Two years later he became the champion of the constitutional amendments proposed by the Fourth Constitutional Convention of Ohio, then sitting, and as such was unanimously nominated by his party for Governor, on a platform which demanded a “new order” of things in Ohio. As soon as he was nominated he took the platform before the people for the adoption of the constitutional amendments in a special September election. These amendments included one providing for the initiative and referendum of which he had been an advocate for years, and one for the removal of officials failing to enforce the laws, giving the Governor the weapon with which he established his law-enforcement record. There was very little to the campaign in that year, the historical Republican party splitting in two upon the issue of progressiveness, and he was elected by an enormous plurality. Facing the tasks imposed by the new constitution, the Governor insisted upon legislative fulfillment of each popular mandate, and in a busy session of three months he accomplished his programme.
Aside from the legislation suggested by the amendments, his greatest constructive step was the enactment of a budget system, which sought to place the financial affairs of Ohio upon a businesslike basis. Its worth as a saver of money and promoter of efficiency has never been challenged. The previous Ohio fiscal system had grown grossly archaic. Appropriations were made by the Legislature to the departments in lump sums or in the form of granting all receipts and balances, some of the departments being maintained by the fees from interests they regulated. Of the departments having receipts of their own, many had deposits of their own in banks and their own checking accounts, so that their funds never passed through the State Treasury or through the hands of the State Auditor. Other departments got much or little from the Legislature, depending upon whether they had a gifted representative to appear for them before the legislative finance committee. Institutions vied with each other in providing the best entertainment to these committees as they made their week-end junket trips over the State during legislative sessions.
All this was changed in one sweeping stroke in the first administration of Governor Cox. All receipts of all departments now go into the State Treasury and none leave the treasury until it is appropriated in specific sums for specific purposes within specific departments. The state auditor has a check on every expenditure.
The Ohio budget department is composed of one commissioner appointed by the Governor, an assistant and a clerk. All departmental requests for funds desired of the next succeeding Legislature are filed with the Budget Commissioner, to be brought before the Governor. He investigates all items, ascertains the reasons for any increases that are asked, and fixes the sums he deems proper. Also, he estimates what the State revenues during the next biennium will be and prunes the budget to come within the total of expected revenues. The budget as prepared by the commissioner is submitted to the Governor, who frequently makes changes of his own after advising with department heads.