Milford chronicle., 1934-12-28
SCHOOL BOARD
FAVORS S6OO,OOO
LOAN TO STATE
LCOatinHrd from Firn Pagrl

lGOatfHufd from FUT Fdgel
terest paid on school funds has al
ways been deposited to the credit of
the general fund and the plan or
suggestion of the State board would
mean an investment of school funds
in such a way as to return that
fund some interest.
When the present school system
was organized and the school fund
created under the act of 1921 there
was not sufficient money in the fund
at that time to meet the needs of
the schools. The State Treasurer
was authorized by law to make ad-
vances from the general fund to the
school fund but it was specified
that these loans had to be repaid
when the school fund had been in
creased sufficiently to make this pos
sible. Since 1925, however, the
school fund has been self support
ing and has annually shown a bal
ance so that no further loans were
necessary from the general fund.
II was stated authOratively this
week that the State Board of Edu-
Will uuuOuDLGuAg OBBOoC 0hs
plan or suggested legislation to au-
thorize any diversion of revenues
now going into the school fund to
the general fund. The members of
that department are said to he un-
willing to approve any additional
diversions to those already taking
place. Under existing law funds are
now taken from the school revenues
for the maintenance of the Univer-
sity of Delaware. the State College
for Colored Students at Dover and
the State School Tax Department
These diversions total approximate
ly $45O.Oe0 annually.
The State Grange has gone on
record as being opposed to any fur-
ther tampering with the school
moneys and it was stated Wednes- i
day it is safe to assume that should
plan for any further diversion be .
proposed it will be opposed by the .
Association.
The school fund at the close of .
business on June 30. this year. show
ed a balance of S3,900.000. which is /
Just about enough to operate the ,
school system for one year Mem
bers Of the board are understood to
be in favor of maintaining the fund
at figure equal to the cost of main
tenance a year in advance, due prin-
cipally to the uncertainty of income.
Should this income fail to any ap-
preciable degree, they point out, the
entire system would he threatened.
The State Budget Commission has
made its report TO Governor {.
Buck, who has completed
the tentative budget, which is to he
submitted to the General Assembly
soon after it meets next Tuesday.
This will show that the appropria-
ton recommended for the State
Board of Education for each of the
next two years will he S3.4SS.OOO.
This figure, il was stated authorita-
lively, is far below the sum the
State board had asked for, although
the amount of their request could
not be determined.
Should the Assembly decide to
lake some of the revenue now desis-
mated for the school fund it will be
necessary to pass legislation prOVld-
ing for the transfer of the money
before it is deposited in that fund.
This. it is understood, is where the
State board will step in to prevent /
such diversion if it can and il is un-
ierstood it was to avoid the possi-
hility of such a move that the de-
Dartment has agreed to the annual
loan of $500. 900 with interest for the
next two years.
The State Board of Education has
authorized the secretary, DR.. Fl. Y.
Holloway. to take the necessary
steps to present to the Legislature
A recOdification of the school laws.
This recodification was prepared for
in the Legislature at
he regular session two years ago
but this action was deferred.
The school laws have been re-
written and codified with the idea
Of eliminating much of the dead
wood i'm them and to incorporate all Z
he laws pertaining to the school
system that have been passed since
he original act was adopted in
1921.