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CHAPTER IV CENTRAL FINANCIAL CONTROL IN WISCONSIN GENERAL VIEW OF THE LEGAL PROVISION S The Wisconsin system of financial control is distinctly less central- ized than that of Illinois and Ohio. The key to the Wisconsin plan is a board, the Board of Public Affairs, not an individual, and the authority vested in the board is less extensive than that placed in the hands of the Director of Finance. The Wisconsin plan lays much more emphasis on general control of all administrative agencies by the legislature, places much greater reliance on the commission as an administrative agency and vests it with a considerable degree of self-control. In both states steps have been taken to secure central financial control, but Illinois has gone far beyond her northern neighbor in the degree to which such control has been developed. Thus no official can be found in Wisconsin who can question the wisdom or expediency of expenditures made within the term of an appropriation, not even the governor himself. Wisconsin was one of the earliest states to introduce the idea of central financial control, by the enactment of legislation in 1911 establishing the Board of Public Affairs, consisting of the governor, secretary of state, president of the senate, speaker of the Assembly, the chairman of the Joint Committee on Finance, ex-oficio, and three members appointed by the governor for a term of two years. An incoming governor is privileged to sit with the board while it is preparing the budget which is to inaugurate his term of office. The board has a permanent secretary and maintains a small force of accountants. The emphasis on direct legislative control is seen in the makeup of the Board of Public Affairs itself. This board of nine members gives the legislative leaders the opportunity to deal directly and continu- ously with the financial process in its various phases, if not indeed to impose their views as to the wider questions of administrative policy. The legislative leaders in Illinois deal only with appropriations except in so far as legislation governs the conduct of administration. The Board of Public Affairs is the general controlling agency of the state. Its powers are chiefly those relating to a uniform accounting systems and to the preparation of a budget for the consideration of the legislature. Through its staff it keeps in close touch with the opera- tion of the accounting system, and prepares analyses of expenditure 63
64 FINANCIAL CONTROL OF RESEARCH by agency and accounting head; it does not, however, question the wisdom or expediency of expenditures within an appropriation. The board has a certain continuity through its diverse membership and by virtue of the fact that two men have covered the whole history of the board as secretary, Mr. B. A. Kieckhofer and Mr. J. B. Borden, the present incumbent. The position is not strictly a political appoint- ment, but the tradition of complete separation from politics does not seem to have entirely established itself. The budget process centers in the board, the secretary of which sends out on July 1 the estimate blanks and receives on September 1 the original estimates. These are compiled and reviewed under the direction of the board, by means of such field examinations, inter- views or correspondence as may be necessary. A number of permanent officials make this preliminary examination which results in (1) a compilation of the various estimates into a single document and (2) suggestions for reductions. In dealing with the estimates the board is required to act as a whole, as subcommittees are specifically forbidden for this purpose; the governor-elect is entitled to attend personally or by representative. The board is authorized to make any reductions or allowances but is required to state reasons for its recommendations. Where the vote of the board is not unanimous a record of the vote is included, together with any recommendations of the minority or of the governor-elect. The educational institutions of the state, including the University of Wisconsin, file their estimates with the state Board of Education, which is vested with the power of making recommendations to the Board of Public Aff airs. The latter board has also the power of review in this case of estimates directly presented, although the recommendations of the Board of Education are usually accepted. In Illinois the estimates of the University of Illinois, emanating from the Board of Trustees, and the estimates for the Normal Schools and the common school system, emanating from the superintendent of . public instruction, are by law exempted from the reviewing power of the director of finance. Purchasing for the various departments is done i n part by the superintendent of public property (ch. 33) in part by the Printing Board, in part by the chief engineer of the State Department of Engineering, and in part by the State Cement Purchasing Commission. The University has charge of its own purchasing. The superintendent of public property purchases all permanent personal property, furni- ture, janitor and other service, and all other materials and supplies, except light, heat, power and water, and the materials specifically vested elsewhere. The chief engineer purchases and tests all coal and
11V STATE GOVERNMENTS 65 other solid fuel, and approves all contracts for architectural service or for construction. The State Cement Purchasing Commission con- sists of the chief engineer, the superintendent of public property and the highway engineer, and makes purchases of cement. The Printing Board consists of the governor, the superintendent of purchases and the editor of public printing, and is authorized to let all contracts for public printing and for the purchase of paper. The Board of Public Affairs is an excellent illustration of the reluctance of the state to accept the principle of one-man responsi- bility. The board form is common throughout the administrative system. On the other hand, the testimony of those in a position to know indicates that as a matter of fact the governor is the dominant figure in the board. In view of the fact that the controversial ques- tions which arose out of the early history of the board have largely disappeared, the board is now meeting only infrequently, a circu~n- stance which will undoubtedly emphasize the leadership of the governor. So far as the writer could ascertain, the Board of Public Affairs was a working body from its inception until within a short time; that is, the various members regularly attended meetings which were held with considerable frequency, and actively assisted in the formation of the views of the board. This was natural throughout the forma- tive period. The number of meetings has recently diminished, and many matters of lesser importance appear to be settled by the governor in conference with the secretary of the board. In so far as the governor dominates and tends to speak in fact for the board, the value of con- ference as assurance that scientific interests are given proper considera- tion tends to disappear. The secretary of state acts as the auditor in Wisconsin. A bureau engaged in scientific research is subject in Wisconsin to the following elements of control: 1. Its accounting forms are fixed by the Board of Public Affairs. 2. Its estimates for appropriation are subject to alteration by the Board of Public Affairs. 3. Purchases are made by the superintendent of public property. 4. Printing contracts are made by the Printing Board. 5. The legality and accuracy of its expenditures are determined by the secretary of state. The two striking differences between the law of the Illinois system and the Wisconsin system are (1) the use in the latter of a board composed of the responsible legislative and executive officers as the central financial agency instead of an appointee of the governor;
