has been levied and collected, pays the proceeds to the owner of the bond in question. In Colorado, bonds issued by school districts must be registered, when issued, by the State auditor, thus establishing the legality of such bonds against contests by the district or any person or corporation on behalf of the district for any reason whatever. In Louisiana, all bonds, after the lapse of the period of contestability as to validity— 60 days from the date of the promulgation of the result of the election authorizing the issuing of such bonds-must be registered by the secretary of state. In New Jersey, certified copies of the proceedings authorizing the issuing of bonds must be transmitted to the attorney general for his approval of the legality of such proceedings, and duplicate copies of such proceedings must be filed with the State commissioner of education. In Texas, before bonds are sold, they must be examined by the attorney general of the State and registered by the controller of public accounts. In Missouri, Nebraska, and Oklahoma, in order to be valid, bonds must be registered with the State auditor and certified by him to the effect that all proceedings attached to the issue have been regular.

Reservation by the State of the right to purchase bonds upon stipulated conditions.-In Kansas, all school bonds must first be offered to the State school fund commission, which has the option of purchasing them at not more than par. In New Jersey, no school bonds may be sold at private sale to persons other than the trustees of the school fund or to the sinking fund commissioners for the support of public schools, unless such trustees or sinking fund commissioners have refused to buy them; the sale price of such bonds may never be less than par, nor the rate of interest in excess of 5 per cent. In Oregon, all school bonds must first be offered to the State land board, which has the right to purchase them at not more than their par value, at a rate of interest not less than 5 per cent per annum. In Texas, the State board of education has an option of 10 days in which to purchase school bonds at the price offered for such bonds by the best bona fide bidder.

DISCUSSION.

The analysis of this standard shows that original power in regard to borrowing money and issuing bonds resides with the localities, no State in the Union making such action mandatory. The fact that localities have the right to borrow money and to issue bonds, or not, as they prefer, indicates localization. In the exercise of this power, however, localities are very closely restricted by nearly all of the 44 States in which localities are authorized to borrow money or to issue bonds. It is true that these restrictions are inoperative so long as localities do not exercise their power; nevertheless, in actual practice, the necessity for borrowing money or issuing bonds is widespread, and therefore, although the first impression gained from a study of the standard might seem to indicate localization, yet a closer analysis of the nature and frequency of the restrictions really indicates centralization. The extent of this centralization is increased when a State reserves the right to purchase local bonds, requires their redemption at the State treasury, or demands that they be registered by State officials and become a part of State records. The conditional loaning of money by the State to localities, points, in a degree, toward a form of State control bordering upon the paternal.

State control within the scope of this standard is no doubt due to a desire on the part of the States to protect the interests of public

education. While the burden of increased taxation is immediately felt and often resented by taxpayers, the ease with which obligations may be thrust forward upon future generations usually causes a proposed loan or bond issue to meet with popular favor. With a large sum of money so easily obtained on hand, a strong temptation to unwise expenditure is presented to school officers. To offset this, the States impose restrictions not so severe as to prevent localities from incurring indebtedness for necessary school purposes, but yet severe enough to make them cautious in the exercise of their preroga

tive.

Summary of restrictions attached to the borrowing of money and the issuing of bonds.

V. STATE REGULATION OF THE TAXING DUTIES AND POWERS OF

LOCALITIES.

A study of local taxation from the viewpoint of control must have at least two aspects: First, in very few States are the State distributive moneys sufficient in amount to maintain efficient schools; hence States generally require localities to levy a local tax for the purpose of raising additional funds for school purposes. Second, many

localities, because of a strong belief in the value of public education, desire from time to time to expand the scope of school activity, a process carrying with it increased expense, and therefore offering a field for legislative regulation. In practice, most States have adopted legislation involving both these aspects of control.

More in detail, legislation concerning the levying of required local taxes is either indefinite or definite; that is, some States merely require that local taxes must be levied for the support of schools without specifying any certain rate or amount, while other States do specify a fixed or a minimum rate or amount of tax. On the other hand, the States generally grant considerable latitude to localities by permitting them to increase the rate or amount of taxation for required taxes, or by permitting localities to levy privilege taxes, but at the same time limit such taxes as to their maximum.

UNSPECIFIED, MINIMUM, OR FIXED REQUIREMENTS.

In order to provide an amount of money additional to State appropriations sufficient to maintain schools properly, 40 States' require localities to levy taxes for general or specific purposes. In all of the remaining States-Alabama, Arkansas, Georgia, Illinois, Indiana, Kansas, Texas, and West Virginia-local school authorities, usually by sanction of the voters, are permitted to levy local taxes for school support, in addition to the money received from the State taxes and the income from the school fund. Further, in Indiana, such a local tax must be levied if the State tuition fund is insufficient to maintain school for at least six months. In Texas, the State appropriation must be sufficient to maintain schools for at least six months. In West Virginia, no district may receive any appropriation from the State unless it votes to levy a local tax for the support of schools.

The general purpose for which taxes must be levied is the support of schools. The specific purposes are the erection, enlargement, repair, and furnishing of schoolhouses, and the erection of suitable outbuildings therefor, the insurance of school property, the introduction and maintenance of school libraries and free texts, the furnishing of school supplies, the supplementing of the fund for the payment of salaries of teachers, of members of school boards, of attendance officers, and the satisfaction of judgments.

REGULAR LEVY.

State regulations concerning the levying of required local taxes vary. A State may let the rate or amount of tax to be levied remain unspeci

1 Arizona, California, Colorado, Connecticut, Delaware, Florida, Idaho, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin, Wyoming.

fied, or it may direct that a minimum amount per child of school age, per teacher, per inhabitant, or according to the average daily attendance be raised; that a minimum rate on the total valuation of taxable property be levied; or that the amount of tax be proportionate to the amount of money apportioned to the localities by the State. In addition to these basic requirements, a State may demand that its localities levy a local specified poll tax for general school purposes; or it may require them to levy additional or special taxes of adequate amount when State or local funds, or both, are insufficient to meet school expenses.

