and institutions for the period of 1915-16 amounted to $17,365,776. As a result of its review and adjustment the Board of Control and the Controller cut these requests to $15,458,200, or a reduction of approximately $2,000,000. Requests for special appropriations totaled $11,334,405, but only $3,981,426 was recommended by the Board of Control, or $7,352,978 less than was asked for. This severe pruning was a result of a very painstaking investigation, the Board of Control and the Controller always having in mind the probable income of the State and the needs of the departments. The Legislature, instead of adding to the budget prepared by the Board of Control, made a slight reduction, so that the general and special appropriation bills as finally passed by that body totaled $341,216 less than the budget recommendations, which in the words of the Controller "was hewing pretty close to the line." 1

Conclusion.

The above summary of results in those States where budgets have been actually prepared and submitted indicates that the following has been accomplished: (1) the Legislature is provided with more complete information as to the needs and resources of the State; (2) "logrolling" has been reduced; (3) greater control over and responsibility for expenditures is made possible; (4) improved accounting methods have accompanied the introduction of a budget system; and (5) the finances of the State in general are conducted on a more businesslike basis. Whether or not the preparation and initiation of the budget should be intrusted to the Governor alone or to a board or committee, and the extent to which the powers of the Legislature should be restricted are open questions, but the tendency seems to be in the direction of an "executive budget," which would place the responsibility upon the Governor.

1 John F. Neylan, "California's State Budget," in Annals of American Academy of Political and Social Science, November, 1915, pp. 69-72. Also letter from Mr. John S. Chambers, State Controller of California; and address delivered by the Controller before the National Tax Association at San Francisco in 1915.

Filing of Estimates. In all of the States, the heads of departments, commissions, boards and institutions are required to file estimates of appropriations with the Governor or budget board, or with the State Auditor, who in turn transmits them to the proper authorities. In Maryland and New Jersey not only department heads but also the Legislature and the judiciary must file requests.

In New Jersey, North Dakota, Ohio, Vermont and Washington provision is made that all requests must be presented on uniform blanks furnished for that purpose. In New Jersey and Vermont the information which the estimates must contain is more or less definitely prescribed.

The State Auditor in New Jersey, Ohio and Washington is required to provide the Governor or budget board with information as to anticipated revenues and other financial data.

Investigation and Revision of Estimates. - After the estimates have been received the Governor or budget board reviews them and submits a budget of annual appropriations and revenue together with recommendations as to the same. Exceptions to this rule are found in Illinois and Oregon, where the

Legislative Reference Bureau and the Secretary of State respectively merely tabulate the estimated expenditures and revenues without recommendation. In Nebraska, North Dakota and Vermont, whenever the amount recommended is different from that requested by the department or from the amount appropriated in previous years, reason for such differences must be set forth.

In the laws of Connecticut, Maryland, New Jersey, New York, North Dakota, Ohio, Vermont and Washington, the budget-making authority is given special powers of investigation and examination in order to determine the reasonableness of the various requests. In Connecticut, North Dakota, Maryland and Vermont public hearings may be held at which heads of departments may appear to explain their requests.

Special Staff provided for. - The New York law provides for a special staff to assist the legislative committees in preparing the budget; while in New Jersey the Governor may appoint State officers together with not more than two assistants to form a special committee for the purpose of assisting him. In most of the other States provision is made that expert and clerical assistance may be obtained.

When and how the Budget must be submitted to the Legislature. The usual provision is that the budget must be submitted at the opening of the legislative session. In the laws of Connecticut, North Dakota, New Jersey, New York and Washington, the date on or before which the budget shall be submitted is definitely specified. In most cases this must be within two weeks from the commencement of the session; in Maryland on the other hand the budget does not have to be submitted until twenty days after the opening of the session, and in the case of a newly elected Governor the time may be extended to thirty days.

In New Jersey and Nebraska the budget is required to be submitted in the form of a special message from the Governor, thus giving it greater executive sanction. In New Jersey the provision is that the message "shall be in such form that it can be easily understood by the average citizen.'

