Milford chronicle., 1923-01-19
DENIES A DEFICIT
in SCHOOL FUNDS
Supt. Holloway Tells Legislature
The School Board Will Have
Balance To Refund.
ESTIMATES NOT REALIZED
Officials OF State Board Of Educa-
tiOn Are Much Perturbed Over
Newspaper Story.

Officials of the State Board of Edu
cation are much perturbed over and
take exception to local news story
published in Every Evening, but not
sent from Dover, on Monday of last
week; also to an editorial in that pa
per- in the same issue, dealing with
the condition of the finances of that
department, the news story creating
the impression that there is a big de-
ficit in the school boards accounts
and the editorial inferring that this
deficit was caused by over expendi-
lures by the school officials. So eXer-
cised were they that Dr. H. V. Hollo
way, State superintendent of public
instruction, sought and was granted
the privilege of the floor of the House
of Representatives to explain the situ-
alton to the members of the legislature
and to correct any false impressions
which these publications may have
created. In his statement to the House
members he made it clear that the
State school funds are not OVerdrawn
and that there is no deficit but, on the
contrary, the school authorities are
going to have an unexpended balance
of $4,000 to refund to the State from
their appropriation.
It was right after the House had
convened for the afternoon session
when Representative Holcomb arose
and informed the House that there
had been some discussion relative to
a so called deficit in the State school
funds and in order that the members
might have the matter explained to
them he moved that DR.. Holloway be
granted the privilege of the floor for
five minutes to set the real facts be-
fore the members. This motion pre-
vailed and DR.. Holloway made the fol-
lowing statement:
If I had been a member of this
House today and had read in the news
papers the article appearing in Every
Evening to the effect that there was
deficit of $732178.90 in the State
school fund, I should have been anX-
ious to have an explanation from the
officials of that department of the
meaning of such a deficit. With this
idea in view I spoke to Mr.. HOlcomb,
chairman of your education commit
tee, relative to my appearing before
you this afternoon.
the most difficult problems you will
have to deal with and the finances OF
the school board are no exception to
this rule. We may expect many err
rors to be made by various people and
this is one of those errors. The state
education law sets up the sources OF
revenue for the schools. For some OF
these the state school tax department
is the agency for collection. This de-
partment turned in something over
S1,400,000. Two other sources set up
were not taken into consideration,
such as the income from the $944,0OO
in the school fund which, in 1920,
amounted to $42,299.10. The other was
the county school tax of 25 cents on
real and personal property and which
in the last six months available
announced to S436,834 and which should
amount to approximately S54O,OOO for
a full year. This with the $4,000,
makes a total of $582,000 for schools
which was not taken into account in
reporting a deficit" of $782,17S and
which reduces the amount to about
$150,000. This $150,000 is shortage in
income for school purposes only and
not a shortage brought about by over
expenditures of their budget by the
State Board of Education.
In the editorial in Every Evening
the inference is a deficit of $S46,OOO
due to over expenditure by the state
school board; but no such deficit ex-
lists. The school term begins in Sep
tember and the main income is not
due until the following March, To run
the schools during this interim the
state treasurer must draw on the Cen
eral Fund, which he is authorized to
do by lad, and he has drawn on this
fund to the extent Of $346,000 to meet
current school expenses until the
school funds become available. The
state school department last year
spent less than was appropriated to it
to the extent of $4,000 and it must be
remembered it cannot spend more
than is appropriated to it.