The state common school fund can be applied to the payment of teachers' wages only.368 Objects Conditions of In order to participate in the revenue of the Permanent School Fund, the district (1) must have a school taught by a legally qualified teacher; (2) for the term established by law; not less than three months in a district having less than twenty pupils; not less than six months in a district having from twenty to seventy-five pupils; not less than nine months in a district having more than seventy-five pupils.3 368 CHAPTER XXXVI NEVADA Title. STATE SCHOOL FUND The permanent common school fund of Nevada is known officially as the State School Fund.375 The principal of the fund, December 1, 1906, consisted of $1,651,078.81; of Condition, 1906 which $20,678.81 was awaiting investment, and $1,630,400 was invested as follows: state irredeemable five per cent bonds $380,000; state four per cent bonds $155,400; United States four per cent bonds $215,000; Massachusetts three per cent bonds $626,000; Massachusetts three and one-half per cent bonds $254,000.377 About 1,250,000 acres of school lands belonging to the permanent school fund are under contract for sale.379 No rent is derived from school lands,378 so this limits the annual income to (1) the interest on bonds which in 1906 amounted to $61,486, and (2) interest on about "1,250,000 acres of land under contract, the deferred payments on which, amounting to $1,250,000, draw interest at six per cent per annum, amounting to $75,000, all of which, except ($5,400) the interest on contract lands selected under the 90,000 acre university grant, goes into the general school fund and is distributed semiannually among the public schools of the state." 379 The total common school revenue for 1906 derived from all sources amounted to $275,388,380 forty-nine and two-tenths per cent of which (.4919),* namely, $135,486* was derived from the interest on the State School Fund. Article XI, section 3 of the first constitution of Nevada, which * Computed. 375 State of Nev. School Laws, 1897, p. 33, Art. XIX, Sec. 1. 377 Report Nev. State Land Register, 1905-06, p. 13. 378 Data furnished Jan. 10, 1906, by Nev. State Treasurer. 379 Report Nev. State Land Register, 1905-06, p. 14. 380 Report U. S. Commissioner of Education, 1906, I, p. 306. became effective upon the state's admission into the Union, 1864, solemnly pledged for educational purposes moneys derived from the following sources: (1) the proceeds of sixteenth Origin and thirty-sixth section lands; (2) the Agricultural College lands granted by an act of Congress approved July 2, 1862; (3) 500,000 acres internal improvement lands (Congressional grant, 1841); (4) “and all proceeds of lands that have been or may hereafter be granted or appropriated by the United States to this state;" (5) estates escheating to the state; (6) such per cent (five) as may be granted by Congress on the sale of public lands; (7) penal fines; (8) property given to the state for educational purposes.382 Section 8 of the same article set aside the agricultural lands as a separate fund. Two million (2,000,000) acres to be selected by the state were accepted by the legislature in lieu of the sixteenth and thirty-sixth sections in each township. The sixteenth and thirty-sixth sections would have aggregated 3,992,000 acres, so that by accepting the two million acres grant the state lost 1,992,000 acres, "but it had the advantage of selecting any unappropriated public lands whether in the sixteenth or thirtysixth sections or not." 381 Sources of The following means of increasing the principal are at present provided for by constitution or by law: (1) proceeds of the sales of public lands; 382 (2) proceeds of escheated estates; 382 (3) a certain per cent of the sales of United States lands lying within the state; 382 (4) proceeds of property given or bequeathed to the state for purposes of education; (5) fines for penal offenses; 382 (6) two per cent of the proceeds of all toll rates and bridges.383 Loss "The $380,000 irredeemable bond was placed in the treasury in 1879 in lieu of an equal amount in cash borrowed from the State School Fund to pay the territorial indebtedness, which was assumed by the state when the Consti 381 Report Nev. State Land Register, 1905-06, p. 8. 382 Constitution of Nev., 1864, Art. XI, Sec. 3 (Report U. S. Commissioner of Education, 1892-93, II, p. 1348). 383 State of Nev. School Laws, 1897, p. 33, Art. XIX, Sec. 1. tution was adopted." 379 The constitution of 1864, art. XI, sec. 3, expressly declares that "all proceeds derived from any or all of said sources shall be, and the same are hereby solemnly pledged for educational purposes, and shall not be transferred to any other fund for any other uses." The state has borrowed also $233,000.378 The four per cent interest on this loan as well as the five per cent interest on the irredeemable bond is paid out of state taxes.378 To use the moneys belonging to the principal of the permanent school fund and then tax the people for the interest is a direct violation of one of the purposes for which the permanent school fund was established, namely, the lessening of taxation. * Management Apportionment years).375, 383 Objects The State School Fund is managed by the state treasurer.384 The revenue is apportioned among the counties on the basis of school population (six to eighteen The revenue of the State School Fund may be expended only for the wages of teachers duly qualified by the State Board of Education.383 No portion of the fund shall be paid for the erection of school buildings, the use of school-rooms, furniture, or any other contingent expense.383 In order to share in the State School Fund revenue the district must (1) maintain a school at least six months;385 (2) must not permit sectarian instruction; 384 (3) the school must be taught by a duly qualified teacher; 386 (4) the teacher must submit the report required by law.387 Conditions of * For a further discussion of this matter, see Part I, also Part II, Minnesota and Nebraska. 384 State of Nev. School Laws, 1897, p. 35, Art. XIX, Sec. 12. 385 Report U. S. Commissioner of Education, II, 1892–93, p. 1347; Constitution of Nev., 1864, Art. XI, Sec. 2. 386 State of Nev. School Laws, 1897, p. 33, Art. XIX, Sec. 3. 387 Ibid., p. 27, Art. XI, Sec. 1. CHAPTER XXXVII NEW HAMPSHIRE Title. Present 389 INSTITUTE FUND For many years federal reports and other accounts dealing with permanent common school funds have credited New Hampshire with no permanent school fund.388 On the contrary, such a fund has been in existence ever since 1867, and has been slowly but steadily increasing, though it was not used for schools. Prior to 1883 it was known as the "Common School Fund." Since 1883 it has been known as the "Institute Fund." 389 In 1905 the principal of the Institute Fund amounted to $59,470.37,389 and its annual interest to $2,372.66,389 the latter sum being approximately two-tenths of one per cent (.0017) * of $1,359,181.26, the total common school revenue derived from all sources that same year. The "Institute Fund" has been borrowed by the state and constitutes a permanent debt on which the state pays four per cent annual interest, paying the same out of state taxes.389 The principal is growing at present though slowly, through the addition to it (on account) of unexpended balance of its annual interest, no other source of increase being provided for by law. 389 The Institute Fund is managed by the governor and council.38 Its interest can be used for no other purpose than for supporting teachers' institutes.389 The interest is apportioned upon the order of the State Superintendent of Public Instruction.389 The Institute Fund, like the permanent common school funds in many other states, is not to-day an invested productive fund but merely an account or debt which the state acknowledges. The * Computed. 388 Report U. S. Commissioner of Education, 1896–97, p. 642, and other reports. 389 From statement received July 17, 1907, from H. C. Morrison, N. H. State Supt. of Public Instruction. |