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TABLE OF CONTENTS

Page

Chapter

I-HOW CAN SCHOOL BUILDING PROGRAMS BE
FINANCED

Classification of school expenditures; two methods
of financing school building programs; The Pay As
You Go Plan; The Bonding Plan; business practices;
historical justification of bonding; state laws authorizing
school bonding; summary.

II-WHAT IS A SCHOOL BOND?_.

A bond an instrument to borrow money; bonds classified; municipal bonds; corporations; municipal corporations; varying types of municipalities; differentiating between municipal bonds; security of school bonds; sum

mary.

III-TRENDS IN SCHOOL BONDED DEBT ASSUMED
ANNUALLY

In the United States; in different sections of the United
States; relation between school bonded debt and other
municipal bonded debt; relation between school bonded
debt and school building costs; summary.

IV-JUSTIFYING A SCHOOL BOND ISSUE.

Variance between opinion and practice; fact versus opinion; criteria for evaluating existing school plant; measuring the ability of a community to finance public education; sources and selection of data; a case or type study; what does bonded debt buy; who spends the money obtained by bonding; assessed versus true tax rates; assessed versus true valuation; relation of debt limits to coterminous corporations; summary.

V-RETIRING SCHOOL BONDS___

Some factors that have affected retirement schedules; different plans of retirement; the straight bond defined; the sinking-fund bond defined; the serial bond defined; relative worth of the straight, sinking-fund and serial bonds; superiority of the serial bond; varying types of retirement in the serial plan of payment; influence of length of term on retirement plan; maturity schedule; summary.

VI-MARKETING SCHOOL BONDS_.

Essentials of an ideal investment; an analysis of the desirability of school bonds as investments by these

15-23

24-33

34-44

45-76

77-100

_101-128

Chapter

essentials; legal interest rates; laws governing denomi-
nations of school bonds; the selling price of school bonds;
possible methods of marketing school bonds; selling
"over-the-counter"; state help in selling school bonds;
importance of the observance of all legal requirements;
need for publicity in marketing school bonds; list of
reliable financial publications; value of legal opinion;
selling prospectus; financial statement; summary.

VII-RECORDING SCHOOL BONDS__.

TABLE OF CONTENTS (concluded)

Importance; data needed; sample record forms.

VIII-SOME FUNCTIONS OF STATE DEPARTMENTS OF

EDUCATION IN ISSUING SCHOOL BONDS‒‒‒‒‒‒___139-150

What assistance can a state department give a local

community that is contemplating issuing school bonds;
some things that the New York State Department does;
some things that the Wisconsin State Department does;
sample forms; a sample ballot.

Page

Table

LIST OF TABLES

Page

I-Legislation Affecting The Expenditure of School
Money Raised By Bonding----

22

II-School Bonded Debt Assumed Annually in United States 35
III-School Bonded Debt Assumed Annually Per Inhabitant 38
IV-The Relation Between School Bonded Debt and Other
Bonded Debt

V-School Bonded Debt Weighted By Building Costs------ 42
VI-Wealth Per Inhabitant and Population of Madison and
Ten Other Cities 1921_-‒‒.

50

VIII-Purposes for Which Madison and Ten Other Cities
Spend Their Money---.

VII-Per Capita Payment for All Governmental Costs in
Madison and Ten Other Cities__

50

IX-Per Capita Expenditure for Maintenance, Operation and Capital Outlay Purposes (Including School Expenditures) in Madison and Ten Other Cities----.

40

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XI-Per Cent School Expenditure for Maintenance,
Operation and Capital Outlay Purposes is of Total
Expenditure for Maintenance Operation and Outlay
Purposes in Madison and Ten Other Cities____

XII-Per Capita Expenditure for Capital Outlay (Including
Schools) in Madison and Ten Other Cities----

51

X-Per Capita Expenditure for Maintenance, Operation, and Capital Outlay for Schools, in Madison and Ten Other Cities

53

52

54

55

XIII-Per Cent of Total Municipal Capital Outlay Devoted to Capital Outlay for Schools in Madison and Ten Other Cities

56

XIV-Tax Rate Per $1,000 Estimated True Property Valuation, for Municipal Purposes (Including Schools) in Madison and Ten Other Cities

57

XV-Property Assessment and School Tax Rate in Mills for
Madison and Ten Other Cities 1919-1920___.

