The fiscal problem in Missouri

Bibliographic data

Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. Financing the capital requirements of the State

Collection:: Economics Books

270 THE FISCAL PROBLEM IN MISSOURI and public school buildings. Of this amount, the $2.1 million for public school buildings could be excluded from the program of capital financing if it were decided to provide for this form of aid, along with other forms of state aid to consolidated districts, out of current revenue. An important phase of the problem of capital financing grows out of the need for certain vital adjustments that seem necessary in the revenue system of the state! An attempt to finance a large amount of capital needs out of current revenues, before or during the time when important changes in the revenue system, particularly in the adminis- trative machinery, are put into effect, might readily bring about an increase in rates of taxation out of proportion to the actual requirements. A greater degree of equity can be obtained if the capital needs are financed by means of a bond issue, since it will be possible to make the adjustments in the revenue system before a large part of the funds neces- sary for debt service are raised. The conclusion that a bond issue represents the most logical solution of the problem of financing capital expendi- tures that are in the nature of an accumulated deficiency has not been reached without considering all angles of the problem. The excessive use of credit is not commendable, and Missouri has been conservative in using its credit re- sources to provide capital facilities. A credit position has been maintained which would enable the state to borrow at favorable rates should the exigency arise. At the present time the only outstanding indebtedness of any conse- quence is that incurred for highways and the payment of the soldiers’ bonus, and ample provision has been made to service this indebtedness. If the bond issue plan of financing the present capital requirements were adopted, it would be desirable to develop a workable plan of financing the capital needs that may develop later. It is obviously difficult to determine in advance just what capital requirements will be in evidence a number of years hence. In formulating such a plan, not all factors could be taken into account, but it should go a 1 The adjustments in the revenue system referred to are considered in detail in Chapter XI.

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