Show I Text of Governors Governor's Budget Message I Full Fun text of Governor Henry H. H Bloods Blood's budget message to the twenty first twenty Utah legislature follows fol tole lows Pursuant to the provisions of section seton 87 87 7 7 2 Revised Statutes of Utah Uth 1933 I am pleased to place before you my budget for tor the biennium biennium bien hien commencing July 1 I 1935 and ending June 30 1937 This Ti budget and accompanying tabulated tabulated tabu tabu- data will wi provide you with information concerning the thc financial finan financial ian cial affairs of the state slate cal te The Te estimated revenues for lor the ensuing ensing biennium have been brought up to date by the budget division of the thc department of supplies sup sup- supplies plies ples and purchase The total available to m meet et all al demands on the thc state ate general fund for the period period pe pe- nod is i shown to be I direct your our attention to pages 85 88 83 8 of or the general budget budget You will wi find there in vertical columns columns col col- 1 1 Appropriations for 1929 2 Appropriations for lor 1931 3 3 Appropriations for 1933 4 Department requests 5 5 Governors Governor's budget 1935 6 Suggested budget contingent on legislative approval approval Proposed appropriations not from general fund revenues will willbe willbe wi be found on race page 90 Limited in Powers rowers Under the law w the governor Is I limited in his powers and may not budget in excess of his hi estimate o of total tW revenues for the biennium which estimate must be based on laws as a they exist eist The Te budget herewith presented to you ou in col column column cl- cl col- col 5 pages 88 85 reflects the apportionment ap apportionment ap- ap ap believed just to the several se participants in the estimated et- et esti estl- mated available total of general fund revenues re found on page 84 8 The total of budgeted items Hem is i 4 4 87 or 63 less than the estimated revenue While this budget is necessary to carry out the thc intent of the governing governing gov gov- statute the amounts possible possible ble to be b allotted to various departments de de- boards board commissions institutions and organizations are too low to be b satisfactory to me and I am sure would be a serious handicap to the thc proper administration tion ton of the thc laws of the thc state and therefore detrimental to the interests inter inter- ests of the thc people 1 f DEPARTMENTAL t NEEDS f A Two years of experience in attempting at- at at- at tempting to operate state stale government gover government govern govern- ment on drastically reduced legislative legis legis' leg leg- appropriations have ha served to prove that there is a point In Iii expenditures expenditures ex ex- ex b below low which it i is not econom economical 1 to go That point was reached and p passed ed during the te present biennium Time after time department heads have come to me during the period and frankly said It was impossible i- i im tin- possible to function according to law without additional funds I have felt feU completely sympathetic and have hav so stated staled However we wc had accepted a mandate to reach the end of the biennium if Sf po possible sIble sI- sI ble w with th a balanced balance budget budget It I was therefore necessary to decline to allow alow deficits To the credit of those in charge of important state departments department it can be said they accepted the thc situation without serious complaint and used appropriated funds fund to the greatest advantage ad ad- vantage Many departments department however however however how how- ever have been compelled to discontinue discontinue dis dis- dis- dis continue important Inspection work and field feld supervision of ot activities coming within the scope of ot their prescribed duties dutes For Instance the tax commission reports large amounts amount of past pst due taxes which could be collected at reasonable cost if i additional field auditors were employed the board of or agriculture agriculture agri agri- culture has been compelled to drop vital vit ph phases se of its It work valuable to agriculturists the thc Industrial commission has been unable to carry on on proper roper inspection essential een- een essen essen- to thc the protection of or miners and other workers worker the public utilities commission likewise has been unable unable un un- able to discharge in full ful its duties duties' Other departments also have been r. r t 0 I r. r f o. o I hampered but detailed enumeration tion Is unnecessary here I i SCHOOLS SUFFERED T Ti I i 5 h Educational institutions supported sup sup- supported sup ported porte by the general fund have suffered acutely under reduced ap ap- ap ap With increasing enrollment en en- and higher operating expenses ex ex- it i is obviously necessary adequate appropriations b be provided If J Utah's Uth's high rating in education is i to b be maintained The Thc public now expects expect and de demands demands de- de de mands more of the state government govern govern- gover- gover ment meat than ever er before in spite spie of the peoples people's own pleas for tor economy Regardless of if J not because of the present economic depression state slate departments department arc are constantly constanty met with wih