58

LIST OF TABLES (Continued)

Page

59

XVI-Total and Per Capita Net Debt at Close of 1921 in
Madison and Ten Other Cities----

Table

XVII-Existing Limitations Concerning the Amount of School
Bonded Indebtedness that May be Assumed in Eastern
Section of the United States__.

XVIII-Existing Limitations Concerning the Amount of School
Bonded Indebtedness that May be Assumed in Southern
Section of the United States__

XIX-Existing Limitations Concerning the Amount of School
Bonded Indebtedness that May be Assumed in the Great
Lakes Section of the United States-----
XX-Existing Limitations Concerning the Amount of School
Bonded Indebtedness that May be Assumed in Great
Plains Section of the United States___

XXI-Existing Limitations Concerning the Amount of School
Bonded Indebtedness that May be Assumed in Western
Section of the United States---

XXIV-Schedule for Payment of Twenty Year Serial Bond Issue of $500,000 at 5 per cent, All Total Annual Payments Being Approximately Equal---

60

61

XXVIII-Schedule for Payment of Ten Year Serial Bond Issue

of $500,000 at 5 per cent-

62

64 XXII-Ratio Between Net Debt and Assessed Valuation in Madison and Ten Other Cities-December 1921------ 67 XXIII-Schedule for Payment of Twenty Year Serial Bond Issue of $500,000 at 5 per cent, Annual Payments on Principal Being Equal

85

63

86

XXV-Schedule for Payment of Twenty Year Serial Bond Issue of $500,000 at 5 per cent, Largest Annual Payments Being Made During the First Ten Years---. XXVI-Schedule for Payment of Twenty Year Serial Bond Issue of $500,000 at 5 per cent, Smallest Annual Payments Being Made During the First Ten Years---. XXVII-Schedule for Payment of Twenty Year Bond Issue of $500,000 at 5 per cent, No Payment Being Made on Principal until the end of the 11th Year..

89

87

888

91

XXIX-Existing Limitations Concerning the Length of Term
of School Bond Issues In Eastern Section of the United
States
XXX-Existing Limitations Concerning the Length of Term
of School Bond Issues In Southern Section of the
United States

93

92

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Table

Page

XXXI-Existing Limitations Concerning the Length of Term of School Bond Issues In Great Lakes Section of the United States

XXXII-Existing Limitations Concerning the Length of Term of School Bond Issues In Great Plains Section of the United States

95

XXXIII-Existing Limitations Concerning the Length of Term of School Bond Issues In Western Section of the United States

94

XXXIV-Schedule of Maturities for Principal of a $100,000 School Bond Issue

96

98

XXXV-Existing Legal Limitations Concerning the Maximum Rate of Interest Which May Be Paid on School Bonds Issued in Eastern Section of the United States________103

XXXVI-Existing Legal Limitations Concerning the Maximum Rate of Interest Which May Be Paid on School Bonds Issued in Southern Section of the United States______104

XXXVII-Existing Legal Limitations Concerning the Maximum Rate of Interest Which May Be Paid on School Bonds Issued in Great Lakes Section of the United States----105

XXXVIII-Existing Legal Limitations Concerning the Maximum Rate of Interest Which May Be Paid on School Bonds Issued in Great Plains Section of the United States____106

XXXIX-Existing Legal Limitations Concerning the Maximum Rate of Interest Which May Be Paid on School Bonds Issued in Western Section of the United States--------107 XL-Median Gross Rate of Interest Paid on School Bonds in New York State 1916-21____ ._____112 XLI-Median Net Rate of Interest Paid on School Bonds in New York State 1916-21

112

XLII-Financial Statement of Fort Smith, Arkansas_______127

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