A critical analysis of recent literature in the field of school finance
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A CRITICAL ANALYSIS OF RECENT LITERATURE IN THE FIELD OF SCHOOL FINANCE
A Project Presented
to
The Faculty of School of Education The University of Southern
California
In Partial Fulfillment of the Requirements for the Degree Master of Science
by Clara May Tracy June 1950
UMI Number: EP46102
All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion.
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T h is project report, w ritte n under the direction of the candidate's adviser an d ap p ro ved by h im , has been presented to and accepted by the F a c u lty o f the School of E d u catio n in p a r t ia l fu lf illm e n t of the requirements f o r the degree
o f M a s t e r of
Science in Education.
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TABLE OF CONTENTS CHAPTER I.
II.
PAGE
THE P R O B L E M ..................................
1
Purpose of this s t u d y .....................
1
Importance of the s t u d y ...................
2
Materials used..............................
2
Organization of the study .................
3
.................
4
FINANCING PUBLIC EDUCATION
Need of Adequate School Support ..........
4
Statistics of State Progress in Public E d u c a t i o n ................. ..............
6
The Current Educational Situation in the States
..................................
7
Correction for Sparsity in State Aid Formulas
................................
8
All That Glitters is Not G o l d .............
9
Provisions for School Plants, Transporta tion, and S u p p l i e s .....................
10
New State Minimum Salary Schedules and Their F i n a n c i n g
.. .
11
State Legislation Affecting School Revenues, 1944-1948 ..................... Education Warrants FinancialPriority . . .
13 14
iii CHAPTER
PAGE Who Should Pay the School Tax Bill? . . . .
15
.......................
16
PRINCIPLES OP PUBLIC SCHOOL FINANCE ........
18
Summary III.
. . . . .
School Support............
18
A Plan for State Aid Beyond a Minimum P r o g r a m ..................................
19
Is Broadening Local Tax Power to Finance Education a Step B a c k w a r d ? .............
21
Goals in Financing School Building Construction
...........................
22
State Taxation Covering All Governmental N e e d s ....................................
23
An Educational Use T a x ...................
25
Effect of Size of District on Pupil Transportation
.........................
26
The Need for Equalization in School Finance In Paths to Better S c h o o l s Finance at A.A.S.A. Meeting in St. Louis
28 ' .
29
Statutory Bases of State Foundation Programs for S c h o o l s ................... Summary . . . '.............. IV.
31 32
THE SCHOOL B U D G E T ...........................
34
Budget Making Need Not Be a Chore.........
3^
School Budgets Need I m p r o v e m e n t ..........
36
Iv CHAPTER
PAGE Budgets Can Be U s e f u l .............
38
School Finance Practices In Forty-
V.
eight S t a t e s ...................
40
Control That B u d g e t ...............
4l
S u m m a r y ............................
42
SOURCES, MANAGEMENT, AND DISTRIBUTION OF SCHOOL I N C O M E .................. Equalize Tax Assessments
44
...............
44
School Support in the Forty-eightStates.
46
Financing the School Lunch Program . . .
47
Long Term Financial P l a n n i n g .....
49
An Evaluation of Sources of Revenue for Public Education .................
50
State Constitution Obligations and Limit ations on Financing Public Education.
.
52
New Insights Into the Financing of x-'
E d u c a t i o n ...............................
54
S u m m a r y ........................... VI.
56
ACCOUNTING FOR PUBLIC SCHOOL FUNDS, FINAN CIAL STATEMENTS, AND REPORTS
...........
58
The Reclassification of School Expendi tures for A c c o u n t i n g ........... Annual Reports Pay Dividends
..........
58 59
V
CHAPTER
PAGE What Should School Directors Know
VII.
About Finance? . .-.....................
61
Why Keep the Budget a S e c r e t ? ..........
63
The Monthly Budget Review
...............
64
S u m m a r y ..................................
66
AUDITING SCHOOL ACCOUNTS ...................
68
Are Your Internal School Accounts Audited?
68
Handling Student Funds ...................
