Milford chronicle., 1936-05-22
STATE SCHOOL
FUNDS REPORTED
NEARLY GONE
[Confinued from First PaseI

are being drawn up to revise tn
State franchise tax law to correc
the situation which has resulted ii
constantly decreasing returns of tn
franchise tax, chief source of reve
nue. for the State school system.
Mr.. DUPONT said the prospect wa
encouraging, and disclosed that ;
special commission is studying tn,
franchise tax situation. Franchis,
taxes collected for the year 1885,
amounted to about $4,504, 900 com,
pared with only $2,650.0OO for 1884.
Until the commissions report is
completed, Mr. DUPONT said. hG
could not explain the details of its
recommendations. other than that
they will provide for comparatively
simple changes in the law and ap-
,ply to tax rates on various classes
of stock issues of corporations
which hold Delaware franchises.
Much of the revenue from the
franchise tax has been lost as a
result of the transfer. by corpora
tions, of their stock from no par
or relatively high par value stock
10 stock of low par value, the fran
chise tax rate being set by the par
value, regardless of value OF stock,
it was explained.
DlsapprOVal Registered
Governor Buck, in referring to his
attitude in 1888, said: so sure was
l of my ground that | refused TO
sign the bill apprOpriating $l.5OO. .0n0,
for the new school in Wilmington,
which course / took to register my
disapproVal of spending such large
sum of money rather than veto the
bill
Il am i'm no way proud of the
fact that | did not sign the VIII
mingtOn High School appropriation
bill" he added, land NY reason for
the action taken was that | thought
in not approving it, it might attract
the public's attention to the dwind-
ling revenues of the school depart
ment. To this extent | am afraid
was wrong"
Governor Buck in his message TO
the General Assembly in 1888, in re-
ferring to the school situation, said:
Il realize, as must every thinking
citizen, that costs Of running our
schools must be cuTtailed in these
troublesome times, as the strictest
economy possible will have to be
practiced in their operation. f the
annual expense is not to exceed the
income that can be provided Tor
school purposes.
IN my judgment. the future eX-
pansion of the public school Nstem
of our State should he postponed.
without exception. until there is re-
assurance that the present sources
Of revenue can provide sufficient in
come to maintain the excellent
schools that have already been
built"
Requests Refused
REPRESENTATIVE from two special /
school districts appeared before the /
State Board of EduactiOn last Fri
day asking new school buildings and
a third delegation asked for money
to improve school grounds. The
board was forced to refuse the re-
quests as the State Board has no
funds available for school building
purposes.
The school board of the Milford
district, which wants a new ele-
mentary school building; the board
of Dover. with a request for a new
high school building. and the board
of Georgetown school. asking for
to school grounds
presented the requests which were
rejected.
Boards Statement
After it's action the State Board
issued the following statement:
There appears to be common ,
misunderstanding of the conditions
of school finances of the State.
1T is currently reported that @
there is a considerable surplus in 9
the school fund and this has given 4
rise to the belief that new projects
and new activities in school affairs A
could be undertaken without curtail- a
ing expenditures under the existing
system. II
THE truth is, unfortunately, that u
the schools are facing vanishing q
surplus and a declining revenue so I,
that even the maintenance of the |:
existing budget may soon be a /
IudlCldi plObiNiA. A@dot yNNit ADA -
ample, current school expenses eX- Il
,eeded current school income. O
AT the beginning of the school
,ear, July l. 1885, the balance in N
he school fund not preempted was N
q. .357 ,OS6.66. On May l, 1886, the
otal amount available for school G.
purposes and not preempted was NJ
i ,O4S, ,0498O. That this balance may al
Ie required for current school G.
during the next school
ear seems not impossible from
that has happened during tie pres B
mt school year. A
"One of the main sources Of al
ch0Ol revenue is the franchise tax d,
nd the Secretary of State has re-
emily pointed out the sharp decline 81
a the receipts from these taxes. m
"The State Board of Education m
aeIs it necessary to bring this mat IN
9r to the attention of those con- at
ected with or interested in our d;
choOls. in
"The disturbing question is being Ia
1rced to the front. Must there be ed
return of school taxes. the head IN
nd property tax. from which Della
-areans have been relieved in se-
emit years?" =,
Says School Unsafe c sc
The Milford group who appeared al
efoFe the board last Friday includ- CT
I WoIfar 7 Crfar 0aufal Hirqeh "a