Repository: UIHistories Project: Board of Trustees Minutes - 1940 [PAGE 777]

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774

BOARD OF TRUSTEES COMMUNICATION FROM THE GOVERNOR

[March 14

At this point, Mr. Jensen asked Mr. Morey to present the following communication from the Governor for the consideration of the Board:

February 23, 1940 To All Officers, Departments, Boards, and Commissions: Due to the fact that expenditures of the State for emergency relief and old age assistance are now approximating $1,400,000 a month more than the average monthly amount contemplated by the biennial appropriations therefor, the balance in the General Revenue Fund of the State treasury is steadily declining. Compared with a peak of over $26,000,000 in August, 1938, the General Revenue Fund balance stood at only a little more than $6,500,000 on February 1, 1940. T h e r e is grave danger that it will reach a dangerously low point in the near future unless every effort is made to curtail all expenditures. I am determined to bend every effort toward maintaining the "pay as you go" policy instituted by my administration, and at the same time meet the obligations which the State has assumed for relief and the needy aged. T o that end I have instructed the Director of Finance to scrutinize with the utmost care all requisitions for expenditures which by law are subject to his approval. Those agencies whose requisitions are not subject to approval by the Director of Finance will also, I am sure, cooperate in keeping their obligations to the minimum consistent with the proper discharge of their essential functions. Present commitments for salaries and wages, travels and supplies must be kept at a minimum. Special scrutiny should be directed to appropriations for permanent improvements, replacements, and repairs to ascertain whether such may be eliminated, or at least, deferred, until the State treasury is in a condition to warrant such expenditures. Will you please give this matter your early and serious consideration and after consulting with the members of your staff report any retrenchments P^sible. Very truly yours,

H E N R Y HORNER

Governor

Mr. Morey presented the following statement:

T h e appropriations to the University for the current biennium from State tax revenues as finally approved total $12,604,902, of which $1,675,000 is for the new heating and power plant distribution system and $10,929,902 for operations. Except for provisions for minor improvements and equipment the power plant is the only capital improvement included in the appropriations. It is an absolute necessity. Contracts have already been let by the Board for practically all of the work, and much of it is already under way. In view of the need for this plant and particularly in view of the fact that the contracts for it have already been let, there is no possibility of retrenchment in this item. In fact, the appropriation is not sufficient to take care of all that should be provided in this development. T h e expenditures from State tax revenues for operations during the biennium of 1937-1939 total $10,154,102. T h e appropriation from State tax revenues for operations during the current biennium is $10,929,902, an increase of $775,800 as compared with an increase of $2,015,894 originally requested by the Board of Trustees. During the course of the session of the General Assembly last year the Board of Trustees reduced its request for operating appropriations by over $1,000,000 to aid in balancing the State budget. This was further reduced by executive veto of items totaling $265,000. T h e University has had great difficulty in maintaining a balanced internal budget on the amount thus made available to it. As the budget for 1939-1940 shows (Minutes, July 21, 1939, page 385), the University started the first year of the current biennium with an unappropriated operating reserve of only $5418 in a budget of over $8,500,000 from all funds. T h e needs of every department had to be curtailed and adjusted to meet this budget. Many lines of work have had to be postponed. T h e savings resulting from adjustments in the