TEir
THE HASSAU POST, FKEEPOBT, N. Y., PBIDAY, JUHE 2, 1916.
APPROPRIATIONS REDUCED; NO DI¬ RECT ST ATE TAX
GoTtmor Whitnwn Concludes His Work on the Appropriation Bill and Randers an Account of His Stew¬ ardship; New Itemized BudKct Will Return Between $2,000,000 and $3,000,000 to the Sute Treas¬ ury for Use Next Year; Over HaH A Million Saved on Canal Opera¬ tion; His Reason for Declining to Tamper with the Sinking Funds.
Albany, May 22—In the statement •ccompanyinf? hi.s action on the aii¬ propriation bill, Governor Whilnian ipoints out that this year's appropria¬ tions, exclusive of canal conslruclion are $1,241,821,28 less than last year's. Including canal construction, thc appropriations are $4,895,821,78 Icb.-. than latt year's.
There will be no direct tax tins year.
The segregated budget now in if<e will return to tiie state treasury lor use next year between $2,(XXJ,000 and $3,000,000.
The appropriation for thc operation •f the canal through the department of public works is over half a mil¬ lion dollars less this year than it wa-. last year.
The proposal of Mayor .Mitchell to >eto items for interest on state bonds and contributions to the sinking funds •was not followed for the reason that such action would be illegal and un constitutional. Had these items been vetoed the comptroller would bc com¬ pelled by the constitution and tlic Statutes to call upon thc counties for a direct tax to the amount of these vetoes.
The proposal of Mayor MiKJie!) that the item for state aid to town higliways was not followed for the reason that it would have meant the repudiation of a statutory obligation. The Governor disposes of the alle¬ gation by Mayor Mitchell that 2,.^0(i salary increases had been made in the appropriation bill by an analysis of all the salary changes which sliow» that the increase is not 2,.SCO but 485, most of them in the low class servics of the insane hospitals and charitable institutions.
The change of the fiscal year makes for great improvement in budget niaking. it gives lo the comp¬ troller a better opportunity for audit control. I'rovision can now be mailr in the appropriation bill for a full year, a thing ihipossiblc when the lis- cal year closed six months after tlic adjournment of the Legislature.
The full text of his statement fol¬ lows:
The appropriation bill passed by the legislature of 1916, exclusive of re- appropriations, appropriations for bond accounts and appropriations be¬ tween funds not afifecting the total cost of government, total $61,004,- •456.08. Of this amount, appropriations •ggregating $59,103,450,08 have been approved and items aggregating $1,- 901,006, have been vetoed. The ap¬ propriations for 1915 were $63,997,- 271,36, including $3,654,000 for canal construction, making a total for other than canal construction $60,343,271,36, showing a decrease for 1916 below 1915 (exclusive of canal construction of $1,241,821,28).
A total of $j383,011.04 of re-appropri¬ ation items approved by the Legis¬ lature has been vetoed. Contrary to the situation last year, the veto of these items represents an increase in thc resources of the state treasury to an equal amount, the funds released thereby being available for other needs of government.
The main appropriation bill passed by the Legislature, together with the two principal highway maintenance appropriations, aggregated $59,840,- 087.86 as compared with the Gov¬ ernor's tentative budget proposal of $57,161,517.44 or a net increase over the tentative proposal of $1,678,570,42. The appropriations as approved show a net increase over the tentative pro¬ posal of $1,941,932.64.
To arrive at a proper basis of com¬ parison, however, each of these amounts should be increased by ap¬ proximately one million dollars, rep¬ resenting a reduction in the appropri¬ ation bill for debt service below the amount in the Governor's tentative proposal for thc same purpose, the reduction being due to thc elimina¬ tion of the September interests from the total in the tentative budget. Items Which Account For Increase The principal items making up this increase of approved appropriations over the tentative budget, are the following:
National Guard mobiliza¬ tion ;,..$ 500,000.00
Military Training 100,000.00
Highway maintenance
(added because of road destruction, due to s^
vere winter) 3.52,279.20
Town road, State aid.... 108,275,90
Grade crossings I75,000.(X)
Court of Claims' judg¬ ments 150,000,00
Court of .\ppeals, Court
House 250,000,00
Schoharie Agricultural
School, new activity... 84.950.00
New prisons 400,000.00
Legislatite deficiencies... 250,000.00 Conservation, includinfr
Saratoga Springs 200,000.00
Support of common
schools deficicncY 166,471.00
Indemnities for diseased
animals 109.000.00
State taxes due counties,. 24,{XX).0O Board of (prisons in peni¬ tentiaries 83,000.00
Total $2.952,976ilO
The approved items of the appropri¬ ation bill of this year which rep¬ resent the deficiency or supply bill item of previous years, amounts to $1.877 375.76. as cornpared with $5,257.-
f20.98, the amount of the deficiency bill for last year, showing a reduction in the amount appropriated to meet deficiencies this year as compared to last year of $3,380,545,22.
