BUDGET MESSAGE 39

1967-68 BUDGET

The printed budget message which you will receive today shows, in
detail, various aspects of the executive budget. It is necessary for me to
mention here only a few highlights.

The departments and agencies of State government under the pre-
vious administration submitted requests for operating appropriations
for the 1967-68 fiscal year of about $1. 1 billion. This budget recom-
mends total appropriations of $985. 9 million from the General, Spe-
cial and Federal Funds, including a reserve for supplemental budget.
After allowing for an estimated reversion of $2 million for the General
Fund, proposed expenditures for the 1967-68 fiscal year are $983. 9 mil-
lion. Revised income and expenditure estimates for the current year
indicate that a surplus of $34 million will be available for financing
next year's budget. After reserving $3. 7 million for the supplemental
budget, we have utilized virtually the entire surplus, and current
budget estimates indicate that less than $100, 000 in surplus will be
available as of July 1968.

Of the total funds in this budget, 83 percent are earmarked for
public education, highways, health and mental hygiene, payments to
our political subdivisions and public welfare.

Public education accounts for nearly one-third of the total, $314. 1
million.

A detailed breakdown of proposed spending, by categories, will be
found on page 6 of the printed message.

REVENUE ESTIMATES

The Board of Revenue Estimates has informed us that the present
tax structure will yield $950 million in State and Federal funds during
the next fiscal year. This is $34 million less than the proposed expen-
ditures.

The estimates break down as follows: General Fund revenues $462. 8
million, Special and Debt Service Funds $311. 5 million, Federal Funds
$175. 7 million.

Two factors must be considered in relation to these estimates. First,
they are predicated on the continuing high level of economic activity
and could be drastically affected by any major shift in the economy.
In this connection, we are concerned over the "softening" in retail