sift Wash State library 9/12/32 STATE OF WASHINGTON EXECUTIVE DEPARTMENT OLYMPIA, WASHINGTON, January 10, 1917. Members of the Senate and the House of Representatives: Selected by my fellow citizens for a second time to represent them in the highest position within their gift, I take this opportunity to express my deep gratitude and appreciation for the honor bestowed upon me. It is my hope that I may be able to serve them worthily and that, at the close of my term, I shall have, to a small degree at least, rendered service that has been of some real benefit to the State and its people. FINANCES. During the four years just past, I have endeavored to bring about a better condition in the financial affairs of the State and feel today that the situation existing, in connection with the State's finances, justifies the statement that with the beginning of the year 1917, we are in better financial condition than ever before in the State's history. The financial statement which follows shows that there was an overdraft in the general fund at the close of business on December 31, 1912, amounting to $369,327.69. At the close of business on December 31, 1914, there was a balance of $400,016.37 in the general fund, and at the close of business on December 31, 1916 the general fund shows a balance on hand amounting to $1,083,674.37. While this fund will be called upon to meet the current expenses of State Government during the next three months, and also the expenses incurred in connection with the biennial session of your Honorable Body, yet I feel sure that with the taxes which will be paid in prior to April 1st, we will begin the next fiscal year on that date with a balance on hand, in the general fund, of not less than $1,000,000.00. RETIREMENT OF OUTSTANDING BONDS. With this most excellent condition existing it appears to me that your Honorable Body would be following the lines of good business judgment by authorizing the retirement of all bonds now outstanding against the State. As I view the matter, it is much better to take this action at a time when we have funds on hand, not required for the general operating expenses of the State Government, than to allow the bonds to remain an indebtedness against the State until their maturity, with the possibility at that time of finding it necessary to make a special levy for the purpose of raising moneys to pay them off. The only bonds outstanding which are properly payable from the general fund are the Normal School Bonds, amounting to $206,024.00. While these bonds are not yet due, under their terms the State now has the right to retire them at any interestpaying date. I strongly urge that an appropriation of $209,114.36 be made by your Honorable Body from the general fund, for the purpose of retiring these bonds and paying interest, so that on June 10, 1917, this bonded indebtedness can be entirely paid off. The only other issue of bonds now outstanding against the State is that representing the balance of the purchase price, yet unpaid, for the Wenatchee Bridge. This balance amounts to $50,000.00 and is properly payable from the Public Highway Fund. I recommend that an appropriation of $52,000.00 be made from the Public Highway Fund to be used in the retirement of these bonds and the payment of interest due. Under the provisions of the bonds, the Legislature would be called upon at this session to appropriate $28,480.00 for the payment of bonds which will become due during the next two years and the payment of interest upon the bonds. The additional appropriation required to retire all of the bonds amounts to only $23,520.00. The retirement of these two issues of bonds will place the State in the position of not having a single dollar of outstand |