Supervision of the Budgets of State Educational Institutions

• DOI: 10.1177/000271622411300115
• Published date: 01 May 1924
• Date: 01 May 1924
• Author: Francis B. Haas
• Subject Matter: Articles

112
THE ANNALS OF THE AMERICAN ACADEMY
of which it is a part. The system
centralization in its present form will
imposed upon Ohio by the Adminis-
&dquo;make good,&dquo; remains to be seen.
trative Code of 1921 frankly endeavors
The writer believes that it will prove
to make the Governor virtually all-
to be a temporary stage of develop-
powerful so far as legal measures can
ment, somewhat as the commission form
do so. Whether this high degree of
of government was in municipalities.
Supervision of the Budgets of State
Educational Institutions
"State Supervision Must Accompany State Money"
By FRANCIS B. HAAS
Director, Administration Bureau, Department of Public Instruction,
Commonwealth of Pennsylvania
IT is not the primary object of this the agency responsible for its super-
brief paper to discuss the budget
vision is able (a) to appreciate the
from the point of view of justifying it as
ideals of service lying back of the fig-
an instrument of efficiency.
Any dis-
ures on the budget sheet, and (b) to
cussion, however, of budget super-
supply the vision and expert technical
vision should be premised upon some
assistance necessary to evaluate the pos-
mutual understanding as to the mean-
sibilities presented by the estimated fig-
ing of the term &dquo; budget &dquo; and of the
ures in the light of the objectives sought.
term &dquo; supervision.&dquo;
Thus as a first step, budget super-
The budget, as we comprehend it,
vision of educational institutions, to be
presents as an estimate, in terms of
in any sense adequate, needs as a
money, the medium
necessary to realize
foundation, an administrative organi-
the ideals for which the agency con-
zation of the state government which
cerned is created. State supervision
will insure that the various spending
must accompany state money in order
agencies will clear, for fiscal purposes,
to guarantee that full value is received
through that central agency of the state
when the people spend their own
government that is best able to ap-
money. From this point of view the
preciate the ideals of public service
budget is, of course, far more than a
which should be the motivating force of
mere subdivision of a sum of money
the institution. This philosophy, in
usually estimated at a higher figure
large part at least, underlies the allo-
than can be expected; and supervision
cation of agencies as visioned by Gov-
is far more than the problem of reduc-
ernor Pinchot in the Administrative
ing the estimate so presented to ap-
Code which became effective in Penn-
proximately what was expected in the
sylvania June 15, 1923. The agencies
first place. It is more than a mere de-
clearing through the Department of
vice for insuring equality of expendi-
Public Instruction are shown on page
tures with income.
113.
Therefore, it is easy to see that the
The institutions for which the De-
budget plan will really function for
partment of Public Instruction is the
service in its larger aspects in so far as
responsible fiscal agent fall into two

---

SUPERVISION OF BUDGETS OF STATE EDUCATIONAL INSTITUTIONS
113
AGENCIES CLEARING THROUGH THE DEPARTMENT OF PUBLIC INSTRUCTION IN FISCAL MATTERS
fairly well defined groups: (a) state-
or
for the detailed administrative
owned institutions, (b) state-aided
policy, yet such public service is ren-
institutions.
dered and the standards are such that
In the case of the first group the state
the state is justified in making appro-
is responsible for the development of
priations as an economy of public
the policy and for the administration of
monies.
the funds in the realization of this
With regard to both of these groups
policy. In the case of the state-aided
of institutions, there rests also with the
institutions, while the state is not di-
state the obligation to see that a proper
rectly responsible, either for thp aims
sense of proportion is maintained as
9

---

114
THE ANNALS OF THE AMERICAN ACADEMY
regards the variety of services being
apparently justifiable necessities from a
purchased. This implies in the clear-
dozen or more similar institutions, and
ing department of the state govern-
these again with other institutions
ment, such vision and such technical
functioning for a variety of different
ability as will guarantee the mainte-
objectives.
nance of relative values in the super-
BUDGET PRACTICE
vision
IN OTHER STATES
of the state funds entrusted to its
administration. It will be
Great
seen, there-
variety of practice is found in
fore, that real budget supervision be-
the various states as regards (a) the
gins by placing each
method of
agency in the
initiating the request for
proper department of the central state
appropriation, (b) the agency responsi-
government.
ble for revising and approving the re-
In Pennsylvania the introduction of
quest, and (c) the extent to which
the budget was made much more diffi-
control is exerted in supervision of ex-
cult because coincidentally there had to
penditure.
be made
For the
an allocation of the numerous
most part fiscal expediency
spending agencies to the central clear-
and accounting accuracy seem to be
ing departments. For example, while
stressed in budget supervision rather
the normal schools were already cleared
than necessity for maintaining service
through the Department of Public
standards and developing progressive
Instruction, the state-aided deaf and
social ideals. The resume in the Ap-
blind institutions had been attached to
pendix to this article is from informa-
the Welfare Department.
tion supplied by the educational
As the next step, practical budget
departments of the various states.
supervision must see that the various
APPENDIX
institutions are assigned to those agen-
BUDGET PRACTICE IN OTHER STATES
cies within the responsible departments
that
Arkansas. The budget
are best equipped and organized to
requests are ex-
amined by a special legislative committee and
supply the specific professional help
the appropriations are made direct to the in-
and the
administrative oversight
stitutions. The expenditures are supervised
needed. Thus
the
state
normal
by the State Auditor’s department which makes
schools clear through the Teacher Bu-
a direct audit of the expenditures. Deficiency
appropriations are sometimes made by the
reau, the Thaddeus Stevens Industrial
legislature.
School through the Vocational Bureau,
California. The State University presents
and the institutions for the deaf and
budget through board of regents to the Gov-
blind through the Bureau of Special
ernor or to the administrative agency desig-
Education. This
nated
means
that the
by him to prepare the budget. The
state teachers’ colleges, the schools for the deaf
budget requests must be
justified, first,
and the blind, and the California Polytechnic
as functioning to secure the aim for
School are administered through the State
which the institution is created, and,
Department of Education, of which the su-
second, be justified on the basis of
perintendent of public instruction (elected),
relative importance
acting in the ex officio capacity of director of
among other in-
education, is the administrative officer. The
stitutions. It is relatively easy to
State Department of Education prepares and
demonstrate that a given institution
presents the budget for these institutions as do
requires a new building or that, accord-
the Regents of the University. The Governor
ing to all modern standards,
alone is
a given
given powers...