Evening star., 1948-01-19
Tuck Sends Assembly
Budget Of Half Billion,
Setting Virginia Mark
By Alex R. Preston
ssar stoff cerrsspond.nt

Tuck today sent to the General
Assembly a budget of $504, ,995, ,051
constituting the largest in the
States history and the first to
exceed half billion dollars.
This figure, for the two-year
period ending June 80, 1850, is
$161 .506, ,512 greater than the present
biennium's expenditures.
OF the total figure, the general
fund appropriations would be
$156, ,785, ,512 and special funds, ear
marked for specific purposes,
amount to $348, ,208 ,624.
To carry out his general fund
budget, the lawmakers last week
were asked to approve a point
program to increase the levies on
existing sources of revenue. Gov.
Tuck at the same time opposed the
sales tax. These raises in taxes
would provide an additional ST.
728, ,030 during the next two years,
he estimated.
Breakdown Of Expenditures.
The fiscal plan calls for recurring
expenditures in both the special and
general funds amounting to $483,-
213, ,206 which, he points out, Is 1874
per cent higher than. for the 1868
biennnurn. This Is broken down as
follows:
General fund recurring items to-
falling $l36, ,936,313, an increase Of
$28, ,012, and special fund re-
curing items amounting to $346,-
276 1893, or an increase Of $128 .534 ,301.
The Governor and his advisory
committee on the budget reduced
requests of department heads by
500, ,693 ,S26 in the general fund and
by $500, ,287 in the special funds.
After referring to his request for
additional revenue, Gov. Tuck de-
clared:
"At present rates and from pres
ent sources only, anticipated reve-
nue. receipts during the next BIZ
ennium total $469, 1888 $50, consisting
Of $121,S55 $3.50 for the general fund
and $347 ,533, ,629 for all other funds.
These represent net increases over
revised revenue receipts estimates
for the current biennium OF
$11,024,s21."
Warning on Estimate.
Discussing future prospects, he
declared, TAX returns-actual and
currently estimated-for the present
biennium promise new high in
the history Of the Commonwealth.
1t would be most imprudent, how
ever, to accept this record without
recognizing in 1t q war-spawned in
hation.
"Since 1910, Virginia has enjoyed
seemingly ever-increasing tax pros
perity as industrial activity has
risen and pay rolls have increased.
A frank appraisal of tax prospects
for the coming biennium indicates
probability that these factors will
continue at least for the next two
years and that surpluses and re-
ceipts from current rates and
sources will amount to approximately
$490, ,000, 900.
Favorable though the tax receipts
be, it is an inescapable fact that
imitation has struck our expenditure
prospects as we'll. The rise In in
come is far from being net profit. D
20 Millions In Surplus.
Although revised estimates place
the general fund surplus in the
Treasury on June 80 at $20,310, lis.
Gov. Tuck emphasizes this figure
represents only a cash" surplus
because we do not actually have a
surplus Of assets over accrued liza
bilities."
This surplus, combined with $121,-
855, $3.50 he estimated as general
fund revenue, plus 1881 $50 in trans
fers from special funds would bring
the total general fund to $142, ,497,-
s95. This figure is still $14,287, ,432
short of his general fund appropri-
ations but he anticipated the added
money from his seven-point tax
program would make up the differ
ence and give surplus of $7,440 598
at the end of the next two years.
Even this anticipated Surplus" is
offset by conditional capital outlay
appropriation which total $20,-
800 1893.
Causes of Increase.
The general and special fund ex-
penditure increases totaling $751;
506,512 are explained in large meas
ure by an expansion of certain
State. activities such as the Alcoholic
Beverage Control Board, dorni-
tories, dining halls, state-use indus
tries, etc. with the addition of Fed
eral aid. employment payments to
the retirement fund and certain
miscellaneous items, the budget
estimates of revenue from sources
other than State taxation amount
to about S241 900, 900, or more than
half of all the estimated collections
from present sources.