The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1936-09-24
Minnesota NeWs and
Comment
BY r. w. HITCHCOCK

Martin A. Nelson, in his keynote
speech at st. Cloud, as a part of his
discussion of taxation, gave the follow
ing simple, Illuminating, non partisan
analysis of the financial con dition of
Minnesota:
Minnesota has reached crisis in
its financial affairs. So va ried and
complex has the problem bet ;ome that
its solution must transcend p arty lines
1t behooves each and every0 lie of US
property owner and renter ali ke-every-
one who pays taxes direct ly or in
directly-to face the issue wi thout pre-
JUDGE and to consider the ia cts as they
are, not as we would like thu I'M to be.
Here are facts. fresh off the record
"On July /, 1881 there was an 8
million dollar surplus in the state
revenue fund. Today there is mil
lion dollar deficit. In five years time
Minnesota has spent Is mill ion dollars
more than it has received.
These expenditures do not include a
dollar spent for emergency relief, MOI
do they include any p art of an in
crease of 80 million dollars in the
funded debt of the state. In other
words, the state finance are worse Off
by 81 million dollars than they were
five years ago,-an amo unit equal to the
total tax revenues of t he state govern
ment for the fiscal year of 1886.
"At the same time t he state tax rate
has gone even higher until Minnesota
now has the highest per capita state
property tax levied in the country.
What are We goin to do about it?
Is it not time that We came to a halt
and began to go the other way?
"The incoming administration, no
matter which party wins, will be con-
fronted with the unacceptable necessity
of providing for the million dollar
deficit left it by its predecessor. 1t
must do this in the face of increased
annual payments on outstanding debts.
1t must do it in spite of financing
old age pensions which will require at
least milliorl dollars more than was
levied for this purpose this year. 1t
must do it, also, in spite of having to
provide for some degree of future re-
lief.
FINALLY, if the people approve the
constitutional amendment forbidding
the legislature to levy upon property
for state purposes, between IL and Is
million dollars must be provided by the
incoming administration from some
other source.
This is the picture. 1t is not a
pretty picture. But it is picture that
every MINI esota citizen must face; it
is situate m with which the next Min
nesota adj ninistration must DEAL"
Contrast this plain, Straightforward
statement of the situation with the
tricky t% ;tics of farmer-labor speakers
who are going about the state de-
claring that the state debt situation
has bee mSrepresented because Min
nesota. llas a permanent school fund of
$70,OCt0J 900, a fund which is steadily
grow insy.
Is. this a raid upon the permanent
scr fool fund of the state that the far
m er-labor leaders are proposing?
1t is at least suggestion that the
Minnesota permanent school fund can
be raided to pay the debts of the state.
It is a most amazing suggestion. 1t
would seem that the farmerlabor leaders
will grasp at any straw and will stoop
to any duplicity to excuse the malad-
ministration of the last six years and to
escape the just responsibility for their
acts.
Fortunately farmer-labor cannot lay
it's hands upon the funds which have
wisely been reserved for the public
schools of the state. The State Con-
stitution provides that the state school
fund shall forever be preserved in
violate and undiminished."
The permanent school fund of Min
nesota is an asset set apart for the
children of the state. It can never be
used for any other purpose. 1t can