LOCAL GOVERNMENT AND TAXATION 



141 



Procedure 



A sample of 100 rural towns was so selected as to include at least 

 one-third of the rural towns of each county, exclusive of those which 

 had a population of 2,500 or more according to the 1940 census of 

 population, and exclusive of towns which had an organized precinct 

 (village district). Chart I displays the frequency distribution of all 

 New Hampshire towns, and of those selected for this study, accord- 

 ing to population. Eighty-two percent of all towns and cities have 

 fewer than 2,500 persons. The sample, therefore, although rural, is 

 representative of a large portion of the state. There are only 15 towns 

 with a population between 2,500 and 4,000, and only 18 with 4,000 

 or more. 



The expenses of each town were taken from the thirtieth annual 

 report of the state tax commission, tax year 1940, the only report to 

 be published in such detail as to include the complete uniform classi- 

 fication of receipts and expenditures by towns. From the 54 pavment 

 items of the uniform classification, town expense items were deducted 

 and grouped into ten classes and then adjusted to lend comparability 

 to the results. These classes of expense items as adjusted, the amount 

 of each, the average amount per town, and the percentage that each 

 item constitutes of the total are shown in Table 1. A more detailed 

 account of the treatment of the uniform classification follows. 



Table 1. The Expense Items with Aver.a.gi:,s axd Percext.ages. 100 Rural New 

 Hampshire Towxs, Tax Year 1940 



Expense item 



Total 

 amount 



Amount 

 per town 



Percent 

 of total 



Totals 



$14,787 



$1,479 



100.0 



The expenditures for "general government," "libraries." and 

 "health" as used in this study are identical with the grouping of pay- 

 ments in the uniform classification. 



"Highways" expense involves both maintenance and construc- 

 tion, and includes money received from the state as state aid for 

 maintenance, and money paid to the state as the town's share of 

 joint funds which are expended under Town Road Aid and State Aid 

 Construction. 



"Welfare" includes expenditures for direct relief of the town 

 poor, for old-age assistance, and for aid to soldiers. Expenditures for 

 county poor were omitted inasmuch as this is a county charge, al- 

 though the town pays it in the first instance. 



