16 State Papers and Addresses

assistance, general public assistance and other activities related to public
welfare. Heretofore, this program has been supported from biennium to
biennium by a constantly changing series of special taxes of a temporary nature
and neither the revenue derived from such taxes nor the expenditures of the
same has been included in the regular budget adopted by the General Assembly.

The obligation of the State to provide and support such a program is
generally recognized and accepted by the people of the State, and the only
question in their minds relates to its extent and administration. The problem
of meeting this obligation is a permanent one, varing only in degrees with
the vicissitudes of the social, economic and business life of the State, and
should be met by the adoption of a comprehensive long range program con-
sistent with the ability of the State to support it. It would seem apparent,
therefore, that the revenue derived from the taxes by which the program
is supported should be considered a part of the General Funds of the State,
and the appropriation thereof be included in the regular budget.

Certain increases are made necessary by having included in the budget
several appropriations which heretofore have been set up as Special Fund
Appropriations and which were, therefore, not included in the budgets of 1938
and 1939; also allowances necessary to meet the requirements of law; and
allowances to provide maintenance for newly constructed buildings and in-
creased population in the State hospitals.

Detailed Comment on Budget Allowances and
Recommended New Construction

New Construction and Bonded Debt

On September 30, 1934, the close of the last fiscal year of the adminis-
tration of Governor Ritchie, the bonded indebtedness of the State was
$43,637,000.00. On September 30, 1938, the close of the last fiscal year of
the administration of Governor Nice, the bonded indebtedness of the State was
$48,247,000.00, or an increase of $4,610,000.00, despite the fact that during
the same period $16,077,000.00 of bonded debt incurred prior to September 30,
1934, matured and was paid. In other words, if no additional bonded debt
had been incurred since September 30, 1934, the indebtedness of the State on
September 30, 1938, would have been $27,560,000.00 or $20,687,000.00 less than
it actually was on that date.

During the four-year period between September 30, 1934, and September
30, 1938, bonded debt aggregating $20,687,000.00 was created. Of the new
debt so created $8,480,000.00 had been used to meet current expenses of the
State, $500,000.00 to the Annuity Bond Account to offset anticipated decline
in taxable basis, $1,500,000.00 to establish a working capital, and $2,300,000.00
to offset a deficit which occurred at the close of the fiscal year ending September
30, 193-5. The remaining $7,907,000.00 was appropriated for additional buildings
and equipment and other repairs, including flood damage, throughout the State.

In no sense is this to be understood as criticism because, as I attempted to
emphasize in my inaugural address, the best course we can pursue is to look
ahead rather than to consume time by criticising the past.