Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-22
BETTER BUDGET|NG
URGED FOR ROADS
Officials Prepare to Keep
Highway Money at
Work.

In order to successfully carry out the
mandate of the people in the great en-
terprise of bodybuilding State highway
officials are turning their attention
more closely than ever to the proper
budgeting of highway expenditures. This
they conceive to be the first and most
essential step toward keeping the road
dollar at work where 1t logically be-
longs.
First, the necessary capital for high
way construction and, second, the best
and most effective and far-reaching use
of that capital, according to a bulletin
issued by the American Association OF
State Highway officials, Is the goal set
for the new period upon which road
builders are now entering.
At the recent annual meeting of State
highway officials at Pittsburgh, the bull
letin states, the matter of proper bud
getting of highway expenditures was
| taken up as one of the important sub
jects for consideration and definite ac-
ton.
Defined rs Total Amount.
A highway budget, it was agreed
should be defined as the total annual
amount available for expenditures in
each State for highway purposes and
should be adjusted to meet the annual
requirements of maintenance and con-
Struction contemplated. Further, all
road Improvements should be made on
basis of present and probable early
future earning capacity. No public
works should be measured by immediate
financial return, though this should be
major consideration in the selection
Of the character Of improvement.
The wide variance in the present
status Of highway development in the
several States, members Of the aSSocia-
| ton agreed, prevents the adoption OF
uniform policies for securing the funds
| necessary for the annual budget. Gen.
orally speaking, however, these princi-
Piles may be set forth as follows:
States in the initial stage of high
way development should issue bonds to
defer that portion Of the annual charge
| for construction which would overbur-
| den. either the property or the road
( user.
States where original construction
programs are we'll under way can, in
| the main, finance normal new construc-
ton from current funds, utilizing bond
issue funds to defer the cost of special
projects.
States where original construction i:
largely completed are concerned chiefly
with maintenance and reconstruction ant
| SIlOulQ ucpcIIu OH CURRENT IuIlQS, save IL
cases OF emergency.
Various Principles.
estate highway bond issues should be
serial in form and should mature over
period OF not exceeding 80 years.
| Highway bonds issued by political
subdivision of a State should be seria
in form and should mature over a Pc
Rod not exceeding 20 years.
Serial maturities should be arranged
so that the annual requirements Of
principal and interest will be as nearly
uniform as practicable.
| Sound financing requires that the
retirement OF State bonds, as we'll a
the interest thereon, be provided fol-
| from the receipts of motor vehicle
license fees and gasoline taxes, but the
full taxing power of the State should
be authorized to guarantee the principa
and interest, not only as a provision In
case of failure of these special levies
but also to secure a lower rate of inter
est from the purchasers of the bonds
| The above statements constitute the
revised principles of highway admins
tration and finance and may be taken
as a safe guide for such work as may
come up in the various States.