66 FINANCIAL CONTROL OF RESEARCH (2) the absence of any plan for continuous control through voucher approval and consideration of questions of expediency within the terms of an appropriation. Centralization has not proceeded to the lengths attained in Illinois, but on the other hand neither are the different departments self-contained autonomous units. Another characteristic feature of the Wisconsin plan is the unusual degree of legislative control. This arises in large part from the very detailed consideration given to the estimates of the departments in the biennial budget. Further attention will be given to this below. The legislature has also developed an interesting method of calling departments or boards to the floor of the house and there putting questions to them on the conduct of their departments. Recent laws creating offices have reserved to the legislature a right to remove the incumbents thereof. A law has long been before the legislature authorizing the legislature to remove any administrative officer; but, by use of the veto power, the governor has so far prevented its passage. Quite apart from these devices the tradition and the pre- vailing atmosphere sustain and support legislative control. Many members of the legislature seem to have a feeling of hostility toward the administration, charging it with unnecessary expense and super- numerary officials. Their charges seem quite without foundation, as the state is operated very economically. The system of continuing appropriations which is employed in Wisconsin has sometimes led to the opinion that the departments occupy an especially favorable position. Further attention will be given to this point below; here it may suffice to say that the depart- ments gain a certain presumption in their favor, but that every two years the legislature gives the most careful scrutiny to the work and financial condition of every state agency, and retains full power to reduce, itemize or cut oh appropriations entirely. Finally it may be observed that in Wisconsin the great bulk of research is carried on in the University, or in connection with certain institutions physically connected with the University by virtue of the continuity of their buildings. There seems to be a rather sharp line of distinction between the administrative and regulative functions of scientific departments on the one hand and scientific investigation on the other. The chief scientific agencies are the Archaeological Society, the Entomology Division of the Department of Agriculture, the Con- servation Commission, the Geological Survey, and in connection with it the Natural History Survey and the Soil Survey, the hygienic laboratories of the Board of Health, the Historical Society, the Horti- cultural Society, and the Psychiatric Institute. Some of these engage in research only to a very slight degree.
IN S1,ATE GOVERNMENTS 67 ACCOUNTING CON IRO1; The work of the Board of Public Affairs has come to be focused on two aspects of financial supervision accounting and budget making. Budget making occupies the board about two months in each biennium plus the time expended by the secretary of the board in explaining the recommendations to the joint finance committee of the legislature. Accounting occupies the time of the secretary and of the office force throughout the biennium and has become their primary activity. The accounting system is uniform for all state agencies except the Univer- sity, whose accounts, however, are examined by the secretary of the board at regular intervals. The main accounting heads are operation, capital and maintenance, with subdivisions adjusted to the needs of each division or institution. The secretary of the board exercises a rigid control over the assignment of expenditures to the proper account- ing head and insists that every expenditure be correctly allocated. BUDGET CONTROL Until 1913 it can hardly be said that there was a budget in any real sense of the word. As early as 1868 the law required the auditor to exhibit to the state legislature a complete statement of the funds of the state, of revenue and of expenditures during the preceding year, with a detailed estimate of the expenditures to be made during the ensuing year. This statute was, however, ineffective, and each division and department made its requests for appropriations directly to the finance committee. In 1913 the legislature required every public body to submit to the Board of Public Affairs an estimate of its revenues and expenditures for each fiscal year of the ensuing biennial period. No power was given the Board of Public Affairs to revise these estimates, but informally the board did make recommendations. At its next session (1915) the legislature provided that the board recommend a budget. The board was now authorized to distribute estimate forms not later than July 1 of each even-numbered year. Not later than September 1 each public body returns its estimate to the board which "shall be immediately compiled under direction of the board, and immediately reviewed by means of such field examination" as may be necessary. The results of these examinations are then laid before the whole board, which is forbidden to act through sub- committee. Not later than December 15 the board must recommend a budget. Substantially this procedure has been followed ever since. Parallel with the movement for centralized budget control has proceeded the gradual consolidation of agencies into larger departments. For the
