Evening star., 1935-07-14
STATES SHEDDING
MONEY M|SER|ES
Many Putting Cork Back in
Red Ink BottIe-U. S. De-
mands Cut Savings.

BY the Associated Press.
More and more States, convalesc-
ing from their depression-born money
miseries are putting the corks back in
the red ink bottles.
Some States have lowered taxes.
Many have sharply reduced expendi-
lures. Taxpayers continue to groan
everywhere, but the pain-so far as
State governments are concerned
is less severe.
Budgets, so often the measuring
roads of solveney, are being balanced.
Comfortable cash balances are ap-
pearing in the treasures Of several
States
For the most part, however, a sur
vey today by the Associated Press
disclosed that appreciable savings for
the taxpayers pocketbook remain yet
to be accomplished.
Government Demands Heavy.
A sharp increase in the past decade
In Federal Government demands on
the citizens dollars has nullltled
what slender savings may have been
accomplished by State governments.
Municipalities, too, have been hard
pressed by the needs of the depreS-
sion. This has led to increased
municipal taxation is some form or
another, notably the 2-cent-on-the-
dollar sales tax in New York City.
The State of Kansas shines among
ho1 h1I r.
get, reduced expenditures and tighten
en- property taxes. The Kansas Gov
ernor. ALI NJ Landon. attributes his
States sound financial position to the
Kansas passion for paying bills at is
goes along
Florida has been under balanced
budget for the past three years and
is operating pay as you go. The State
has an adequate balance, but its con-
troller has expressed fear for the fu-
ture because of increased legislative
appropriation and the possibility that
some of the States producing
laws may be declared unconstitu-
tional.
Washington Spreads Load.
The State of Washington cut its
tax on property almost in two last
year. To make up some $40 900
in revenue thus lost the Legislature
enacted retail sales and business-oc-
cupation taxes. The effect, of course,
was to relieve property owners by
spreading the taxation. This State
was able to lop s5,000,000 from its
common school expenditures without
closing a school.
Property taxation shows a wide
variance among the States. Illinois,
for one, does not tax property at all
Gov. Horner. who abolished the prop
erty tax. substituted a retail sales tax.
The State is considered in excellent
financial condition.
Nevada. on the other hand, has in
creased her property tax rate from
so cents to So cents per 500. The
action was taken following a drop in
the States property valuation.
Idaho has reduced her property tax
about half a million dollars, balanced
her budget and whitfield her debt
down from high point of $1,000 900
to 81 ,368,000.
Kentucky is another State that
sliced deeply into its property tax
rate. reducing it from 80 cents to 5
cents. A per cent sales tax was
substituted. Kentucky ran more than
two million dollars into debt last year,
running the total debt up to $4,000
600. The budget for the present year
Iol1 off ho l.
ance.
Delaware Budget Balanced.
Delaware proudly reports not only
a balanced budget and money in the
bank. but also notes that at no time
during the depression has it missed
or delayed a pay roll or made any
reduction in the number of its en-
ployes. The same holds true for all
county. city and town governments in
the State.
Although Delaware added another
penny per gallon to the gasoline tax
this year, bringing it to 4 cents, vari-
GUS direct taxes were reduced. Tne
road tax of 30 cents a sl00, which
was abolished.
Indiana has no State debt, and goes
into the new fiscal year with an esti-
mated balance of more than S6,000,-
OO0 The property tax is Is cents a
S1OO-the limit allowed by law. In
recent years, however, valuations have
been sharply reduced, with conse-
quent saving to property Taxpayers
Rhode Islands State debt shows
an increase, blamed upon the emer-
gency of unemployment relief. Taxes
have not been increased, however. The
States tax on cities and towns,
amounting to more than million dol
lars year, has been abolished, and
this will mean a savings of $500,000
a year to the taxpayers of Providence.
Massa chusetts hasn't balanced her
budget for several years.
Controversy in Vermont.
Legislative leaders in Vermont say
that States budget is balanced but
others have expressed contrary no
ton. The States bonded debt has
been cut, but current Indebtedness
has increased.
The State of New York points
gloomily to the prospect of a $780,
100000 deficit for the present fiscal
year Unemployment has been two
edged sword saving at her financial
structure On the one hand there
have been huge relief expenditures,
and at the same time her taxable in
comes and wealth has been reduced.
Oklahoma ended the fiscal year with
a deficit of nearly $10,000,000.
Virginia has a deficit of about
100000 for the year, but hopes
to wipe this out and balance the
budget by next June.
Texas has budget deficit of about
$6,000,000. Her Indebtedness was in
creased $2o,0O0,000 two years ago by
q relief bond issue. There is no i'm
mediate prospect of reduction in