Smyrna times., 1929-02-06
PAY-As-YoU-GO PLAN FAVORED
Recommendation Made BY Governor
Buck in Inaugural Address, Reasons
to Believe 1t Can Be Done

Can the State of Delaware be plac-
ed upon a pay-as-you7go basis and
when? This is one of the things
which has been occupying the atten-
tion of a number of those interested
in the State government since Cover
nor @. Douglass Buck made such a
recommendation in his inaugural ad-
dress. While the Governor is not max
ing any public announcement of plans
to accomplish this importants purpose,
there is every reason to gelieve that
it can be done. To begin with, the
State Highway Department at the
present time is self-suporting and will
continue to be in the future The
Sinking Fund Commissioners have al
ready decided to redeem $4,000,000 in
State bonds during the fiscal year end
ing on June 80 next. This will mean
a reduction in interest of about $780,
900 year. This can be allowed the
State Highway Department toward
road work. The amount paid by the
Highway Department into the sinking
fund each year is more than enough
to meet the interest and sinking fund
on the bonds outstanding and as this
accumulates, more bonds can be re
deemed, the interest charges reduced
and more money made available for
road building. 1t is figured that with
in reasonable short time it will be
possible for the State Highway De
partment to spend S1,000,000 a year
on new roads without issuing bonds.
This figure is considered ample at the
present time, but the funds of the de-
partment will increase as the tax on
gasoline and the number Of automo-
biles which pay licenses, increase. So
much for the State Highway Depart
ment. There is no hard work involv
ed in figuring out this plan because
the department is already self sup
porting.
School System Uses Plan
The State school system is already
on pay-as-y -you-go basis and will con
tinue to be unless special acts are
passed which will take the school rev
enues. At the present time there is
ample money in the school fund to
take care of the new building pro-
gram which will cost, if the plan of
the State Board of Education is fol
lowed, S2,750,000. There is already
enough money in the school surplus
to take care Of the school building
program. Of course the revenue for
schools will be decreased by about
100000 a year if the Is cents on the
$100 for State school fund is repeal
ed. There will also be a decrease at
the start Of about 100000 year in
the school fund if the change is made
in the law proposed by Tax Commits
sioner Pierre S. dupont that Delaware
corporations be all placed on the same
footing and pay a franchise tax in
stead of those whose property is To-
Gated in the State paying an invested
capital tax. It is predicted, however,
that this can be made up because the
number Of corporations chartered in
Dover is increasing yearly. There was
an increase of 500 last year and on
account Of the favorable Delaware
laws it is expected the number Of
charters granted will increase yearly.
School Board Asks S3,OOO,OOO
The State school board is this year
asking for s3,OOO,OOO a year for
schools. If this amount is adhered to
there will be no difficulty about meet
ing the expenses Of the schools. Tax
Commissioner DUPONT estimates the
amount received in income tax to be
about the same as for the past year
when it was S3,44O,OO0. There are
also some school funds which are in
vested and bring in considerable in