Milford chronicle. [volume] (Milford, Del.) 1878-1974, 1924-02-01
Economy" Assembly BungIed On
Budget, Refusing Permission To
Pay Money Received From
State On Past Indebted
ness.

Even while the roar of elouuence
was reVerberating from the toughen-
ed vocal cords of Representative
Frank Collins, reputed father" of the
State School Budget Law in the last
session of the General Assembly,
wherein, in speech before the Dom
ocratic city committee last Thursday,
he warned against an "era of extrav-
agance," school, district after school
district in New Castle, Kent and Sus-
sex counties were defaulting on their
school bonds as a direct result of a
clause inserted in the Budget Law by
Representative Collins denying the
use of any money received from the
State for the payment Of past indett-
edness.
Twenty-seven school districts of the
State of Delaware, and through them,
the State of Delaware itself, as n re-
suit of the bungling cheese-paring
methods used by the assembly school
budgeteers, led by the redoubtable As
semblyman Collins, nave become de-
fadlters to a total amount Of $73,Sl2
IN bonds, and S6,859.4S in interest
Representative Collins eIOquenee
stirred the memb ers of the Democrat
ic city committee. but failed utterly to
arouse responsive chord in the
breasts of the widows and other in.
vestOrs of small means who are de-
pendent on the money they trustingIy
invested in school bonds. believing
the word Of the State Of Delaware to
be as good as its bond.
1t failed to cover up the fact that
the State Of Delaware has defaulted
on its bonds, and that many poor peo-
pie, who believed the investment to be
superior to a real estate mortgage in
asmuch as the word of the State was
pledged, are denied the interest in
their small investments, and are like
ly to have to spend good money to Sc
cure mandamus to force payment.
On the one hand there is alleged ex-
traVagance; on the other there is act
ual defaulting of the sovereign State
of Delaware on its bonds.
When the School Budget Law was
prepared by the majority party in the
last General Assembly, it was stated
that no part of the sums given by the
State to the school districts should be
used for debt service. That is to say,
those districts which had borrowed
money in the past were forbidden to
pay any of the money received for in
terest or on the bonds themselves.
There is no other source of funds |
on the part of the school districts, al
ways excepting the special districts, |
unless another section of the law is
followed. That is that district may !
levy a special tax. Chances that the
districts are going to levy special
taxes to pay off bonds that in some
instances amount to $4,000 are very
slim indeed. 1t is believed that every
school district in the State owing
money on bonds will default.
In 1919 these school districts were
taken under the county wing, and
their debts became county debts. In
1921 they were taken under the wing
of the State, and their debts became
State debts. Now the State, through
its budget law, utterly refuses to al
low the money received from the State
Board to be paid out on any past in
debtedness. The result has been that
all districts have defaulted and there
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