requests request for assistance and services never before required There Tere should be no relaxation Inthe In Inthe Inthe the policy of or rigid control o of expenditure expenditures ex ex- but I cannot close cose my eyes eye to the necessity o of some Increase Increase In In- crease of appropriations to meet met the present demonstrated needs need When I delivered my meag message to the regular session of the twentieth legislature I stressed the thc necessity for economy in i every branch o of government but I said Even in jn our present condition we should not be b led to the point pint of oC doing irreparable damage to cherished and necessary institutions Economy should not be b construed construed construed con con- as a a call cal or a pledge so far farto farto ar arto to cut into personnel as to make impossible imposible orderly functioning of government or so o to reduce compensation com corn as to make it impossible to secure seure the valuable services service of competent and capable and experienced public officials Either of these thee extremes might be found to tobe tobe tobe be the very reverse of true economy econ econ- omy Contingent Allotment With Wih the thought In mind of attempting attempting at nt tempting to provide more adequately adequately ade ade- for the needs need of all al institutions int institutions and departments of the state slate stat government I have prepared in addition additon to the official budget found on pages page 88 85 85 8 a suggested or contingent allotment of funds fund which seems more to seem nearly cover Imperative imperative impera Impera- tive requirements In the budget budge tabulations this suggested allotment allot allot- ment meat parallels the o official figures It I will wi be seen that this thi column carrie carries car car- ries rie a total of 87 This Ti total total to to- tal tl uses the proposed expenditures for tor debt service servie for the thc biennium of Use of ot this figure is js contingent upon the acceptance of ofa a plan which I shall later herein propose the effect of which will wi be beto beto beto to reduce bond redemption re requirements requirements re- re re for the com coming in biennium biennium bien bien- alum by from to This Thi setup is i designed designed de de- de- de signed to assist the thc legislature and il its appropriation committees in the discharge of their important duties dutie It I is i recognized of ot course that the thc governors governor's budget is i intended to be helpful but not controlling That Tat being true of this thi budget it i follows that it i i is even more so of the contingent contingent contingent con con- apportionment of funds r 1 I FINANCIAL PLAN T 1 y v 4 S Assuming that it will wi be your wish to J give e consideration to this thi suggested increase of oC appropriations ton the problem next to be met metis metis is how to provide finances finance to cover the additional proposed expendi expendi- tures The most obvious method Is i to look to the field of taxation for increased increased in in- in- in creased revenues I am against increased increased increased in in- creased taxation if it it i can possibly be avoided I believe beleve in the the present instance it can be made sary What I have in mind leads lead to a consideration of the bond issue authorized authorized au au- au- au by the twentieth legisla legisla- ture lure It I will wI be recalled that in order to fund and refund an in in- approximating 2000 that had accrued prior to the present biennium the thc legislature at the regular session In jn 1933 authorized authorized authorized au au- au- au a bond Issue in the mount of In taking the steps n necessary esar to provide for the thc issuance Iu ance of ol these bonds of which were to be issued to refund term short notes and for lor forthe forthe the purpose e of or paying pin deficits theretofore incurred by thc the state due to a shrinkage in revenues it itI I I r J was found that only of ot the bonds bond could be issued This Thi was due to the fact fac that as of ot the date the law authorizing the bonds became became be be- became effective which February February came was ary 7 1 1933 33 the actual deficit was only in addition additon to the te the in term short notes Therefore only of the bonds bond were Issued and all al o of these thee were sold to the redemption funds of the state none having been disposed of in the thc market markeL The Te bonds bear Interest at the te rate of 4 per cent and mature serially on April 1 in each cach of the years 1935 to 1941 with wih a final in installment in- in of on April Apri 1 I 1059 1942 Proposes Propose Refunding I propose that you you authorize the refunding of this thi bond isue issue so that the term of the bonds be bond can lengthened lengthened lengthened length length- ened and the first date of maturity deferred deterred several years years- This Thi will wi release the sum of from the amount appropriated in 1933 to meet th the payment due in 1935 and this unexpended amount will wi therefore therefore there there- fore tore remain in jn the general fund und at the end of oC this biennium to assist assist assist as as- itt ir covering the appropriations made at this thi session Likewise the d due e April Apri 1 I 1936 and the te aId due April 1 1 1937 