Skip to Content
North Carolina Newspapers

The University of North Carolina news letter. online resource (None) 1914-1944, December 09, 1925, Image 1

Below is the OCR text representation of this newspaper page. It is also available as plain text as well as XML.

The news in this publi cation is released for the press on receipt. THE UNIVERSITY OF NORTH CAROLINA NEWS LETTER Published Weekly by the University of North Caro lina for the University Ex tension Division. DECEMBER 9. 1925 CHAPEL HILL, N C. THE UNIVERSITY OF NORTH CAROLINA PRESS VOL. XII, NO. 6 Editorial Boardt E. C. Branson. S. H. Hobbs, Jr., L. IL Wilson, E. W. Knight, D. D. Carroll, J. B. Bullitt, H. W. Odum. Entered as sceond-class matter November 14, 1914, at the Postoffice at Chapel Hill. N. C., under the act of August 24, 1912 FOR FISCAL YEAR ENDING JUNE 30,1925 We are presenting in this issue of the News Letter a brief summary and ex planation of the receipts and disburse ments of our state government for the tiscal year ending June 30, 1926, as reported by the State Auditor. Table I presents a summary of all receipts for the last dscal year, show ing the funds to which the receipts were credited, followed by a classifica tion of the receipts designed to show their sources. Table II presents a summary of dis bursements for the last fiscal year. The first column in table II may be consid ered the real operating cost of our gen eral state government for the last fiscal year. The second column shows current expenditures from special funds, mainly to maintain our state highway system. Highway finances and certain minor funds are kept separately from the general fund. The two columns in table II under total disbursements show the disbursement transactions of the state, but in no sense does this represent the current cost of state government for the fiscal year. The great bulk of total disbursements represent non-cost ex penditures such as long-term bonds for construction purposes and to retire short-term obligations, and receipts from bond issues to retire floating debt. C^neral Fund Receipts The facts about our state finances that the general taxpayers are inter ested in are, (1) the general fund re- oeipts of the state, and (2) the general fund expenditures of the state. Special fund receipts end expenditures do not affect the general taxpayer, since they include the receipts and expenditures of the Highway Department, and special funds for other permanent improve ments, including loans to counties for school buildings. Therefore, item 1. table I, major taxes, licensee, etc., for general pur poses, is the only part of the first table that is of much concern to the taxpayers of the state. This item has to do with all taxes collected by the State Depart ment of Revenue, the Insurance Com mission, and certain minor miscellane ous taxes. The following table shows the net collections of the State Depart ment of Revenue for the fiscal year ending June 30, 1925: Individual income tax $ 973.066,46 Corporation income tax 1,160,812.76 Foreign corporation income tax 1,694,181.89 Inheritance tax.... 765,437.46 Schedule “B" taxes (Business) 669,694.32 Schedule ‘C*’ taxes (franchise and li cense) 1,086,487.61 Bus taxes 801.48 Interest on bank balances.. 8,630.28 Expense refunds.... 28.20 Total Department of Reve nue $6,148,140.36 Total Insurance Commis sion 1,061,693.00 Miscellaneous. 28,863.98 Total major taxes $7,238,687.33 In addition to the above major sources of revenue there are several minor sources credited to the general fund, as itemized in the first column of table I, first twelve items. Item 13 represents receipts from the sale of permanent im provement bonds administered from the general fund, as distinguished from bond sale receipts administered from special funds. All told, the general fund reve nue receipts for the last fiscal year totaled $8,434,204.94. Current Expenditures The second item that the general tax payer of the state is interested in is the current cost of operating the general departments of the state government. Table II, first column, itemizes the cur rent general fund expenses of the state for the last fiscal year. The second column of this table shows the current expenditures for the fiscal year from special funds, mainly for maintaining the state highway system, the money coming from gasoline and license taxes and credited to the highway fund. Thus the current general cost of operating the state government for the last fiscal year, as shown in the first column of table II, was $12,616,072.23. The items tell in a general way for what the money was spent. The following brief explanation of each item of cur rent general expenditure is designed to give the student of state government a little clearer idea as to where our tax money goes. Current Item General Fund , Expense 1. General administration $1,169,926.72 This includes the sup port of wbat is gen erally called the Ex ecutive, Legislative, and Judicial depart ments of the state. 