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Mandi- to Honorable Farris Bryant July 7. mm

1. m FMial §i§uetion. The 1959 Legislature appropriated about

$716 million iron the general revenue fund. At least 315 million of
this (from school nds) will not be needed, and revenues should

exceed spending by 310 million. [avenues curing l961-63 uy be
estimated at this tin at $725 $750 million. Thu. it now appears

that l961 appropriations my exceed l959-6l spending by some $140

million. The public schools, mder existing laws, will require so-
340 million more and the jmior colleges will ask for about double

the 311 million they will spend in 1959-61. As there will be about
90,000 instrmtion mite for the next two years. each $100 increase

in allotmnts will J.t $9 million. Thine. the situation my be

sinilar to 1953. share reasonable iqrmnts in State services may

be financed without a ujor tax program.

2. Uelfare. m caseload in welfare is stable, so that existing
programs can be nintained without increased appropriations, but mdical
services and hospitalization will cud: rapidly if restraints are not
iQosed. lagislation on relative responsibility, fraud. and lien and

recovery acts should reduce welfare costs by 15 to 20 per cent.

3. The ggo nillion dollar saving seemed to me to dramatize what a

s-ll inrove-nnt (31) in efficiency would can in dollars. Specifical-

ly, it mnt that State services can be nintained and proved with-

out $50 million of new taxes each biennial.

lo. Ammmnte. The 1959 Legislature changed the Director of
Conservation and the Budget Director (roe: appointment by the Governor

to selection by the Cabinet. This reduces the power of the Governor
and will set s precedent if not challenged. In my opinion. this is
unconstitutional. as the Legislature may give power by statute only
to an officer elected by tln people or appointed by the Governor.
The Director of the Highway Patrol may also come under this problem.
and House Joint lesolution lo. 835. to be voted upon in November.
proposes to put the Game Commission under the Cabinet.

Many other positions formerly under the Governor have been

placed under the Merit System.

5. State Accounting and gepgrtigg. One of the great prnbleni is the
"astonishing paucity of dependable information," and little progress

has been made in recent years. A group of able men should be assigned the
task of designing a modern system of state accounts and reports. which
will provide necessary information. This is s long range task and

could not be accoqalished quickly; but it needs to be started now.

Most of the constitutional officers will be involved and must be

represented in this endeavor.

6. Personnel Problgms. A number of serious problems relating to

state esvdoyees are developing. The retirement systems are accruing
large liabilities which need restudy. The vslue of perquisites given
state employees is large. These are variously reported for the pur-
poses of budgeting. social security, and state retirement. Provision
for annual and sick leave and records of these are also hephnzard. A

statewide system of employee records and benefits is needed.