Evening star., 1932-08-16
MICHIGAN SAVES
S6,0O0,0OO IN TAXES
Spending Less Money Re-
suits in Reductions Also
in Local Road Leviss.
Special Dispa tch to The Star.

Special Dispatch to The star
LANSING, Mich. August Is (NA.
/ Michigan has cut its State
property tax $6,000,O00 since 1880
through the simple expedient of spend
ing less money.
1t has made possible a $4,000 900 re-
ductlon of local taxes for highway pur-
poses by providing that the entire
amount received for automobile license
plates shall be distributed among the
counties. Hitherto only half the re-
ceipts have bsen so distributed:
In the fiscal year which ended June
80 the State government spent about
$5,000,000 less than in the preceding
year. This saving was accomplished by
spreading an institutional building pro-
gram over long period cutting wages
and, in some cases. reducing personnel.
The drop in commodity prices helped,
too, particularly with regard TO the
| feeding and clothing of State wards
and inmates of penal institutions.
Early this year Gov. Brucker called
the Legislature into special session for
| the purpose of effecting further econo-
mics and of giving 'relief to deliquent
| taxpayers, and to counties and road
districts faced with the necessity of
defaulting their obligations. The Gov
ernor recommended that appropriations
for the fiscal year beginning July l be
cut Is per cent.
Appropriations SIashed.
In general. the Legislature followed
his recommendations. When the Ses-
| sion was at an end appropriations
! totaling S37,844540 had been cut to
! S32, ,256, ,602. The saving was SIS, ,587 ,938.
! Gov. Brucker, who is seeking re-elec-
! ton for a second term, has declared
many times that If Michigan's cities,
counties, townships. villages and school
districts would follow the States exam
pie the saving to the taxpayer on real
| estate would amount TO $50 900 900.
This statement arouseS the indignation
OF many local officials, who assert that
most Of the governmental subdivisions
cut their budgets before the State took
action. The most recent statistics avail
able show that real estate taxes Of all
kinds amounted to 1854, ,000, 900 in 1881
as compared with $266 900 900 in 1890
| Included in these totals are the State
levies Of $29.500000 in 1880 and $29.-
100000 in 1881. For 1882 the State tax
will be $23,500000.
In its bill cutting appropriations for
the operation of departments and in
stitutions the Legislature specified that
the prescribed savings on personal
service" should be accomplished by
salary reductions ranging from 10 per
cent for employees getting more than
$1,000 but less than $4,000 annually to
Is per cent for employees receiving more
! than $1,000 year. These reductions
became effective July L.
A clause in the State Constitution
safeguards the salary of an elective or
appointive officer during the term for
which he was elected or appointed. but
most of the officials so protected have
accepted voluntary reductions. Gov.
Brucker cut his own salary from $5 900
to $4,000.
Commission Of Inquiry.
With view to further reductions Ct
State expenses, the Legislature created
a commission of inquiry into State gov
ernmental costs, consisting Of nina
members, three Of whom were appoint
ed by the Governor, three by the Speak
er of the House, and three by the
lieutenant governor, presiding officer
of the Senate. This group is engaged
in an exhaustive study of all State ac-
tivities. BY means of questionnaires it
is gathering vast stock of informa-
ton about the record. duties, COM
pensation and connections of every
State employe. 1t will report to the
Legislature at the beginning of the
next regular session, early in January,
1888.
The Horton act, providing for return
of all the automobile license money to
the counties, was adopted only after a
hard fight. Mighican gets about S2o,-
100000 a year through the issuance Of
license plates, and about the same
amount through the tax of cents a
gallon on gasoline. Except for $l0,-
100000 distributed to the counties,
practically all of this money has gone
tN fI1n fofA f0f1rr rfv1
has been spending as much as $40
100000 a year on the construction Of
trunk line highways.
Giving the counties another 100000
900, the Horton act naturally reduces
the States construction fund by about
the same amount. This Is not pleasant
to the sparsely settled counties Of
Northern Michigan. Their gasoline tax
and license plate payments being small,
they receive a small proportion of the
money returned to the counties, even
though the distribution is not upon a
strict basis Of collections. On the
other hand. many of the States finest
trunk-line highways traverse these same
counties. So they wanted the States
construction fund kept intact.
However, the demand of the indus
trial counties for highway tax relief
was too great to be ignored and the
Dill was adopted. IL sets up q priority
list of uses to which the counties may
devote the money returned to them.
All are highway uses of one kind or
another, for the Legislature intended
that there should be reduction of at
least $1O,000,000 in local highway taxes.
Michigan has adopted no new taxes
because of the depression, nor has 1t
place any legal limits upon taxation in
recent years. Detroit's voters have
just defeated a charter amendment to
limit the city budget for this year to
SCI 100000 In November the voters
of the. whole State will pass upon a
constitutional amendment limiting the
total of real estate taxes of all kinds,
State and local, to SIS per thousand
of assessed valuation. In 1881 the av-
erage rate was 1926 per thousand.
Adoption of the amendment, it is gen.
orally agreed, would force the enact
ment of some special tax measure,
possibly an income tax law. But op-
ponents of the plan are encouraged
by the result of the Detroit election.
Copyright, 1892. by North American News
paper Alliance, Inc)