Principal Items of Deficiency Thc principal items of deficiency this year ars the following: Board of prisoners in penitentiaries, $155,- 135.44; state taxes due counties, $363,- 716 (of this amount $190,000 is not a deficiency and should have been jn the appropriation bill); election law printing, $32,0(K); legislative de- ticiencies, $196,983,33 (of which lt«0,-
000 is for printing, although $W)0,IK)U was included in thc appropriations of last year; $.'500,000 to meet currenl charges for this purpose and $.30(I,(K)0 for deficiency due to deliberate f;iil- ure by the previous administration to make appropriation for this pur|)u^e; support of common schools, $16'),'JK^
1 due to an error in computation last year); contributions to agricultural fairs, $250,(XIO; indemnity lor (iiseased animals killed by order of the de¬ partment of agriculture (approved claims for which were in the De¬ iiartment of Agriculture, .March 1, 1916J, $240,(>](l.
The cost of the constitutional cmi- vention last year, aiiproximately $500,- 000, was a burden which the last year's approjiriation bill had to carrv be¬ cause of the failure of thc previous admiiiislralion to make provision for it. That was a charge a^^ainst t!ie present administration which was imt expected lo recur, but we lind lli.ii the advertisements of the new con .stiuitioii, inserted in the newspai ;'rs of the state last yedf, together wii!i the cosl of priming the copies of the constitution to l>c used al the election, resulted in the ncw coiitiitii- lii,)nal convention item in this year's appropriation of $707, 44S, 13,
The aiiproprintion acl of last ye.ir carried appropriations of $34(1,0011 for deficiencies in the supporl of the na¬ tional guard whicii were not pro¬ vided by the previous administration. While under T'ordinary condiiions, there should be an approximately equal decrease in the amount for this activity in thc preseitt ai)|)ro|iriations it has been deemed in the interest of preparedness to provide for the mobilization of file entire Xational Guard this year, wiiich necessitated a .special apiTropriation for nalional uuard purnoses of $5(M),0()0, .'Xnothcr item of this character is the appropri¬ ation of $100,000 for militarv train¬ ing, niaking new approiiriations in this department of government of $6<»,000, which offsets, the deficiency payuifnt of last year and results in an increase for tlie next vear of $343,438.10,
The debt service which called for an increase in the cost of govern¬ ment in the appropriation bills of last year of one million and a half dol¬ lars over the aiipropriations of the [ircviou^ year shows a still further increase this vear over lasl year's total of over $9.30,000,
Saving on Canal Operation The appropriation for the general operatioii of the department of I'uh¬ lic Works (canal operation) is $519,- OOO below the appropriation for tlie ,same purpose last year, although sub- slanlial additions to thc mileage of the barge canal in use will b« made this year. The appropriations for this purpose last year included over $700,(X)0 for deficiency, due to failure iri appropriate by the previous ad¬ ministration.
The form of tentative budget, as submitted liy me lo the Legislature at the opening of the session of the present year, was based ufion a plan of transfer of allowances withiii schedules under large aggregate aj)- propriations. When I submitted this plan to the Legislature I expressed the view that if this plan was ac¬ cepted the Legislature could make substantial reductions in these sched¬ uled appropriations.
This transfer within the schedules would have required legislative au¬ thority, delegating to a new agency the power to make such transfers, the equivalent of a power which, it is conceded, has been for years exer¬ cised under the lump sum apiiropria¬ lion plan by the various departmental and institutional heads of the state government. This procedure was not accepted by thc Legislature, as that body contended that such proceclure was a delegation of its constitutional rights,
,'\s an alternative, th» Legislature adopted an ai)proi)riation bill segre¬ gated to practically the same extent as the tentative budget proposal, which I submitted, but where my pro¬ posal included schedules supporting appropriations, each item in these schedules was made a separate leg¬ islative appropriation in the bill passed.
