Washington State journal and Adams County news. [volume] (Ritzville, Wash.) 1906-1907, 1906-12-12
LARGE SCHOOL fund IDLE.
Gov. Mead Calls Attention to the Fact and
Urges Legislation.


bank belonging to the state school
funds that the legislature should have
appropriated instead of calling for
money to be raised by taxation, states
a west side report. For years this fund
has been idle, of value only to the
bankers who had it's custody. In max
ing public this matter the following
statement was given out from the Office
of Governor Mead:
Previous legislatures apparently
have assumed that the only fund from
which appropriations could be made for
the maintenance of state educational
and other institutions was the general
fund. The only exception to this as
sumption was found in the legislature
of 1905, which appropriated $1,000 from
the agricultural college current fund.
All other land grant funds for the
support and maintenance of state insti-
tutions have apparently been neglected.
According to the state treasurer, on
November 81, 1906, there was in the
current funds of these grants a total
of $26, 741.1 Ia subject to appropriation
for the maintenance of the institutions.
At the average rate Of increase, as
calculated by the commissioner of pub
lie lands, these current funds by April
l, 1906, will contain a total of $685.
BAL. Ia, all of which should be appro-
priated.
'1n the permanent funds of the
grants there was on November 81,
1906, as reported by the treasurer,
total of $268, ,676. Sc, all of which should
be invested as the permanent school
fund is invested, the revenue to go
into the current funds to become avail
able for appropriation. At the average
rate at which these permanent funds
are increasing, as calculated by Com
missioner Ross, they should contain on
April l next total of $279, ,016.56,
which, invested at 4 per cent the aver
age earned by the permanent school
fund-would produce an annual revenue
of $ll, 100. .66, or S22, 32l. go for the en-
suing biennial period.
'The accompanying statement shows
the condition and the immediate pros
pect of the various grant funds, but
does not attempt to show the ultimate
prospects. Proper legislation for the
use of the current funds and the in
vestment of the permanent funds will
increase the ratio of gain materially in
each.
''The scientific school current fund
has an overdraft now of 11,004.68.
Collections average $l25 month. By
April tbs overdraft will be reduced
to $11, ,4O4.S8. The overdraft is the re-
suit of an attempt by the legislature
to build a $25,OOO building at the state
college and pay for it out of sales of
scientific school lands. The supreme
court held that the grant was an ire
ducible grant, and that an appropria-
tion from the principal derived from
sales was invalid; hence, as fast as
revenue is received into the current
fund it is applied to the reduction of
this debt or overdraft. The only reve-
nue. now is from leases and the like.
The debt would be reduced much faster
if the scientific school permanent fund
were invested.
"This permanent fund now contains
$52, ,7O7.95. Continuing the average
rate of increase, it should contain on
April $54, 1875, as it is growing at
the rate of $365 month. Invested at
4 per cent, this sum would produce
81, 166. .72 annually"
In the same way the governor shows
the present condition of and what will
be in the agricultural college current
and permanent funds, charitable, edu-
cational, penal and reformatory current
and permanent funds, the normal
school current and permanent funds,
and the university permanent fund, on
April l, 1907, in his argument for the
IL