The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-05-02
School Board Cancelled $4,000
in Bonds Last Month.
1t Still Has a Total of S43S. 661
Outstanding.
RUNNING CLOSE TO THE EDGE
Must Get More Money or Cut
Down Expenses.
Has Paid $55O,OOO in Interest
in 25 Years.

Bonds to the amount of $4,000
were retired the latter part of last
month by the board of education. This
retired issue was for refunding pur-
poses and the money derived from
their sale was received and spent rs
years ago.
Unless the five mill levy that now
prevails is raised by the next 1egisla-
ture, or expenses are cut down, To-
peka schools will be conducted at a
loss according to a statement from l..
NJ Jones, member of the finance
committee of the board of education
The city is just able to meet its ex-
penses with the present tax levy.
There now stands charged against
the city bonds that have been issued
and sold for school purposes to the
| amount of $43S,661. They fall due
from 1917 to 1928. This means that a
sinking fund of some S36,50O in round
mum bers must be set aside each year
to pay these bonds when they mature.
Paid $55O,O0O in Interest.
| Topeka has paid within the past 25
years over s550,000 in interest to run
ITS schools, according to the report of
the board of education issued in 1915.
1h1s interest is on money borrowed
ana does not take into account other
money spent but is just interest paid
Tor the use of borrowed money
AS Topeka grows the cost of educa =
ton increases. With more children
to take care of and the gradual in
crease of salaries of teachers and 9TH
er expenses the increase mounts ac-
| cord1ng1y and the general opinion
among those who are well posted re-
garding school matters is that either
| the tav levy of five mills must be in
| creased to meet the increased cost or
expenses must be cut. To do the lat
ter, it is argued, will decrease the eff
| cheney of Topeka's school system.
| As an example of the increase in
various departments, in 189O-91
| teachers received $64,404.13 in SAL
aries. In 1914-15 this department in
creased to $214,10e.50. Janitors re-
ceived in 1S9O-91 for salaries s6,434.67
creased to s16,524.22. Under the
head of ''other expenses" the report
kshows s2O,315-6s spent in 1Ss0-s1,
while in 191415 this department spent
$62,103.9S.
Expenses Tripled.
Total expenditures in these three
departments alone which do not in
clude buildings or upkeep of same
amounted to 91.154.4S in 1S90-91 and
in 1914-15 had jumped to s292,73470.
kw The board of education, according
| to L. NJ. Jones, is doing all in its DOW
er to reduce the bonded Indebtedness
and all improvements made to school
buildings and all new buildings are
being built on cash basis
The laws which surround the board
give them narrow range in some mat
| tiers and absolutely throw the doors
wide open in others. AS an example
of this the board can not transfer
| money from the sinking fun to pay
any warrants that may be issued al
| though they may know the money will
be replaced the next day and accord
ing to the rate of interest which the
banks charge for cashing warrants
stamped mot paid for want of suf-
ficient funds the city must pay per
cent interest on such warrants while
there may be sufficient money in other
funds to pay them.
is there any law that governs the
board as to what amount of money 1t
may SPEND was asked Jones.
None that I know Of We can
spend any amount that we want to-
he said.
just an Old Custom.
who names the rate of interest on
warrants which the banks cash
stamped, not paid for want of suf-
ficient funds?" he was asked.
I don't know but l am of the opin-
ion that it is an old custom"
| why does the school have to nav
six per cent interest on such warrants
when the state only pays four per cent
interest?''
Il did not know that the state did
not pay SO much as we do he said
There is a law which compeIs the
banks only to charge the state four
per cent interest on such warrants and
that is all the rate they carry, he was
informed.
Are not new laws needed which
will give the board of education more
leeway in handling the city's money SO
that it could be handled on business
basis and cut down this big rate of in
terest?" he was asked.
Absolutely he answered, "if we
could use business methods we could
save the taxpayers a big amount OF
money each year but as long as the
present laws stand we must abide by
Them
Until the laws are changed, it is
stated. the banks will be able to
charge the city six per cent for all
warrants cashed where there is not
enough money in the proper fund to
pay those warrants. no matter how
many thousands of dollars the city
may have to its credit. for which il
receives only three per cent interest
in other funds