The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1932-09-22
NEBRASKA WITHOUT
| DEBT BECAUSE BOND
| issues ARE ILLEGAL
Constitutional Bar Has Made
Cornhusker State Pay
As It Goes
PARDONABLE PRIDE SHOWN
Arkansas, on Other Hand, Clar.
ing Example Of Debt
Ridden State
BY GEORGE d. MANN

Lincoln. NeD., sept. ~. - Nebraska
is debt free state. There is a con-
stitutional bar to the issuance of
bonds. This does not mean necessar-
lily that there have been no extrava-
gances in government, whether state,
county or municipal. Nebraska state
government is shining example Of
the pay as you go policy.
After almost 10 years of construc-
ton, there Is drawing to completion
one of the most unique capitol build
ings In design in the United States.
There are only few minor items Of
construction left. The structure is
wholly occupied and there is not one
penny owing on 1t for posterity to
pay.
Nebrasxans, when they talk about
their debt free state, display a par
donable pride. They are happy that in
these days of economic unrest. no
great bonded indebtedness with it's
staggering interest charges stares
them in the face.
The new capitol cost some $ll.O0O,-
600. It has been financed by a bien-
mum tax levy of % mills. Construc-
ton was begun in 1923 when building
costs were at the peak.
Poor old Arkansas not so many
miles away is a horrible example of
debt ridden state. 1t has now an
outstanding bonded debt of 200 mil
lions and state expenses in the land
of Ozarks have mounted from one mil
lion annually IN 1900 to IS millions
in 1882. These cornhuskers of Ne
braska like to quote you these statiS-
tics by way Of comparison.
Prepare Budgets Carefully
Nebraska, through its governor and
tax commissioner, complies and pre-
sents to each legislature a carefully
prepared budget. These officials are
supposed to have considered all the
requests of the various state depart
ments carefully and governors pro-
posed budget carries some weight with
the legislature. In fact it takes a
three-fifths vote of the legislature to
pass appropriations in excess of the
governors budget. That fixes respon-
sibility. There is little passing the
buck under such system.
It costs the state of Nebraska be-
tween $4,000, 900 and 100000 a bien-
mum to run the various state func-
tons of government. It's tangible
property valuation in round figures Is
three billion. Approximately $780,
100000 more comprises what is known
as intangible property, chiefly money
and credits. Nebraska has no income
tax but friends of that form of rails
ing revenue are busy agitating such
tax.
Salaries of state officials and en-
ployes have been in the lime-light re-
Gently in a Lincoln newspaper. For
several weeks. one of the daily news
papers has been running the state
payroll as a serial. It has proved a
very interesting serial but embarrass-
ing to some of the departments. Com
pared to North Dakota, the salaries
Of employees are about in line with
ours. Experts and heads of depart
ments may be getting more but in
many instances smaller salaries are
paid. but the average will be about
the same.
Would Decrease Budgets
There are persistent and popular
demands in this state for decreased
budgets in all political subdivisions.
AS a result of the drive for lower
taxes Nebraskans will pay hundreds
of thousands of dollars less taxes.
Counties made their chief savings by
elimination Of road and bridge levies
or materially cutting them. Heavy
demands for charity due to the de-
preston prevented the counties from
slashing budgets even more.
School districts did their biggest
cutting by reducing salaries ranging
from five to Is per cent. Rural schools
cut heaviest. Town schools cut ath-
letic and music expenditures. Even
SURPRISES acquired in good years will
be used to help through the lean
ones.
Heaviest demand for reductions
have come from small groups organ
lied In taxpayers leagues. Member
ship In these leagues is composed of
farmers. hard-pressed by declining
prices paid for their products. and
townspeople with heavy real estate
holdings. Although Nebraska has the
initiative and referendum, its people
have been able to force tax reduction
without resort to those clubs. Ne
braska, like all states In these times,
Is keenly tax-conscious. Grumbling
of taxpayers generally has spurred
many office holders to aid In the tax
reduction movement.