The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1928-08-09
MILLIONS OWED BY
STATE Is THE CLAIM
First Official Survey Ever
Made Shows State Debt
of $33S,O39,5O2.22
SCHOOL DEBTS HEAVY
Cities and Villages Owe Most;
County Highway Bonds
Next in Line

st. Paul, Aug. minnesota s
state government and its subdi-
visions, counties, school districts,
municipalities and townships are in
debt a total of $338,039,502.22.
the state tax commission reported
Saturday following the first official
survey ever made in the states his
tory.
This is an increase of seven per
cent in its Indebtedness over an un-
official report of debts of the Min
nesota public made as of October
1, 1924, by Ray P. Chase, state
auditor, which produced a total
of S315,878,691., or S22.160,818
less. The tax commissions re-
port, which was authorized by an
act of the last legislature in order
to obtain reliable data on state
finances, are based on figures as of
December 81, 1927.
The total indebtedness by gov
ernments as announced by j. G..
Armson, of the commission, COM
pared with the 1924 totals. follow
State government, exclusive OF
highway reimbursement bonds,
1924, S45, $4,000, including $780,
100000 in rural credit bonds is
sued up to that time, 1927, $780,
O99,358, including $47,000,000 in
rural credit bonds. Rural credit
bonds, although finally secured by
the state do not constitute a debt
to be raised by taxation but the
money is used for loans with the
state acting as a financing agency.
Counties, including highway re-
endorsement bonds, 1924, $685.
sol, I'll; 1927, $92,572.650.
Townships, 1924, $5,725,092;
1927, $4,307, 054.
Cities and villages, 1924, $119,-
904,11S; 1927, s112,365,467.s
School district, 1924, S48,938,-
70S; 1927, $72,694,987.
While counties, townships and
municipalities have reduced their
load of Indebtedness in the last
three years, school districts have
made the greatest increase. The
state, although con paper" its
debts have been increased because
of rural credits, has actually re-
duced by AZ per cent its debts
which are to be paid out of tax
alton, Mr.. Armson said. g..
On the basis of the United States
department of commences official
estimate of Minnesota's popula-
ton for 1925, used by state de-
partments, 2,563,550, the per cap
tia public debt in Minnesota is
$131.S6.
"The growth in state indebted
ness" Mr.. Armson said in the re.
port referring to the paper" in
crease of $10,380,358, "is appar-
ent rather than real, because it is
entirely due to the increase of
$17,000,000 in rural credit bonds.
These are secured by mortgages
on improved real estate and do not
constitute a tax obligation, unless
in event of insufficient general Sc
curity of foreclosed property.
"Apart from this increase the
indebtedness of the state shows an
actual decrease. On October 1,
1924. the tax obligation indebted
ness of the state amounted to
$15,719,000 while December 81,
1927, it had dropped to $9,099,-
35S, a decrease of $6,619,641, or
AZ per cent in a little over three
years. In addition to this decrease
the highway department has trans
ferred SS.OOO,OOO to a sinking
fund for the retirement of county
highway reimbursement bonds.
Continued on Page Four)