Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1930-05-08
Montama's Road Program
Some Financial Problem

two plans, we think, should be adopted.
If the objective is simply to take up
the federal aid available, a bond issue
of $1,000, 900 or S7,000,000, or a maxi
mum of $40, 000, 900, made available over
a number of years, would probably ac-
complish such a result. Ii, however, a
consensus of Judgment should conclude
that our volume of travel is about to
require the building of hard surfaced
roads between the principal cities, it
would be necessary to consider a bond
issue Of S25, 000, 900 or $780, 900, 900, avail
able through several years. In this
connection, it is our understanding that
under the constitution and laws of
Montana, a bond issue OF this kind
would have to be submitted to the peo-
pie by the legislature. 1t could be
underwritten by the gas tax, but if
there should be a failure to fully take
care of the obligation through such
anticipated revenue, the credit Of the
state would rest behind such an issue.
If this opinion is correct, it must fur
ther be said that a bond issue, sub
mitted by the next legislature, would
not be voted upon until two years later,
and cash would not be available until
4ooo, " llCal W pllC tilQ Va UlC dQ-
t~horizations provided in the Dowell
measure just enacted. 1t would seem
that money needed now, and next year,
cannot be secured through a bond issue.
Whether or not a certificate of in
%debtedness plan, such as has been m
ployed by several states, could, under
the laws, be arranged by the Montana
legislature, to yield what is required
for fully using the federal aid allotted
to this state, we do not know. Perhaps
the lawyers can tell us about that.
The only other available state reve-
niue is the license tag money which
now the state turns over to the coun-
ties. 1t has been suggested that these
funds, or a part of them, be used for
the next two years to match federal
aid, and that the legislature arrange
a bond issue to supply required funds
thereafter. At least one-half of the
license revenue would be needed, over
the two-year period, until bond proceeds
/ could be available. The total license
revenue for the next three years will
probably exceed 81 500, 900 per year.
This is just about the only plan SO
far advanced that gives promise of
concretely meeting the situation, and
it may be the sensible way-at least,
temporarily.
At a highway conference In Helena
a few months ago, made up Of dele
gates from northwestern states and
Canadian provinces, a resolution was
adopted of this kind. All Of the pro-
ceedS of gasoline taxes are essentially
state revenues, and as such should be
expended upon some established road
system under the supervision OF the
state. How fully this principle may
be finally recognized in the western
states is for the future to determine.
There are many motor vehicle own
ers who are alarmed at the gas tax
refunds to agriculture and industry,
which have been mounting up until
they are apparently passing the 20
per cent limit, and who are advocating
the repeal of the refund provision OF
the law. 1t apparently is taking a full
million dollars a year to pay the re-
funds. This sentiment for repeal, we
think. arises out of the opinion that
considerable fraud is creeping into TINS
business, and is not against the pr1n-
ciple of a refund. However, we be-
lieve it would be difficult TO repeal the
refund part OF our law. III can I'M
doubtedly be amended, and corked up
and enforced SO that what fraud IS
now perpetrated may materially be cut
down. The present law should bC
studied with these things in mind.
Montana could not confidently con-
slider its future highway program be
fore congress had acted upon the
Dowell bill, and until the signature O.
the president was attached. Now we
must study the whole question to flnc
out what may wisely be done.