COST OF GOVERNMENT IN MASS. 187 



Automobile traffic has grown to such an extent that it is estimated that auto- 

 mobiles and motor trucks pay taxes and fees equal to nearly 30 per cent of 

 the annual expenditures for highway purposes'. In addition, a portion of the 

 original cost of new streets and highways has been paid by taxes on the in- 

 crease in the assessed valuation of real estate, due to such improvements. This 

 increase has been justified by the greater earning power of farm property re- 

 sulting from improved highways. State and county highways through farming 

 districts have cost the local towns relatively little, and the increase in prop- 

 erty values has added to the assessed valuations giving more taxes with which 

 to improve town roads. 



In addition to the above advantages accruing to the local towns, State 

 financial aid for highway purposes partly offsets the disadvantage of such 

 towns previously mentioned. Most rural towns receive considerably more high- 

 way service than they pay for, either as State highways or as direct financial 

 aid from the State for local highway purposes. 



State Aid for Highways 



Small towns have been unable to construct and maintain the highways 

 made necessary by the increase in automobile traffic. The State has therefore 

 found it necessary to assist them in two ways; first, by the construction and 

 maintenance of State highways, to the cost of which towns may or may not 

 contribute; and second, by grants of money to towns for highway purposes 

 or through the donation of services by the State highway division. State aid 

 proper falls under the second classification. 



Table 17. — Minimum Town Appropriations Necessary to Receive 

 State Highway Aid. 



Town Town 



Road Mileatje Appropriation Road Mileage Appropriation 



Ratio per Mile Ratio per Mile 



Less than $1.40 $15.00 $3.-50-5.50 $ 75.00 



1.40-2.00 25.00 5. 50-7. CO 100.00 



2.00-2.80 40.00 7.00-9.00 125.00 



2.80-3.50 50.00 9.00-12.00 150.00 



The division of highways of the Department of Public Works, is authorized 

 by law (Small Towns Act, 1918) to spend up to $150 per mile for the repair 

 and improvement of roads in towns in which the property valuation is less 

 than $4,000,000, and in which the road mileage ratio is less than $12. The road 

 mileage ratio is the proportionate amount of each million dollars of State taxes 

 paid by the town divided by the number of miles of public highway within the 

 town. In order to secure this aid, towns must make minimum appropriations 

 as shown in Table 17. Both town and State appropriations under this act must 

 be expended under the direction of the State division of highways upon such 

 roads in each town as are jointly agreed upon by the division and the selectmen 



5 Estimates based on receipts previous to the gasoline tax and automobile excise 

 tax established in 1929. 



State registration, licenses, fines and fees $12,500,000 



Property taxes paid to cities and towns 5,000,000 



Total $17,500,000 