A Reserve For Next Year's Budget It is not possible in a highly seg¬ regated itemized appropriation act, such as this, where alt the items are separate appropriations and between which no transfers are to be made to express the needs of state govern¬ ment in anything like as low a figure as where transfers are permitted, but it is also true that this highly seg¬ regated itemized appropriation act will return to thc state a very much larger amount of unexpended bal¬ ances at the end of thc year than a budget in thc form of my proposal, A conservative estimate of the ainount which will accrue from thc unexpended balances of thc present appropriation act to aid thc financing of thc expenditures of state govern¬ ment next year is in excess of two millioa doUan aad arobaUy will reach three million dollars; so that while that amotint of saving cannot be represented in a reduction at this time in total appropriations approved by mc. thc amount of saving is as-
sured by the form of the appropria¬ tion acl itself. As there is no direct lax imposed this year, the expression of the cost of governmenl in this amount does not place any added bur¬ den upon the taxpayers but on the contrary, as I have shown, assures a reserve for fulure budget tmrposes. .\ very great advance is made in 'he appropriation bill of the present Legi.slature over any previous ap¬ propriation bill in lhe fad that it is for thc tirst time based upon scientilic expense classilications which, for in¬ stance, separate expenditure for per¬ sonal service from every^ otlier kind of expenditure, classifying niain¬ lenanee and operating expenses under their proper subdivisions, preventing thc use of these appropriations for more than one kind of expense, and giving opportunity to the Slate Comp¬ troller for proper audit control. This feature of lhe act, together with the fact lliat all maintenance and opera¬ tion and personal service expenses and all other appropriation j, except for repairs and construction become available on the first day of July, 1916, and lapse on the 3(nh day of June, 1917, go far toward clarifying a \crv great deal of the previous con¬ fusion and obscurity in state apjiropri- alions. The bill, for the first lime in historv of the .State, makes com¬ plete provision for the maintenance and operating expenses of every de¬ partment and acli\ily of the State for the full year, a feature of aii¬ propriation the importance of ;¦, hich cannot bc over-cMiiiiated in future state financing.
An Impractical Proposition During my consideration of the present appropriation bills 1 liave been asked by thc .Mayor of thc city of Xew Vork and an organization known as thc Tax Reduction Commil¬ tee of .\ew ^¦ork to veto items of appropriation in that bill providini» for interest on oiitstaiKliiig slate bonds ami amortization conlribiitions to eight of thc sinking funds of the slale, niaking an ag.ujregale proposed reduction of appropriations of $6,216' 914, The first of these items of pro¬ po.sed reduction, that of $l,(j(X),000 for canal sinking fund Xo, 4, is impossible upon the argument ad\anced by the .\Iayor and the Committee, because the appropriation referred to inchidei both interest charges and amortiza¬ tion in one item which could not be vetoed separately and the veto would reduce the fund in question below ill acturi;il requirements for next year. I submitted the whole proposition, however, to the .\ttorncy General ol the State and to three distiiignished constitutional lawyers: lion, (ieorgi L, Ingraham of .N'ew York Citv: Hon. Jolin (;, .Milburn of .\ew ''lork City, and to^ lion, (ieorge Clinton of Huf¬ falo, Thc ,Attoriiey General has ad¬ vised me in a lengthy opinion that a veto of any one of the items in¬ cluded in this $6,216,914 total would be illegal and unconstitutional.
