Table of Distances As Shown Over Arizona Highways

JANUARY, 1930 ARIZONA HIGHWAYS Page Twenty-seven

bridge tolls, and $708,842,500 from general state revenues. Of this latter amount $300,000,000 is the amount of the New York issue for grade separation purposes, and of the balance of $406, 842,500, half was authorized and issued prior to 1919, when the first gasoline tax measure was adopted. There can be no question that the employment of motor vehicle revenues to pay for bonds is now the proper procedure.

There is one other question that must be answered to round out a fairly complete picture of the sources of highway income and the present status of highway finance. That is the question as to the relative contributions of those who live in cities and those who live in the country. The statistics which would permit of a complete answer have not been found, but facts are available which are strongly indicative. The current revenue for highway purposes comes from just three principal sources; namely, the Federal Treasury, taxes on real and personal property and taxes on motor vehicles and their fuel. The Fed eral contribution may here be ignored. It is relatively small and is presumably quite generally over the entire population.

As to the contribution of the motor vehicles, we find that according to the estimates compiled by the Farm Journal, the only existing source, 5,427,000 of the 24,495,000 motor vehicles registered in 1928, or 22 per cent of the total, were farm-owned. The estimates made annually since 1922 show a steady decline in the percentage of farm ownership. If they may be assumed to be approximately correct, then the contribution of farmers to current highway income through motor vehicle and gasoline taxes is at present not more than 22 per cent of the total of such revenues. As farm-owned vehicles are in general lighter than the average and generally use less gasoline per car than city owner cars, it is probable that the actual contribution to motor vehicle revenues by farmers is actually less than the 22 per cent indicated by the registration figures.

With respect to the portion of the current revenue derived from taxation of property, I have found no complete statistics. Real property is taxed by the state in 43 states. It is taxed by the counties in 46 states. It is from these taxes that the general tax revenue for highways is derived.

In the state of Ohio, which may not be quite representative of the average, but which is the only source from which I have been able to obtain satisfactory data, I find that 26 per cent of the total valuation of real and personal property is classed as rural, the remaining 74 per cent as urban. The tax revenue is, of course, proportional to the valuation, and the indications are that, in Ohio at least, rural property pays approximately a quarter of the total general-tax revenue for highways.

Another indication of the possible extent of the respective contributions of rural and urban property is found in the census classifications of population. The Census of 1920 showed that 51.4 per cent of the total population at that time was urban. The urban percentage of total property value is doubtless higher; and it would probably not be far from correct to say that the average urban percentage is approximately 60 per cent.

If, then, we assume that 20 per cent of the motor vehicle revenues and 40 per cent of the property tax revenues are contributed by persons resident in the country, we find that of the total current highway revenue of states and counties, exclusive of Federal aid, approximately 30 per cent is paid by persons who live in the country and 70 per cent by persons who live in cities and towns. The corresponding percentages of current state highway revenue are:

For current local highway revenue they are:

From this review of the general status and character of highway finance in the United States, I think we may draw certain rather definite conclusions as to the policies most likely to yield success.

The first is that there is need for more scientific and businesslike financing and administration of highway improvement, which should start with a selection of the roads to be improved according to their relative traffic importance, and an allocation of authority to state and county authorities on the same basis. It is apparent that there is still much to be desired in this respect. Differences between the per centage of total mileage included in the state systems of neighboring states of approximately the same general culture and development, as shown by the records, are too great to be accounted for upon any reasonable basis. So also are the differences too great between the annual expenditures per mile of state system in states that have systems of approximately the same extent and average traffic density approximately equal.

Highway building is a gigantic business. It should be conducted in a businesslike way. There is no excuse for inequitable allocation of funds or wasteful expenditure. The traffic survey furnishes a reliable means of determining such questions as the proper size of state systems, and necessary expenditures upon the several parts of the systems. It should be more generally employed as the basis of highway planning and budgeting.

We should put an end to this merry-go-round of income transfer between the states and the counties. As I have shown the counties are rather generally the losers, and they can ill afford the loss.

We should face more frankly than we have, the question of indebtedness for highway purposes. The public loses, and loses heavily when, to avoid a state debt, the counties are thrust into debts on which they must necessarily pay a high rate of interest.

In closing I should like to add that sound highway financing implies as essential adjuncts, so evidently as to need no elaboration.

First, reasonable security of tenure for competent executive officials; second, honest and businesslike administration; third, complete and accurate accounting; and fourth, adequate maintenance of the roads in which the public capital is invested.

"HOW IS THE ROAD?"

(Continued from page 9) If he receives a favorable answer, he will naturally want to come through the state and will not only spend his money within the state, but will normally become a booster for the State, and possibly a resident of the state. It has been very appropriately said that the nation is virtually upon wheels. The industry that has and will spring from this rolling condition and the benefit derived from this large traveling public will depend entirely upon what is done to deal fairly with this traveling public - good roads, good accommodation, fair treatment, can only result to the great benefit of Arizona with its wonderful natural resources and playground possibilities, provided they can answer the question in the affirmative when the traveler hundreds of miles east, west, north or south asks the question "How is the Road" in Arizona.