will wi not be required and the debt service for lor the coming biennium will wi be reduced by Since prevailing prevailing prevail prevail- ing interest rates rate for bonds such sucha as a the obligations of the state stale of Utah arc are extremely lov 10 at this time refunding bonds can if i de dc desired sired be issued at a lower rate of interest than the 4 per cent which the b bonds now carry While it i would seem to me mae at the present time that the first firt installment of ot the refunding bonds should mature in 1940 I believe that the state board of or loan commissioners should be b permitted some latitude so that after a careful creul study bonds may be issued to mature at such times as the board bOrd feels will wi best be serve the purposes of the state I have consulted con con- suited sule bond authorities and the attorney at at- torney generals general's department and am assured that there are no legal egal dif dU- involved beyond the necessity necessity nees- nees sity siy that this legislature provide by law for the refunding operation An A appropriate bill bi is i being prepared pre pre- pared to c effectuate this ti plan and I shall be pleased to present it to you in due time I recommend i its approval approval it If I you Ou concur in this thi dation the daton estimated revenue for the ensuing biennium will be increased in- in creased fr from rom m wi b by the addition of oC saved to the general fund by reason of that amount being not required for bond redemption April 1 I 1935 bringing the total of estimated revenue revenue reve- reve nue to i At the same time the me requirement for tion ton 1935 1937 1935 iS funds during Ine dU the thc biennium will wm if u be now fixed at reduced by to a ahe balance of which a agrees r with wih the he debt service total set up in column 6 page 85 5 5 of Ot the biennial budget Easier Easler to Carr Carry There is reason to defer at least Until m 1940 b because t Cause that payment year and thereafter K bonded will wi find d the state if i there arc are no new bond issues issue in jn such a favorable favorable favora favora- ble position that it i will be easier wi to o carry the load It I is obvious that in times like these the state will do remarkably well weH If I it operates wi within with with- in bud budget S current eL fen It I revenue should not with wih be a ba expected balanced wih to carry too heavy a burden for payment pay pay- ment meat of debts accumulated debt in the past The effect of this proposed refunding refund- refund lag ing plan if i ad adopted will wi be to r re release re- re lease of general fund revenues revenues rev rev- now obligated for state bond redemption and to add that amount to the total available for fr lion tion to state ton departments department and last last- tut ions There will wI be required from other revenue sources 37 If ir this thi legislature decides to appropriate ate the full fun amount shown In Iii the thc suggested gest d allotment column This excess includes provided for the expenses of or the thc twenty second legislature amount has never heretofore been set ret t up as an anticipated antic antici antici- expense It I is believed the thc relatively small smal sum of r i t will vill accrue to the general fund from wJ additional fees tees etc etc provided in various measures now before the legislature or to be submitted for your action action It I is my thought that before you finally finaly pass pas the te appropriation appropriation bill bi it i will wi be possible to determine whether this amount has been safely covered and if i not the suggested appropriation may be reduced reduced re reo re- re to a point pint that the total will wi not exceed the estimated revenue of t 1 J BUDGET CONTROL l A word should hould be b said in behalf behal of or the executive type tye of budget which is now v functioning Under the provisions pro of Chapter 78 Laws of Utah Uth 1933 This act ac provides for a controlled budget bUdget under which expenditures ex ex- are constantly constanty checked against appropriations The system makes make it i possible and desirable that lump sum appropriations be made as was WS done by the twentieth legis legis lature lattire This permits adjustments adjustment back and forth between items of departmental departmental de de- de- de appropriations which tends tend to promote economy I recommend recommend recommend rec rec- that this thi plan be followed the coming biennium By reason of a wi wise provision of law enacted b by th the twentieth legislature legis legislature legis legis- lature the governor is able to make transfers from rom one appropriated fund to another This law served a good purpose and should be continued continued contin contin- in iii effect with reference to appropriations appropriations appropriations ap ap- ap- ap made at this thi session It I makes for lor efficiency in budget control control The Thc budgetary system now employed employed em em- in this state is a modern plan of controlling expenditures Without it i there would have been greater difficulty in handling the serious problems problem of the present bi bi- The Te budget division calls caUs m my attention at at- tenton to the fact that the accounting accounting accounting account account- ing system now employed in m its is |