years of the operation of the executive budget act in North Carolina.
Our budget system and this monumental report constitute an enduring monument to the labor and ability of Governor McLean and his co-laborers--an accomplishment that deserves the plaudit, "well done, good and faithful servants."
The budget system applies efficiency in fiscal matters to government. Business adopted this system from government. Massachusetts has used the budget system since it was a colony. The old-time criticism of political cynics that proper methods could not be applied to government is not only untrue in fact, but has no historical support. The disappearance of this criticism is the inevitable result of the application of the principles underlying the budget system in government. The national government uses this system because it is the only system that presents to the legislative and executive officers a complete reflection of the fiscal affairs of the Nation. Likewise does all business that is a success. Business that does not apply this system, in any of its varying forms, soon results in financial chaos and ruin. This system has been applied to the state of North Carolina with success. I recommend its continuation and improvement as a necessary and precedent condition of our continued growth and progress.
This, the greatest addition and asset in governmental business, is necessary for the successful fiscal operation of county and municipal government in North Carolina. The municipal finance act and the 1927 county fiscal control act are long steps in the right direction. The state government is only one political unit, and included within it are 100 units called county governments, and there are, at least 410 functioning municipal governments in North Carolina. If any one of the units is in an unhealthy financial condition and does