Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1940-06-13

| collections for the year 1889 amounted
to S10,949,5 23. BY June 80, it will
be we'll over S11 100000.
Made A Replacement Tax.
The original law of 1888 provides
that the money received by a school
district must be used first to pay off
| bonded indebtedness; next other in
debtedness; and all that being paid,
the money is used for current school
expenses.
The income tax for 1886, paid in
| 1887, amounted to more than $40 per
child of compulsory school age re-
siding in the district. There are now
state. In the 1887 session of the
| Legislature, the law was amended
so that not to exceed $40 per child
would be allocated directly to the
school district. The balance of the
income tax receipts were allocated
to the regular state aid for schools
resting on some 20 different bases.
School Aids Not Paid in Full.
State aid to schools has not been
paid in full since the Christensen
administration of 1925, the percentage
of payment having varied over the
years. During the last year, about
so per cent of the state aid was paid.
There was disagreement between the
Senate and the House of 1887, the
House maintaining that state aid
lei, hn IN, FIJI Of ho
income tax to be used to make that
possible. The Senate objected. The
result was a compromise. Instead
OF the balance of the income tax above
the $40 per child being used until the
regular aids are paid in full, it is
being used only to the extent of the
legislative appropriation for school
aid.
The legislative appropriation, ordi-
narily collected through the general
property tax, including the large iron
ore valuations, is S7,75O,000 for the
fiscal year ending June 80, 1910, and
S8,05O,OOO for 1941.
The income tax of $40 per child
paid directly to the schools takes up
about S5,OOO0OO of the S1O,OOO,OOO
collected. The S5,OOO,OOO income tax
balance is now used up in the state
aid appropriation of S7,75O,0O0 which
represents 60 per cent appropria-
ton. If instead, it had been added
to the S7,750.000, it would make for
100 per cent appropriation, or full
state aid.
Tried for New ALLEGATION.
The House in 1887 wanted the bal
arce in the income tax fund used as
supplement to the regular amount
appropriated for state school aids.
The regular appropriation, together
with the income tax money would
have paid the aids in full. The fail
ure of the House plan rests with the
Senate, which body wanted the in
come tax balance placed in the gen.
sral revenue fund. The latter pro-
posal. if it had become law, would
have jeopardized further the hope of
school people that their aids be paid
in full.
The 1889 Legislature set up an In
term Commission to study the whole
subject of state school aids, looking
toward improvements.
BY January l, 1899, there had been
accumulated approximately S7,500,000
in the income tax fund. Of that
amount S1,235 900 was used as an adj
justment on past income tax alloca-
items, because of court ruling. In
stead of appropriating enough to pay
the school aids in full, the Legisla-
ture used the balance of S6,265, 900
for the regular state aid to schools
and thus levied that much less tax
on general property.
Income Tax Has Aided.
There has been much dissatisfac-
ton over the years because the state
aid to schools has not been paid in
full. 1t is difficult for officers of the
various school districts to set up a
budget under regulation of the De-
partment of Education when it is not
known just what aid they will receive
from the state. The problem is made
more difficult in districts with small
Ter taxable valuations. The S6,265 900
from the income tax, used by the
present administration for state aid to
schools, naturally made for a better
showing so far as it concerns lower
state tax rate on general property.
Before enactment of the state in
come tax law in 1888, fear was ex-
pressed that the new tax would only
make for additional spending. Spon-
sors of the bill insisted that it would
be replacement tax, making the
levies against general property lower
to the extent of the income tax COL
lections, and that has held true.
General property taxes are still too
high, but if it were not for the more