The Winslow mail., 1926-07-02
Road Men Endorse
State Highway Bill;
Oppose Auto Bill


new state highway bill and going
on record in resolution as oppos-
ing the new motor vehicle requisi-
ton bill, the summer conference of
the Arizona Good Roads Associa-
ton adjourned last Saturday after
noon at Flagstaff following a two
day session.
The invitation of Senator A. T.
Kilcrease to hold the annual meet
ing in January in Casa Grande
was postponed and Phoenix was
given the session because of the
legislature convening there.
The state highway bill is an in
itiative measure providing means
for raising revenues to support
the state highway department.
road building program. The fea-
ture of the rejected measure, also
an initiative one, is the reduction
of fees for motor vehicle licenses.
These bills were presented to the
convention Friday at the afternoon
session. Under the plan worked
out, the highway bill will require
anticipation bonds to raise the
funds necessary to meet the fed
eral aid which is apportioned to
Arizona.
These bonds will extend over a
period of about Is years, before
which time the finances are raised,
the presen t gasoline taxes, motor
al fhn
tax will be sufficient to meet all
road expenditures and will pay off
the bonds, without the increase of
any item of present taxes, it was
claimed by advocates.
The citizens of Flagstaff were
thanked in resolution unani-
mously passed by the convention
for the entertainment furnished the
delegates.
The state highway finance bill
prepared by the Arizona Good
Roads Association for the purpose
of reinacting the revenues now
moulded in the highway appropria-
tion bill Of the regular session of
the Legislature of 1923, and for
providing the additional finances
required for state highways and to
save 10 the State of Arizona the
federal aid allotments now avail
able is based upon the usual busi-
ness methods of finance.
The state highways have a def
mite earning capacity the same as
any business concern so long as
the revenues now set up by law
are existing. These revenues are
each increasing more or less with
the progress of the state. While
the annual increase of any one
item is not so great, the total sum
of the annual increase in consider
able. This\tOtal annual increase
based upon the past records and
the law of averages takes the form
of a parabolic curve.
While the revenues now accru-
ing are inadequate for present
highway requirements, the calcu-
lated increase in these same rev.
enues show that by 1886 they will
be raising in excess of $4,0O0,000
per annum, and increasing from
year to year thereafter.
In order to provide the funds
now needed it is proposed to issue
anticipation bonds in the annual
amounts not to exceed the differ
ence between the total estimated
revenues for the year and high
way program of $4,O00,000 and at
no time exceed total accumulat-
ed issue of over $10,000,000. These
bonds to be entirely amortized
from the revenues accruing TO the
highways after these earnings ex-
ceed the $4,000,000 program.
First: 1t re-enacts the ten cent
levy or the one mill tax upon one
dollar of assessed valuation Of the
state; the three-cent gasoline tax
and the motor bus and truck tax,
for the reason that these revenue
provisions pass out early in 1927
when the appropriation provided
for in the measure in which they
are included, will be raised.
Second: 1t creates state high
way fund, and places all revenue
accruing to the state highways by
law into that fund for the purpose
of permitting of the issuance of
anticipation bonds against this
fund
Third: 1t provides an annual
highway program from state sourc-
es of $4,O00,000.
Fourth: 1t provides for an es-
innate of the revenues by the state
treasurer to the loan commission
each year.
Fifth: 1t provides that the loan
commission may issue bonds for a
years program not to exceed the
difference between the estimated
receipts and a $4,000,000 highway
program.
Sixth: 1t places a limit of $10,-
100000 upon the total accumulated
bond issues.
Seventh: 1t provides a definite
sinking fund for the amortization
of these bonds from the sources of
revenues set up by law to the high
way fund after the revenues ex-
ceed the $4,O0O,OO0 program
Eighth: 1t provides a maximum
life of the bonds of not to exceed
fifteen years.
Ninth: 1t provides that all ex-
penditures must be budgeted prior
to the wear in which it is to he ex-