68 FINANCIAL CONTROL OF RESEARCH scientific divisions, therefore, the procedure in drafting the budget commences with the submission of plans to a department head, who after approving them submits them to the Board of Public Affairs. The board in turn, after consideration, submits the estimates with recommendations to the legislature where they are very carefully considered by the Joint Finance Committee. All research agencies connected with the University submit their estimates to the University authorities for revision. At each stage of the process the scientific agency has full oppor- tunity to be heard. The Board of Public Affairs regularly calls before it the department and division officials who explain the need of pro- posed expenditures. Their recommendations are framed in executive session, but are published two or three weeks before the legislature meets so that each agency knows in ample time what recommendation has been made. The most detailed consideration of the estimates is made by the Joint Finance Committee. Here again appear the secretary of the Board of Public Affairs, the head of the department and the chief of the scientific agency. The brunt of the fight for appropriations, however, falls on the head of the department and the secretary of the Board of Public Affairs, whose chief functions are to furnish the relevant information and to act as a reservoir of facts. The scientific men are present chiefly to answer technical questions. The Board of Public Affairs has for the most part given approval to the estimates made by the scientific departments. This approval has been due to the care with which unusual requests have been avoided, and the definite economic returns to be expected from proposed outlays. It has already been noted that the governor tends to become the dominant figure in the board. It appears nevertheless that almost invariably the board acts by unanimous consent. The members are not engaged either in administration or in scientific inquiries, if excep- tion be made of the secretary of state, who, after all, is a member of the board by virtue of his function as state auditor. The review is therefore strictly a consideration of the work program by the policy- determining authorities of the state government. This is in sharp contrast with the Illinois plan in which the revision is carried out by an administrative officer. In Wisconsin the legislative representatives start work on the budget as soon as the original estimates are received, while in Illinois they begin to operate only after a complete budget has been prepared. Examination of the Wisconsin budgets for 1921-23 and 1923-25 discloses the fact that the Board of Public Affairs has made few reductions in the estimates of the scientific departments. The following table gives the amounts requested and allowed:
IN STATE GOVERNMENTS 69 TABLE XV. Table Showing Original Requests and Recommendations of Board of Public Affairs, 1921-28 Scientific unit Academy of Science....... Arehaeologieal Soeiety.... Entomology Division.......... Geological Survey........ Natural History Survey. Soil Survey....... lIygienie Laboratory....... Hortieultural Soeiety...... Psyehiatrie Institute...... Apiary Inspection......... White Pine Blister Rust.... Grain Rust............... Original estimate . . . . . 4,200 3,000 30,700 186,875 21,850 36,360 17,300 9, 000 46,100 10,500 4,000 5,000 _ _ Recommendation Reduction 4,200 1, 000 30,700 186,875 21,850 36,360 17,300 9,000 39,700 10,500 4,000 o o 2,000 o o o o o o 6,400 o o 5, 000 TABLE XVI.-Table Showing Original Requests and Recommendations of Board of Public Affairs, 1925-25 Scientific unit Academy of Sciences......... Arehaeologieal Soeiety....... Entomology Division........ Geological Survey........... Natural History Survey. Soil Survey........ Hygienic Laboratory.... Hortieultural Soeiety. . . Psyehiatrie Institute.... Apiary Inspection...... White Pine Blister Rust. Grain Rust............ Original Recommendation estimate 4,355 4,350 2,550 2,165 33,665 33,665 38,500 38,500 9,560 9,560 23,300 23,300 18,000 18,000 9,000 9,000 40,000 40,000 10,500 10,500 4,000 4,000 15,000 2,500 Reduction 385 o o o o o o o o o 13,500 Consultation with the heads of the scientific agencies indicates on the whole that they are satisfied with this procedure. The view is held that they are relieved of the necessity of lobbying their appro- priations through the legislature and are thus enabled to spend time formerly employed at the state capitol in carrying on the work of their department. The same view was expressed by a former secretary of the board. In one case the opinion was expressed that a larger
70 FINANCIAL CONTROL OF RESEARCH appropriation could be secured by direct appeal to the committee on . . approprlatlons. A few quotations from correspondence with heads of scientific divi- sions may serve to define their attitude. "Considered from the standpoint of the legislature and a balancing of the general state expenditures with the willingness of the people to pay for these things, it is my impression that the state of Wisconsin is spending probably about what should be spent upon the activities carried on by this agency. Under any system of budget making it has been my experience that the personality of the head of any depart- ment is the largest factor in the adequacy or inadequacy of the appro- priations secured. Almost no member of the legislature can really be sufficiently informed to decide intelligently upon the amounts of money which a scientific department should spend, and as ~ conse- quence the amount of money appropriated must necessarily be based upon the legislature's judgment of the men in charge of various activities. If the legislature has confidence in these men, adequate sums are provided." "The board appreciates the need and value of our labors for the state and we have had no difficulty during the past four years in getting its members to pass favorably upon our requested increases." "I will say that we have found both the State Board of Public Affairs and the legislature inclined to treat this agency as liberally as the general policy of the state respecting taxation seemed to permit. I think it is an advantage to the legislature to have at its command the computations of the State Board of Public Affairs. We believe it is a good thing for us to get our data ready for the state board several months before the legislature meets." "I would say that the budget arrangements in Wisconsin seem to me as satisfactory as they could possibly be made. The head of the department works over the whole budget for the department and often revises the figures somewhat in order to correlate them with the needs of other divisions and with the general policy of the state administration. The review of the entire matter by the Board of Public Affairs may result in an amount being recommended to the legislative committee somewhat lower than that which the depart- ments desire but the recommendations are in the hands of the depart- ment long before the legislative committee meets and if there is an item to which the department believes the board has not been entirely fair it has the opportunity of making a special presentation of such an item before the legislative committee." On the other hand there is a common feeling that the final appro- priations are inadequate. "It is believed that our appropriation is · · .- . . . . . . . . ..
