ment,

A trained draftsman essential.

a man who is a good lawyer and something more than a lawyer, a man who has studied legislative forms, who can draw a bill, revise a statute, and amend a bill when called upon to do so. Such a man working with this department and the critical data which it contains will be absolutely essential.

Rapid development of state administrative departments and the result.

a

The defects of state administration, briefly summarized:

213. Defects of the state administration 1 The history of state administrative departments in the last half century is the story of rapid and divergent growth, largely without superintendence or direction. As a result, the administrative department is in most states a confused and tangled mass of boards and commissions, bureaus and single offices, often duplicating the work of one another, and largely working without any appreciable degree of coördination. The evils of this situation may be illustrated by the following extract from the 1915 Report of the Illinois Efficiency and Economy Committee:

As a result of its investigations, the Committee finds that a condition of disorganization and confusion exists in the executive departments of the state government which necessarily produces inefficiency and waste in the state services.

The main points in the indictment may be briefly. summarized:

. . . Under the existing arrangements inefficiency and waste necessarily arise from the lack of correlation and coöperation in the work of different offices and institutions which are carrying out similar or closely related functions. There are separate boards for each of the state penitentiaries and reformatory and for each of the state normal schools. There are half a dozen boards dealing with agricultural interests; and about a score of separate labor agencies. State finance administration is distributed between a number of elective and appointive officials and boards without concentrated responsibility. The supervision of corporations and of banks, insurance companies and public utilities is exercised by a series of distinct departments. . . . Nor is there any official authority for harmonizing the work of the numerous educational agencies. .

Lack of correlation,

a

1 From the Illinois Efficiency and Economy Committee, Report. Chicago, 1915; pp. 18–24.

a

Even where there is no direct duplication of work, the present laws frequently give powers to several departments under which each employs agents for purposes which could be more efficiently and economically performed by one agent at the same time. Thus the inspectors of the state board of health, the state food commissioner and the chief factory inspector may each visit the same place for different purposes, and perhaps give conflicting orders; while a single thorough inspection for all of these offices would be more effective and less expensive.

As a result of the absence of any systematic organization of related ineffective services, there is no effective supervision and control over the various supervision, state boards and commissions. It is true that the greater number of these are under the nominal supervision of the Governor, through his power of appointment and removal. But the very number of separate offices makes impossible the exercise of any adequate control. To a very large extent each authority is left to determine its own action; conflict of authority between two or more offices is often possible; and if harmony and coöperation are secured it is by voluntary compromise rather than by the advice or decision of a superior authority. Under the present arrangements too many independent authorities have power to make expenditures subject to no effective centralized control or responsibility. This situation necessarily leads to waste and extravagance.

One of the most serious defects arising from the lack of correla- lack of tion and effective supervision over the subordinate authorities is a budget

system, the absence of any satisfactory budget of estimates as a basis of appropriations. [This is a serious evil which must be attacked.]. .. With the existing lack of efficient executive organization, both inadequate

advice on the Governor and the General Assembly fail to receive proper infor

legislation, mation and advice as to needed legislation. Conflicting measures are often proposed by different state authorities; and many proposals are presented from outside sources both on subjects within and without the jurisdiction of existing executive officials. result there is no harmonious legislative policy even formulated; and the measures enacted not only lack coherence, but at times acts are passed at the same session which contain directly contradictory provisions. . ..

a

and irresponsible government.

Finally under the present arrangements [the public] is unable to locate definite responsibility for negligence or misconduct in public business. Public opinion usually considers the Governor responsible for the conduct of the state government; but with the lack of effective executive control over the subordinate officials this opinion is not fully justified. At the same time, the popular conception of the Governor's responsibility, in the opinion of this Committee, is based on a sound and just principle; and the machinery of state administration should be so organized as to enable this conception to be adequately realized.

recom

economy

214. Results of a reorganized state administration 1 Reorgani

The Illinois Efficiency and Economy Committee offered such conzation of

clusive proof of the need of a reorganization of the state administhe Illinois state ad- tration that the public could not fail to be convinced of the necesministration sity of a change. In 1917, accordingly, the administrative offices mended.

