fund for the biennium 1929-31 with a revenue deficiency of nearly $2,000,000; that is to say, the total appropriations out of the general fund by the 1929 General Assembly were nearly $2,000,000 more than the estimated revenues to be collected under the revenue act of 1929. The revenues actually collected and now estimated to be collected are more than $2,000,000 less than was estimated to be collected at the time the revenue act of 1929 was passed. Thus it will be seen that the revenues collected and to be collected under the revenue act of 1929 will be more than $4,000,000 less than the amount of the appropriations made by the General Assembly in 1929.
In order to meet this condition expenditures were reduced during the fiscal year 1929-30, $1,424,510 below the appropriation for that year, and it is planned to reduce the expenditures for the present fiscal year $2,120,000 below the appropriations for this year. Notwithstanding these great reductions, and greater reductions could not be made without impairment to the services of the State, the biennium will close with an estimated deficit of $1,224,151. This deficit is taken over and absorbed in the proposed budget for the biennium 1931-33.
The highway funds and the agriculture fund revenues have suffered and are suffering the same serious recessions as the general fund.
The problems met in preparing the present proposals relate to both revenues and expenditures. It was found necessary to increase the revenues of the new biennium by more than $5,200,000 to meet largely the shrinkage in collections under the revenue structure and the credit balance carried over from 1927-29 and reappropriated for 1929-31. The proposals for raising the additional revenues needed are discussed at length in the budget report transmitted herewith, and also in the report of the Tax Commission, to both of which reports I direct____________________