IN STATE GOVERNMENTS 71 wholly inadequate for the work that we have to do." This study is concerned with this issue only so far as the inadequacy is a result of the operation of the central financial control, and is not concerned at all with the further issue of the policy of the legislature. The testi- mony and evidence gathered seem to indicate that in Wisconsin the responsibility for relatively small appropriations is almost exclusively in the Joint Committee on Finance and in the general policy of the legislature to hold taxes at the lowest possible figure. Former Governor E. L. Philipp in an address before the Conference of State Purchasing Agents at Madison in 1919 compared the former and the present methods of securing appropriations. He said in part, "In the old days, individual departments and bureaus of departments had bills introduced in the legislature, financing their work. Every department was pressing for its own appropriation. Public officers practically suspended the operation of their offices during the legisla- ti~re session to ingratiate themselves with the legislature. A winning personality on the part of the public servant was more important than public service rendered and accounted for and the prospect of even better public service. No one knew how much it was going to cost to finance the governrr~ent during the next fiscal period." After describing the present course of the budget, Governor Philipp continued, "Departments themselves as a rule no longer initiate appro- priation measures nor concern themselves about the passage of the appropriation measures. They know that at the proper time they will be called upon to present their case and after that- it is up to the Finance Committee to champion their cause in the legislature. In this way the lobbying which department heads and even employees formerly indulged in has been eliminated. The budget of each depart- ment is considered on its merits and in the light of the whole financial plan. There is no opportunity to force appropriations through the legislature by alliances among departments." The process of budget making in Wisconsin, in conclusion, seems to recommend itself on the whole to those who are most concerned. The scientific departments no longer take their request to the legisla- ture directly and as independent agencies, but are required to submit their plans to the revision of the Board of Public Affairs in the light of the financial condition and general policy of the state and the comparative importance of their respective work programs. Each scientific agency, however, has full opportunity to present its case both before the Board of Public Affairs and the Joint Committee on Finance, and in the opinion of most of the scientific men this oppor- tunity furnishes an adequate safeguard of their interests. They gain
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IN STATE GOVERNMENTS 73 freedom from the personal lobbying which formerly seemed to be necessary to secure appropriations. The study of the expenditures of scientific divisions in comparison with the general rate of state expenditures indicates that they have proceeded at about the same rate since 1917. Using the year 191~15 as a base and giving it a value of 100 in each case we arrive at the following table of proportional variation: TABLE XVIII. Year 191015. 1915-16. 191~17. 1917-18. 1918-19. 1919-20. 1920~21. 1921-22 1922-23 (eStimated).... · ;1 .. .. . . . State . expenditures 100 98 109 119 - 138 185 243 273 264 Scientific expenditures 00 07 04 99 123 159 172 200 216 Three further matters remain to be considered in connection with the Wisconsin budget procedure, the degree of itemization, the system of continuing appropriations and the method of handling contingency funds. The Wisconsin budget with some exceptions is a lump-sum budget. The aggregate appropriation is sometimes made in one figure only for the whole department, sometimes in two or three figures for operation, repairs and equipment, etc., sometimes with specific allotments to be made from the lump sum. Thus the appropriation to the State His- torical Society reads, "On July 1, 1921, $60,000 and on July 1, 1922, $55,000, to carry into effect the powers, duties, and functions of said society." These sums represent, of course, the aggregate of an itemized budget which has been submitted to the scrutiny of the legislature and in general accordance with which it is understood that the money will be expended. Nevertheless there is discretion in the head of the institution or department to vary the items as changing circumstances may indicate to be desirable, provided, however, that money requested for operation could not be used for permanent improvements, or vice versa. At the end of each fiscal period, each responsible official is held to account
74 FINANCIAL CONTROL OF RESEARCH for the use of his appropriation and any misuse of power would then come to light. Before snaking specific reference to the character of the appropria- tion to the scientific agencies, attention will be directed to the Wis- consin plan of continuing appropriations. Several different kinds of appropriations are used. Of these the three most common are the annual lapsable, the annual non-lapsable, and the continuing non- lapsable. An annual lapsable-appropriation grants a maximum sum for a period of one year for a specific purpose which to the extent not used lapses into the treasury at the end of the fiscal year. The language used to indicate such an anuror~riation is. "Ann~allv there is appropriated to the ~ ~A ~ 1 ~ - - - - ~ ~ department not to exceed dollars7' for some specific purpose. An annual non-lapsable appro- priation is similar to- the above except that the fund is permanently available until used. The language of the appropriation act is, "There is appropriated on July 1,1921, .... dollars to the .... depart ~ ~ This appropriation is intended especially to make provision for some non-recurring expenditure, as to curb an outbreak of white pine blister rust. Both of these appro- priations must be expressly re-enacted at every session of the legis- lature in order to make additional funds forthcoming. They therefore are necessarily presented to the General Assembly by the Joint Finance Committee, and must receive specific approval. The continuing, non-lapsable appropriation is made in the following ment for some specific purpose. · 11 1 ~ . . ~ language: "Annually, beginning July 1, 1913, .. . . dollars (or such sum as may be necessary) to the .... department for the execution of its duties and functions." These appropriations are intended to provide for the permanent fixed and recurring expenses of government which have passed beyond the stage of experiment and have become an accepted charge on the public treasury. Such expenses as the operation and maintenance of educational, charitable, and penal institutions fall clearly within this group. The real character of these appropriations so far as their periodic review is concerned should not be overlooked. It is quite incorrect to assume that because an appropriation is continuing and non-lapsable that therefore the institution benefiting thereby has passed beyond the fiscal control of the legislature. Every biennium each public authority having a continuing appropriation is required to submit its ~ 1 1 1 1 ]' ~ ~ · T ~ ~ 11 1tS expenses are carefully _ , ~ ~ scrutinized, first, by the Board of Public Affairs, and then by the Joint Committee on Finance, before which it must explain and defend its financial record. If the Joint Committee finds it desirable to make no change, it so reports to the legislature; and in that event no legis ouager exactly as are all other agencies.