2. Protection of person or property $ 3(K),588.12 Military, Adjutant- General, State Guard, Corporation Commis sion rates, Insurance Department, tick eradication, etc. 3. Development and Con servation of Natural Resources ,:$.J 263,767.76 Agricultural Exten sion, Geological and Economic Survey, etc. The State Depart ment of Agriculture is practically self- supporting, and its fees and expenses are kept in a special fund. 4. Conservation of Health and Sanitation $ 661,634.96 State Board of Health, o State Sanatorium for Tuberculosis, State Laboratory of Hy giene, etc. 6. Highways IjJ 64,608.63 Convict work in Madi son county. All high way funds are kept in a special account, separate from the general fund. 6. Charities, Corrections and Welfare $2,691,763.17 State Department of Public Welfare, care of children in institu tions, care and edu cation of blind [and deaf, state hospitals for insane, Caswell Training School, Stonewall Jackson School, State Prison, etc. 7. Education $3,957,647.74 State public school fund, state educa tional institutions, commissions, etc. 8. Parks, Sites and Reser vations $ 7,047.19 Battle grounds, park commissions, etc. 9. Pensions, Public Print ing, Miscellaneous... $1,316,590.21 Confederate veter ans, public printing for departments,! in stitutions, general assembly, etc. 10. Public Service Enter prises $ 2,684.00 Ship & Water Trans. Cora., Appalachian & Western N. C. Rail road survey. 11. Interest, Discount, and Premiums $2,137,523.74 Interest on funded debt and on fioating debt. 12. (General Non-Govern mental Costs $ 262,400.00 Redemption of old re construction bonds, and educational and charitable serial bonds. A non-gov ernmental cost dis bursement for the year was the sum of about 11 million dol lars derived from a bond issue to redeem debt which matured during the year. Sec table II, item 12, third column. HOW INCOME IS SPENT At this particular time when every one is demanding that taxes be low ered and complaining about the ex cessive cost of government, which, they say, the people can no longer afford to pay, it is well to investigate the state of affairs. From the following table taken from a graph in the American Edu cational Digest, we can see how our entire income is actually spent for each of the several items involved, personal, state and national, by the rates percent; Percent Church 3-4 Schools 11-2 Government. 4 1-2 Crime 8 1-4 Investment 11 Waste’ .,..14 Luxuries ....22 Living Costs 24 1-2 Miscellaneous 13 1-2 Excluding the personal item of ac tual living costs, it is rather upset ting to find that three of the most important social items are found at the bottom of the scale. That portion of our income which crime costs us is more than the church, the schools and the govern ment combined. The suppression of crime is necessary. It is also wise to provide adequately for old age. However, the comparatively large percentage lost through waste can not be lightly set aside—14 percent of waste as compared with 6 3-4 per cent for government, schools and church should not be accepted calmly. —The Tenn. Educational Bulletin. 13. Federal Trust and Re volving Funds Expenditures under this beading do not affect the general fund account. Ex penditures here are from special funds such as federal de posits for agricul tural education and extension, the state school building re volving fund, the state literary fund, etc. The disburse ments do not come from tax receipts. Nearly 11 million dol lars loaned to coun ties for building school houses. This will be repaid, and reloaned. . Percent Distribution As has already been seen, the cur rent general cost of operating our state government for the fiscal year ending June 30, 1925, was $12,616,072.23. This was the cost involved in supporting the general activities of the state govern ment for last year, exclusive of special activities the cost of which was pro vided for by special revenue sources. In other words the general taxpayer is interested in the current general fund expenditures of the state, the fund that must be provided for by income, in heritance, franchise, license, and busi ness taxes, and by earnings of the gen eral departments which are credited to the general fund. This expenditure of $12,616,072.23 for general state govern ment activities was distributed as fol lows. (Current special fund expendi tures are not included.) Purpose Percent of total 1. General Administration 9.20 2. Protection of person and property 2.30 3. Development and conserva tion of natural resources... 2.09 4. Conservation of health and sanitation 4.40 6. Highways 0.40 6. Charities, corrections, and welfare 20.60 7. Education 31.30 8. Parks, sites, and reservations 0.06 9. Pensions, printing, miscel laneous 10.40 10. Public service enterprises.... 