The Wyandotte news-herald. (Wyandotte, Mich.) 1943-1963, 1946-01-31

Monday (Feb. a ready to wrestle
with the boom time question:
who gets a cut Of the states
surplus?"
Audior General John D. Morrison
has gazed into the crystal ball and
forecast plus margin of s27,O00,-
600 in the state treasury by July,
1947.
Hence the rush of pressure
groups-cities, counties, schools and
others-to get share of the excess
dollars which are accommodating in
the treasury at Lansing. There are
several new developments Of inter-
est.
First, a possibility that county
supervisors may join hands with
the mayors Of financially distressed
cities in a coalition at Lansing,
arrayed against the states admin
istration program Of priority to
state needs.
The supervisors held an annual
meeting at the state capital last
week, and it is significant that the
mayors appeals for cooperative
support received a sympathetic
audience with the rural officials.
The county treasurerS, for exam
pie, see no reason why the state
treasury shouldn't pay part of their
salaries-that is, if the sales tax
is such a bountiful source of rev.
enue.
Lieut.. Governor Vernon j. Brown,
while deploring the trend away
from local governmental respon-
sibility, has indicated that the state
should either reduce taxation or
increase its aid to local govern
mentS. The states tax study COM
mission has recommended reduction
of the per cent sales tax from 3
to 215 per cent, permitting munich
palitieS if they choose to levy y
OF ! per cent on local retail sales.
Second, Governor Kelly is ada
ment to pressure of local govern
ments, insisting that the needs of
the State-schoolS, hospitals. well
fare, for example-should have the
right of way over increased state
aid to local governments.
One cause for the predicament
the administration now finds it
self in is the fact that the legisla-
ture has never established a depre-
citation fund for public buildings.
Once a hospital or school building
is constructed, no provision is made
for its ultimate replacement.
Corporation practice of providing
a depreciation reserve for needed
construction is not allowed by the
State of Michigan. 1t has been esti-
mated that approximately S5,O00,OO0
annually is needed for public work
construction by the state. During
the depression the state treasury
was running in the red and no pub
lie works could be undertaken; now
when it is in the black, materials
are not available and costs are sky
high.
If the state does not set aside
money now for these postponed
and delayed public works, how can
it be expected to do so later on
when welfare needs may absorb any
surplus in the state treasury and
the auditor general may be mourn
fully proclaiming a deficit instead
of the present surplus?
Louis Nj. Minis, commissioner Of
revenue, reports that property taxes
pay 500 per cent of the state and
local tax dollar, computed for the
year 1944-45, with the retail sales
and use tax bringing in 26.2 per
cent. Other sources Of revenue in
clude gasoline tax, motor weight
tax, railroad and public utility
taxes, alcoholic beverage taxes, cor
poration tax and inheritance tax.
The fact that 1908 units of local
government - SO counties, 1855
townships, 173 cities, 303 incorpo-
rated villages and 6,076 school dis
tricts = all receive financial support
from the State of Michigan Is not
news to taxpayers.
Quoting the statisticalIy minded
Mr.. Minis of the department OF rev.
erue: when Michigan consumers
dig down into their pockets for
their sales tax pennies and con-
tribute a total revenue of nearly
che hundred million dollars as they
did last year. they should ashland
they ought to know-what happens
to all this money. Who spends it?
For what purposes is it spent?
THE Department of Revenue. of
course, is charged only with the
duty of collecting taxes. The re-
sponsibility of determining how the
proceeds shall be expended rests
upon the chosen representatives of
the people the Legislature. The
sales tax revenue is deposited daily
II the state treasury where it be-
comes part of the state general
fund. The money can be withdrawn
and spent only as authorized by the
Legislature in appropriation acts.
The sales tax money is not ear
marked or dedicated to expendi-
lures for any particular purpose as
Is true Of many of the other state
collected taxes.
Since all of the sales tax goes