Milford chronicle., 1956-02-10

In considering all proposed
Legislation and appropriations we
must bear in mind that the fiscal
affairs of the State must be con-
Quoted on a sound basis. Real
progress and SOhnd growth and de-
vel0pment en- not be sustained on
any other basis 7 advocate that
we face tie fats Of our financial
position anu take such straightfOr-
ward action as may be necessary
to meet adequately the budgetaTy
needs and to reestablish and main-
tain a sound fiscal policy.
NEARLY 1S months ago, when the
18th General Assembly was first
in session submitted to each
member a professional. unbiased
report on the fiscal affairs and
problems of this state. Much Of
that report was devoted to the
subject Of bonded Indebtedness,
and the impact of heavy debt SER
vice requirements on our operating
budgets. The report specifically
recommended that at least a por-
ton of future capital improvements
be paid for out of current reyenHes.
This recommendation had a dual
Significance. First, it would place
some measure of restraint on our
debt service obligations.
In addition, it would be Of out
standing significance in retaining
and improving tie credit standing
of the State of Delaware in the f.
nancial markets where our bonds
must be sold-and where our top
most AAA rating had been lost
several years ago. No action was
taken on this recommendation. Fur
ttilermore, we again face deficit f.
nancing on even current operation
al expenditures unless correctional
measures are taken.
Within the next year or so, the
States fscal officers must market
approximately S5S,000. 900 Of bonds.
Each time any bonds are sold, which
have been authorized by the Gen
eral Assembly, it is necessary for
the state bond-issuing officers to
furnish prospective b0nd-buyers
and bond-rating houses with a
statement of our current fiscal
situation.
'The bond issuing officers have
been cautioned repeatedly by these
firms that it is Of the utmost inn
portance for our State to maintain
a balanced operating budget if it
is to obtain the best prevailing
interest rates. Thus, it becomes
even more important that this state
conduct its affairs with a balanced
budget and without a recurrence
of deficit financing.
You may be assured that I have
z continuing awareness Of the need
for adequate appropriations for
UubEe education and all other
phases Of OSr state government. In
nv opinion, however, such appro-
priations NAV properly and legally
he made only when there is ad-
herence to the provisions Of our
Code, prohibiting the appropria-
ion Of funds in excess Of revenues
from all sources.
Il specifically recognize the need
for the appropriations contained
in the four bills which are previ-
ously mentioned. Nevertheless, in
view Of the law recurring a bal
ance between appropriations and
revenues from All sources. ] can
not approve these bills and thereby
become a party to what clearly ap-
pears to be a laudable statute.
Il am permitting these bills to
become laws without my signature
on the assumption that the 18th
General Assembly will recognize
/ its responsibility to take whatever
action is taken to comply with ex-
isting budgetary statutes.
Abort 36 per cent of Americans
over 65 years old have no income
! of thar axru