IN STATE GOVERNMENTS 75 ration is necessary. On the contrary, legislation is necessary either to discontinue, enlarge, or modify the appropriation. There is, there- fore, so far as the legislature is concerned, a certain prevailing expec tation in favor of no action in the case of the continuing appropriations when the Joint Committee proposes no change. It happens as a knitter of fact that many of these continuing appropriations have been running for many years. Turning now to the character of the appropriation made to the scientific agencies, we may observe first that the appropriations are usually lump sum, continuing, non-lapsable grants, the most favorable (so far as there is a difference) to these divisions. The following table indicates the exact situation: TABLE XIX. State Historical Society Academy of Sciences Archaeological Society Psychiatric Institute Conservation Commission Laboratory of Hygiene Department of Agriculture (Entomology division) Agricultural Experiment Station White Pine Blister Rust Eradication State Horticultural Society Geological and Natural History Surveys Lump sum, annual, non-lapsable Lump sum, continuing, non-lapsable Lump sum, continuing, non-lapsable Lump sum, continuing, non-lapsable Lump sum, annual, non-lapsable, with incidental continuing and annual lapsable Lump sum, continuing, non-lapsable Lump sum, continuing, non-lapsable Lump sum, continuing, non-lapsable Lump sum, annual, non-lapsable Lump sum, continuing, non-lapsable Lump sum, continuing, non-lapsable ~ In this case the governor and the commissioner of agriculture may discontinue expenditure if the white pine blister rust has been eradicated or has passed beyond the possibility of control. Finally a few words Nay be said with reference to the Wisconsin method of handling contingency funds. Under the present method of appropriation, no department is granted a contingency fund. The governor, secretary of state and auditor comprise a so-called Emer- gency Board, to which is appropriated annually "such sums as may be necessary" as an emergency or contingent fund to meet operating expenses for any department for which sufficient money has not been appropriated properly to carry on the ordinary regular work. The board must act unanimously in granting the use of any portion of this fund. The practice of the Department of Agriculture may be cited as illustrating a departmental method of establishing a contingent fund. The appropriation is a lump-surn appropriation; at the beginning of
76 FINANCIAL CONTROL OF RESEARCH the fiscal period the commissioner of agriculture allots ninety per cent of the appropriation to the different divisions, but reserves the remainder as a contingency fund to be allotted by him on application as conditions require. CURRENT CONTROL OF VOUCHERS After an appropriation has been made to a department or board by the legislature, there is no authority which has supervision of the expenditure of the money by the board or department, with one excep- tion. The statutes provide that all contracts for the construction of buildings, purchase of land- and construction of highways shall be approved by the governor. Otherwise the departments are free to spend the money allotted to them by the legislature, always, of course, within the term of the appropriation act as determined by the audit. Questions of the wisdom and expediency of expenditures are left to the department concerned, on the theory that if the head of a depart- ment is capable of holding his position he should be given leeway and power of decision in the control of funds appropriated to his depart- ment. The safeguard relied on in Wisconsin to check any misuse of authority is to itemize all succeeding budgets in great detail and then force compliance therewith by the audit of bills. CENTRALIZED PURCHASING A number of officials are engaged in the purchase of supplies for the state of Wisconsin. The superintendent of public property is commonly regarded as the state purchasing agent but there are sev- eral exceptions of considerable importance. The Board of Control acts as the purchasing agent for all penal and charitable institutions of the state, including the Psychiatric Institute. The State Highway Commission purchases all its own road-building materials except cement, which is secured by the Cement Purchasing Commission. Emergency purchases are made on the initiative of the division con- cerned, and reported to the proper purchasing official. The Board of Regents of the Normal Schools purchases all supplies for these insti- tutions. The University of Wisconsin handles all of its purchases through its own purchasing office. Coal for the entire state is pur- chased by the state chief engineer. A very substantial freedom seems to exist with regard to the pur- chase of scientific apparatus and supplies for research purchases. The University purchasing officer would perhaps be expected to cooperate more readily in handling scientific equipment than an agent wholly beyond university influence. It appears, however, that in other cases the scientific divisions operate with nearly complete freedom. Excerpts
IN STA TE GOVERNMENTS 77 from two letters from scientists in charge of divisions will illustrate the situation: "Scientific apparatus and all things used by field parties are pur- chased by us directly at whatever place we desire. Under our existing purchasing system our needs are met to the best possible advantage with the least possible red tape." "Centralized purchasing has not interfered with my work at all. As a matter of fact it has been of greatest assistance to me. I am allowed the greatest latitude in specifying what I want and if I specify a particular company from which I want it bought, I can also have that done. In a great many ways it has been a help to me and in no way has it interfered with my work." THE CONTROL OF PRINTING The rapidly increasing cost of printing in Wisconsin brought about a reorganization of the central controlling machinery in 1915. An en onto board consisting of the secretary of state, the treasurer and the attorney general had long been in existence but was ineffective in curbing demands for more printing. A Joint Investigating Committee on the subject of state printing reported in 1915 that this board "is . . . made up of men who as a rule have very little time to carry out the duties which are imposed upon them). The actual work of buying and. contracting is not in line with any of their duties. They are not experienced in the buying of paper. They have no technical knowledge of the subject in hand and have not the time to acquire it. They do the best they can with the information at hand, but the work of determining what reports shall be printed, how they shall be printed, what kinds of paper shall be used in the reports and how they shall be bound, and the number of copies which shall be printed is a matter which they necessarily leave to the printing clerk. They merely per- functorily approve his work." As a result in part of the failure of the board to function, the cost of state printing rose from $6O,650 in 1904 to $258,000 in 1914. It does not appear, however, that the scientific divisions were in an or way responsible for this increase. From a table in the biennial report of the Printing Board it appears that the total printing expenditures of the Academy of Sciences, Archaeological Society, Agricultural Experi- ment Station, Agricultural Experiment Association, Board of Forestry, Board of Health, Geological and Natural History Surveys and His- torical Society fluctuated in the fiscal Years 1906 to l91a~ from $16.353 , 1 mi lab ~ ^ ~^ 1 ~ 1 ~ ~ to ~61,629, but were only 54,000 greater in the aggregate of the last four years as compared with the first four. The investigating com- mittee asserted that too much printing was being done, too many
78 FINANCIAL CONTROL OF RESEARCH volumes were being printed, too many pages to the volume, and too little supervision over what was being printed in each volume. The Board of Public Affairs in a report of 1914 had already condemned the unnecessary and expensive printing of the state, including in their opinion, some of the scientific departments. As a result of these charges the printing law was revised and with some modifications reenacted ire its present form. There is now a Printing Board consisting of the governor and superintendent of pur- chases, en officio' and an editor of public printing appointed by the governor for a term of two years. So far as he chooses, the governor is the important figure in the board. The Printing Board is authorized (1) to let contracts for public printing, and for the purchase of paper; (2) to receive printers' copy; (3) to direct the manner, form, style, quantity and method of all public printing not prescribed by law except legislative printing and printing for institutions and departments located outside of Madison. Before filing any report with the Printing Board the author is required by law to strike out all matter "not important information concerning public affairs." (Sec. 35.26-3.) Any copy failing to com- ply with this rule is returned by the board to the department for cor- rection and until made to comply will not be printed. This section gives the Printing Board potentially a drastic power to reprise all printing of the reports of the scientific departments. Certain exceptions are made in favor of the scientific and educa- tional institutions. Thus proof-reading for the University of Wis- consin, the Normal Schools, the State Historical Society, the Wisconsin Academy of Sciences, the Wisconsin Archaeological Society and the Geological and Natural History Surveys is done by these institutions or surveys rather than, as is the usual rule, by the Printing Board employees. The power of eliminating matter from public printing vested in the Printing Board is not to be construed to include the power to change the thought or findings of any book, report, or other public printing. Until 1923, the University of Wisconsin was substantially inde- pendent in the control of its printing, but two amendments to the -printing law go far to destroy this freedom. The governor is now authorized to cause the withdrawal of any printing requisition if in his opinion public policy demands it, or if the edition requisitioned seems excessive. He is required to hear the officers of the University and to communicate to them his reasons. The law formerly authorized the University, Normal Schools, State Historical Society, Academy of Sciences, Archaeological Society, Geo- logical and Natural History Surveys and the Wisconsin branch of the -