69
Extracurricular Finances--Thelr Steward ship and C o n t r o l ....................... Procedure in Public School Audits
VIII.
70
. . . .
72
How We Handle School Petty C a s h ........
73
Cash Audits Only Are I n a d e q u a t e ........
75
S u m m a r y ..................................
77
COST A N A L Y S I S ..............................
78
Components of Pupil Transportation Costs .
78
Comparative Costs of Pupil Transportation.
80
Determining Pupil Transportation Costs . .
81
Transportation Cost Creates Inequalities .
83
The Problems of the School Lunch Program . from the National Point of View
. .-. .
84
The School Lunch Program from the State Point of View
.......................
85
vi CHAPTER
PAGE The Teaching Load and School Costs . . . . .
87
Reimbursement for Privately Owned Cars Used in School B u s i n e s s .............. , .
89
S u m m a r y ................ IX.
91
FINANCING CAPITAL OUTLAY AND SCHOOL INDEBTEDNESS ................................
93
Financing a Building Program?
.............
93
Answering Tax Payers Questions .............
95
Bay City Holds Successful School Election
.
Your Construction Dollar ...................
97 98
Planning a Co-ordinate School CountyCity Tax P r o g r a m .................. Financing Your New School Buildings Planning a School Bond Campaign
99 . . . .
100
..........
102
Pictures^Give Punch to School Campaign . .
.
Garnering Good Will Along With School Funds.
104 106
Can I Reduce Our Building Costs by 25 Per C e n t ? ....................... California Votes $250,000,000 State Aid What Are Your School Bonds W o r t h ? .. School Bonding Policy
108 .
. Ill
.....................
S u m m a r y .............................
109
116
113
vii CHAPTER X.
PAGE
FINANCING SALARIES OF SCHOOL EMPLOYEES . . . . Personnel Problems Committee Report
118
. . . .
118
Shall Teachers Fix Their Salaries? ........
119
Teachers Depend Upon the Administrator for Adequate Salareis
.................
120
Employing the Highly Qualified Teacher: A Financial Problem
.....................
121
Salary Schedules ...........................
122
Maintain the Salary Schedule ...............
123
Scheduling Salaries for Teachers . . . . . .
123
Factors to be Considered in Teachers' Salary Schedules ......................... Salary Schedule in the Twelve Largest Cities
127 129
Salaries and Salary Schedules of City School Employees, 1948-49 Single Salary Standard .....................
130 131
Equalizing.Salaries for Men and Women T e a c h e r s ..................................
133
How to Underpay Our T e a c h e r s ...............
134
The Family Allowance in Teachers’ Salaries .
135
Service Factors in a Teacher’s Salary S c h e d u l e .................................. Basing Salaries on Quality of Teaching . . .
136 137
viii CHAPTER
PAGE Basing Salaries on Quality of Teaching.
. .
.
138
Extra Compensation for Teachers Who Direct Student Activities .................
139
What About Administrator Salaries ...........
140
The Superintendent’s Salary .................
141
The -Worm at the Core of our Retirement System
............
State Teacher Retirement Systems
142 ...........
143
S u m m a r y .......... XI.
145
MANAGEMENT OF SCHOOL PROPERTIES AND SUPPLIES.
.
147
Let the School Board Reconsider its Insurance Program .........................
147
Your School Insurance .......................
149
Recruiting and Training School-Bus Personnel.
151
Adjustment of Fire L o s s e s ................
153
Schools Need Fidelity-Bond Protection . . . .
154
Planning an Insurance Program ...............
155
Segregated Bids vs. General B i d s ........
157
Purchase Specifications for Public Purchasing '
XII.
158
S u m m a r y ...................................
160
FEDERAL FINANCING OF E D U C A T I O N ............
162
What It Would Mean
(Passage of S-246)
. .
The Case for Federal Aid to S c h o o l s .....
.
162 165
ix CHAPTER
PAGE Federal Aid Caught in Religious Crossfire Federal
Summary
166
. .
168
Aid at Present Rate May Soon
Exceed State and Local School Support Federal
.
Support For Schools ................. .....................................
