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Male voice: The following program paid for by the Committee to Re-elect Governor Peterson. Governor Russell Peterson: Good morning. This is Governor Peterson. Let me take a few minutes of your time

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to discuss our state's finances. There has been a lot of reckless talk lately about our fiscal condition. It's easy to throw a few figures

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together and make wild charges, it's something else to have the facts. I would like to share a few facts. By using tight fiscal controls and restraint,

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we spent less during fiscal year 1972 than we took in enabling us to wipe out completely the previous year's $5.3 million deficit.

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We ended the year with a surplus of $3.2 million hard cash. This was quite a contrast to most states around the country,

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and especially a contrast to the financial mess I inherited when I became Governor. Back in 1969,

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shortly after I was inaugurated, a committee appointed by the previous administration and shared by a Democrat leader Robert Tunnel,

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reported that the state's finances were in such bad shape that an increase to $30 million in taxes would be required

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to balance the budget. We faced up to this mess and straightened it out. With the help of 55 volunteers from the business community,

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we carried out our war on waste. That is saving the state over $10 million per year. The most important step in

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improving management of the state's business, was the conversion to the cabinet form of government. Lines of authority are now clearly drawn.

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Cost of operations now performed by the cabinet had been rising out of the commission form of government at

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a rate of 16 percent per year. Last year, the first full year of operation out of the cabinet, we actually spent

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less than the previous year. That's good fiscal management. Another major improvement in managing the state's business

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has come from the modernization of our outdated accounting systems. George Cripps, our State Auditor since 1966, says that his daily contacts with

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state accounting and the many audit reports of his department show that our state's finances are in the best

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shape they have been in for many years. We've also heard much talk about unpaid bills, but the truth has been distorted.

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The state is just like every homeowner or businessman, he always has some unpaid bills at the end of the month. Bill Bradford,

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Secretary of Finance, who came to his job just 10 months ago from the state's largest bank where he was the top financial officer,

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says that the percentage of the budget carried over as unpaid obligations, including income tax refunds, was less at the end of fiscal year 1972 than

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last year and as low as has been in any of the past eight years. Another example of our efforts to reduce state cost has been on the welfare area.

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We have reversed the rapidly rising trend of welfare costs. Realizing a reduction of more than 28% since last October.

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This amounts to a reduction of nearly $4 million on an annual basis. July's total was the lowest of any month since January of 1971.

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This was done by imposing better controls, removing single employables from the welfare rolls, placing more recipients in jobs,

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enforcing absentee fathers to support their children. In spite of our tight controls, we have been able to increase

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the state's financial support of education by $63 million since 1969. And to launch our nationally recognized programs to

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protect our environment and to markedly upgrade our criminal justice system. We hear much about Delaware's taxes, but we're in quite a favorable position

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when compared to our neighbors. Data compiled by an independent accounting firm shows that families with

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incomes up to $10 thousand, about half of all Delawareans pay lower taxes here than in the eight neighboring states.

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One reason for this is that we have no sales tax and Delaware, I intend to keep it that way. In summary, Delaware state government since

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1969 has made considerable progress. It is today better managed, better financed, and more efficient. It is serving the people better

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and is more responsive to their needs. This conclusion is based on the facts. Thank you for listening. Male voice: The preceding program paid for

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by the Committee to Re-elect Governor Peterson.