the future is quite as important as recent experience has shown military preparedness. It is a common cause. It demands mutual enterprise. With broad, sound cultivation the harvest can be ultimately nothing less than a finished product of public business efficiency as our contribution to a greater country. WALTER E. EDGE,

TRENTON, NEW JERSEY,

January 8th, 1918.

Governor.

The following message was received from the Governor, by the hands of Mr. Croasdale, his Secretary, which was read as follows:

To the Legislature:

BUDGET MESSAGE.

Pursuant to Chapter 15, Laws of 1916, I am herewith transmitting my recommendations covering the budget or appropriations for the State's fiscal year, November 1st, 1918, to October 31st, 1919. The Budget Act specifically prohibits the Governor from recommending a total amount in excess of the estimated income for the year for which the budget is proposed to cover, such income to be estimated by the State Comptroller, which computation is herewith attached.

The State Comptroller anticipates an income of $9,038,870.00 covering the fiscal year November 1st, 1918, to October 31st, 1919. Therefore, under the provisions of the act, my recommendations must be confined within this amount, which requirement of the law I have, of course, complied with, the budget recommending a total of $8,828,656.98.

However, it seems to me perfectly proper that I should further call your attention to the fact that by the report of the State Comptroller, already referred to, there is shown to have been a net balance on hand November 1st, 1917, over and above all appropriations and obligations of the State, of $2,458,591.28, and I am further informed that the receipts for November and December, 1917, have been more than double the income of the same months of 1916, $830,279.18, as compared to 1917, $1,662,341.09. It will be plainly evident, therefore, that the State's finances are in a most healthy and prosperous condition. In fact, I believe showing a larger free balance than

ever before in the history of the State. The current appropriation bill totals $9,157,085.64, including $500,000 in lieu of the usual supplemental bill now eliminated.

It will be seen, therefore, that my recommendations of $8,828,656.98 are $328,428.66 less than the current appropriations. However, in view of the very unusual times through which we are passing and the elimination of the supplemental bill, the Legislature would seem to be justified in appropriating not less than $750,000 to be utilized as a revolving fund for the State Purchasing Agency, working capital for State Use, and an emergency supplemental appropriation in the hands of the State House Commission, following the policy of the current year. This appropriation would represent an increase of $250,000 over the appropriation now current.

It is unnecessary for me to point out that in preparing this budget the necessity for economy and conservatism was constantly kept before us, and the recommendations as made have only been arrived at after much study of the unusual financial needs of the State. Of course, any portion of this $750,000 not expended reverts to the State Treasury, and is in lieu of a supplemental bill.

As contemplated by the Budget Act, public hearings were conducted covering every State agency. These hearings were participated in by the State Comptroller, State Treasurer and myself, constituting the State House Commission, and the members of the Appropriation Committees of the Senate and House, who were designated by the President-elect of the Senate and the Speaker-elect of the House in advance of the session, so that they might have the benefit of the evidence adduced at these public hearings. I want to express my sincere appreciation for the interest these legislators and State officials manifested in the budget work, and I am of the opinion that these hearings will obviate the necessity for many of the hearings which have heretofore been held by the Appropriation Committee, and thus greatly expedite the Committee's work.

It was plainly evident that an increase over normal times would be necessitated because of the undisputed fact that the cost of living during the past year had noticeably increased and

salaries as generally paid in the State of New Jersey had not advanced in proportion to similar positions in private business and commercial life. Therefore, in the budget recommended, a noticeable increase will be observed in salaries and wages and maintenance in practically every institution and department in the State. Effort has been made by the Budget Commissioners and myself to recommend such raises in the salary account that would permit the head of the department to advance those attaches under the position of head or deputy approximately ten per cent. over the salary received previous to the war, except in individual cases, where salaries have been beyond the average.

For example, the Salary and Wages item included in the current appropriation bill amounts to $3,376,266, while the salaries and wages recommended for the incoming year total $3,658,954. These figures in each case include all the statutory officers as well, deducting such salaries as is not, of course, contemplated to change them or their main assistants, and it will be found that the increase of $292,688 is approximately ten per cent., as intended. Even this, however, is but slightly greater than was allowed in the current bill over the salary total of the 1917 fiscal year, which amounted to $3,131,732. Therefore, it can be plainly appreciated that the raise here recommended is in nowise exorbitant.

