Reorganization of Local Government

Report Outline
Demands for Economy and Cuts in Local Taxes
Reorganization Proposals for Urban Areas
Reorganization Proposals for Rural Areas
Constitutional Obstacles to Reform
Special Focus

Demands for Economy and Cuts in Local Taxes

All Except Five of the state legislatures will be in regular session in 1933, most of them convening early in January. Almost without exception these bodies will have before them questions of government economy, mainly in response to the demands of taxpayers' organizations for specific programs of governmental reform and reorganization which will permit a lowering of tax rates on real estate—rural and urban. Indiana and Michigan recently restricted the real estate tax rate to $15 per $1.000 of assessed valuation—Indiana by special act of the legislature and Michigan by adoption of a constitutional amendment at the election of November 8, 1932. In Washington there is a tax limit of $40 per $1,000 on an assessment basis of 50 Per cent of true value. The Washington law also permits generous deductions of real estate taxes from the state income tax.

In nearly all of the states surveys of one sort or another have been in progress during the last, year which have had as their purpose the showing by specific facts and figures of the possibilities of savings through reorganization, the elimination of obsolete minor civil divisions and certain elective offices, and other economy measures. These surveys in most cases have drawn special attention to county government and to the vast system of township, school district and other special district governments.

President-elect Roosevelt in his campaign speeches several times urged his hearers to take a specific interest in local government reorganizations.