SUMMARY 



1. Total public expenditures for State and local purposes increased from 

 $122,000,000 in 1910 to $357,000,000 in 1926, or 192 per cent. 



2. Expenditures per capita in towns having less than 1000 population in- 

 creased 265 per cent between 1910 and 1926, as compared with a general in- 

 crease for the state of only 130 per cent. 



3. In terms of purchasing power, public expenditures per person in 1926 

 were not more than 55 per cent above 1910. 



4. The three principal causes of the increase in public expenditures are 

 the rise in the price level, the increase in government services, and the growth 

 of population. 



5. Approximately five-sixths of total expenditures are for local town or 

 city pur|)oses. 



6. Interest and debt payments required one-eighth of total expenditures 

 in 1926. Payments for these purposes are not important in most small towns. 



7. Schools and roads take more than 40 per cent of total expenditures, and 

 the percentage has been increasing gradually. 



8. The construction and maintenance of highways takes about one-sixth 

 of the total budget of Massachusetts, State and local. In 1926 highways took 

 51 per cent of total expenditures in towns with less than 500 population, but 

 less than 13 per cent in cities. 



9. One-fourth of total expenditures is for education. The importance of 

 this item tends to vary inversely with the size of the town; in towns with less 

 than 1000 population, expenditures for education average more than 40 per 

 cent of the total. 



10. Education in small towns costs more per person, more per pupil, and 

 more per $1000 of assessed valuation than in larger towns and cities, and fre- 

 quently the service received is distinctly inferior. 



11. State financial aid to small towns for education and highways is partly 

 overcoming the financial handicap of rural communities. 



12. Only 5 per cent of the expenditures per person in towns with less than 

 1000 population are for charity, public health and recreation. The percentage 

 tends to increase with the size of the town or city, certain cities rvmning as 

 high as 25 per cent. 



13. The cost per person for general government is twice as much in small 

 towns under 1000 population as in large towns and cities. 



14. Legal requirements imposed upon towns, while responsible in part 

 for the increase in expenditures, have been offset by various forms of State aid. 



15. About 70 per cent of the total cost of government is met by taxes. 

 The remainder is paid from departmental earnings and receipts, gifts and 

 grants, and from borrowed funds. 



16. Taxes on real estate have been increasing somewhat faster than other 

 taxes. This is particularly marked in rural towns in which the tax burden is 

 carried largely by real estate. 



17. The tax Tper $1000 of assessed valuation, i. e., the tax rate, has in- 

 creased much more rapidly in farm towns than in manufacturing towns and 

 cities. 



18. For the state as a whole, borrowing does not appear to be excessive, 

 but certain larger towns and cities are approaching the danger point on the 

 basis of ordinary criteria of safety. 



