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1931 Depression Era California Budget Woes

January 20, 2011

Some bill research does not include the Governor's file because at the time we researched the bill, the sitting Governor had not released his chaptered bill file. If the Governor's file is not included with this particular research, please contact our office (1-530-666-1917 or quote@legintent.com) and we will be happy to provide this file at no charge if it is available. Please Note: Governor files did not exist prior to 1943.

In 1931, Governor James Rolph, Jr., acknowledged the depression gripping the nation in his inaugural address, stating:

    My advent to the office of Governor comes at a time presenting peculiar and extraordinary difficulties to the State administration.  Unfortunately, a worldwide depression has created an acute problem of unemployment in California, as elsewhere, and at the same time has caused a shrinkage in the gross revenues of the public utilities, the net revenues of other corporations, and the value of inheritances, which are the bases of so large a proportion of the State’s revenue.  We are met also with the fact that the people rightly have materially reduced the taxes on the electric railroads and thus stricken $1,250,000 from the normal revenue, and that reductions in rates made by the Railroad Commission, by reducing the gross revenues of the utility companies affected, will cause a material reduction of the State’s percentage of those gross revenues.  In other words, this administration at its beginning is faced with unusual and urgent demands, and a diminished revenue with which to meet them.  Fortunately, on the other hand, we face this situation with a surplus of approximately $30,000,000 in the State treasury.