Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 26 of 263
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the State's business are not to be rejected merely because of
the existence of some time honored custom followed by any branch of
Because of the difficulties presented from a practical viewpoint by
the existing budget requirements, I have determined to recommend to
the Legislature that we engage in a budget practice of a somewhat
experimental nature. The suggestion has been made by representatives
of some of our schools that lump sum salary appropriations be made
with maximum salaries fixed by the Legislature, but with the same elasticity
in such salaries to be set by the Board of Regents of the respective
institutions. I am not committed to this as a permanent policy, but it
occurs to me that an experiment might well be made in the case, for
instance, of the State University or of the Agricultural and Mechanical
College. If the experiment proves worth while, it can later be extended
to other institutions. By this trial and error method we may be able
to take a real step forward in Government.
In making such an aggregate appropriation I would recommend that
the Legislature determine the maximum amount of tax money to be
received by these educational institutions, and that they lay down broad
lines of policy to govern the Board of Regents of the University of Texas,
and the Board of Directors of the Agricultural and Mechanical College
in their allocation and expenditure of the sums so appropriated. It is
my belief that the Legislature should determine the maximum salaries
to be paid in either of these educational institutions, but that the
itemization of appropriation should be left to the governing board of
In recommending a lump sum appropriation for the University of
Texas and the Agricultural and Mechanical College, I call attention to
the fact that minutely itemized educational appropriations are made
only in Texas, Arkansas and Maryland. Even during a period of
depression when all governments and all people have become conscious
of the necessity for economical expenditure of public funds, progressive
states continue to abandon the policy of itemized appropriations and
adopt in its stead the policy of appropriating money to institutions in
In keeping with sound business practices and in order that this Legislature
may be advised as to the faithfulness of the institutions' governing
boards in the keeping of their trust, I further recommend that this
Legislature require of these two educational institutions, and of all institutions
of higher education in Texas, a careful detailed post-audit reflecting
how every dollar of tax money was expended and the disposition
that was made of all other funds received by such organizations from
whatever sources, whether State, Federal, local or private.
I trust that the Legislature will continue the policy inaugurated in
the current appropriation bill requiring all audits by public educational
institutions in this State to be made according to the method prescribed
by the National Committee on standard reports for institutions of higher
I make this recommendation for aggregate appropriations in the
belief that the mature and deliberate, consideration of a board of honorable
men governing a great educational institution is more capable of
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Allred, James V. Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939, book, 1939; (texashistory.unt.edu/ark:/67531/metapth3899/m1/26/: accessed March 30, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .