Perth Amboy evening news., 1920-02-28
%&sa
DrsREGARDING DANGER SIGNAL

county tax rate for next year comes
,ust In time to be considered by the
along with the proposition
Of the Board of Freeholders to in
crease the county debt limit so that
they can go on spending more money
thus adding to the burden.
Among the largest increased
of proposed expenditures for
next year are s43,5O0 for bonded debt
falling due and $4,000 interest on
bonded debt. If the Board of Free
holders have their way this increase
will be sttll greater the year follow
ing.
The amount Of money which NUM-
cipalities may borrow as bonded In
d~ebtedness Is fixed by law. At the
present time the law permits coun-
ties to borrow up to 2 per cent. of
their average assessed realty valua-
ton. An effort is now being made by
the freeholders TO nave a new law
enacted increasing this limit to 4 per
cent, of the assessed valuation. This
would double the spending powers of
the freeho.ders.
But h fact Is that In 1916, when
the present law was enacted, Middle
sex, Bergen. Cape May and Morris
counties had already issued bonds In
excess of 2 per cent. of their assessed
valuations. For their particular benz
eft the law provided hat in cases
where counties were already In debt
beyond the proposed limit of 2 per
cent, UGH counties could borrow an
additional amount not to exceed /
per cent. Thus four counties which
were already deep in debt were per-
mitted to borrow on bonds up to 3
Middlesex county being one of them.
With his leeway. the freeholders
proceeded to issue bonds until now
even that additional l percent, which
this county enjoys over most of the
other counties. has been exhausted.
and the county board is grasping for
more.
County Solicitor Richardson, who
seems to be the prime mover In tho
agitation for the increased debt limit,
has prepared a printed statement set
ting forth his reasons why the debt
limit should be increased. His final
argument is as follows:
'That inasmuch as Middlesex is now
S~1,174,016 81 in excess of the 2 per
cent. and has exhausted h 1 per
cent. so that even If all new work
were stopped completely for a period
of five years and not a new bond was
issued during that time. the county
would not at the expiration of that
time be in a good financial condition
under the present law"
In other words, Middlesex county is
so hopelessly in debt that there Is no
use trying to come within the present
legal limit. Therefore throw the lid
off and pile up the debt regardless,
What's the difference? The people
have plenty of money II will have
to pay In the end. If expenditures
cannot be kept within the legal limit,
raise the legal limit from year to year
so as to keep ahead of the eNpendi-
lures. Nothing can be simpler. pro
vided The members of the legislature
see it that way.
Mr.. Richardson, in concluding his
statement, declares tina "however
sound these arguments are the fact
remains that the financial situation
must be permanently helped and not
merely tinkered with
Quite true. And does 1t occur to Mr..
Richardson that n of the ways that
this particular financial situation may
Middlesex is so far over the legal debt
limit which seems to be satisfactory
to q najorities of the counties, is to
cut county expenditures to the bone;
reduce the outstanding obligations by
every means possible and get the
county debt down within the prescrib-
ed limit as quickly as possible? or
would that be making it too easy for
the taxpayers?
With a great big increase in the
county tax rate next year. ven as
matters now stand, we do not believe
the taxpayers OF the county are in any
mood to agree to throwing wide open
the doors for still more bond issues
when taking care of the bonded debt
already saddled upon the county is n
OF the biggest Items in the tax budget.
Rather, is It not time to heed the
warning? Ought we not to put on
the brakes and pay off some of the
obligations before mourning
more? 1t ts a bad practice to run
past the danger signal n that is
what the debt limit vas ixed for.