The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-12-03
ROADS LARGEST
STATEEXPENSE,
REPORT SHOWS
Highways Cost 22.6 Cents
of Every Dollar
Discussed.

Construction and maintenance
Of Indianas highway system IS this
states most expensive job, a report
issued today by Clarence Jackson,
director of the State Gross Income
Tax Division, revealed
Analysing last years expenses.
compiled from the official report
Of the State Auditor, Mr.. Jackson
disclosed today that $13,474,479 was
spent on the states 1921 miles OF
highway, or 226 cents of each dol
lar discussed.
In addition to this amount there
was included in the distributions to
counties, cities and towns a sum Of
10,223,49l from gasoline tax end
auto license fees which was al
located for local use for highway
and street purposes. Added to-
gether, these amounts spent for
highways account for 1877 cents of
every dollar disbursed by the state
last year
Schools Spend Sd Cents
Following highways, the next most
expensive state function was tie
operation of 10 charitable and penal
institutions, the report stated. These
institutions required the spending cI
81 cents of each dollar.
Approximately one-fifth of these
expenditures, however, were made
from earnings which the institu-
tons received from their farms und
industries, and were not paid from
taxes. Nearly 10000 persons were
housed in the 10 institutions at the
close of the 1934-35 fiscal year.
State universities and colleges
also took a sizeable slice out of the
states dollar, amounting to ga
cents. The $780, 48 charged to the
four educational institutionS-In
diana, Purdue, Indiana State and
Ball State-includes only the money
which went through the state
treasury. 1t does not include tut
ton fees and other non taxable in
come of the institutions which is
collected by them and retained for
their own use
Parks, Game Take 16 Cents
Fish and game protection, parks,
memorials and other conservation
projects accounted for 16 cents of
each dollar expended. State police
and the National Guard accounted
for l cent. Maintenance of the
state Supreme and Appellate Courts,
plus payment of the salaries of 108
county pudges who are paid by the
State, accounted for another cent
All other activities of state gov
eminent, including most of those
usually regarded as the Estate
House," were responsible for the
spending of IL cents of each dollar
disbursed from the state treasury.
Of each dollar expended, SOC |
cents was not actually spent by the
state but was distributed to local |
schools, to counties, cities and
towns, paid to counties for old age |
pensions or used by the teachers
retirement fund.
New Laws Bring Increase
Schools received most of the dis
tributions, getting $13,551 1860 or
22.7 cents Of each dollar disbursed. |
Payments made by the state to |
schools amounted to nearly one
third of the total operating ex-
penSeS of schools during the 1884
35 school year, which came to $42,-
1856 1893.
Principal of the reasons for the |
large increase in state distributions |
during the past few years has been
the changing of the Indiana tax
SyStem-broadening of the tax base
to take large part of the tax load |
from property
These changes were brought |
about, Cd BY increasing the amount |
of gasoline tax and auto license
funds sent to counties, cities and |
towns to allow reduction of property |
taxes; 90 by enactment of the gross
income, intangibles and liquor tax
laws, with provisions for distributing
most of the income from these
sources to schools and to local |
governmental units to replace money
they formerly raised through prop
erty taxation.