not the slightest attempt to derogate from the complete control of Parliament, which is responsible to the nation." (Ibid.)

ITS LESSON FOR AMERICA

England was forced into what is in effect an executive budget scheme, i. e., an autocracy — through an emergency. It was the logic of events. It was the question of the preservation of the national life itself. But no such situation exists in the state governments or the national government of the United States. No situation going to the question of the very life of the state itself confronts us. Surely a procedure that may be justified by such a crisis, and only by such a crisis and only for such a crisis ought seriously to be considered with reference to the ordinary processes of government and under ordinary circumstances.

CHAPTER IV

THE BUDGET PROPOSALS

THE foundation upon which in the last analysis the budget rests is made up of the social facts of contemporary life. Poor persons; preventable and prevented deaths; children of school age, educated, half-educated or neglected; dependent classes; oppression or service from public service companies; industry casting upon society its debit classes or assuming its own burdens — these are the facts that lie at the basis of the budget. Legislatures with a vision and understanding of their duty and their opportunity will see back of the thousands of dollars that are so glibly used in the budget discussion the perversion or direction of social resources to social, unsocial or anti-social ends in terms of contemporary life. These things the reader must keep in mind, too—and for the immediate present in the back of his mind.

The conventional budget discussion begins with the preparation of budget estimates by minor administrative officials. A similar treatment of the subject will be followed here, too.

THE FORMULATION OF BUDGET PROPOSALS

The executive's relation to present budget-making is twofold: the one in the formulation of the budget proposals, and the other in the approval or veto of appropriation bills as passed by the legislature. At the

present time the executive may have an influence on budgetary bills by sending in special messages while they are under consideration. It is proposed that the executive or representatives of the executive shall take a more active share in budget-making during its legislative phase by having a seat in the legislature without a vote. The treatment of this latter subject is reserved for a subsequent chapter.

The President of the United States is required "from time to time to give to the Congress information on the state of the Union and to recommend to their consideration such measures as he shall deem necessary and expedient." Every state of the union has a similar provision in somewhat similar language in its constitution regarding the duty of the executive. From this point of view the proposed budget is merely a systematic and effective way of giving to the public and to the legislature a complete picture both in fiscal and in social terms of the "state of the Union" or the state of the State." Even were there no such constitutional provision there is need for the coördination of budget estimates with reference to state or national needs and state or national ability to "foot the bill." How we should proceed in the formulation of such budget proposals is the subject matter of this chapter.

WHO SHALL PREPARE BUDGET PROPOSALS IN THE

FIRST INSTANCE?

For intelligent decision on the budget proposals the legislature will need a statement of social and economic conditions, a statement of the effectiveness of adminis

trative experience in its relation to these conditions, the cost of governmental activity and a program for the coming fiscal period based on the social economic conditions, administrative experience and the cost data. A mere statement of figures in terms of organization units or objects of expenditures or even of departmental functions will not be sufficient for intelligent legislative budget-making, though it will be very helpful. The socio economic background should be explicitly stated.

What shall be the source of this fundamental information in budget-making? Who, in other words, shall prepare budget proposals in the first instance? It would seem obvious that those in closest touch with the concrete situations should organize this experience. They know. It is the best expert opinion we can get, and as men are more and more trained for the public service this opinion will be more and more expert and the experience better interpreted. Or in other words: Shall we capitalize this experience in the interest of better service or disregard it? We have seen in all phases of public administration and in private business, too, for that matter, the utter wastefulness coming from neglect to utilize every member of the organization in the public interest in the one case and in the company's interest in the other. In this fundamental matter of budget-making are we going to profit by this lesson? Of course we are. But while we want and should have this experience and this opinion, there is very grave danger of placing too much reliance upon them.1

1 The foregoing and the following discussion has for its object

SHALL DEPARTMENTAL ESTIMATES BE REVISED?

The men near the problems may be too near them; these men may be so absorbed in the routine as to forget the larger issues; they may have grown “stale” on the job. There is need for a fresh point of view, and even for a naïve point of view. And for this reason there is need for review of bureau estimates by department heads and there is need for review of department estimates by some more general authority in order to secure this fresh point of view. This will mean in the final analysis the bringing to the test of the common sense of the political officers the experience and judgment of the experts available in the governmental departments. This is needed but there is a greater need.

The departmental estimates as they are prepared are the expression of the elements of the administration of the government. There is need here particularly for a wide perspective, for a sense of proportion, for a balancing of service against service. The government for the next year or biennium should be run on some plan preferably a comprehensive plan. This element of plan should be embodied in the budgetary proposals. The comparison of services for efficiency, for economy and for service in the public interest is possible here and is stimulated by the effort to organize the elements into a comprehensive plan as far as that is the outlining of the general procedure for the preparation of budget proposals. This consideration of the budget is limited to those departments over which the executive has control. The consideration of the preparation of budget proposals for those parts of the government not under the control of the executive is discussed toward the end of this chapter.