Our work has been made all the more difficult in this regard inasmuch as in some cases departments or institutions had already made such increases from balances in their hands, and in some cases without having balances, explaining that it was urgent to do so in order to retain absolutely necessary help, especially in the institutions. Of course, this practice cannot be commended, and I am glad to say, so far as investigation could develop, it only prevailed in a few isolated cases. Every effort has been made to rearrange salary appropriations so that there would be no reasonable difficulty during the year this budget is to

cover.

The State House Commission must in the meantime assume the burden of taking care of the abnormal situation as best it can from the emergency appropriation of five hundred thousand dollars, which the last Legislature allowed for emergency

purposes. This incident demonstrates the wisdom of the policy of placing in the hands of the State House Commission a sum to take care of emergencies in the interim of a legislative session. No supplemental bill of the old type, passed at the regular sessions of the Legislature, could scientifically meet this situation, and, of course, would have been entirely ineffective. As it is now, the State House Commission will consider each case entirely on its own merits, in the light of comparison with other cases, and reach its conclusions accordingly, which will take care of this item until the appropriation contemplated in this budget becomes available, November 1st, 1918.

I will not attempt to discuss the details of the appropriation bill, as that would be impossible because of the time and space it would consume. Generally, however, it will be noticed that very few physical changes or additions to institutions have been recommended. This, of course, is caused simply by the uncertainty of the times. The State House Commission, for illustration, felt it would be good business in normal times to build a new wing to the Capitol and do away with the scattered official quarters all over the city of Trenton, now being leased, not to speak of the inconvenience and lost motion resulting in inefficient work which follows in the train of the present insufficient facilities. Realizing the conditions, however, the four hundred thousand dollars it was estimated would be required for this work is not included in the budget I am transmitting at this time. The same judgment and policy applies to many other desirable, and even needed, improvements.

The appropriation for the new normal school at Glassboro is now available under the current bill, but it is my judgment that the actual contract for the building of the edifice should be delayed, as I am informed that the operation would cost almost double what it would cost in normal times, and as much as we need a new school, it is my firm opinion this does not seem to be warranted. Teachers can be secured, even though it would, of course, be more desirable to have them mainly graduates of our own institutions. There need be no fear of the ultimate erection of the school, as, of course, the ownership of the ground is vested in the State and this is sufficient guarantee that the com

pletion of the school will follow as soon as conditions in the building world are settled.

Among the physical changes of consequence recommended are an addition to the accommodations for the insane to house five hundred patients. This addition it is proposed to build on the colony plan on the ground owned by the State connected with the Trenton State Hospital at an estimated cost of $350,000. This expense falls in the class of absolute necessities. At the present time hundreds of insane are crowded in the halls at Morris Plains, and as a result the percentage of cures has been greatly reduced and the State is helpless to look after these unfortunates. Regardless of the cost, this condition must be

rectified.

The children's unit at the State Institution for Feeble-Minded at Vineland, at an estimated cost of $60,000 belongs in the same class. The Feeble-Minded menace is one of the most formidable in the State. The present facilities for caring for this class of State dependents are so overcrowded that where there is an opportunity to effect a cure the chances thereof are so reduced that this appropriation at this time likewise becomes an absolute necessity.

The only other physical improvements to speak of are two additions to the Women's Reformatory at Clinton, one for colored and one for white inmates, estimated at $22,000. I am assured by the Chairman of the Board of Trustees that the completion of the two wings contemplated by this appropriation will permit the transferral of all female prisoners now in the State Prison at Trenton to Clinton Farms, for which purpose this institution was originally planned.

This is the second year of the budget policy and the first year under my supervision. The wisdom of the system cannot be disputed. The main weakness is the short time given to handle the work, between November 15th, two weeks after the close of the State's fiscal year, and the opening of the Legislature, which this year falls on January 8th. This difficulty can only be removed by changing the date of closing the fiscal year. I am, therefore, herewith attaching a report from Messrs. Fer