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.)