appropriated. During this period the interest on the funds derived from these sources was distributed every few years to the several counties for general school purposes, the distribution being based on school population. By 1903 the fund thus derived amounted to $194,159.18, and was set apart for the definite purpose of aiding in building school-houses, under the general conditions set forth above. CHAPTER XLII NORTH DAKOTA PERMANENT SCHOOL FUND Permanent School Fund 453 is the official title of the permanent common school fund of North Dakota. The term Tuition Fund is used to include the revenue of the Permanent Title. Condition, 1905 School Fund, net proceeds of fines and penalties for violation of state laws, rents of school lands, school poll tax and school poll state tax. The provisions regarding revenue of the Permanent School Fund are provided for under the heading of Tuition Fund.454 In 1905 the Permanent School Fund consisted of, first, a reservation of 2,000,000 acres 455 of unsold school lands, estimated at $20,000,000, the proceeds of which when sold will be added to the principal of the fund; and second, $8,263,154.80, of which $5,488,170.54 is invested in land contracts bearing six per cent interest, and the remainder in first mortgages on real estates, state, district and institution bonds.455 The state has borrowed from the Permanent School Fund $711,700, which amount is not necessarily a permanent debt.455 This loan is secured by four per cent state bonds, the interest on which, like that on all bonded indebtedness of the state, is drawn from a special tax levied upon the property of the state for this purpose.455 The total income derived from the Permanent School Fund in 1905 was $337,353,455 approximately twelve and six-tenths per cent (.126)* of $2,674,838.75 455 the total receipts for * Computed. 453 The General School Laws of N. Dak., compiled 1897, by Supt. of Public Instruction, p. 10, Sec. 11. 454 Ibid., p. 45. 455 Data furnished by W. L. Stockwell, State Supt. of Public Instruction of N. Dak., Sept. 12, 1906. common schools from all sources for that year. Of this annual revenue $70,483.46 455 was derived from the rent of school lands. For the benefit of common schools North Dakota was granted by the United States Government sections numbered sixteen and thirty-six in each Congressional township. "UnOrigin der this grant the state will acquire title to approximately 2,500,000 acres, . . . the exact acreage cannot be determined at this time, as some of the lands in the western part of the state have not been surveyed." 456 Provision was made in 1889 by the Congressional Enabling Act and the state constitution adopted that 457 year, for the establishment of a permanent common school fund from the proceeds of these lands. Sources of The sources provided for increasing the principal of the Permanent School Fund are at present as follows: (1) proceeds of sales of sixteenth and thirty-sixth section lands; 457 (2) any proportion of the interest or income of the school fund not expended during any year; 458 (3) five per cent of the proceeds of the sales of United States lands lying within the state.459 The School Fund is managed by the "board of university and school lands," composed of the Governor, Superintendent of Public Instruction, Attorney-General, Management Secretary of State, and State Auditor. The revenue is apportioned among the counties in proportion to their school attendance. The apportionment is based upon the number of children between the ages of six and twenty who have attended school sixty days, Apportionment "exclusive of those who have attended educational institutions maintained strictly by the state." 455 Objects The state Tuition Fund can be expended for teachers' wages only.4 460 456 Commissioner of University and School Lands of N. Dak., Report, 1902-04, p. 10. 457 Constitution of N. Dak., 1889, Art. IX, Sec. 153. 458 Ibid., Sec. 154. 450 Enabling Act, Sec. 13, p. 10; The General School Laws of N. Dak., compiled 1897. 400 The General School Laws of N. Dak., compiled 1897, Sec. 712. Cf. Sec. 710. The district to be entitled to receive any portion of the Permanent School Fund revenue must make a report of the enumeration of children of school age. Further, the county treasurer must have given a bond and oath as required by law before the district can receive its quota.461 Conditions of 461 Ibid., p. 47, Sec. 714. CHAPTER XLIII OHIO Title. IRREDUCIBLE STATE DEBT Ohio, "instead of creating a permanent fund to be loaned as was done in Massachusetts (and) Kansas (and) elsewhere, early. . . provided that the sales arising from Condition, 1905 sixteenth section and other school lands should be constituted into a great irreducible debt held forever by the state with an annual interest of six per cent to be paid thereon to the districts from which the moneys were originally derived." 462 "The money derived from the sale of school lands was used for other purposes (than schools). As such moneys came into the state treasury they were credited to the original township in which the lands lay, and deposited in a so-called sinking fund. The interest on that amount then goes annually to the school districts located all or partly in the original township. The interest is raised by state levy. The rent of unsold school lands is added to the annual revenue." " 463 The term State Common School Fund is applied to the proceeds of the state tax for schools. (School Law, 1898, section 3951.) In 1905 the principal of the irreducible debt amounts to $4,902, 109.72,464 on which the state pays $322,185.70 annual interest,463 approximately one and six-tenths per cent (.0159),* of $20,290,251.26,464 the total annual common school revenue.† * Computed. † Annual revenue, including balance on hand at beginning of school year, is $29,169,670.65. 462 Ohio School Report, 1901, p. 9. 463 School Laws, compiled by State Commissioner of Common Schools, 1898, Sec. 3953. 464 Data furnished by Edmund A. Jones, Ohio State Commissioner of Common Schools, Oct. 30, 1906. |