B I B L I O G R A P H Y ..................................
171
I69 170
CHAPTER I THE PROBLEM All people Interested in the effectiveness of our school system have Become aware that the major problem confronting the schools Is the matter of getting enough money to operate the school plant and of securing trained personnel to handle and disburse these funds in the most efficient manner. As a means of preparing school people to solve this major problem many states, California included, have re quested a course in School Finance and Business Management to be a part of requirements for a school administrator's credential.
I.
PURPOSE OF THIS STUDY
It was the purpose of this study to make (l) a criti cal analysis of recent literature dealing with phases of school finance and business management;
(2) to follow the
general outline of the University of Southern California's education course in School Finance and Business Management in finding suitable articles for further reading and study by students taking this course;
(3) to summarize for students
of school finance various readings in that field.
2 II.
IMPORTANCE OF THE STUDY
,So many people have written so much literature on the many phases of school finance that it has become in creasingly difficult for the student of school finance and management to find the up-to-date information he seeks by expending a minimum of time and effort.
Authentic informa
tion written by school administrators who have met and solved many of the. practical problems in this field is sought by the student.
III.
MATERIALS USED
Recent periodicals (19^0-1950) that specialize in prob lems of the school administrators were examined for articles pertaining to the area of school finance and business manage ment.
The articles selected were mainly those written in
years from 19^5 to the present time.
Emergencies brought on
by World War II and the unsettled post war conditions have so changed the kind and the degree of financial problems of the school systems that much of the pre-war literature is obsolete. The American School Board Journal, The School Executive, The Nation* s Schools, School Management, N.E.A. Journal, and
3 £.T.A. Journal are some of the most prolific magazines in treating school finance.
The N.E.A. Research Bulletin,
the Convention Proceedings of The California Association of Public School Business Officials, and The Forty-Eight State1s School Systems prepared by the Council of State Governments added many practical contributions on the many important issues.
■IV.
ORGANIZATION OF THE STUDY
The remainder of this study will be organized so that each chapter heading will correspond to the topic headings in Dr. Lloyd Nelson's syllabus outline for School Finance and Business Management.
Each article selected will be
reviewed and each chapter will conclude with a summary of all articles included.
CHAPTER II FINANCING PUBLIC EDUCATION "Need of Adequate School Support" 23, October, 1945, pp. 84-87
N.E.A. Research Bulletin
The following points substantiate the plea for more educational funds: 1. The general trend of public school expenditures has for a long time been upward. 2. Between 1939-40 and 1942-43, aggregate payments for teachers' salaries increased about 7 per cent.
Average
annual earnings of factory workers went up 65 per cent. 3 . Estimates of the amount needed to finance a satisfac tory system of public elementary and secondary educa tion in post war years range from 3 billion to 6 billion dollars.
These are estimates of need rather than
predictions of actual expenditures. 4; Only In the depression year of 1932 has the schools' share of national incomes ever exceeded 5 per cent. The public schools received only 1.5 per cent in 19435 . School expenditures were far below the amount spent for highway construction during the prewar years. 6 . Proximity to our European neighbors is bound to change both our habits of consumption and our habits of
5 distribution.
Meeting these changes will require,
not only more education, but a different type of education both for .our leaders and for the rank and file of the people.
Therefore, school expenditures
also will aid in maintenance of a high level of national income and an economic stability.
"Statistics of State Progress in Public Education." Re search Bulletin N.E.A., Vol. 25:4, December, 19^7This bulletin seeks to supply,comprehensive data that will be useful in determining what further changes in school financial systems are required.
Rankings are given on many
significant items. Some of the items discussed are: 1. Current Expenditures for Education. 2. Per Capita Expenditures'for Edicatipn. 3- Expenditures for Capital Outlay. 4. Local, State and Federal Sources of Revenue5- Proportion of Local Taxes used for Public Education. 6 . Variability of State Tax Collection.
7 . Ability add Effort to Finance Education. 8 . Public School Enrollment and Attendance. 9- Schools, Buildings, Sites and Equipment. 10. Population per School Administrative Unit. 11. Cost of School Transportation Service. 12. Proportions of pupils who are Transported.
