New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-19
Says States Fixed Ex.
penses Will Require 1t
i'm Five Years.
CITY MUST PREPARE
TO PAY 70 PER CENT
Suggests Commission TO Study
New Revenue Sources
Before Fall.

issued to-nigh- Senator Elon K. Brown,
president pro tenn of the Senate, de-
clared the constantly growing expendi-
lures o. the state demand that new
sources OF Ta"enue be found. He said
that unless new methods of taxation
are provided the state must be pre-
pared for a direct tax levy Of from
$4,000 900 to S30,000,000 annually
within the next five years, of which
New York City would pay at least 20
per cent, or from $l4,000,O0O to ST.
900. 900
To find these new sources of revenue
a commission will be appointed by the
Legislature during the coming week.
This committee, in whose selection the
Governor will have n hand, will sit all
summer and during the fall, and re-
port TO the next Legislature a general
scheme Of taxation 70 meet the ever
increasing expenditures of govern
ment.
The other points made By Senator
Brown are:
That the expenditures Of the state
for activities TO which it is already
committed must be s75,000,000 within
the next five years.
That the present indirect revenue is
only $40.000,000.
That the bonded debt Of the munich
palities of the state is 81 100000, 900.
and that Of the state $245.0O0,00O. i'm
posing 1871 per cent mortgage on the
present assessed value Of the state, and
that further bond issues are impos-
sible.
That the federal income tax makes
New York contribute one-third of the
entire tax from that source, and this
and the federal excise tax Of S36,OOO,-
600 on this state bear heavily on its
taxpayers.
Senator Browns statement says, in
part: 40
New York's revenue in 1914 was $780,
2s9. 6S9.62. of which S7.7Ol .271.a1 was
raised by the 1918 tax Of .56 mills and
S42.5S8,417.81 by indirect taxes. The
tax rate in 1882 was 2.45 mills. OF the
s7,690Al6 revenue in 1882, S6,S2O,O22
was raised By direct taxation upon the
assessed valuation of the state, then
amounting to S2,783, 100000. The as
sessed value of the state now is up
ward of S11 900 100000, and the rate of
PAS mills imposed in 1882 would have
produced more than 100000 in 1914.
This burden would now be intolerable,
because Of the vast increase of local
indebtedness and taxes. From the re-
port of the State Board of Tax Com
missioners for 1913 It appears that the
total bonded debt OF all the local sub
divisions Of the state vas Sl,345,OOO,-
600; the sinking funds amounted TO
S3O5 900 900. leaving n net bonded debt
Of S1.O40,000 900, or the equivalent OF
q 10 per cent mortgage upon the entire
assessed value Of the property Of the
state.
The States Bonded Debt.
The states bonded debt in 1882 was
50 .OOO. 900. The SOL 100000 for canals,
$40 600. 900 for canal terminals and
500. 900, 900 for highways are to be
supplemented with S25,000,000 to finish
the canal system. The states bonded
debt will thus reach s245 100000, and
be a second mortgage Of 2ls per cent
upon the assessed value of the state
over and above the 10 per cent mort
cagc imposed locally. This means tina.
the state and its localities have gone
the limi, in mourning bonded indebt-
odncsg. Nov schemes involving eN-
penditu:es must be restricted 20 the
annual revenues of the state. Other
vice the state Will soon be in the con-
dition of the City of New York.
The state has also increased its ex-
penses by undertaking the care Of the
insane; by caring for prisoners for
nerly kept in county jails and peniten-
tiaries. and by the building and main
tenance of an extensive system OF char-
table institutions. The state has &C
CURED 100000 acres of land in the
forest preserve; it has bought and
maintains twenty-five parks, monu-
ments and battle grounds. IL has es-
tablished the departments of labor,
workmcn's compensation, agriculture
conservation, highways and public ser
vice. and greatly increased It's actiyl-
ties and expenditures Tor the public
health. While many OF these activi-
ties have superseded local functions,
their assumption by the state has not
checked local expenditure.
The states policies now established
will require revenues for the next ms
cal wear between S55,000.000 and $780,
600 600. and a direct state tax OF not
less than sl5,000.000. Worse than that.
if the state maintains the different
branches of public service - which II
is thus committed, the state budget
will. under strictly economical admin
istration, reach s10000.000. and prob
ably 100000 within five years. o.
the total bond issue of $2i5,OOO.OeO
now authorized only Slj9,0GO,0OO has
been issued. but Che balance must be
issued within five years. The Interest
and sinking fund charges on these
bonds will be $4,000 900 annually. The
highway system TO which the state IS
now committed contemplates the build
ing of 5000 miles of highway, of which
5000 miles are not yet constructed.
They must be kept in repair when con-
structed. This will cost on the aver
age 81 900 mile annually, involving
an annual expenditure of SO 100000 for
highway maintenance as permanent
charge for the highways contemplated
under existing plans of improvement.
In spite OF all economies, depart
mcnts established and functions as
eumed grow in expense. While the in
crease in expenses is frequently OK
cessive some increase is unavoidable.
The cost Of The administrative agri-
cultural. pe2al, curative and chsrita-
hlc dcpartmcnts increased in the ten
years from 1905 70 1914 from $4,000,
coo TO Sl6,0o0000, or 60 per cent II
allowed 10 increase at the same rate
for the next five years these depart
ments will cost s2l 100000 annually.
In the ten years from 1905 TO 1914
the cost OF the legislative. judicial.
regulative. educational and defensive
departments increased from 10000
600 to $4,000 900, or so per cent II
this ratio Of increase continues these
departments will in five years cost s25,-
100000 annually.
81 have not taken into account in
these estimates the increased cost OF
new enterprises in the departments Of