Judge Ingraham and Mr. .Milburn, who joined in an extensive and care¬ fully considered ofiinion, after set¬ ting forth the constitutional provi¬ sions and statutes which require either thc imposition of a direct lax or the setting up of an appropriation from the general fund to meet in¬ terest and amortizalion charges on all canal bonds say;
"W'e think, therefore, that the tax thus imposed must lie collected, unless the appropriation is made, ¦ and if the Governor should \eto the provision making the appropriation then il would be fhe duty of the public officials lo levy and collect the tax and pay the proceeds tliere¬ of into the sinking fund." Taking up then the proposal to veto the interest and amortization charges on highway bonds. Judge In¬ graham and .Mr, Milburn aflcr recit¬ ing again the constitutional and statutory provisions with respect to the necessity for either a direct stale tax or an appropriation to meet these charges say:
"These bonds having br'<-n issued under this express legislative pledge, in pursuance of the provision of Section 12 of arlicle 7 of the Con¬ stitution having provided that tlic— 'force and effect shall not be di¬ minished during thc existence of any debt created thereunder'; the state w^is iiledgcd to provide such a sink¬ ing fund, and the purchasers of the bonds had the right to rely upon such a jdedge hv the stale. In com¬ pliance wilh that pledge, the tax was imposed which it io the duty of the state oflicers to collect unless the legislature appropriated the ainount that such a tax would produce for the benefit of the sink¬ ing fund from any other moneys in the state treasuiy. Under this pro¬ vision, also we are of the opinion that if this appropriation is nol made, the lax imposed by the stat¬ ute creating the bonds must be en¬ forced and collected, and thr pro¬ ceeds thereof paid into the s.iming fund,"
The opinion of Judge Ingraham and -Milburn then takes up the as
sumption that certain canal and high¬ way sinking funds now exceed actuarial necessity. On this point their con¬ clusion is set forth in these words: "Assuming thc fact to bc that the particular canal sinking funds Xos. 1, 2, 3 and 4 exceed, at the present time thc actuarial amount on a three per cent, earning basis necessary for thc amortization of the bonds which they represent, it seems to us to be entirely immaterial, and that there is no warrant in the law for thc con¬ tention that you may lawfully vcta the provisions in the appropriation bills now before you for contribu¬ tions to those sinking funds pursu¬ ant to thc constitution and thc stat¬ utes providing for their creation ia view of that excess. The constitu-
anat>'3ls of the highway law of the state would prove—that law contem¬ plating a general and extensive im¬ provement of the ruads of thc stale specifying that the state would aid towns by contributions to town high¬ ways for the construction of roads which would eventually beeome a part of the siMtp's Iiighway fyrtein. No Analysis—Just An Assumption Thc declaration of thc .Mayor of the City of Xew Vork and the Tax Re¬ duction Cominittee, that a reduction of four million dollars could be made in the legislative appropriation act was based on no analysis of that acl. It was simply an assumption based on the fact that the appropriation act as passed was two million dollars more than the tentative budget proposal (less thc de!>t ser\ ice reduction) and that fact taken with my slalement at the time of the submission of this proposal to the legi>laturc, that I felt sure that total could be reduced two million dollars, constitutes the sole basis lor the declaration,
I have already shown that the change from thc elastic form of appro- firiatioii which permits transfers be¬ tween items and schedules lo the in¬ elastic form where each item is an in¬ dividual appropriation would require at least two million dollars for ils ex¬ pression in e.xccss of the appropri¬ ation in an appropriation act permit¬ ting transfers, but that two or more million dollars would bc saved to the taxpa.\ers of the state by the lapses sure to occur in the appropri¬ ations as made,
I have also given a lisl of the items whicii make up the increase of the appropriation act over the tentative budget proposal, .Such of these items, as it was possible to disapprove in the appropriation act. submitted to me 1 have vetoed, Tliosc ilenis whicii remain in excess of the tentative budget proposal, are ilcins whicii 1 regard as absolutely neces¬ sary to lie approved to permit the slate to pay ils honesi debts and its legal obligations, to meel such emer¬ gencies as now confront the commoii- weallh and to provide absolutely nec¬ essary support to departments,
P-ecau'-e of the allegation lli.it twenty-live hundred salary increases had been made in tbe apiiroprialion bill passed by the Icgislture, as com¬ pared with the lenlativc budget pro¬ posal I li,-i\e bad a careful analysis made of this feaiure of the two meas¬ ures. Such an.ilysis is difficult except for an cNiieri because where jiersonal service is e.vprcssed in an appropri;i- lion in schedule form, an increase in force or an increase in compensation for a given iiosition may be contused one with the other. The result of ilie analysis made by my examiners slifiws that 10<^5 posiiions representing an in¬ creased cost of ?.H25,K,S6,48 were added to the tentative budget and 610 positions a!,;gregaling $.s03,H72 were dropjH d, making a net increase of added force of 4X5 emploNces at a net added appropriation of $322.fll4.48, The entire iiersonal service of the Schoharie .School of .Agriculture and the Xautical .School are included in this total as well as a large increase in the Industrial ('oinmission ami the Conservation Department (special service for fighting forest tires,) .'\lso „nearly one-half of the new po¬ sitions listed, in the total of 10*^5, arc in the low class service of the insane hospitals and charitable institutions, h'or this reason this item does not ap¬ pear excessive,
.Salary increases as disclosed by fhe analysis were 4K4 in number at a total appropriation of $115,,394.68, as against 180 salary decreases at a cost of $62,612,26, making the net total salary increases 254 and the net appropri¬ ation for salary increases $52,782,42.
