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1
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maximum amount of money you can spend and, by its very
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2
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nature, you can't spend every penny of it. At the same
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3
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time you have to estimate revenues conservatively, because
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4
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if we have a failure of revenue, that is, if money doesn't
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5
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come in to the extent we estimate, it is very embarrassing
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6
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because we cannot pay our bills. So, we tend to be con-
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7
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servative in our revenue estimates intended to provide cash
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8
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really owed, and it is almost impossible to avoid surpluses
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9
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under such conditions, but we have got to do that because
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10
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we have got to have enough money to pay our bills; but it
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11
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does create a considerable political problem.
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12
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1 would advocate a system of what New York State
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13
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calls Tax Stabilization Reserves and what I call Working
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14
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Capital Reserves. This system requires a constitutional
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15
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base to make it work. It involves establishing a reserve
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16
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fund large enough to provide working capital and also to
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17
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meet any reasonable deficit from future operations. Under
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18
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that system it is possible "to estimate your revenues as
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19
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accurately as possible and to estimate actual cash require-
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20
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ments from appropriations and there is no fear that you
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21
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are going to end up not being able to pay your bills becaus
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