Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1903-06-03
SCHOOL MONEY.
State Will Give Schools More
than Last Year.
This Despite the Reduced Tax on
Savings Banks.
A Showing Pleasing to the Friends of
the Common Schools.

ueSlre OH the part VI ooiie HieInDeFS Oh
the upper body to prevent an adjourn
ment to September unless law was
passed increasing the proportion of the
savings banks tax diverted to the
school fund.- Ever since the tax on
savings banks was first imposed, 80
years or more ago, one-half of the
total amount has been given to the
school fund. The growth of this tax has
been far beyond the most extravaganza
anticipations of the promoters of the
plan. and the money for the support of
schools has been increased by this
means to large proportions. For in
stance. in 1902, the savings bank tax
apDortiOned to the school fund, for the
two semi-annual periods, October, 1901,
ana April, 1902, amounted to total of
SECS This amount added to the
mill tax and interest on the perma-
nent school fund made a grand total
for the school year of 1902 of $3.50, 2S077.
For the school year 1881 the total fund
for school purposes was $313,S95.S7, the
increase since that time being largely
credited to the gain in the savings
bank tax. although there was steady
growth in the mill tax in the q years
represented by the above figures.
When the law reducing the tax on
savings banks was passed, last winter
the fear was expressed that the schools
would suffer by the reduction. This
fear caused the friends of the schools
to secure the introduction of a bill
raising the proportion of the tax of
the savings banks which should go to
the school fund from one-half to i've
eighths; and it was over the passage of
this law that the deadlock happened.
The result was that the bill was tabled
and will come up for action in some
way in September. The friends of this
measure argued that the schools would
be crippled to considerable extent
while others commended that the in
crease in the deposits of savings banks
would become in the course of time
sufficient to make the amount devoted
to the school fund as large as it was
before the tax was reduced. They also
argued that the increased tax on trust
and banking companies, one-half of
which for the first time should go to
the schools. and the increase in the mill
tax of $15,529.25, would tend to make
good any loss which the schools might
suffer because of the reduction in the
bank tax. But these kinds of argu-
ment We're not believed by the advo-
Gates of the five-eighths plan. They
could not understand how it would be
possible to reduce the savings banks
tax without endangering the school
fund.
In July of each year the school fund
is made up and apportioned among the
towns of the State in proportion to the
number of scholars returned. The
savings banks tax of April and October
preceding is divided into halves, one
part going to the school fund and the
other part into the general funds of the
State. Then the following January the
money is paid to the towns. In July,
1902. the savings bank tax set aside for
school purposes amounted to 1882, 515.65.
In July. 1903, the amount of the saw
ings bank tax. which will be added to
the school fund. will be S255, 901.3S. This
is made up, IS follows:
Tax assessed October. 1902 S271, 1889 10
Tax assessed April 1903, .239, 913.47
Total tax for school year, SSH ,S02.57
One-haf for school fund $255, SOL %
To this sum will be added one half
of the tax on trust and banking com
panies, amounting to $SSO3.2S, and the
increase in the mill tax over that of
last year. which will make a total gain
in the school fund from these three
sources of $17,71S.16. SO that instead
of losing anything the schools for the
school year 1903 will gain $17,71S.16
over the school year of 1902 1t will
thus be seen that the predictions of the
advocates of the five-eights idea have
not been verified. The increase in the
resources of the savings banks of near
y 100000 is responsible for the fact
that even with reduced tax of one
eight of one per cent, the total tax
that will be appropriated for the school
year 1908 is only $6614.37 less than was
appOrtioned for the year of 1902. The
following comparative schedule gives
the amount for the school year 1903
as against that of 1902:
Savings bank tax apportoned
to school fund. 1908, S255, sol %
Increase in mill tax, Is, 52925
|. One-half of trust companies
tax of 1908. S,S032S
Total from these sources, $3.50, 1881
Savings bank tax apportoned
to school fund, 1902, 1862 ,515.65
Gain for 1903, $17,71S.1G
The comparison of the total savings
bank tax for April 1903 with October,
1902, as given elsewhere, shows de-
crease of $31.975.63. comparison,
however with the tax of April, 1902,
would be fairer, because the tax in
April is always lower in proportion
than in October of the same year. In
April. 1902, the total tax was only $685.
1894 greater than it is for the same
period this year.
The belief is strongly advanced by
the State assessors and others con-
versant with the subject that the gains
in deposits in both the savings banks
and in the trust companies, thereby
adding to the income of the State in
taxes. will in the future be quite ample
to make up the loss of the school fund
caused by the reduction in the tax on
savings banks. 1t is a positive fact
that no loss but a gain has been made
for the school year 1908 over the last
school year which the above, showing