
report submitted TO the Commission
by Desmond A. Lyons. special ac-
countant Of the commission.
His report pointed out that during
the seyen-year period beginning July
I, 1882. and ending June 30. 1899, the
balance OF the current school fund
decreased $3.32S. .224
The cash balance on haud July /,
1889. was $6.53s. s.555. and on June
30. 1899. this balance had been re-
duced to s3.21O.334. The balance On
December 81, 1888, amounted 10 ST.
26S0S2.2S as compared with a ball
ance OF sl,569.O75 on December 81,
1898. thus showing a further de-
crease during the first six months
Of the fiscal year Of s300,993.90
All indications point to a further
decrease Of $4,000 by the end Of
the fiscal year. Mr. Lyons said. due
to the additional diversion OF s570.-
900, and the borrowing by the gen.
eral fund OF S200.000.
Mr. Lyons advised the commission
that due 10 the low balance on hand
IN the highway fund. sl7S. S.S30.O2. as
Of December 81, 1893. and because
the normal revenues from registra-
tions and operators license will not
come in until the last quarter OF the
fiscal year, the Highway Department
may have TO borrow funds before
June 30. 1910. Any amount to be bor-
rOwed would depend on the con-
struction program planned by the
department, he said.
On July 1. 1889. the balance in the
highway fund amounted 10 s1,307,-
ss4.54 so that during the first six
months Of the present fiscal year the
balance has decreased 81 1874 ,053.72, !,
Mr. Lyons explained. A 100000 loan
10 the general fund Is included In
this decrease, he said
On December 81, 1898, the cash
balance In the. highway fund was
S2s3. .416.77 or $l09,5S5.95 more than
the cash balance as OF December 81.
1899
~. o,--,ta;,,o,t tI,,t A., ,,hfae ,.,aao,,
the highway fund had balance OF
81 .307 ,Ss454 on July /, 1889, was
because OF the sale Of sl.277 .299.44
IN bonds during June, 1888.
The commission deferred decision
on the request Of the State Board Of
Charities fof q transfer OF $4,000 |
from its direct care fund to It's sal |
afies fund, and $3.50 from It's Oper-
atoms fund TO travelling expenses.
The postponemeni was made 10 give |
the commission time for further |
study Of the intent OF the Legisla- |
ture in making the appropriation
The State Board of Charities was |
represented at the meeting by Mrs. |
W. s. Bergland, president; the Rev.
R. Y. Barber OF Laurel, and Mrs. |
|lufIY MdytI uA BuNtts AAttJF aARlaAu-
"a the board is striving 10 maintain |
l high standard and that TO do so u |
needs highly trained workers, BY re-
lllocating the funds. the board is
to overcome the reduc-
d budget. they said
State Senator Hector W. Hannum,
chairman Of the finance committee,
md Representative Elmer !. Ben
ION, chairman OF the appropriations
also attended and were
consulted by the commission con-
.erning the General Assembly re-
Iuction Of the boards requested APP
The commission approved the
ransfer OF small sums from one fund
0 another by the state Board Of Ag
fcustire and the Industrial Accident
board
The members OF the commission
siIl meet with Dr. John Shilling Of
he state Board OF Education and the
Of the special school
istrictH Saturday in Dover for a
'eneral discussion Of the reporting
+ financial transactions by the edu-
ational system.