The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-04-07
LEGISLATIVE LETTER
BY R. w. Hitchcock, representative 6ist Dis

the people of Minnesota anything in
the way Of tax reduction it must come
through a reduction in the motor We
hicle license fee. Despite several con-
omies the state tax rate is bound to
increase.
One solid accomplishment seems
fairly certain to stand to the credit of
the legislature. 1t has reduced state
Spendings by more millions than was
once deemed possible. When the re-
publican state convention, about year
ago, declared for saving in state ap-
preparations of $5,0O0,000, Governor
Olson pooh-poohed the idea, emphati-
cally declaring that it was impossible.
Yet today, on the eve of the adjourn
ment of the forty-eighth legislature, so
vigorously have the finance committee
OF the senate and the appropriations
committee of the house used the pruning
knife that the reduction in appropria-
tons as compared with two years ago
promises to exceed the figure set by
the republican state convention by an
amount ranging from 100000 to
$4,000, 900.
But, alas, it is not to rejoice. Almost
it ayails the taxpayer nothing.
State Tax Rate Scars
The legislature at each biennial seS-
sion authorizes state expenditures
through five main appropriation bills.
The only one of the five already acted
upon by both house and senate is the
Ioor5 IF ooytrOl o,,r,,c,,-;s tio, hill x.,li nj,
provides for the support of the states
eighteen charitable and penal institu-
tons. The reduction in appropriations,
as effected by this bill, is almost S.
100000 as compared with two years ago.
The university has agreed to a cut Of
one million, and the legislature
threatens to lop off another million;
the teachers colleges will take cut Of
half a million; a more doubtful cut of
one to two million impends in the state
aid to schools; altogether educational
appropriations will be reduced at least
$2,500,000 and possible by $4,000, 600.
Appropriations for the maintenance of
state departments and state activities
will be $1,500,000 less than two years
ago. All these add up to grand ag-
gregate of the savings of at least ST.
100000 and the sum total may reach
$9,O00,0O0.
If the total appropriations this year
is reduced by 100000 the funds voted
for the biennium will be $36,000,000 as
aainst $44000,00O two years ago. Owing
to the drying up of all sources of in
come, the states receipts from indirect
taxes (groSS earnings taxes, occupation
tax on iron ore, etc. which usually pro-
duce the major portion Of the states
revenues, will yield not more than $l8,-
100000 for the biennium, leaving
$18,000,000 to be raised by direct taxa
ton. Pending, and urgently requested
by Governor Olson, is the proposal to
distribute 100000 during the coming
biennium in direct relief; this, if author
lied, will raise the direct tax exaction
to $2O,OOO,OOO.
Paying the Piper
The states venture into the money
loaning business has now reached the
point where the taxpayer must begin
to pay the costs of this social expert
ment. The costs are appalling. During
the biennium, money to the amount OF
$4,500000 borrowed by the state to
carry on this experiment must be paid
back, and the rural credit bureau has
nothing to pay it back with. Step up,
MIR. Taxpayer; there are couple other
small matters to be attended to before
you leave There is the trifle OF ST.
100000 in tax levy certificates issued
by the rural credit bureau for
expenses; please hand over this
amount at once. Also there is an item
of 100000 for certificates of indebt-
edness issued by your rural credit
bureau for more expenses" 1t will be
necessary for you to go down in your
leans for this also. Yes, the total is
$4,000, and you will, if you please,
pay pronto.
Owing to the steady falling of in
assessed valuations of real and personal
property throughout the state, and the
alarming increase in tax delinquency, an
increase of 40 per cent last year, state
tax levy of one mill will now produce
not much more than $1,500,000. To
raise the $4,000, 900 needed for general
state purposes for the next biennium
will therefore require levy OF more
than Is mills. To that must be added
standing levies of about mills per
year for various purposes such as the
Dunn one mill road tax, the one mill
school tax, and numerous others. This
will raise the rate for the biennlum to
% mills. To pay the rural credit piper
his $8,800000 will require levy OF 6
mills more. We now have, if the legis-
lature inflicts nothing else on us, a total
of % mills necessary to be levied during
the next two years for state purposes, or
a state tax levy of 14.5 mills each year.
The state tax levy this year, 8 mills,
was the highest in the history OF the
state. yet Notwithstanding the extra
ordinary savings, amounting to APP
proximately $S,OOO,OOO, made oy the
legislature in state expenses, we are
faced for the coming two years with
the possibility of levy of IA to Is
mills per year.
Compelled to Hedge
Governor Olson and the farmer-labor
marty have insisted that the rural
credit experiment must continue. Joseph
A. Poirier, recently appointed to the
rural credit bureau, has been almost
insolent about it. He has fatty de-
clared that the bureau will continue
making loans as long as it can lay its
hands on any money to make loans
with. But the prospect of Is mill tax
levy may give the people OF the state
surcease from this particular noble
experiment" There are in dictationS
49, 20 a,,o;d of thiS time the mill