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Quincy, Gadsden County, Florida
What is this article about?
In Tallahassee, a proposal emerges for the state to assume responsibility for maintaining and improving all county roads, potentially saving counties $7-8 million annually and redirecting funds to schools, amid controversy over bond securities and gasoline tax allocations for the upcoming legislative session.
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Movement to Place Responsibility for Maintenance and Betterment of All County Roads.
By C. M. Johnson
Tallahassee, Dec. 12. All speculation as to the major problem to be confronted by the forthcoming session of the legislature has failed to take into account one major issue which has just come to light. It is the proposition of the state's assuming the responsibility for the maintenance and betterment of all county roads.
Many legislators who have recently visited Tallahassee have expressed themselves as favoring the idea, and every probability is that because it is highly controversial passage of an enabling act promises to afford one of the most interesting contests of the session.
Supporters of the plan point out that the counties are now spending $14,000,000 annually to the purpose, that no less than half of it is being wasted because at the exigencies of local politics. Under the plan bondholders would save the loss of the three cents of the gasoline tax which the 1933 legislature added to the contract only to the existing road and bridge fund it is to the retirement of bond issued to the building of state highway system. The security amounts to about $11,000,000, of which about $1,000,000 now goes to the retirement of principal, the remaining $10,000,000 to the payment of bond interest falling due. It is pointed out that the bonds against special road and bridge districts total approximately $145,000,000, that only about $5,000,000 in principal is now in default.
Those having the program insist that the re-arrangement which would restore to the bond issues only the land security actually behind them under the contract of issue and sale, that it would actually save the counties from $7,000,000 to $8,000,000 annually, put them in a much better position to supply additional funds for school purposes.
Passage of the homestead exemption amendment, it is suggested, adds greatly to the original contract security behind the bond issues. In the light of the recent decision of the Supreme Court as to liquidation of the principal issue or any refunding issue.
Those members of the legislature who have already expressed themselves anticipate a bitter fight of bond holders and bond houses, but they believe ultimately they will have the support of school leaders as well as the general tax payer. Bond representatives, sensing the development, are said to be already at work fighting the plan in a quiet way.
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Domestic News Details
Primary Location
Tallahassee
Event Date
Dec. 12
Outcome
counties spending $14,000,000 annually with half wasted; potential savings of $7,000,000 to $8,000,000 annually for counties; bonds total $145,000,000 with $5,000,000 in default; anticipated bitter fight in legislature from bond holders but support from school leaders and taxpayers.
Event Details
Proposition for state to assume maintenance and betterment of all county roads, favored by many legislators, controversial enabling act expected to be a major session contest; plan addresses waste in local politics, reallocates gasoline tax from $11,000,000 bond security, restores land security to bonds, enables more school funding; homestead exemption and Supreme Court decision noted as factors.