New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-02-26
THE STATE SCHOOL FUND.
RECOMMENDING THAT 1T BE ABOLISHED
REPORT OF CONTROLLER CHAPLIN TO THE LEGIsLI
TrRF-TAxArIoN AND REVENUE.


ALBANY, Feb. 25.-In the annual report OF
Alfred c. Chaplin tho Controller. to the Legislature on
January l. promise was made that the school fund
should receive consideration In special report That
report has now been made 1t reviews the history OF
the foundation 1908 down 70 the present
time ana recommends that tho fund be abolished by
converting securities into cash. be applied In tho
reduction Of taxation.
During tho first quarter Of the present century, the
general fund.- which collection OF loans and seeur-
ties owned by tho State produced sufficient revenue to
meet tho ordinary expenses Of government That con-
don Of affairs long since ceased to exist and the gen.
era fund originally constituted disappeared tho term
to- day meaning simply general proceeds Of taxation
Alongside of tho general fund there were established
special funds for tho purpose OF providing SUFFICIENT
annual for special Obecs Chief among these
was tho school fund.- eighty years old, which was
founded to support common schools. The Controller
shows that such method Of finance although adapted
TO simpler age when the total State expenditures werc
less than $25OO00 annually Is out OF date. This
argument Is enforced by detailed statement OF facts
from which appears that during the Hrst forty years OF
existence OF the fund It's total revenues considerably ex
ceeed the total payments from tho state Treasury for
school purposes, and the payments from the State
Treasury supplemented by heavy local contribu-
tious known rs ratio bls In second table, covering
the forty years from s45 to tho present. the made
aiacy OF the fund In demonstrated during luis sccohd
per,od the common school system has grown and
banded that the amount paid annually from the STATE
Treasury present school purposes IS greater than
was the gross OF such payments during the entire
period OF forty years ending in lsA5. During this
second Icriod the State has committed itself to the policy
OF direct annual school tax which was first imposed in
1851. after heated controversy. At first this annual
tax was 100000 Then 10 became $l,l0O.OOO In
1868 1t became ~. 100000 In 1877 1t became 1000.
600 which proportions 1t has since maintained. II
Is clear therefore, Mr. hspn that IN fact the fund
has already been abandoned as means of carrying OUT
us analysis ci Inc fund ms ut present composed made
IN detail showing that tbs character 81 .s % ms
tcres the community Taking the present ratio OF In
t.res upon money invested OF estimate, the
Controller says. would be necessary that the fund in
order TO accomplish ITS erSnal prpe,e should contain
that tho school fund be converted into cash
may be advisable after January ]. 1857. TO
accomplish this purpose constitutional amondement
must passed 10y this Legislature and by that OF 1883.
and BE- submitted TO the people tho following fa Ihc
value of the securities composing the fund at present Is
The iul! efcc Of the proposition is shown BY pre-
scnting It Tnr Of scheme bearing upon the states
financial policy during the eight hscs year, next ensu-
Ing which end upon October l, 1893. ut which date the
ast OF the present state debt Will he paid
The possibilities Of these eight fiscal years compared
with the burden Of taxation during the eight years Just
fiscal years has been somewhat less than - 600 00o.
Tbs average the Controller shows can be largely reduced
during the eight nscal The corporation tax.
in his Judgment Will produce IS 900 ooo more than dur
less the sinking Fund appropriations will
fall below those of the last eight years by at least
amounting to $1,000 900 and by converting the common
school fund into coui bo applied IN reduction
OF taxation Sl2JoOO0. besides which the State VIII b.
free from any necessity OF raising money by taxation 10
make good deficiencies In the fund. During the Last
eight years nearly ~ 20OooO ha. been contributed by
direct taxation toward either the principal or the rev.
cnuc OF the common school fund
The aggregate reduction Of taxation possible during
the eight years. compared with the eight last
preceding 10 estimated b. the Controller 10 amount 10
S2O2t7.OOO. boln. average annual reduction Of
52T The average annual levy, therefore. during
the eight years should be less than any tax levy
since 1859, willie the annual tax rate should be
lower that ~ year since l-56. AZ the cD1 OF
t period o eight years the Controller thinks tho state
will lie cbt appropriations for the construction
OF tie New Capitol viii lie hear OF. the population OF
the state wifi be Go00.o0o. and the states valuation
vii he ooopo99P dhs rs d eres Which, Ms
IL f. hoped will enable the state under the favorable
conditions possible In the future 20 partially and per-
ha entirely abandon direct taxation AS method OF
rBisns the public revenue.