0.02 11. Interest, discount, and pre miums 16.90 12. General non - governmental costs 2.80 -S. H. H., Jr. TABLE I-CLASSIFICATION OF RECEIPTS Sources Fund Credited General Fund Special Fund 1. Major Taxes, Licenses, Etc., For General Purposes $ 7,238,687.33 2. General Administration 131,963.69 3. Protection to Person and Prop erty 476,000.00 4. Development and Conservation of Natural Resources.. . 6. Conservation of Health and Sanitation 122,617.67 6. Highways. 8,333.13 7. Charities, Corrections and Wel fare 6,840.73 8. Education 37,803.61 9. Parks, Sites, and Reservations 10. Pensions, Public Printing and Music 17,260.32 11. Public Service Enterprises ... 263,100.00 12. Interest, Discount, and Premi ums 696,770.67 13. Misc. Non-Revenue Receipts . 21,062,931.CK) 14. Federal Trust and Revolving Funds Total all Receipts $29,960,197.96 The above cash receipts may be classified as follows: a. General Fund Revenue Receipts (Revenue, Insurance Departments, Food and Oil Inspec tion, dividends on Railroad stock, interest, etc). b. Special Fund Revenue Receipts $11,191,766.30 (Auto license and gas taxes, agricultural fees, etc.) c. General Fund Refund of Expense $ 28,113.73 d. General Fund Non-Revenue Receipts : $21,497,879.28 (Mainly permanent improvement bonds, public schools, etc.) e. Special Fund Non-Revenue Receipts $46,741,196.01 (Highway construction bonds, renewal of notes payable, and federal funds for agriculture, education, etc.) $723,636.44 462,388.47 36,240,985.10 640,066.17 2,613,061.37 4,517,313.29 (Federal fund) 11,339,377.86 $496,331,62 66,436,618.69 496,331.62 1,434,204.94 TABLE II-CLASSIFICATION OF DISBURSEMENTS Current Expenses Total Disbursements Items 1. General adminis tration 2. Protection of per- Current General Fund Expense $1,169,926.72 Current Special Fund $ 664.766.98 From General Fund $1,163,210.11 From Special Fund $ 1,310,676,06 son and property 3. Development and conservation o f 300,688.12 224,116.69 300,588.12 700,116.69 natural resources 4. Gonservation o f 263,767.76 473,315.21 268,767.76 718,296.31 health and sani tation 661,631.96 64,608.63 684,162.63 64,608.63 120,037.48 43,746,916.62 6. Highway^, 9,477,681.62 6. Charities, correc- . tions and welfare 7. Education 2,691,763.17 3,967,647.74 127,961.16 2,692,879.12 8,995.361.36 1,066,488.23 2,701,000.00 8. Parks, sites, and reservations..... 7,047.19 7,047.19 9. Pensions, public printing, and mis cellaneous 1,316,690.21 1,316.690.21 10. Public service en- terprises ........ 2,684.00 2,684.00 11. Interest, discount and premiums... 12. General non-gov- 2.046,766.26 2,137,623.74 2,393,913.09 ernmental costs.. 13.*Fed6ral trust and revolving funds... Total all disburse- 262,400.00 62,828.31 11,286,812.09 2,086,962.90 11,298,066.17 ments 12,616,072.23 10,920,668.87 24,060,694.29 66,794,316.61 •Total from federal funds $496,360.60, not included above Note: The taxpayer is interested mainly in the first column, the Current Gen eral Fund Expense of the state. This is practically the cost of operat ing the state government in so far as it affects the taxpayers. The second column expenditures come from special sources, mainly gasoline and auto taxes, fees collected by the Department of Agriculture, etc. The third and fourth columns include the first and second columns plus all expenditures from bond sales for highways, buildings, to redeem floating debt, etc. These last two columns do not represent the current cost of government for the year ending June 30, 1926, but merely total disbursements, cost and non-cost. The disbursement of the state for last year may be classified as follows: a. Current General Fund Expense $12,616,072.23 (This is practically the cost of operating the state gov ernment for the last fiscal year, exclusive of the High way Department, and certain other expenditures pro vided for by special funds.) b. Current Special Fund Expense $10,920,668.87 (Maintenance of highways mainly. Department of Ag riculture, etc., very little of which is paid by the gen eral taxpayer.) c. Outlay from Bond Sales $20,831,228.69 (Highway construction, and buildings.) d. Refund of general fund revenue collected in error.,.. .$ 26,696.45 e. General fund non-cost disbursements .$11,417,826.68 (Floating debt redemption bonds redeemed, sinking fund bond redemption, etc., are non-cost disburse ments. ) f. Special fund non-cost disbursements $34,638,789.65 (Special school building fund loaned to counties, bond issues to retire short-term loans, etc.) g. From federal funds.. $ 496,360.60 (Money deposited by the federal government to be spent for special purposes, as agricultural education, voca tional education, agricultural extension work, etc.)

North Carolina Newspapers is powered by Chronam.

Digital North Carolina