Sturgis advertiser. (Sturgis, Dakota [S.D.]) 1887-1???, 1890-01-16


It will be seen that at the present rate of ex-
pendtture and receipts the deficiency to accrue
before the proceeds of another assessment oan
become available will be $172,905.62.
Article III, section l. of the constitution is as
follows:
@The legislature shall provide for an annual
tax, sufficient to defray the estimated ordinary
expenses of the state for each year, not to ex-
ceed in any one year mills ON each dollar of
the assessed valuation of all taxable property
In the state, to be ascertained by the last as
sessnent made for state and county purposes.
And whom it shall appear that such ordinary
expenses shall exceed the income of the state
for such year the legislature shall provide for
levying a tax for the ensuing year, sufficient
with other sources of income to pay the de-
ficency OF the preceding year together with the
estimated expenses OF the ensuing year. And
for the purpose of paying the public debt the
legislature shall provide for leyyirg tax an
nually, sufficient to pay the annual interest
and the principal OF such debt within ten years
from the final passage of the law creating the
debt, provided that the annual tax for the pay
ment of the intereset and principal of the pub
lie debt shall not exceed in any one year 2
mills on each dollar of the assessed valuation
of all taxable property in the state as ascer-
tanned by the last assessment made for the
state and county purposes"
While the second clause of this section is
somewhat ambiguous in meaning, the first an d
second clauses, taken together, plainly limit
the amount of the yearly ordinary expenses of
the state to a sum to be created by tax of
mills on each dollar of the assessed valuation
on the public debt not being included in the
term ordinary expenses" as appears from the
last clause of the section. Now when 1T is re-
membered that the ex-auditor'R estimate of re-
ceipts for the current year, before set forth, is
based upon q levy of mills each dollar of
taxable property, according to the late territor-
ial statute, we see that the direct taxi for the
year 1890 will be one-third less than the esti-
mate for the current year, making the estimat-
ed total receipts for the coming year $237 IS,
and the deficit as at the present rate OF expens-
tort f1ox am n ,ltlt
we may deduct the interest on state debt, $780,
$3.50, leaving thus deficit of 1886, 1915.
The popular way out of q financial dilemma
by borrowing Is only partially open to you, aa
shown by article 13, sections and 8. of the
constitution. which is as follows:
1SEc 2. For the purpose of defraying extra
ordinary expenses and making public improve
ments, or to meet certain deficits or failures in
revenue, the state may contract debts never to
exceed with previous debts In the aggregate oi
$1O0 OOO and no greater indebtedness shall be in
pelling invasion, suppressfng insurrec.
ion, or defending the state or the, United
States in war, and provision shall be
made by law for the payment OF the interest
annually, and the principal when due by tax
levied for the purpose or from other sources
which law providing for the payment of such
interest and principal by such tax or otherwise
shall be irrepealable until such debt is paid
provided, however, the state OF South Dakota
shall have the power to refund the territorial
debt assumed by the state OF South Dakota.
1t is thus seen that the legislature may law.
fully provide for the issue of bonds to cover the
territorial indebtedness assumed by thif
state and may further increase this
ind -btedness to the amount of $780,
600 and here the power of the Legislature te
create indebtedness ceases, and still there will
be q deficit OF SlS6,7l9 rs, allowing for the
expense OF another session of the legislature In
1891.
TO meet the emergency it is recommended
first. to annui all appropriations made by the
territorial legislature and TO cover into the gen
eral fond all unexpended balances remaining tc
each account on the 1st day of January, 1870
Then ascertain, as near as may be, the floating
Indebtedness Of the state at the date Of It's ad
mission into the union, and provide cor Its II
quidation by the issue OF bonds and proceed tc
make careful estimate of the amount that will
accrue from 9 mill levy during the current
year and also the year ensuing for ordinary ex.
penses. Then It 10 advised that you take the
list Of estimsted expenses and provide fret fol