"The Current Educational Situation in the States." The Forty-eight State School Systems, The Council of State Governments,, Chicago, Illinois. Pp. 10-32. This study is intended as a backdrop against which to view the varying characteristics of state and local or ganization, administration and finance.
A complete picture
follows of the forty-eight states' variations along these lines: 1. Variations in Educational Load. 2. Variations in Ability to Support Education. 3. Variations in Effort to Support Education. 4. Levels of Educational Support. 5- Attendance and Enrollment Ratios. The number of school-age children per thousand of the total population ranges from.166 in New Jersey to 283 in New Mexico, with an average of 205 in all states. The income varies from $2,374 in Mississippi to $10,742 In New York for each child of school age.
The average
for all states is $6 ,436. Current expense per child in average daily attendance in 1947-48 ranged from $67 in Mississippi to more than $260 in New Jersey. Current expenses vary within a state and all states show an increase in expense from 1938 to 1948.
The average
daily attendance ranges from 60 per cent to 90 pen cent.
Wochner, Raymond E., and Van Miller, "Correction for Spar sity in State Aid.Formulas." The American School Board Journal. Vol. 117* No. 5 . November, 19^8 . P. 29This article is concerned with problems arising from the fact that people to be served by education are not evenly distributed over the state.
Where population is sparse it
is necessary to maintain a larger number of attendance units or to provide more transportation than in areas more thickly settled. Different states distribute aid in a variety of ways in an effort to correct for population sparsity.
Some pro
cedures reward districts for maintaining small schools; others pay a premium for closing the small schools and trans porting pupils to larger centers.
Sparsity formulas have
been developed in a few states, which represent a combined correction for the small school effect and transportation, thus simplifying and objectifying calculations for the dis tributions of state financial aid. Additional attention is needed to the problem of developing formulas for specific states,- which objectify the distribution of state aid, but which allow for local initiative in decisions concerning the closing or maintenance of small schools in sparse areas without remunerative penalties.
Burke, Arvid J., "All That Glitters Is Not Gold." The Nation's Schools, Vol. 40, No. 3 . July, 1947. Governor Dewey's program of minimum salaries for teachers ranging from $ 2,000 to $ 5^325 has been given nationwide publicity. the facts.
Publicity does not always tell
What publicity fails to show is that the
highest salaries apply in only one city, the city of New York, and that even, here all teachers will not receive the higher salaries.
Only a very few teachers are elig
ible for the high maximum salaries that have attracted so much attention.
Experience prior to July 1, 19^7 has no
bearing in the new schedule.
It will take years for many
experienced teachers to reach their proper place on the new schedule. The New York State mandated salary schedule is not accompanied by a state aid program that will finance the mandates with an equal and reasonable local tax effort. The new local taxing program, County sales-tax, is no substitute for a .sound state aid program.
There is no
definite .'guaranteed amount of support per pupil.
10 "Provisions for School Plants, Transportation, and Supplies." The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois. Pp. 88-119School plant deficiencies which were serious before the war have become more acute during recent years. The amount estimated by all states for plant construc tion in the next five years was $7 ,595,129,000 and included the construction of 298,895 new classrooms. The Bureau of Census estimates that in the next ten years there will be 7 ,500,000 more children in grades 1-12 than are now enrolled. The construction of new classrooms is complicated by the fact that costs have gone up
86 per cent of 1939,
by the exceedingly small districts, by low bonding and taxing limits, and by the limited resources of many local school districts. Some states have recognized that the state must aid on construction as well as on a foundation program.
However,
in 29 states all support must come from local sources. About forty states have provided financial assistance f o r 'transportation.
A few states provide for state purcha'se
of supplies and state distribution of equipment.
11 Burke., Arvld J., "New State Minimum Salary Schedules and Their Financing." The American School Board Journal, Vol. 116, No. 2. February, 19^8. P. 29. Almost for teachers,
all states have set minimum
qualifications
but many have failed to recognize the finan
cial implications
of this policy.
