292 VETOES

titling tax are self-explanatory. The third source, known as
motor vehicle revenue funds, of which motor vehicle regis-
tration fees are the major portion, also includes revenues
from fines and miscellaneous receipts of the Department of
Motor Vehicles. These funds, which include registration
fees, are equally divided between the local subdivisions and
the State Roads Commission, whose one-half share is dedi-
cated exclusively to maintenance and operation of roads in
the State system. Maintenance outlays are conservatively
estimated and conservatively expended, but always with the
thought that it is poor economy to build fine new roads and
not properly maintain them. Except for registration fees
and the additions from other sources indicated above, the
only means of supplementing the maintenance fund is by
a transfer of State Road revenues from the gasoline tax and
titling tax, which are otherwise devoted to construction
purposes. The sum so transferred cannot exceed $2,000,000
in any one year.

This complex and inter-related revenue system is one of
delicate balancings, which should not be disturbed without
adequate basis. In the light of existing circumstances, any
decrease in the contemplated funds available for road
maintenance and operation under the twelve-year program
would have two unfortunate consequences. First, as addi-
tional roads are constructed, the volume of required mainte-
nance work increases proportionately, with a consequent
addition to the expenses of the maintenance program. This
additional cost could not be met from presently available
motor vehicle revenues, thus making it impossible to main-
tain adequately the State Roads system which admittedly
would be false economy. Second, it was contemplated in the
twelve-year program that the revenues from increased regis-
tration fees available for maintenance purposes would eli-
minate the transfer of construction funds to maintenance
funds each year. To the extent that over the twelve-year
period it is unnecessary to use for maintenance purposes
all or any part of the $2,000,000 available from construction
funds in a given year, that additional amount would be
freed for construction purposes on a current basis. Further-
more, the program contemplates that the additional revenues
from registration fees will permit establishment of a work-
ing capital fund for unforeseen emergencies and contin-
gencies and to cover any lag between maintenance revenues
and expenditures.

I am in firm agreement with the principle that the rate of
any tax should be no greater than necessary to satisfy the
purposes requiring its imposition. When the Legislature
convenes in January, 1955, we will have had eighteen