The Sidney herald., 1961-01-04
The Sidney Herald-WednesdaY. January L. lsel@A


tinue TO have inefficient school
systems.
/ understand legislation will be
proposed which could eventually
cut the number of our school dis
trictS from around LOO down to
around 200. This is a plan to make
larger and more efficient school
districts, but has nothing to do
with the location of schools in
the districts. The location of
schools is a matter left to local
trustees.
The plan calls for duly elected
county committees TO reorganize
districts in each county according
to rules and regulations stated in
the law. This is a voluntary re-
organization proposal. subject to
a vote of the people in each coun-
ty.
Over twenty states have already
reorganized their school districts,
and several others are currently
in the process of doing so. Reasons
for reorganization of districts arr
to secure better qualified teachers.
to provide improved educational
programs, to provide adequate ia
clEtieS, a broader tax base. more
efficient S of teachers, broader
curriculumS, better inservice
training for teachers, and more
efficient and economical opera
ton.
Considering future financing OF
education In Montana / strongly
urge this legislative body to MEM
orialize congress and the admin
~stration to enact and approve en-
abling legislation which will au-
thorize and direct the district di-
rector of Internal Revenue in each
state TO retain a percentage of
the federal income tax collected
in the respective states TO be de
livered to tax collecting depart
mentS and thence to education.
/ will not devote any part of
this message to other department
E budgets other than to say the
. general approach has been the
/. same in all cases.
|, The budget submitted by the
? Governor will enable the state
) to live within its income without
; an increase in tax. However, in
dealing with our deficit we have
two alternate courses of action.
| One, provide for an additional
and new tax; two, enact legis-
lation necessary, wherever pos
SIble, to transfer certain depart
mental reserve funds to the gen.
0 real fund ito be used in retire
q ment of the debt. l favor the lat
q ter course.
l would call your attention to
the fact that the state of Mon
ana is in the hail insurance bust
ness. At n time this program
e was justifiable, but today the
justification of a tax-free state
business which furnishes insur-
n ance at cost to a relatively small
e number of subscribers is ques-
tiOnable. Private insurance COM
panies provide hail coverage and
if this is not satisfactory in GER
y tain e the federal crop insur-
ance program offers some hail
e loss protection.
: The legislative council has rec
commended abolition of the hail
board and transfer of its duties
and functions TO the department
- of agriculture. I would go one
: step further and recommend that
= you abolish the hail board. Take
- the state out of the hail insurance
s. business and transfer all reserve
- and surplus ito the general fund.
The hail insurance reserve fund
is slightly more than two million
! dollars. 1t was created by making
* use of the states credit and by
~ enjoyment of tax-exempt status.
or If this fund is applied toward re-
d duction of our indebtedness no
additional taxes will be needed
/ under the budget as proposed.
~ / would further recommend that
- the Ways and Means Committee
of the House of Representatives
H. examine the surplus reserve or
We sinking funds in other departments
a to determine if additional funds
from such sources can be applied
in reduction of the deficit and
T. used to provide a cushion in the
ee event state income falls below thai
X anticipated.
ds With state income, DO a large
n extent, dependent upon economic
Vie conditions, and such income fluc-
UT tuating as conditions change / re-
UT spectfully suggest that you con-
n slider the creation of a commits
n sion composed of the budget di-
rector, the controller, and tbs
p chairman of the board of equali.
n cation to compare reasonable ex'
r.ected tax return against appro-
priationS. In THE event of a de
n crease in income department bud
n gets could be reduced SO that w
can avoid a fiscal deficit. Tn
M members of the commission woul'
me serve without pay and their sol
De purpose would be to keep spend
are ing within income during the in
ase terim between legislative sessions
aln l am sure that the members Q
get this legislative assembly are full
ull aware of the emergency need I
amend certain portions of the I'm