in that state were reorganized, more than a hundred offices being

consolidated, by combination and elimination, into nine departments. Results to

The results to be expected from such a reorganization, the committee be expected: had outlined in 1915 as follows: Greater The proposed organization of related services into the same depart

ment will bring about greater economy and efficiency by eliminating unnecessary and duplicate positions, and still more by bringing about greater harmony and coöperation in the work of such offices. It should also be easier to avoid overlapping of functions and to promote coöperation between the several main departments. . . . Under the proposed organization there should also be little or no occasion for the creation of additional departments in the future, as new services when needed can be attached to some of the departments

already established. and

Efficiency and economy should also be secured under the proposed efficiency.

plan of reorganization by establishing a more definite system of supervision over the several branches of state administration. The head of each department will determine many matters hitherto

1 From the Illinois Efficiency and Economy Committee, Report. Chicago, 1915; pp. 74–76.

brought to the attention of the Governor or decided by minor officials without relation to other related offices; while the more important questions will be presented to the Governor with adequate information and in proper form for prompt action. By this means the Governor will be enabled to give more attention and consideration to the larger problems both of administration and legislation. With regard to the constitutional elective officers, these cannot Shifts in

responsibe brought under the complete control of the Governor without

bility. changes in the state constitution. Under the proposed plans, however, these officials will be given authority and can be held responsible for all matters properly belonging to their offices; while functions now placed on these officers which are not closely related to their primary duties will be transferred to offices under the supervision and control of the Governor. With a well-organized executive system, recommendations from Increased

assistance in the several departments should also be of much assistance to the

legislation. General Assembly in matters of legislation. Such recommendations should cover a large part of the important legislation needed; and coming from officers responsible for its execution will be more carefully prepared, both as to substance and form and with reference to previous legislation, than proposals from other sources. By this means there should be brought about greater harmony between the executive and legislative branches of the state government.

Moreover, under the proposed reorganization the general public Government will be able to learn more readily from the reports of the important made more

will be departments of the actual conduct of public affairs in any of the responsible. main fields of state government. And, as the Governor will have authority over the whole executive organization, and means for enforcing this authority, so far as possible under the present constitution, he may properly be held responsible by public opinion for its operation.

The proposed reorganization will also aid in the preparation of Budgeta proper budget of estimates as a basis for appropriations. Each making department will be able to formulate a careful estimate of needed facilitated. appropriations, considering the relative demands of its several bureaus and services; and these departmental estimates will be compiled and analyzed by the state comptroller for submission to the Gover

An estimate of the economies expected.

nor, who will recommend the aggregate budget of items approved by him to the General Assembly. This will place on the Governor the responsibility for the total amount requested. ...

To measure accurately in statistical and mathematical terms the expected improvements is more difficult than to point out the general results likely to be gained. But some estimates may be made of the direct financial advantages. The general plans of consolidation and reorganization will directly reduce expenditures for salaries and expenses of officials, and for office expenses by about $100,000 a year. The saving proposed in the extension of taxes and the interest on tax collection will amount to $500,000 a year.

If the consolidation of prison management results in placing the cost of maintenance on the same per capita basis as in the charitable institutions, there will be a further saving of $200,000 a year. The more centralized organization proposed for the rental and supervision of state offices and for printing and the purchase of supplies should also bring about a reduction in expenses of not less than $100,000 a year. [Altogether the saving will not be less than $1,000,000 a year.]..

.

Previous to 1921 there was no Federal budget.

215. Need of a Federal budget 1 Previous to 1921, our national government had no budget system. Some of the estimates were prepared by the administrative departments, under the direction of the President, while other estimates were prepared by various committees in the House of Representatives. The evils of this situation were lack of responsibility and lack of coördination, resulting in waste and extravagance in the handling of Federal finances. The pressing need of a budget system was dwelt upon by President Taft in a message to Congress, in June, 1912, in the following language:

Notwithstanding the magnitude and complexity of the business which is each year conducted by the executive branch and financed by the Congress, and the vital relation which each governmental activity bears to the welfare of the people, there is at present no provision for reporting revenues, expenditures, and estimates for