ANTICIPATED REVENUES 837

severe budgetary limitations. I think up to 25 percent. This naturally
would not affect the mandated sections. These matters will have to
await decisions at a later time, when we can have a full appraisal of
what has taken place. The mandated sections would of course be
subject to legislative change, if necessary.

Q. Governor, why wasn't the Comptroller here today?

A. I understand the Comptroller is on a trip, a business trip, out of
town.

Q. Governor, do you have any reason to believe that the $30 million
deficit is erroneous and the deficit doesn't exist?

A. I would put the answer to that in a different fashion. I haven't,
nor can I find, nor can anyone find, an apparent reason why it does
exist. So therefore, we feel that there is a possibility that it is er-
roneous. The general growth of the economy has been reasonably
good. I understand one of the principal industrial concerns of this
area has indicated that it's still pretty high, and it's hard to figure
based on the growth of other taxes why the income tax should be
singled out for such a substantial and severe reduction.

Q. Did Mr. Marsh explain at all why he believes these figures are
not erroneous, or did Mr. Young?

A. Well, no, Mr. Marsh and Mr. Young put forth their conclusions,
based on the accounting of the actual money that they have received.
They were not able to explain, certainly not to the satisfaction of
either the legislative leadership or to my satisfaction, why these things
exist.

Q. How many of the returns have been processed?

A. I'm not sure of the figure. There are about 109, 000 returns left —
515, 000 I think have been processed. No, that's the number that have
been analyzed. I'm not sure of the number processed.

Q. Would you say, Governor, that there will be freezes other than on
new employees?

A. Oh yes, there will be substantial economies put into effect im-
mediately. We certainly don't intend to do anything that's going to
do violence to programs that are absolutely essential, and we're not
going to arbitrarily say no to every one. They'll have to go to the
Budget Director and justify that a definite emergency exists before
they will be able to fill any new positions or spend any additional
money this year.