This, 1 think disposes of the alle¬ gation that there were twenty-live hun¬ dred salary increases in the appropri¬ ation bill as compared with the tenta¬ tive budget. The person who made lliis ;inalysis failed lo statc'iiow many decreases there were, whirh decreases as an offset to incre;ises, miglit have produced the same net r-'sult as my examination. There does not appear to be any basis whatever upon which the total could have been arrived at other than tiie incorrect reading of the meaning of thc appropriations or an improper assumption with regard to a great many of the apiiropriaiions. Appropriations Compared The following table gives a com¬ parison of the appropriations as ap¬ proved for 1916 wilh ainiropriatioiis for similar functions of state govern¬ ment, for 1915, showing t!ie increases , and decreases by functions:
.^ppropriations .Appropriations
]ii\> 191(1 Derrease
.$ 117,W 54 $ 113,012,40 5 4.^2S.0*l
2 (i7''542 45 2.285.694.14 • 206,151,69 '342 918 68 2,067,981.46 274,937,22 1''q74 27<)46 2,275,037.02 • .100,758,46 4'329.460.84 3„U2,635.50 986,825,34 0 674 10Qf,K 9,643,080.22 ,30.219,46
3 169 45147 2,4.3(1,124,96 7.30,326,51
liefen'si've" •---•• 1,'937,"876,76 2,281.314 Xo • 34.3.438.10
pZ.a .. 1898.904,05 2,206,723.38 * ,307,729.33
r„y,',y'e .' 8 205.042,58 7,K(i9,U.(l 83 485,881.75
n,ar J.le ¦'¦ .3.714.8.35,71 3,7,36,087,41 • 21.251.70
Pro,'dive --•¦ 1,4.>2.728.25 1,.x33,804..s9 • Sl,l66/>4
Constructive .•••••' d.M 1,787,04 6,6.34,449.0« 22.662.04
t'enerX .... 1,041,112.61 7..(),443..36 290„36y,25
rt"/) S746,I89.32 1,442,290,3(1 4„303,8fX),02
Debt Service ".'.'.'.'.'.'.'.'.'.'.'.'.'.'.'¦¦¦ 9.611,514,52 IO,548,.3(KJ 38 036,794.86
•po,^l .*. ..,$63,997,271.86 $50,l(il.4.'^0 08 $7,115,77460
$*2,219.952.82 Xet Decrease $ 4,805,821.78
tlon and statutes permit of no sach suspension of their provisions in the event of such a contingency depend¬ ent upon such acturial computations and assumptions. The amount of tbi tax imposed when the bonds were authorized must be collected and paid into the sinking fund, in the absence of an apiiroprialion from other funds oi the state, until there is an amount in the sinking fund sufficient to pay the debt at maturity. When the amount in lhe sinking fund shall equal in amount the debt for which it was created no furlher direct tax is to be levied on account of said sink¬ ing fund; but until there is an ainount in the sinking fund suifi- cient to pay the debt at maturity thc tax must be levied as provided for or an appropriation macle out of other funds."
