14 JOURNAL OF PROCEEDINGS [Nov. 5

and the no less critical requirements of a post-war world, without
undue strain. Not only are the State's fiscal affairs in the best
possible shape, but likewise, the huge Unemployment Compensa-
tion Fund., built up over the past few years to the gratifying total
of $128,000,000.00, has weathered the first demands of unemployment
in amazing fashion, so that today, twelve weeks after V-J Day,
the fund has climbed to approximately f 130,000,000.00, the highest
point in its history.

Through an enactment of the 1945 Regular session, the Board
of Public Works was empowered to use all or part of any future
surplus funds for one of three purposes: namely, to reduce income
taxes, to lower property taxes, or to transfer funds to the post-war
construction program. As a consequence of an unexpected surplus
as of the close of the 1945 fiscal year of approximately $1,200,000.00,
and revised estimates of receipts for the remainder of the current
fiscal year running beyond the most optimistic hopes, it was possible
to effect reductions in both income and property taxes, as was
announced officially just a short time ago.

These new reductions, under which individual taxpayers now will
be able to deduct 50 percent of their tax on 1945 incomes,, and the
State real estate tax will be reduced further to 10c per $100 of
assessments, will reflect additional savings of f 1,400,000.00 for our
people, and will bring to a grand total of $24,000,000.00 the reduc-
tions which have been made in these two forms of taxes since 1941.
The State real property tax is now as low as it has been in the
past one hundred years.

In addition, the bonded debt of the State, which was well above
$48,000,000.00 at the beginning of this Administration, is now con-
siderably less than half that amount, and is scheduled for a further
decrease to about $20,000,000.00 by the end of this fiscal year. At
the same time, funds to the amount of $9,000,00.00 have been allo-
cated to the Post-War Construction account, to reduce by that total
the amount of new bonds that would be issued to finance the State's
important Post-War Capital Improvement Construction program.

As another indication of the State's preparedness to meet any
employment problems the next few years may bring, it should be
noted that funds totalling $500,000.00 have been allocated to the
Post-War Commission by the Board of Public Works to assist the
local governments of the State to.program post-war building proj-
ects, so that plans and specifications might be completed to permit
initiation of actual building whenever employment or other condi-
tions might seem to warrant.

The effect has been remarkable. At present, county, municipal,
city and State post-war projects for which plans have been com-
pleted or are in process reach a total of $225,000,000.00, a total, by