The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-01-26
Dispute Between Auditor and Investigating Committee
Over Probable Deficit Shows Confusion Now Exist
ing-Old Debts Should Be Cleared Away.
Financing the State of Montana
(By DR.. Louis Levine, Department Of Economics,
State University.
VI-Putting State Finances on Solid BASIS.

controversy has chairman Of the invssa
ing auditor about the deficit which the state
Aornr to the state auditor the deficit on March l. 1919
Kane places the deficit at minimum of $7so6s7
and expects it to reach $1,O75,OOO
The difference itself striking illustration
Of the condition in which the finances of the state are An
approved accounting and of preparing state budgets
der conditions is that likely the deficit will fall some
where between the two estimates
The pointed % out in his his that two Sea @ ago % the mse @
fact was much larger though institutions deprived
Of financial support seems that the atar estimates Tor ~
institutional improvements the necessary extension of
mental activities in other directions.
explains extent his
low deficit He ignores entirely the present outstanding Indebtedness
of the state The stated in the newspapers that this
represents the deficits of the but the accumulated
deficits Of practically all the years since statehood his
AS well might business omit from his statement of
liabilities all debts that were several years old
Unless has when discharge debt by ignoring
it. the state should not only take note its accumulated deficits but
make effort wipe them off the slate There reason in
n and large be collected with great'r Emer
ma" "a arise n in the % %. % ~ when % the state ns se M ts
cmua with appropriation period surely unsound fnan
cial policy.
haye been tn a1g tn; state M deficit
hure proposes license tax of six per cent the net proceeds of
mines nj Another A & bill limp special tax on water %
would only tend to equalze existing inequalities.
argument bill imposing net proceeds
the mines gains strength from consideration of possibilities
ca periodicals that the expected copper for the first
half of 1917 has already been sold prices ranging from 30 80
But the outlook for the half of 1917
certain Smaller producers have already offered
latter part of 1917 change the international situation which
inevab will not only bring about slump prices but
reduction The net proceeds which the
will then drop considerably The adoption license tax would
ovate the effects which such slump have the
the state.
In addition this license public
which do not such entirely justified by
The rate of the both should be determined
estimate OF the needs OF the state during the next two In
seng these estimates the possibility of paying necessary
provenents ont of instead of by of Il
be considered.
These however be regarded anything
porary Their purpose tide present difficulties
with regard equitable distribution the
great problem before the state the revision
laws and the reorganization of the This
and must take time The best the present
act the Of the
partisan tax commission The law creating
the legislature plan financial
reform based study of what other have
ditons in Montana.
Other which have problem facing now
have about it in two different Some
commissions at administer the and
recommend changes possible Other
instance created
the exclusive of investigating conditions
preparing a system of taxation
Whichever plan the legislature adopts com
should not be hamped by partisan that
should have the the facts If Fifteenth
legislature aecompshes this will h
right direction Its action will place Montana among efficient AM
e