The Western news. [volume] (Libby, Mont.) 1933-current, 1942-12-24
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Work Faces
State 5o|ons
Must Meet Serious
Problems That War
Always Brings.
STATE TREASURY HAS
LARGE SUM ON HAND
montana Tax Payer


The l943 Legislature will meet
early in January under most un-
usual circumstances, faced with all
the critical problems that only war
can create. For the first time III the
history of the state there will be
no possible justification for any
additional tax measures or increase
In rates of existing taxes. The state
general fund has built up its cash
balance until it amounted to more
than $2,40000O on June 80, 1912,
and with the inheritance tax from
the DAILY Estate and continued
economy in state administration it
should be much greater before the
end of the fiscal year. 1t may be that
efforts will even be made to re-
peal certain taxes and certainly
many attempts may be made to Sc
cure increased appropriations.
The state treasury that functioned
merely as channel through which
flowed state revenues, often i'm
mediately into the fields of expend-
itures, is at last acting as a reser-
voir in which may be stored up
unexpected receipts due to greater
industrial activity, increased en-
ployment, favorable climatic con-
ditions and higher prices for Mon
tana's agricultural products. Part
of the extra money that has come
into the state treasury and helped
to fill up the reservoir came from
delinquent taxes accumulated from
years of drought and low prices.
State revenues are certain to de-
cline even under most optimistic
conditions. The drop may be very
serious-no one knows in war con-
ditions. Certain increased state ex-
penditures are inevitable-war may
easily create tremendous demands
on the state Much of our welfare,
highway, educational and other state
programs are carried by means of
federal grants-in-aid With state fl
nances in SO much better shape
than are federal finances, there is
strong demand developing to
dump back on the states much of
the federal subsidy. AS this is done,
state and local government will
either be forced to curtail services
or else assume a greater part of
the load
Postwar requirements for pub
lie expenditures will undoubtedly
be heavy The state cannot efficient
ly nor economically perform its
functions without additional mod
ern office space. Related functions
of government cannot be brought
together in the present quarters.
Building improvements are needed
at Boulder, and the State College
and North Montana College will
after the war require certain build
ings. Equipment and machinery in
offices and institutions will have to
be replaced, and numerous essential
improvements to the states physical
plant are merely waiting postwar
construction.
We will be paying for this war
for long period after peace is
signed, and federal taxes will con-
tinue at an astounding level for
many years. If history repeats itself,
some of these will be years of
drought, years of unemployment,
and years when taxpayers cannot
possibly bear up under any in
creased state or local Expenditures.
The problem of financing Mon
tana state and local government
during this war is not problem
of searching for new forms of tax
alton but problem of finding ways
to reduce the less essential activities