THE FISCAL PROBLEM IN 
MISSOURI 
INTRODUCTION | 
’ \HERE is probably not a governmental agency in the 
United States that at some time or other has not had a 
distinct fiscal problem. In rare instances, as in the case 
of federal pension legislation in the latter part of the nine- 
teenth century, fiscal policy has been determined by the 
existence of surplus funds at the disposal of government. 
Much more frequent, however, are the cases in which addi. 
tional income is needed in order that new functions may be 
undertaken or existing functions financed more adequately. 
Proposals for increased expenditures imply that the addi. 
tional funds can be raised, and, if there is an indication that 
the increase in tax burdens will be considerable, those who 
will be affected naturally tend to weigh the benefits against 
the cost. 
The fiscal problem of Missouri at the present time is one 
of many angles. Additional funds are needed in order to 
finance an accumulated deficiency in construction work for 
state institutions. It has been proposed to transfer a larger 
part of the burden of public school finance to the state gov- 
ernment. There is admitted need of improvement in the 
administration of the tax laws. These are only a few of the 
many phases of the problem, the full extent of which cannot 
be outlined briefly. 
ScopE or THE STUDY 
It is not to be inferred that only phases of the problem 
that are definitely of current importance will be considered. 
The understanding of a current problem implies some knowl- 
edge of the past. It isdesirable, therefore, to analyze govern- 
mental expenditures, state and local indebtedness, and