Milford chronicle., 1940-02-23

Eeasoline tax, aud therefore, expeudi-
llures an dinllated expenditures mus.
lbe cufbed to rlaintain g balanced
budget in the next two years and
lavoid the type Of insolvency which Is
iupon the federal government
4 ii. s. Taxatibn Near Exhansll0H
He concludes that taxation VIII
SUPPORT ordinary expen5es u Deia-
ware. but cannot support extraordi-
nary expenses as 1t has been called
lupon 10 do in the past decade. Tax
lafioh from federal standpoint has
reached a point of exhaustion and
borrowing must continually be re-
sorted to to meet expenses.
MIR. Truss said that borrowing has
not been employed greatly in Della
ware, but will have to be to support
further extraordinary expenses Vn
the other hand federal borrowing, he
said. has reached the limit author
lied by Congress and the limit must
be increased or imitation resorted TO.
He further concludes that imitation
IN being foisted upon Delaware and
other states in the form OF excessive
federal grants-in-aid and viii lead
to tax exhaustion. borrowing limit,
and bankruptcy. s.
Actual imitation. he continued,
threatens the federal government
and is easily possible as budget cuts
and increased taxation viii not work
ont so that consequently the nation
Is already on the brink OF bank
rurtcy.
Desmond A. Lyons. special ac-
countsnt for the Permanent Budget
Commission, declared that in his
opinion the State has not been oper-
ating on a balanced budget basis for
the past several years.
SDendiRg Exceeds Income
at has been making expenditures
in excess Of the current years an
ticfpated income" he said, "and pro-
viding for this excess by the use of
surplus funds of the current school
fund"
He explained tina the believed that
every effort should be made to strive
for the attainment of a balance be-
tween anticipated income and esti-
mated outgO for each individual year,
allowing a reasonable amount of sur
plus revenue (if any, for a reserve
for contingenGes), for regardless
Of how careful the operation Of the
budget is directed, sooner or later an
emergency arises for
which no provision has been made"
THE continual decrease in the
school fund indicates a continual
excess of expenditures over revenue
because the current school fund is
he only one of the three main funds |
operated under the present financial
setup of the State, which has a sur
plus balance he said.
He declared that two essential fea- /
.ures of public budgeting are lacking /
n the system of budgetary proceed
arc now in effect in Delaware. They |
are lack of comprehensive con- /
;olidated financial plan that involves
al agencies of the State and the lack /
IF a centralized control over budget |
lry expenditures of all agencies in
he State.
Mr.. Lyons pointed out later that
he following appropriations have
Jeen made by the three major funds
or the fiscal year ended June 30,
I94O. land it is almost a certainty
hat the entire appropriations will
e expended School fund. $3,949,- /
100; highway fund, 81 ,296, ,S55.51; !
general fund, exclusive of relief, |
= $4,000, estimated relief, $685.
100 or total estimated expenditures.
Exclusive of special accounts) of
l1.90S.S55.51.
BASED on the above expenditures,
le continued. "it is anticipated that
be cash revenue for the period will
&c short of the total expenditures by
$1.O50.O00 and it will
ollow that the cash surplus at the
nd of the fiscal year will further de-
rease."
Estimated decreases
He continued: THE composition of
his estimated decrease in cash sur
lus is shown us follows: