The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1944-08-01


unnecessary or extravagan1
and succeeding general assel
In balanced statement showing
the condition of all the states fl
nancial divisions. the Governor said
there was deferred mainte-
nance account of 500, 1871, 72O in the
state highway and public works
commission and a surplus of S703,
604 in the agriculture fund, both of
which are separate from the gen.
eral fund division.
Against the surplus in the gen.
eral fund, he said, there is gen.
eral fund bonded indebtedness of
$50, 405,5OO of which 1924, 900 is
offset by sinking fund already es-
tablished. In the highway division
there is bonded indebtedness of
$55,855, 900, with a sinking fund of
$13, 500, 915, or a net highway bond
ed debt of $42,454, 805.
The general fund bonds have no
callable provisions, but all high
way bonds are serial bonds, pay
able in annual amounts and under
present schedules of payment will
be completely retired in seven
years. he said.
while the final action with re-
spct to the disposition or applica-
ton of the general fund surplus
rests with the next session of the
General Assembly, the governor
said, ''the sentiment seems to be
universally in favor of investing or
keeping invested sufficient
amount of this surplus to offset the
present general fund bonded in
debtedness."
1t is regrettable. he said, that
this general fupd Indebtedness can
not be paid off while monev is on
hand more than sufficient for such
purpose" However, he said, the
bonds have no callable provisions.
and the only alternative is to set
aside in a sink ng fund, specifical-
ly allocated for this purpose,
enough of the present surplus in its
invested form to offset Id be
available for payment of the gen.
eral fund bonds
If the suggested plan of utilizing
enough of the existing surplus to
offset the general fund indebted
ness is followed, the governor said,
there will remain an estimated
aurplus of $4,000, 900 at the end
of this biennium lending June 30,
1852.
Utilization of the surplus, he con-
tinued, would present to the Gen
eral Assembly of 1945 three alter
natives: "a Expansion of plant and
facilities of state agencies and in
stitutions where such needs exist;
ca experimenting the program of
the state service, including such
new and additional programs as
service to returning veterans and
comprehensive health and hos
pital program now begging studied
by a commission appointed for
that purpose; and 90 tax reduc-
ton
Highway Surplus Needed
OF the highway surplus, h e
governor said that every dollar
of this amount and more is needed
Immediately for improvements and
extension of our highway system
and would have been used already
if materials had been AVAILABLE"
''It would be blind optimism to
expect that revenues which have
been abnormaly increased by war
conditions will continue after the
war. There are already indications
of declining trends in certain CLASH
fications of revenue. The General
Assembly will therefore wisely re-
frain from any unnecessary or ex-
travagant appropriations.
North Carolina is on a financial
basis unsurpassed by that of any
state in the union and equalled by
few. Such conditions is the best
foundation for future expansion in
industry and along other lines. The
combined wisdom of the General
Assembly supported by the senti-
ment of the people give assurance
that nothing will be done to disturb
the sound financial position of the
state
OF the total surplus, $40, 1852
has been invested in long term
federal and state paper as a post
war reserve fund. An additional
$25, 094, $50 has been invested in
temporary accounts, such as war
bonds, making a total of $45, 209,-
1852 of the surplus funds invested.
Revenue Collections
New revenue collections during
the year 1943-44 totaled 1882, 1O1,
for total of $116, 259, 1O1. Total ex-
| penditures amounted to $58,610, 231,
Of which $780, 1851 went for pub
lie school maintenance and SIS 1884,
500 for debt service payments.
The highway commission collect
ed $33,262, 1884, to which was add
ed credit balance of $33, 379, 1873,
for total of $66,641, 712 in avail
able funds, expenditures totaled
$26, 1892, leaving a credit bal
ance Of $703,604.