The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-11-21
NEXT LEGISLATURE
TO FACE PROBLEM
OF LARGE DEFICIT
Must Balance This Years Bud.
get in Addition to Pairing
New Expenditures
TAX DELINQUENCIES BLAMED
General Fund Is Short as COL
Iections For Last Three
Years Lag Behind

Tears Lag 0enlnu
In addition to cutting $2,500,O00
from appropriations for the next BIZ
ennium, the 1888 legislative session
must find some means of balancing
the current budget, it was disclosed
Monday.
The more immediate question is
presented as a result Of heavy tax
delinquencies, which have reduced
collections this year, and the further
fact that the current levies were
made on the restricted basis pro-
vided in the initiated law which fixes
the taxable valuation at one-half the
real valuation, instead of at Is per
cent as formerly.
To date tax collections for 1929,
1880 and 1881 are $9360O0 below nor
NAL and Of this amount $500, 900
would have gone to the general fund.
Salary reductions are expected to
account for saving Of 100000 by
the time the biennium ends next July
and savings made In operating state
institutions may account for $460. 900
more, but even II these items mate
rialize there still win be a yawning
deficit In the state treasury.
Under the 1892 state tax levy ST.
213,354 would be derived under ordi-
nary circumstances but this amount
is 1881 900 short of legislative appro-
priations for the year, even after es-
timated savings have been deducted.
The nature of the problem is in
dicated by the fact that requests for
1925, 004.76 have been filed by state
departments and institutions with
the state budget board. This figure
Is $273, 429.16 less than the amount
appropriated by the last legislature
but it must be cut to $6,00O,0 900 or less
unless new revenue is obtained.
Salary Cut Saves
The 20 per cent salary cut is ex-
pected to save 100000 annually but
no estimate is available as to the
amount to be saved by the reduction
in mileage fees.
Whether the budget board will
pare $2,500,000 from the requested
appropriations has not been deter
mined. 1t can recommend hori-
zontal cut, suggest specific reductions
or pass the whole problem to the leg
iSlature as whole.
A suggestion for obtaining revenue
for general purposes by eliminating
the state aid to common schools,
which cost $680,000 this year, has
been considered, it was learned Mon
day. This and proposal to divert
gasoline tax revenues to general pur-
poses. along with general sales tax,
are the main ideas proposed for OBJ
tanning additional revenue.
In additio nto these perplexities, 1t
became increasingly apparent Mon
day that the salary-reduction law
would be challenged in court. In adj
dition to the bald question Of wheth-
er the law is constitutional, many
questions of administration must be
ironed out and it may be these which
send the measure to the states trib-
unals for decision.
For instance. section Of the law
requires all salaries to be in full COM
pensation for services and all fees to
be turned in to the general fund. The
oil inspection and somo
other departments operate on fees,
paying salaries therefrom. II this law
is strictly interpreted the depart
ments may have to close, for the only
way to get money from the general
fund Is by legislative appropriation.
When Is It Effective?
Another thing which must be ironed
out is when the law is effective, II at
all. The act itself specifies Decem-
Der I, but it cannot be accepted as
law until the canvassing board off,
cially determines that it was approx
ed, which will be December 6.
Another item Is that provision
which prohibits anyone from receiv-
ing a salary greater than that paid
to members Of the bureau or board
which employs him. II this Is liter
ally construed the heads Of all state
institutions and all employees, includ-
ing those of the university and agrt-
cultural college. would be limited to
s., 400 q year, the salary fixed for
members Of the board Of admintstra-
ton.
II It Is not brought before, q test
case probably will be filed when the
state auditor issues salary checks for
December. These usually are issued
earlier In December than in other
In anticipation Of Christmas.
The attorney generals department
has been studying the matter In an
ticipation Of requests for opinions.
State Auditor John Steen will want
advice on the matter before he writes
the checks.
FARMER rs KILLED