The increase of taxation for State purposes is in part due to the amount collected for the asylum building fund, which exceeds the amount required last year for building purposes by almost $300,000. Making due allowance for this, the important fact remains that both State and local taxes have largely increased.
A remedy for this evil can only be had through the General Assembly. The most important measures to prevent this rapid increase of taxation, which have heretofore been recommended, are a revision of the financial system of the State in accordance with bills prepared by a board of commissioners appointed for that purpose, in pursuance of an act passed March 18, 1867; short sessions of the General Assembly; adequate fixed salaries for all State, county, and municipal officers, without perquisites; and definite and effectual limitations upon the power of county commissioners, city councils, and other local authorities to levy taxes and contract debts.
The constitution makes it the duty of the legislature to restrict the powers of taxation, borrowing money, and the like, so as to prevent their abuse. I respectfully suggest that the present laws conferring these powers on local authorities require extensive modification, in order to comply with this constitutional provision. Two modes of limiting these powers have the sanction of experience. All large expenditures should meet the approval of those who are to bear their burden. Let all extraordinary expenditures therefore be submitted to a vote of the people, and no tax be levied unless approved by a majority of all the voters of the locality to be affected by the tax, at a special election, the number of voters to be ascertained by reference to the votes cast at the State election next preceding such special election. Another mode is to limit the rate of taxation which may be levied and the amount of debt which may be incurred. It has been said that with such restrictions upon the powers of local authorities the legislature will be importuned and its time wasted in hearing applications for special legislation. The ready answer to all such applications by local authorities will be to refer them to their own citizens for a decision of the question. The facility with which affirmative votes can be obtained under the pressure of temporary excitement upon propositions authorizing indebtedness may require further restrictions upon the power to borrow money. It is therefore suggested, for your consideration, to limit the amount of debt for a single purpose, and the total amount for all purposes which any local authority may contract to a certain percentage of the taxable property of such locality.