Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-12-06
STATE BONDED DEBT
AVERAGES $40 PER
CAPITA, Is REPORT
CONTINUED from Page One.)

recommends changes in the pres
ent system.
First, they advise n constitution
al provision making it impossible
to issue bonds for a longer period
than the life of the improvement
desired. THE maximum of fifty
years provided in the constitution
is entirely too long" says the re-
port. Pending the adoption of a
constitutional amendment, statutes
relating to bond issues should
make clear requirement that
bonds should be issued in such a
way as to be retired in a reasona-
BILE time. If this requirement is
not specified, we may find bond
issues burdening the taxpayers of
this and future generations long
after the so-called permanent inn
provement had disappeared" The
commission apparently realizes that
permanent improvements are not
eternal and need to be replaced.
The commission points out that
the counties apparently have made
no systematic effort for the retire
ment of bonds. OF their bonded in
debtedness. about $1,250,000 was
issued for funding or refunding
purposes. Interest levies are
made regularly but levies for sink
ing purposes are not made in
accordance with the requirements
of the laws under which the bonds
were issued" says the report. 1T
sometimes happens that sinking
fund levies are made in a certain
year and in later years the pro-
ceeds Of such levies may be used
to pay interest. :. The remedy for
this is to require the keeping of an
interest account and sinking fund
account for each bond issue in such
way that the money may be only
used for the purposes intended.
'AIl proposals to issue bonds
should be first submitted to the
state tax commission for its APP
proval, and no bonds should be
held regularly issued until regis
tered with the commission. In ap
proving proposals for bond issues.
the state tax commission should
the laws governing the
upon Indebtedness as TO-
the legality of all the steps nee
essary."
The report also suggests that the
tax commission set forth to the
public facts about the length OF
time for which bonds are to run
as compared with the life Of the
Improvement, and also that the tax
commission should prescribe the
methods by which funds are Sc
cured to pay interest and princi-
pal. The report favors serial pay
ments of bonds,-that is, it advises
that a certain portion be retired
annually.
AS to taxation limitations, the
commission quotes the restrictions
found in the constitution and in
the laws. 1t shows that the limita-
tons have been imposed and that
later laws have provided exemp-
tons for certain subjects which
practically defeat the purpose of
the limitations For instance, the
legislature of 1917 passed law
for state levy of one mill for
roads TO be exempted from the
limitations of section Il. chapter
81, of the laws of 1915. This levy
was increased to one and one-half
mills BY chapter l54 of the laws of
1919.
By chapter "a of the laws oil
1915, it is provided that mo coun-
ty, city, village or school district
shall in any year make tax levies|
which will in the aggregate pro-
duce an amount more than five per
cent in excess of the amount pro-
duced by the tax leyies therein
during the year preceding" The
object of the bills was to make
counties grow slowly in the matter
of expense. However, bills passed
since then have often carried a
special provision exempting them
from the provisions of this act, and
a move to make it into a consti-
tutional amendment in order that
such exemptions would be impos-
sible was defeated
The 1917 legislature provided for
a one mill county tax for roads for
the years 1917 and 1918, exempt
ing the levy from both the five
mill and the five per cent limita-
tions. In 1919, three mill levy
for roads was imposed upon the
for the years 1919. 1920
and 1921, the levy being excepted
from the limitations mentioned