IN STATE GOVERNMENTS 79 American Institute of Criminal Law and Criminology to edit for themselves the matter and form of printer's copy sent by them to the Printing Board. In this way the content of their printing was fixed wholly by these institutions. The law now reads as a supplement to this privilege, "all printer's copy which, in the opinion of the Printing Board, contains matter inappropriate or unnecessary to be printed, or matter not properly edited and condensed, or is for any other reason unfit to go to the printer, shall be returned to its author for revision and correction." This language is so broad that the control of the scientific printing of these agencies as well as other state institutions would now seem to be vested in the Printing Board. Whatever may be the law in the case, practice seems to vest substantial freedom in the scientific divisions to determine what shall be printed, in what form, and within the limits of the appropriation, in what quantity. Apparently no use has yet been made of the two amendments above cited. In fact some evidence came to the attention of the writer that the language of the first amendment was drafted in order to head on those who are demanding a more stringent central control of printing. The size of edition is frequently fixed by statute. Thus the report of the Department of Agriculture may not exceed 5,000 copies of not more than 448 pages; the State Board of Health, 5,000 copies of not more than 480 pages; of the Board of Commissioners of the Geological and Natural History Surveys, 500 copies of not more than 76 pages; of the Agricultural Experiment Association, 3,000 copies of not more than 364 pages; the transactions of the Academy of Science, not more than 2,000 copies; the transactions of the Archaeological Society, not more than 1,500 copies bi-monthly, of not over 75 pages each. The governor is authorized to fix the number of copies of reports by the Conservation Commission under subsection 3 of section 23.11; the Printing Board orders such books and other printing for the Geological and Natural History Surveys as in its discretion it deems wise. The binding is likewise usually fixed by law, but in the cases of the State Historical Society, Geological and Natural History Surveys, Academy of Sciences, and Archaeological Society is such as the Printing Board shall order. It may be noted further that the expenses for printing were steadily reduced for some years after the law was revised. For the fiscal year 191~15, the last under the former regime, the total cost of printing, excluding legislative printing, was $225,000, while for the three suc- ceeding years the costs were, respectively, $196,000, $165,000, and $145,000, a total reduction of $80,000, or about 35 per cent. The printing expenditures of certain scientific agencies for a number of years before and after the installation of the budget and the present Printing Board are revealed in the following table:
80 FINANCIAL CONTROL OF RESEARCH 6q A .5 CO .t CO 1. di co O Cal ~ ~ oo up o Cal ~ Cal o ~ Cal di ~ Cal ~ ~ CO Cal Cal Cal CD Cal ,1 ~ 1~ C5) oo - oo _ Cal di _ ~ CO ~ CD o ~ ~ U: ~ oo ~ o di en O Cal Cal CO ~ ~ Cal Go em o Cal ~ ~ ~ CO o ~ ~ ~ Go ~ ~ ~ Cal O ~ di ~ Cal Cal ~ O di O Cal ~ ~ ~ eo ~ Cal ~ ~ ~ ~ ~ -4 di c~ oo ~ o ~ ~ · oo ~ co ~ c~ c~ · - - - . - I_ ~ ~H · ~H : ~ ~ o ~ ~ o o ~ ~ ~ ~ ~ ~ ~ c~ ~ - - - - - - C c~ CO ~ 00 ~ ~ C53 CO ~ c~ ~ ~ c~ ~ ~ ~ o - - - - - - ~ o ~ ~ ~ ~ C~ d~ c~ C~ N ~1 0 C53 O 00 C~ 1- C~ o0 ~ ~ ~ C~ _ _ _ O ~ ~ O di O O ~ O O C~ ~ ~ ~ C~ cO ~ cC 1:~ CO CD _ _ _ _ ~C~ ~ ~ . . . o0 · Ct CC · · C~ C~ o0 · O · C~ ~· · . _ . . _ _ : ~: · ~ ~ ~, ~a ~ ~ ~ ~; o ~. bO bD O O O ;O ¢ ¢ ¢ ¢ ~ ~ ~ ~
IN STATE GOVERNMENTS o o o · ~ o o ~ o CO o O d~ ~· ~ O ~. cO ~ N OO O CD OO ~ C53 ~C~ CC ~ __ _ ~ ~C] C~ U: C~ - C~ _ _ O O ~ O ~ CO _ __ C~ COC~ _ di C~ l C~ C~ l C~ . o C~ C53 ~l ~ C53 1 oo ~l ¢ ~ - oo 00 oo E ~CD C~ C~ C ~.- ~ ~ ~O 1 C~ O O ~c~ to ~ C~ ~ ~ = 433 1 ~o0 ~ ~ 433 CD , ~ C9 ~ C ~ I ,....... O O O ~ O 0 1~ 0 ·~ O ~ di ~·oO ~ , ._ _ ~ C~ - ~1 0 C ~ O O ~- O ·eS =/ ~ CO ~C~ C~ _ _ ._ _ O C~ di ~· oo o ·CC C~ CD · _ _ C~ ~ o0 oO CC CD 00 ~ ~1 ~ C~ CO C~ CO _ _ 00 00 ~ C~ ~ CD .= C) . - a~ ._ C) . I . . . ~ 2¢ .O C3 , : : ~ : ~ : : · ~ . ~ >, ~ ~ . ~ ~ . ._ ~ O ~ ~ ~ · 02 ~ ~ ~ . c3 O hD ~ ~ ~ ~ O ~ O ~ o O c; ~ hD O bC O ¢¢¢m¢ m C~ ~ C~ C~ O 00 C~ di C~ C~ ~ C~ C~ O 00 C ~di co O O O C~ O C9 C~ C~ CC · F4 O . . ~ : ~ : . . ~i . O _ . _ ~ c3 60 ~ . V ~ :. . - . ~ O .vo ~ O O ~ O O 00 ~ CC (D O ~ _ CC C~ _ c=~ O . C~ _ C~ CO O cO oo - di oo - - c~ oo - ~ cq. . - ~3 .~o 81 o . ° ~a ~ ~ · - ~ ~ . ~ ~ o · _ ~ C) G) ~, . _ C3 a' (;Q c3 P o o ~ ~ o o ~ C) ~'C'3 ~ - Q c3 0 ~ ~ ~ ~ . .o ~ =7~- ~ ~ v ~ c3 Q C' ~
82 . FINANCIAL CONTROL OF RESEARCH THE CONTROL OF TRAVEL Appropriations are made without specific mention of travel expenses in Wisconsin; the budget, however, always carried an item to be expended for this purpose. No restriction is placed upon the use of travel funds in the state, provided, of course, that the appropriation has not been exhausted. For travel outside the state, the specific consent of the governor is required in each case. SUM MARY The conduct of scientific research in Wisconsin is subject to dis- tinctly less supervision in law than in Illinois and Ohio; and in practice seems to lag behind the full enforcement of the law as carried out in Illinois and Ohio. The most formidable barrier to more effective prosecution of research in Wisconsin is the desire of the legislature to reduce appropriations, in response to the demand of the farmers and other classes that taxes be lowered. The amount of administrative control is not great. In his supervision of accounting, the secretary of the Board of Public Affairs requires exact compliance with the terms of the appropriation act; but the appropriations are chiefly lump sum and non-lapsable. Purchasing and printing are in law centralized; but in practice the decisions seem to be primarily influenced by the divisions concerned. The writer could not, however, discover any clear-cut evidence that more research proportionately to total expense, or more edective research in proportion to funds available, was being carried on in Wisconsin than in other states. The prevailing attitude of the controlling