The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-06-24
TAXPAYER IS
FACING MORE
RATE RAISES
City's Finances in Alarming
State, Canvass of Prospects
for Next Year Shows-Ex-
penses Mounting.
SCHOOL DILEMMA BAD

Richmond taxpayers will be called
! upon in 1921 to meet another increase
| in municipal and in school city taxes
Byram c. Robbins, city attorney, ad-
mlts that in his opinion slight in
crease in the municipal rate will be
necessary The present rate is 81
cents per 800 of taxable valuation.
Lawrence Handley. a member of the
Richmond school board, states that it
is not question of whether the school
city rate is to be raised, that the only
question is how much of an increase
VIII be required. The present tax
rate is 20 cents.
Staggering Figure is Total
10 add to the woes of the taxpayers
tax rate increases for the state, for
several county funds and for township
SCHOOLS are impending. At this time
IL would be impossible to estimate
what the total tax rate will be next
year 1t will be a staggering figure.
however. That much can be said.
Inc situation which now confronts
the Richmond school board is an EN-.
oarrassing one and not of its own
making. 1t is a condition primarily
que to penny wise, pound foolish
policy pursued by former school
boards, at a time when taxes were
moderate. interest rates were low and
building costs were normal, according
to those who have made a study of
the school situation in Richmond.
Briefly stated, former school boards
failed to provide for the growth OF
the city. New schools were not pro.
vlded and the old ones were not en-
larged nor modernized
Now Piper Must Be Paid.
AS the heirs to the conservative
policy of former boards, present school
board faces the condition of overflow
ing schools. abnormal costs for the
construction OF new buildings, and a
constant increase in the number Of
school children.
But new schools must be provided
no matter what the cost may be. and
plans have now been made for the
construction of two Junior high
schools, one in West Richmond. on
Peacock hill, the other on South Twen.
ty-third street
The west side school is to be the
nrst one built. providing of course. the
proposed bond issue is approved by
the state tax board and, in which
a market for it's bonds.
FIotation Presents Problems,
1t is admitted that the floating of
such an issue may be difficult al.
1hough the bonds probably will bear
SIX per cent interest, because of the
conoluon OF the security market
But the expense of providing new
school buildings is not the only oues-
tlon entering into the fmpendinp
school city tax rate increase. Thera
is also the question of providing addf.
tional funds to meet the recentlv
authorized increase in the salaries OF
teachers and janitors.
This item alone will mean an addi.
tional expense of approximately $50 Ooo
the next school year No one cues.
uons the justice of the action of the
school board in increasing the saIar.
les or the teachers and janitors.
Last fall the school board levied a
TAX or - cents. Later the state tax
board reduced this tax to So cents.
out When the board was convinced
,hat the Richmond schools could not
De operated on such a rate the tax
board authorized a 20 cent lew for
the Richmond school city.
Deficit Must Be Faced
AS stated by Mr.. Handley, the Rich
mond schools must be operated on
this 7O-cent rate from next Septem.
Der until May, 1921, although the
school city will be called upon to meet
the addlt1onal expense of the approx
mate $4,000 inrease in salaries for
scnool employees during that period
Ihe 1O-cent rate, however will NOT
weld this additional amount. In fact
the present rate is barely sufficient
to meet present expenses.
Therefore. a deficit of between
$4,000 and 100000 for the neriod
from next September to next Nav is
anticipated. This will be provided for
by loan.
Whether the new school CITY tar
rate which is to be fixed this fan
VIII De considerably increased to pro-
Vlde Tor interest payments on the con-
templated bond issue. and for the TAX
ing up or the anticipated loan next
year plus the normal school operat.
ing expenses; or whether a smaller
rate increase will be established with
the end in view of taking up the an
ticipated loan over a period OF YEAS
is the problem to which the school
board will soon have to find an an.
sWer
May Get Back to S1.1o
1t is a startling fact, but admitted
to be true by school board members.
that within a few years Richmond
taxpayers may find themselves con
fronted with the same school city tax
rate. s1.10. which obtained before the
valuation for the citv w.s
doubled. in 1919
This would mean a Accent Increase
IN the rate. This condition could he
brought about by merely providing for
the normal needs of the schools.
Richmonds only modern ,r.aa
school. the Joseph Moore building in
west Richmond. is now about 10 wears
old. Since its construction not an.
other school has been provided, with
.ns iesult mat terrible state Of con-
gestion existed in every school IN the
city the last school term.
This condition will be worse the
coming school year because there will
De larger attendance. To illustrate
the state nf ffof