Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-01-19
The State School Endowment.

From the very first batch Of bills presented in
the legislature it is evident that questions relat-
ing to the state school endowment will demand
much attention from our lawmakers. So far as
anyone can see, the school funds are now and
have been, at least In recent years, well handled,
but the huge figures to which they have at
tanned naturally makes them mark for those
who might benefit from their administration
The first attack looks to a reversion to the
old practice Of selling of the school lands instead
of adhering to the present plan Of leasing con-
tracts. On this score The Bee has already de-
fined its position as opposed to sale and has in
dcated how the objection to the leasehold sys-
tenn may be met by making g-time contracts
subject to periodic reappraisemcnt with stipula-
ton for payment to counties in lieu Of local taxes
Proposals are also forthcoming to enlarge the
field Of school fund investments, particularly to
permit purchase Of federal land bank bonds Orig
inally these investments were restricted BY the
constitution to United States and state securities
and county bonds Of this state and later amend
ment added registered school district bonds of
this state "and such other securities as the legs-
lature may from time to time direct" Provision
was also made for realizing on the school funds
tied up in bonds OF other states and reinvestment
in bonds Of the subdivisions Of our own state
so that the money might be used to finance our
own public Improvements rather than to relieve the
needs Of other states. That this was good move
has been proved by results; for the school fund
has had no difficulty in finding ample opportuni-
ties for safe investment at good rates in our own
county, city and school bonds. There may be no
special harm in adding land bank bonds to the
list Of approved securities but the purchase of
land bank bonds which means loan Of the school
money indirectly to private individuals should be
subject to prior public claims represented by
offerings Of county, city and school bonds issued
for public improvements or developments of pub
| lie resources.
| Still other efforts are to be put forward to
change the basis Of school fund apportonment.
For years this basis was pro rata to the num-
Der Of children Of school age, on the theory that
all should share equally The last legislature sue
cumbed to demand to distribute one-fourth of
the money equally to all school districts, regard
less Of number Of pupils, number Of schools or
amount of school work DONE to this extent fav-
oring the sparse districts at the expense of the
! populous ones. While no one can properly OBJ
ject to fair apportionment basis, the distribu-
ton should not be merely grab bag" but
should rest upon some sound principle Of equality
and uniformity, recognizing the character OF the
endowment as sacred trust for all school chill.
dren Of the state, present and future with no pref
erential claims for any part Of them or any spe.
cial locality.
In no legislation so much as in that affecting
the school funds are our lawmakers under deer
obligation to rise above personal and local con
sideratons and reach judgment on the broad
est and most far-sighted lines.