Deming graphic. (Deming, N.M.) 1903-1948, 1919-08-26
THE BOND ISSUE AMENDMENT

y
ecutive Committee Of the Taxpayers
Association Of New Mexic0.)
At meeting OF the Executive Com
mittee Of the Taxpayers Association
OF New Mexico, held at Santa Fe. Aug.
18th and 10Th, at which n ma iority of
the committee were present. the fol
lowing statement was prepared and
authorized to be published with ref
erence to the proposal TO amend the
constitution so as TO give power to the
legislature 10 issue bonds without sub
hitting the matter to the voters of the
state:
The amendment proposed. II adopted
would Introduce most unusual pro-
vision into our constitution. The mat
ter of mourning Indebtedness Is one
TO be decided by the people. IT, was
the purpose of those who wrote the
debt limit provisions of our constitution
to follow the principles which prevail
In most OF the other states and there
fore no debts were permitted TO he in
CURED by any political mnlt except by
a favorable vote of the people. No
county, city or school district may is
sue bonds except upon scuch a vote.
In tie case Of counties and cities, the
voting Is limited to the electors who
are also taxpayers. We believe, there
Is contrary TO the spirit of the Ameri-
can principles and out of the line with
the theory upon which our state gov
eminent Is based.
The meaning Of the proposed amend
ment Is obscure. The most careful
reading and analysis fail 10 disclose
any real limit and the whole effect of
the amendment would be to make void
the entire constitutional provision
which 1t pm IT. TO amend. Under
the amended SEQ ton Il would he pos
sible to issue bunds up To the limit OF
S3,IJO,OO0, or one per cent of the valu-
ton based upon the assessment for
1918, by an affirmative vote of the peo-
pie. An additional amount In bonds.
debentures and certificates of Indebted
ness can then be issued for roads. 10y
the legislature without vote of the
people. We are, however unable to find
In the proposed amendment any limit
for such additional indebtedness. Ac.
cording to reasonable Interpretation
of the language as used the legislature
may provide for any number of bond
issues Of $2.000,0OO each payable
from advalOrem taxes upon tangible
property and IL Is possible that de
bentureS and certificates of indebted
ness in addition to such bond issues
and payable in similar manner may
he issued.
II should he kept In mind also that
the limit Of $2.000,000 for each bond
issue payable from the taxes ON tangi-
BILE property may be exceeded II. I'm the
Judgment of the legislature, more funds
are needed 10 meet Fedral Aid. This is
not all--additlonal debentures and GER
tificates Of Indebtedness may he author.
lied and issued. TO be paid at such
times as the legislature shall
determine out OF motor vehicle licenses.
or other licenses or revenues. In other
words, the legislature may levy various
forms OF license taxes or provide for
other revenues and issue debentures
and certificates of Indebtedness payable
ont of such revenues 10 an undetermin-
able amount. This being our interpre-
tation, there IL. In our opinion. no
limit to the Indebtedness which may be
incurred by the legislature II the pro
posed amendment Is passed and the
qualified electors of the state" should
carefully weigh the matter Of placing
in the hands of the legislature a power
that might burden the state with taxes
for interest and principal payments
that would be appalling.
The argument Is made thar the Is
suance of debentures and certificates
OF Indebtedness payable out of motor
vehicle licenses and other licenses and
revenues which may be devised would
lower the tax rate. This argument
should he carefully examined sup
posing revenues from motor vehicle H.
censes for ten years are appropriated
for present purposes through the is
suance of debentures TO he paid out OF
these revenues as they accrue. we be-
lieve that the state will he deprived for
that period OF revenues that would
otherwise be used for road construction
and maintenance and that such reve-
nues os appropriated would have 10 be
replaced by some other forms OF taxa
ton.
In answer TO the argument that the
adoption OF this amendment Is required
80 that provision may he made Tor
meeting, dollar for dollar, the Feedral
allotment OF $i.3S9.O0O for road con
structlon, attention Is called To the
fact that the last legislature provided
for compulsory tax levies uniform
throughout the state, aggregnting four
and one-half mills, the proceeds OF
which are TO he spent ON state roads
for the declared purpose Of meeting the
Federal allotments. In addition motor
vehicle licenses. delinquent state taxes
prior 10 1915 and other revenues are
covered into the State Road Fund
the state Is given ample
time to meet the Federal Aid allot- /
nents and therefore there Is no neces-
sity for adopting the amendment for
his reason.
The Taxpayers Association Is In