Mr. (Tinton, in his discussion of the matier says:
"If I understand correctly thc con¬ tention of the -Mayor of the City of Xew York and the organization known as the 'Tax Reduction Com¬ mittee of -Xew Vork,' they ask for a veto of appropriations for the so- calied funds created under the acl of IS'03 denominated 4 and 7, In the case of Xo. 4 they ask for the vetoing of the amouni estimated in the aiipro¬ priation bill for interest only, ad- milting that the amount estimated for amortization is proi)er. .Aside from the considerations which I have slated, it is (|uite apparent tbat this cannot he done, because the appropriation bill provides a rate for both amortization and interest and the two items cannot be separ¬ ated because if one item in the esti¬ mate were vetoed, the rate for the olher would remain the rate for both. 1 understand that this is sub¬ stantially your view," Mr, Clinton says further:
"The only conclusion which I tan come to is that it would be a vio¬ lation of the statute and the consti tutioii if there were failure tc make aiiproprialioiis for amortiza¬ tion and interest and to provide a tax rale to raise the same, and that therefore the so-callc<l funds .\os, 4 and 7 should be approved," 1 lis final conclusion is:
"In my opinion vetoing of any of the items vvould be unconsti¬ tutional."
The Attorney General further ad¬ vised mc. as do Judge Ingfiiham, ,Mr, Miiburn and Mr, (jlintoii, that if I did veto tiiese items the .Stale ("oinp¬ troller would IK' compelled by the con¬ stitution and the .-tatutes of tbe slate to call upon the counties of thc stale for a direct tax to the amount of these appropriations vetoed.
This ,same pl,iii for reducing thc cosl of thc state government vvas urged upon me last year by the authorities of the City of Xew York when the appropriation bills were under con¬ sideration, and at that time I was ad¬ vised by the .Attorney (ieneral that such action would be iinconslitutioiial, I suppose the same proposid will con- continue to be made annually by the authorities of .\evv York City regard¬ less of what they must now know is a legal obligation of state government in the premises, 'i'he advancement of this argument anttually, however, by those who make it gives them an op¬ portunity, through the publiculion of their slalciiieiits in the newspapers, to impress the casual reader with the idea that thc state is making appropri¬ ations, as in this case, of $6,216,914, which are illegal and unnecessary, while the amount in fact is an aii- solutcly iiiandatory '.iiul unavoidalile item of ihc cost of state government. State Aid to Town Highways Thc suggestion was also made that T should veto thc appropriation of $1,9!)6,275,98 for state aid fo town highways. This appropriation was made hy fhe state pur.suant lo the highway law and its veto vvould mean the repudialion by the slate of an ob¬ ligation, upon the prosi)Cctivc fiillill- nicnt of which thc towns of the state levied their taxes last fall. Such a proposal for repudialion of this stal- ujory obligation has never before, to my knowledge, been presented to a governor in all thc years since this statute look effect.
These taxes have already !>ecn raised in anticipation of the stale's appropri¬ ation in comiiliance with the statute. Misleading statements have been circu¬ lated in an endeavor to create the im¬ pression that this appropriation is in the nature of a purely local benefit to small localities from state moneys, Thc contrary is thc truth as any fair
Executive
.Administrative Legislative . . .
ludieial
Regulativ e ..., F.ducalional . . .Agricultural
* designates inereas**.
I
(Signed) ——:*;-
CHARLES 3. WHITMAN.
\Krn*" tor OVKKI,AM> I'^HTKX * I'Al.'MKrt < HOW muil .MKTZ
Kl HMTI KK MOVKO riTV «»R « Ol N'r» IM AI TO Till < K
CENTRAL GARAOE
-_r^rZ <•'¦•*,- WM. A. ni RUKTT
GASOLIirES, OILS AHD GREASES STORAGE
Wrat Pull»a Ave.
MACfflHE WORK OVERHAULING
TclrphoB*- N He«i»»««'»«l
HEMPSTEAD, L. I.
TAXICAB
I Ni^Kt or Day Service
Chris A. Schulter
76 CHURCH STREET FREEPORT Telephone 888.
Hayt Peed. Bundle Wood
Mifket and Garden Seeds, Seed Potatoes, Fertilizer, Dried Grains COR. CHURCH STREET AND NEW BOULEVARD. FREEPORT. N, Y
Will close at 1 P, M, on Saturdays diirint,'- J'jly, Aiijflist and September
The New Telephone Directory
Goes to Press
MONDAY
JUNES
To get your name in this new book, it will be necessary to make all zorangements on or be¬ fore that date.
NEW YORK TELEPHONE CO.
<-|I4RI.E^ A. RYDKR SOITH liROVE STREET
LOCAL COMMKRCIAL MAMAOKR
FREKPORT, n. T.
