Perth Amboy evening news., 1921-04-18
CITY and STATE DEBT
LIMIT LAWS CONFLICT
REGARDING BUILDINGS

The matter of the city's financing
an addition to the high school Or a
new school In Hall avenue still Of
fers a complicated problem, even
after a special committee of three
waited upon Commissioner of Edu-
cation Enright in Trenton Saturday
and received from him an opinion IN
which he declared that schools were
not bound by the city debt limit If
the existing conditions made the
schools inadequate. In other words,
according to Alfred II. Crowell, sec
retary of the Board of School Esti-
mate and the Board of Education.
who was one of the committee, the
city must furnish the money for
school improvements in some man
ner. The other two members of the
committee were City Attorney Leo
Goldberger and City Comptroller
Olaf j. Morgenson.
A report by this committee will
be received by the Board of School
Estimate and Board of Education,
after which it will be decided what
steps shall be taken. When question
ed this morning as to how near the
debt limit the city is at the present
time, MIR. Morgenson said it was
within approximately 100000. In
his opinion, he said, the Hall ave-
nue. school could not be started this
year, but he felt that sufficient
funds could be supplied by the city
to make possible the high school
addition.
Even after getting the opinion of
Commissioner Enright, in which he
declared the amount of money
which the city must supply for
school uses in cases of inadequacy
is not bounded by the citys debt
limit. there seems to be difference
of opinion as to just how much
money will be available. 1t has
been said that if the city oversteps
bonds, the bonding attorneys will
not accept such action and there
will be no market for the bonds.
According to Comptroller Nor
genson the school board is permit
ted to spend money for school pur-
poses up to 8 per cent. of the val
uation of the real and personal prop
erty in the city. The school board
has now exceeded this, he said, and
it must come to the city for all addl-
Gional appropriations. The question,
the comptroller said, is not whether
the schools could be built under the
is concerned but how the city can
raise the necessary money for the
buildings. 1t was the opinion of the
comptroller that the city will be un-
able to sell these school bonds If
they exceed the debt limit
The school law and municipal fl
nance laws must operate together in
financing the proposition, Mr.. Nor
genson pointed out. =
There are only two ways at pres
ent in which the money might be
raised Mr.. Morgenson said. one be-
ing by direct taxation. and the other
by raising ratables. Commissioner
T,nright told the committee Satur-
day. the comptroller said, that the
ratables in Perth Amboy were low,
they being 800 and $500 pro rata
per capita, while the average for
the state is $1,000. 1t would be i'm
possible to add to the ratables or
appropriations at present, he point
ed out and there is not. In his es
timation, enough leeway for the
Hall avenue school building. There
is, however, Mr.. Morgenson believed
sufficient to build the addition to
the high school.
1t is expected that the school
board will get together at a special
meeting shortly to discuss this mat
ter as they have maintained that
the city debt limit did not limit the
amount which might be spent for
school improvements.