The people's voice., 1957-01-11

revenues. The State, like its citizens
must life within its income. A reason
able amount of additional revenue il
available. without a sales tax. | refe
you to the State Board of Equalization
for details.
Therefore, if you approve appropria
tions which exceed anticipated income
you may have to consider a sales ta1
to provide additional revenue. In other
words, if your anticipated revenues
do not permit adequate financing OF
our schools and other State RESPONSE
bilities, then a sales tax may be your
last resort.
Education and taxation are insep
arabic. Both must be kept in mind
when proposals concerning either one
are studied.
CONTENDS SALES TAX ONLY
REMAINING SOURCE
The requests for appropriations are
primarily demands for the elementary
and secondary schools and the Univer-
sity system. These are caused by in
creased costs and enrolment. Addi-
tional tax money may be necessary. If
so, you may be forced to consider a
sales tax.
If you think we need a sales tax to
finance the schools, | recommend that
it be a replacement tax, first, to re-
lieye the excess burden on property.
The six-mill levy on property for Uni
versity purposes may have to be ten
mills or more. 1t should be eliminated
1t is still my hope that you will be
able to balance the budget without
having to go to any new tax sources.
[ realize that l am putting this
problem to you in a negative fashion.
However, it seems to me that we are
in the position of trapper in cabin
in the dead of winter with wolves
hoWling outside His cabin catches
fire. He has a choice of putting out the
fire with what he has in the cabin, or
going out into the bitter cold to face
the wolves. This may well be the
trappers only choice, just as your only
choice may be the sales tax. But let's
try to put out the fire first with what
is available.
BUDGET:
The size and scope of this Assem-
blys problem is probably best reflected
by the report of the State Controller
on the budget.
Total requests from all state de-
partments for the next biennium are
$50, ,4O4 900 The total revenue is ap-
parently $57,O51,OO
Requests from the General Fund
alone are $81,768, 900. The State Board
of Equalization estimates the total
revenue to the General Fund for the
next two-year period at S47.693. 900.
This difference of "a million dollars
between requests and revenue is what
my statement that you must
definitely re-examine present spending
in all departments and carefully exam
inc all requests for appropriations, be-
fore looking for new revenue sources.
SCHOOLS:
In financing the school foundation
program, certain basic facts must be
kept in mind. The Income and Interest
Fund is a true State aid. 1t comes from
state holdings and is not a direct tax
On the Individual
The same cannot be said of the
School Equalization Fund. The source
If this revenue is a percentage of the
state Income Tax, a percentage of the |
License Tax, a General |
0und appropriation, and U. S. oil and
yas royalties All of these are direct |
md indirect taxes on the ultimate
consumer, with the exception of U. S. |
Ill and gas royalties.
When we talk about the counties
hare of the States share of the school |
.osts, we are actually talking about |
State and county taxes collected from
he same taxpayer. If on the county
evel, this burden is on property own
rs only. If on a State level, this bur-
len is on all taxpayers.
Increased taxation will be bearable
,nly if the entire burden is properly
An example of this will oc-
ur when the present siX-mill levy for
purposes comes up for
at this session. The
emand will definitely increase to a
ossible ten mills or more. If enacted,
his will further distort the present
xcessive burden on property owners.
If transferred to a general State
ource of revenue, this obligation
7ould reduce the present excess on
It would also help equalize
he general tax burden by transferring
to all Montana taxpayers.
L., ,a1