continued to pay the townships the interest due them. In 1867 an act was passed directing townships to devote to schools the interest of the surplus revenue received by them.409 Since this time the interest on approximately four-fifths of the surplus revenue has been used for supporting public schools.410 In view of the fact that the fund has been practically exhausted and that what is nominally interest is really raised by taxation, this fund must be regarded as a credit fund or an account and not a permanent fund.* Present Sources of Increase The present law (1903) provides two sources for increasing the principal of the Permanent School Fund: (1) the proceeds of riparian lands, i. e., all lands belonging to the state now or formerly lying under water; 411 (2) the proceeds of the leases of riparian lands.411 The law requires that $200,000 be annually apportioned from the income of the Permanent School Fund. If the revenue of the fund itself does not equal this amount the deficiency shall be drawn from the state treasury, the same to be replaced from the Permanent School Fund income as soon as the latter has been received.41 The Permanent School Fund is in the hands of a board of managers known as "the trustees for the support Management of public schools," composed of the Governor, Attorney-General, Secretary of State, State Controller, State Treasurer.413 The revenue of the Permanent School Fund is apportioned upon a twofold basis: first, depending upon the length of time a teacher has been employed; second, depending upon the Apportionment school attendance; first, $200 is apportioned to each district for each teacher throughout the preceding school * For an account of the United States Surplus Revenue Loan, consult Part I, Chap. III. For an account of the Credit Funds, see Part I, Chap. I. 409 N. J. Laws, 1867, 378. 410 These statements are taken chiefly from E. G. Bourne, History of the Surplus Revenue of 1837, pp. 84-86, 122. 411 N. J. School Laws, 1903, Secs. 168, 169. 412 Ibid., Sec. 176. 413 Ibid., 1903, p. 62, Art. XVI, Sec. 166. year; $80 for each teacher employed less than the school year, but not less than four months; $600 to each district which has employed a supervising principal or special superintendent of schools devoting his whole time to supervision of schools of such district; 414 second, the total school attendance of the preceding year serves as the basis for apportionment of public moneys remaining after the apportionment upon the above basis of number of teachers and supervisors employed; third, any balance remaining in the hands of the district is returned to the county collector and reapportioned by the county superintendent among all the districts of the county,415 The objects to which the revenue may be applied by the districts are not carefully nor clearly defined. The law states that it may be used for (1) the support of public Objects schools; (2) the payment of the salaries of county superintendents; (3) payment of premiums and accrued interest on bonds purchased by the trustees for the support of public schools, and for no other purpose whatsoever.416 The term "support of public schools" is not defined, so it would seem to be left largely to the discretion of the district to apply the money to such objects of expenditure for schools as it sees fit.* The conditions which must be fulfilled by a district in order to share in the revenue of the Permanent School Fund may be sum Conditions of marized as follows: (1) maintenance of a public school for not less than nine months; (2) in case a board of education, legal voters of a district, any board or officers of the same or any teacher shall neglect and refuse to perform any duty required by law, the quota of the school fund revenue belonging to the same shall be withheld until compliance has been obtained; 417 (3) provision by a district of suitable school facilities and *See Idaho, foot-note 122. 414 Ibid., Sec. 182, amended by laws of 1906, Chap. 241, May 17, which makes several important changes. See Bureau of Education Bulletin, No. 3, 1906, p. 50, Sec. 230. 415 Ibid., Sec. 183. 416 Ibid., Sec. 170. 417 Ibid., Secs. 14, 15. accommodations for children residing in the district and desiring to attend the school therein; 418 (4) plans for school buildings must be submitted to the State Board of Education for suggestions and criticism,419 certain architectural requirements being specified by law. 418 Ibid., Sec. 126. 419 Ibid., Secs. 129, 130. CHAPTER XXXIX NEW MEXICO PERMANENT FUND "The only permanent common school fund New Mexico has is derived from the Congressional grant of five per cent of the sales of public lands lying within the territory.420 The moneys which had accumulated from this source up to June 30, 1905 amounted to $19,675.73.420 June 21, 1898, Congress passed an act entitled, "An Act to make certain grants of land to the Territory of New Mexico, and for other purposes." Section 4 of this act provided "that five per centum of the proceeds of the sales of public lands lying within said territory which shall be sold by the United States subsequent to the passage of this act, after deducting all expenses incident to the same, shall be paid to the said territory, to be used as a permanent fund, the interest of which only shall be used for the support of common schools within said territory." Section 1 of the same act granted to the territory for the support of common schools sections numbered sixteen and thirtysix in each township. New Mexico has reserved for the support of common schools the sixteenth and thirty-sixth sections in each township as provided for by section 15 of the Organic Act approved September 9, 1850 421 and by subsequent territorial or congressional enactments.422 As a result New Mexico possesses 1,147,117 acres of common school lands 420 which are under lease and so yield a revenue. In addition to these it possesses 2,280,117 acres of common school lands not under lease, and yielding no revenue, I 420 420 Data furnished Oct. 20, 1906, by Hiram Hadley, New Mexico Territorial Supt. of Schools. 421 The General Laws of New Mexico, 1860-80, compiled under the direction of L. Bradford Prince, p. 576. 422 Ibid., Sec. 4, p. 425. making a total of 3,427,234 acres. The value of all these lands estimated at $1.25 per acre is $4,284,042.50. Unless Congress shall make some special provision granting New Mexico the right to dispose of her school lands while a territory, no lands can be sold until the territory becomes a state. The total common school revenue in 1905 derived from all sources was $527,473.59:420 of this $39,046.49,420 or approximately seven and four-tenths per cent (.074) † was derived from the rent of common school lands. † Computed. |