Form and Content of Budget. — The budget in every case contains estimates of the proposed expenditures and anticipated revenues for the State during the ensuing year or for the biennial period in those States where the Legislature meets only once in two years. In Maryland, New Jersey and Nebraska the form and content of the budget are prescribed in considerable detail, the New Jersey law going so far as to include a set of rules and sample budget forms at the end of the statute.

Provisions for Consolidated Appropriation Bills. The Maryland constitutional amendment and the New York law require that the budget shall be accompanied by a bill providing for the proposed appropriations clearly itemized. In New Jersey, although there is no provision similar to that of Maryland, "no money shall be drawn from the treasury except by the general appropriation bill and it is the intent of this act that no supplemental, deficiency or incidental bill shall be considered," thus inferring that all appropriations are to be made in a consolidated measure. The Vermont law also provides that all appropriations shall be made in a single budget bill. Under the Connecticut law the Board of Finance and the Joint Committee on Appropriations may originate any bill they

deem necessary. In the other States there is no provision for a general budget bill.

Limitations upon Legislature and Legislative Procedure. - Maryland is the only State that attempts to limit the power of the legislative body by providing that the Legislature may only strike out or reduce items in the Governor's budget. The Legislature may, however, initiate appropriations after the Governor's recommendations have been disposed of, provided that every such appropriation is made in a separate bill which includes a special tax levy to finance the same. The only other State which attempts anything of this kind is New York, where the appropriation bill after it has been advanced to third reading may not be amended without unanimous consent except to reduce or eliminate an item.

Supplementary Budgets. - The Maryland amendment and the law of New Jersey recognize that emergencies may arise after the budget has been submitted necessitating additional appropriations. Provision is therefore made that the Governor may transmit supplementary budgets for additional appropriations, for which action in Maryland he must receive the consent of the Legislature.

APPENDIX B.

MARYLAND BUDGET AMENDMENT.

CONSTITUTION OF MARYLAND, ARTICLE III.

SECTION 52. The General Assembly shall not appropriate any money out of the Treasury except in accordance with the following provisions:

SUB-SECTION A. Every appropriation bill shall be either a Budget Bill, or a Supplementary Appropriation Bill, as hereinafter mentioned.

SUB-SECTION B. First. Within twenty days after the convening of the General Assembly (except in the case of a newly elected Governor, and then within thirty days after his inauguration), unless such time shall be extended by the General Assembly for the session at which the Budget is to be submitted, the Governor shall submit to the General Assembly two budgets, one for each of the ensuing fiscal years. Each budget shall contain a complete plan of proposed expenditures and estimated revenues for the particular fiscal year to which it relates; and shall show the estimated surplus or deficit of revenues at the end of such year. Accompanying each budget shall be a statement showing: (1) The revenues and expenditures for each of the two fiscal years next preceding; (2) the current assets, liabilities, reserves and surplus or deficit of the State; (3) the debts and funds of the State; (4) an estimate of the State's financial condition as of the beginning and end of each of the fiscal years covered by the two budgets above provided; (5) any explanation the Governor may desire to make as to the important features of any budget and any suggestion as to methods for the reduction or increase of the State's revenue.

Second. Each budget shall be divided into two parts, and the first part shall be designated "Governmental Appropriations" and shall embrace an itemized estimate of the appropriations; (1) for the General Assembly as certified to the Governor in the manner hereinafter provided; (2) for the Executive Department; (3) for the Judiciary Department, as provided by law, certified to the Governor by the Comptroller; (4) to pay and discharge the principal and interest of the debt of the State of Maryland in conformity with Section 34 of Article III of the Constitution, and all laws enacted in pursuance thereof; (5) for the salaries payable by the State under the Constitution and laws of the State; (6) for the establishment and maintenance throughout the state of a thorough and efficient system of public schools in conformity with Article VIII of the Constitution and with the laws of the State; (7) for such other purposes as are set forth in the Constitution of the State.

Third. The second part shall be designated "General Appropriations" and shall include all other estimates of appropriations.