The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-05
M'NUTT URGES
TAX ECONOMY
IN RADIO TALK
Local Governments Failing
to Keep Pace With State,
Is Charge.


Charges that taxing officials in the
various municipalities have not ex-
ercised economy and in failing to do
so. have Offset TO some extent OF
the value Of aid given by the state,
were voiced last night by Gov. Paul
V. McNutt IN mis- weekly radio ad-
dress.
Local tax levies have not been
reduced on a scale tallyilg with re-
lief given TO local units by the state. "
the Governor said.
Every citizen during the next few
months, before the fixing of the
budgets and levies Of the next year,
should see TO u that the moneys re-
turned &c LOYAL communities by the
state administration are prudently
spent, and are spent for the pur-
poses for which they are Intended
and in manner TO give the most
benefit TO the taxpayer.
Local taxing officials in each
county of the state. and in each city
and town, and in each school unit
know the amount they have received
from the state during the last year,
and 1t is my opinion that they may
anticipate at least as much from the
state during the coming year.
Net Balance Created
This money. under the new act
passed by the 1895 General AS
sembly, must be budgeted in the
local tax set-up before the levy is
fixed, and if this is done and addi-
tional levy is not made for other
purposes, there is no reason why
local tax levies should not be ma
terially reduced.
Due to the fact that We have
been able to conduct the states
business so as to create a net bal
ance of $4,000 100000 in the state
general fund. some sources have
suggested that a portion of this
money be used for further distri-
button to local taxing units.
That. it strikes me, would not be
sound business. for the reason that
when and if the national Congress
enacts INTO law a social security pro-
gram which is to include Oldage
pensions. child welfare, maternal aid
and unemployment insurance, IN
diana will be in a position to take
full advantage of any benefits to be
derived for its citizens under the
national program without the addi-
ton of one cent of taxes, be-
cause we have the money to do it.
Levies Cut S4O,OOO,OOO
I'VE have travelled much farther
along the road to reduction in gov
ernmental costs than most of our
sister states. We have reduced the
bonded indebtedness of the political
subdivisions of the state from ap-
proXimately S185,OOO 600 to $780,
600 600. so our balance sheet. with a
debit of S15O.OOO.OOO on the one side.
and a valuation of S3,000,000,00 on
the right-hand side is a financial
statement of which we may we'll be
proud.
I'VE have reduced tax levies for
local governments approximately
S40,0OO0O0; we have reduced the cost
of the public school system ap-
proximately s15,OO0OOO a year-a
record in which We may take just
pride But the point is, we should
not stop there. 1t is my hope that
the local units of government will
keep pace with the state government
in the matter of reducing the bur-
den on real property.
The state has slashed its prop
erty tax rate approximately rs per
cent. 1t is maintaining the state
government and 81 large state in
situations from sources other than
property tax The state is sending
to the local units of government
$3.50 600 a year, to be used in lieu
of property tax, and there is every
reason to believe that if additional
unnecessary expense is not incurred
in the conduct of local government
units. local property taexs can be
slashed on a par with the reduction
made by the state