The Greeley tribune., 1911-10-05


court, relative to school warrants in
the case of the Severance school dis
trict. has caused much widespread
discussion
The financial condition of the
many school districts has been in
very bad state, and that condition
has arisen through no intentional
fault of either the school boards of
any of the school districts or OF the
county treasurer, in handling the
funds of the districts during past
years. AS Judge Graham expressed
in his opinion, such acts were not
done without color of authority.
Some districts in the county have,
at the present time, as high as
eleven or twelve thousand dollars in
floating debts in the form of regis
tered warrants, which have accrued
in past years, due to the fact that
school districts have, from year to
year, exceeded their revenues in
their expenditures, leaving the debt
to accumulate in the form of regis
tered warrants on the books of the
county treasurer, against the funds
of the school district.
These debts in some districts are
far in excess of the revenues of any
one year. In other districts they are
in excess of the revenues that will
be available for several years, maxi
ing it impossible for such districts
to maintain school until the debt is
wholly liquidated, provided all reg
istered warrants are paid in the Or
der of their registration
Judge Graham, in his decision,
determined the following matters:
l. That the money arising from
ithe tax levy, made by the authority
of the board of directors of dis
trict, is fund made for the pur-
pose of conducting school for the
year for which the tax was levied.
2. That the fund so arising is an
annual fund, and exists only during
the fiscal year for which the tax was
levied.
g. That warrants which are is
sued for the current expenses of any
fiscal year shall be paid in the order
of their registration out of the funds
arising from the tax levied for that
year.
4. Any excess funds, remaining in
\ the hands of the county treasurer
| anu W lue CTeull Ol tHe SCnOOl us
trict, after the expenses of the fiscal
year have been liquidated, may be
applied by the county treasurer to
the payment of registered warrants
of years prior to the current fiscal
year.
s. That the board of directors Of
a school district have the power alb
solute to determine how many
! !, r~r Il LoI H0 lyN h1,,
school district. in any one year, an(
when the board has SO determined
it is not within the power of a cour
to vary the length of the term.
6. That the fiscal year for
school district begins on Decembe
/ and ends November 80 of the 70
: lowing year, and that the presen
fiscal year, the tax for which wa
authorized in May, 1910, began o.
December /, 1910, and ends Novem
ber 80, 1911.
\ While the decision and its effec
may be clear to the members of tn,
legal profession, it is not so clea
to the various boards of directors o
the school districts, and to thos'
laymen who have heretofore pur
chased and become holders of schoo
warrants In some instances since
the decision was handed down in th'
district court, bankers and othel
persons, who ordinarily buy thes,
warrants, have refused to accep
them without the endorsement o
the members of the school boards a:
individuals, through the fear tha
the warrants will not be paid upoI
presentation. and further if it il
necessary to register the warrants
they might never be paid.
1t is clear from the opinion citec
that warrants will be paid in the
order of their registration providing
THAT they are presented to the treas
Iurer for payment within the yeal
in which they are issued, and before
the funds of the school district are
exhausted for that year; also it may
be necessary to register a warrant
until further funds are collected
from the tax on the district of such
year.
1t is primarily the duty of the
electors of a district to provide
funds enough for conducting its
school for one year. (somethine
which most school districts haven