authorities toward the prosecution of research in Wisconsin seems to be acquiescence so far as it is conducted within the limits of previous appropriations, com- bined with a reluctance to increase the amounts authorized for this purpose. The following quotations from letters written by men in responsible positions in the state government are illustrative: "There is only one specific appropriation for scientific investigation. The University of Wisconsin had an appropriation in 1922-23 of $35.000 to encourage scientific investigation and productive scholarship. This appropriation was reduced by the Joint Finance Committee bill of the 1923 legislature to $30,000 for each of the fiscal years of the present biennium. The bill failed to pass the legislature and consequently there is no specific appropriation to the University for scientific investigation for the current biennium." "A cut was made in this particular appropriation not because of any hostility on the part of the members of the Committee on Finance to this university activity, but because the general operating appropriation recommended was con- sidered ample to care for any scientific investigation in research which the authorities of that institution might desire to undertake. In view of that fact
IN STATE GOVERNMENTS 83 it was decided best not to increase this particular appropriation but to hold it at $30,000." "While I am not authorized to speak either for the Board of Public Affairs or the Joint Committee on Finance, I believe I would be warranted in making the statement that the members of both these public bodies desire the University of Wisconsin to be financed in a way that will enable it to perform the greatest service possible to the people of this state, whether it be in teaching students in the class room, bringing the advantages of the University through extension to the people in their homes or by such scientific investigation and research which will tend to extend the realm of human knowledge and render service not only to the people of the state, but to the nation as a whole. This does not mean that the Board of Public Affairs or the Joint Committee on Finance will not scrutinize carefully, requests for appropriations. "In times past there has been some public discussion and criticism of the advisability of the extent of the research and scientific investigation undertaken at the University. The criticism was largely directed at the cost of running the University rather than at the particular work undertaken. This is natural because no one objects to the cost of classroom instruction. In late years there has been little criticism of this sort directed at the institution. In fact in 1919 the legislature made an appropriation of $23,000 to encourage scientific investi- gation. This appropriation was increased by the legislature of 1921 to $35,000, and the committee of the 1923 legislature recommended that this appropriation be lowered to $30,000 for the reason cited. "On the basis of the action of the last three legislatures, it would appear that the sentiment in this state toward this class of work was favorable and that succeeding legislatures would in all probability look with equal favor on con- tinuing the appropriation and, upon proper showing by the university authorities, to increasing it." "The usual procedure is for each one to ask for more than he really thinks he needs so that there is room for pruning. Then the Finance Committee as a rule treats each appropriation according as they think each is most necessary for the two years, and that really determines how some departments are better provided for at times than others. But as far as research is concerned, there is no particular policy concerning it that is pronounced either to promote it or neglect it, so far as I can determine from my two sessions in the Wisconsin Legislature." "So far as I know, there is no hostility to the University doing a larger amount of scientific research. I believe the people of our state desire to have the Univer- sity the equal of the universities in other states and are interested in seeing a first-class university at Madison. I feel that the Board of Public Affairs would give the university authorities a hearing on any necessary appropriation request. "There is in this state a decided sentiment to the eRect that taxes shall be decreased. This sentiment naturally makes itself felt in the Board of Public Affairs when considering requests for appropriations from the department and several institutions. It is rather difficult to get a legislature, coming directly from the people, to increase the appropriations to any great extent, if at all, just now; but there is nowhere any desire to reduce appropriations to the point that our institutions would be crippled. The people of the state want an eco- nomical administration of affairs until the tax burden is less or the financial condition of the farmers improved."
84 FI\~7~[ C0~Of Of ~ Bribe following references bear on the operation of the Wisconsin system, but not speciOcaHy on the state Of scieDtiRc agencies. Was of ~scondu, 1911, cb. 583, 1913 ~ 728 191S, ~ 606 Ibe Budget Act Board of Public Affairs, State Budgets. 191~1923 ~ {ma. Report OD State Printiu~ 1914; Joint Investigating Committee on the Apiece of State Printing 1915! State Chug Board Ages aud Regulation; Auditory Repot; [owde, I. G~17 be Buff. PbUipp, E. Lo Abe Budget oud Budget I, ~ Andrea ~ the 1919 Cow ference of State Purcbasing Agents Madison. Pbel~u, Raymond V. [iuouci~ Astor of ~sco~iu. C~ve~nd and Buck The Budget and Respo~ib~ Government, cb. 8, 15 [itzp~dck, E. As Budget fling in ~ Democracy.