UNSPECIFIED RATE OR AMOUNT.

The first of the bases relating to required taxation leaves the rate or amount of tax to be raised by local authorities indefinite, that is, the levying of an annual local tax is required, but the rate or amount of tax is unspecified so far as the minimum is concerned. Eighteen States are included in this group, the taxes levied being either for general or specific purposes.

General purposes.-In Connecticut, the law does not directly state that a town or district tax must be levied, but it does state that schools must be maintained for at least 36 weeks in each year in every town and school district. Further, the law provides that no town shall receive any money from the State treasury for any district unless the school therein has been kept during the term specified. Still further, money appropriated by the State must be used only for teachers' salaries. To comply with the law, therefore, it is necessary for a local tax to be levied. In Kentucky, county boards of education estimate the educational needs of the county, and the county must levy a tax for school purposes. In Massachusetts, towns must raise by taxation the money necessary for the support of schools. In Michigan, boards of education in township school districts must vote the taxes necessary in addition to other school funds for teachers' salaries and for regular school expenses. In Minnesota, school boards in independent districts must provide by tax necessary funds for the conduct of schools and the payment of indebtedness. In unorganized territory, county boards of education must levy a tax for the purpose of providing schools, teachers, transportation and board of pupils, textbooks, apparatus, school supplies, etc. In Mississippi, separate school districts must levy a tax sufficient to pay for fuel and other necessities and must also levy such taxes as may be necessary to insure the maintainance of schools during the minimum term. In Nebraska, legal voters must levy a district tax sufficient to maintain schools for the minimum term. In New Mexico, school boards must estimate for collection the rate of tax necessary for the maintenance of schools. In New York, districts must levy the amount certified by boards of education or school trustees as being necessary for teachers' salaries and contingent expenses. In Ohio, district school boards must fix the rate of taxation necessary for all school purposes after State funds are exhausted. In Oklahoma, county commissioners must levy a county tax sufficient to maintain schools. In Pennsylvania, all taxes required by any school district, in addition to the State appropriation, are to be levied by the board of school directors therein.2 In Rhode Island, although the law does not directly state that towns must levy a local tax, yet it does state that every town must establish and maintain a sufficient number of

1 Connecticut, Kentucky, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, Utah, Washington, Wisconsin.

2 In districts of the first class, boards of education must levy a tax of at least 5 mills.

public schools. Further, the law declares that no part of the State appropriation may be received by any town unless it raises by tax for the support of public schools a sum equal to the amount that it may receive from the State treasury for the support of schools. To comply with the law, therefore, it is necessary for local taxes to be levied. In Utah, the board of county commissioners must levy a county tax for the support of schools. In Wisconsin, when a district fails to vote a tax sufficient to maintain schools for the minimum term, the school board must determine the sum necessary and the amount so fixed must be assessed.

Specific purposes.-In Minnesota, in districts containing 10 or more townships, a levy must be made to provide for the salaries and traveling expenses of members of the school board, the amount of salary and expenses varying with the number of schools in such districts. In New Hampshire, selectmen of towns must raise the amount determined upon by the voters for salaries of school boards and truant officers. In New Jersey, school districts must raise and appropriate an amount sufficient to pay for free texts and necessary school supplies. In New York, school boards must make ordinary repairs to schoolhouses and provide suitable outbuildings therefor, and a tax sufficient for these purposes must be levied; school boards must also levy taxes sufficient to insure school buildings and school libraries. In Ohio, when any school building has been condemned as unfit for use, and the county, township, or municipality concerned is without the necessary funds to remedy the defects, a tax must be levied sufficient to produce the sum necessary, within a legal maximum. In Washington, in districts of the first class, county commissioners must levy the amount of funds determined upon by district school boards as being necessary for creating or adding to the permanent insurance fund.

RATE OR AMOUNT ON VALUATION OF TAXABLE PROPERTY.

The second of the basic requirements designates, in terms of a specified sum, or of a specified rate on the valuation of taxable property-that is, of so many cents on the $100 or of so many mills on the dollar-the fixed or the minimum amount of local tax which must be raised for general or specific school purposes. This requirement holds in 15 States, and the details are as follows:

General purposes.-Colorado, county tax, not less than 2 mills. Delaware, district tax, $100 in Kent and New Castle Counties and $60 in Sussex County, assessed on the property of white persons for the support of schools for white children; $50 in Kent and New Castle Counties and $30 in Sussex County, assessed on the property of colored persons for the support of schools for colored children. Florida, county tax, not less than 3 mills. Idaho, county tax, not less than 15 cents. Iowa, county tax, not less than 1 mill. Louisiana, parish tax, not less than 3 mills. Minnesota, county tax, 1 mill. Missouri, district tax, 40 cents. Montana, county tax, 4 mills. Nevada, county tax, not less than 20 cents. North Dakota, county tax, 2 mills. Oregon, district tax, 5 mills, or such rate as will produce an amount sufficient to yield the district the difference between $300 and the amount received from the county school fund. South Carolina, county tax, 3 mills. Vermont, town tax, not less than one-fifth of the grand list. Virginia, county and district tax, not less than 10 cents each (may be less by special order of the State board of education).

Specific purposes.-In North Dakota, a rate sufficient to equalize property, funds on hand, and debts, when the boundaries of school districts are changed.

AMOUNT DETERMINED BY DESIGNATED BASES.

The third requirement, which is operative in 9 States, names the fixed or the minimum amount which must be raised by localities for general or specific purposes per child of school age, per teacher, per