Unless the above systems
are able to pay salaries required to employ sufficient num ber of teachers with minimum qualifications, the state standards can't be enforced.
Nor is it sufficient for the
states to establish minimum salaries for teachers.
Fiscally
weak school systems cannot comply with mandated salaries unless sufficient state support is provided to pay the sal aries after a district has made a reasonable local tax effort. Maryland has one of the best minimum salary laws. The calculation of state support is based upon the cost of the minimum schedule in a school district according to specified pupil-teacher ratios plys an additional 20 per cent for other current expenses.
The state pays the differ
ence betweennthese costs and what tax of 6.5 mills will raise. port.
There is complete equalization of the burden of sup Delaware provides the entire cost of minimum schedule
plus allowances for other expenses based on approved budgets. All local taxing power is available for exceeding minima.
12 Pennsylvania reimburses districts for salaries providing they levy a 6 mill tax.
However, the reimbursement is
not based on the actual cost of the minima, but an average allowance per teacher.
This does not assure that all
districts can pay the minima with a uniform tax effort as does the Maryland plan.
Many other states have made much
progress by establishing higher bases for calculating equalization allowances which enable fiscally weak districts to pay higher minimum salaries.
"State Legislation Affecting School Revenues, 1944-1948," Research Bulletin N.E.A., Vol. 27:3October, 1949. Tax legislation reviewed in the bulletin relates to state taxes only.
Each state is considered and a rather
complete review is given of legislation that affected schools. One review deals with school lands and permanent school funds, while another deals with appropriations made by state legislatures for the support of schools from the general funds.
Conclusions are also drawn as to revenue
trends as presented from the data collected. Taxes that are considered in this review are: A.
Net income.
B.-
Inheritance, Estate and Gift,;.,
C.
General Sales and Use.
D.
Alcoholic beverage
E.
Tobacco.
F.
Motor-fuel and vehicle.
G.
Severance.
H. . Chain-store. I.
Miscellaneous Excises and Licenses.
J.
Corporation.
K.
Poll.
L.
Property.
14 Hunt, Herald C., "Education Warrants Financial Priority," The Nation's Schools, Vol. 40, No. 6. November, 1947* P. 52. Training for our youth should come first!
Public
education warrants such priority because it: 1. Provides the intelligence and skill essential to modern industry. 2. Contributes to health and safety. 3> Results in better conservation of natural resources. 4. Leads to personal thrift and the development of capital
5 . Is the basis of efficiency in business management. 6. Increases and lifts the level of consumer demands.
7 . Improves the earning power and spending power of the people. 8. Through the purchase of buildings, equipment, materials, and through the salaries of its employees, turns its expenditures back into the economic blood stream of the nation. 9- Ignorance is expensive.
Crime costs the United
States nearly seven times as much as is spent for education.
15 Burke, Arvid J., "Who Should Pay the School Tax Bill?" N.E.A. Journal, Vol. 39* N o . 1, January, 1950* **• 23* This is an interesting angle to the federal-aid-toeducation question.
For an example, the Poughkeepsie High
School graduating class of 1924 was considered.
During
the time of their graduation was a period when all but a small fraction of school taxes were paid by property owners in the city.
The local district was responsible for collect
ing almost all of the taxes for school support.
After 25
years 47 per cent of graduates of 1924 still live in the city and 53 per cent live elsewhere.
(32 per cent still in
New York State, 21 per cent live in other states or foreign countries. If all graduates made equal contributions to the economy, the school finance sustem would have to be based upon 47 per cent local, 32 per cent state, and about 21 per cent federal support to reach economic values created by this class of 1924.
The answer isn't as simple as that, as
services of all graduates probably are not equal, and because mobility varies for different occupations.
If the graduating
classes of other schools show the same degree of mobility as this example of the 1924 class of Poughkeepsie High School, it Is quite evident that there should be a readjustment of national, state, and local shares In the support of the schools.
16 SUMMARY Many different school finance practices have develop ed among the forty-eight states.
Some of these practices
contribute rather directly to achieving the recognized ob jectives of education; others contribute very little; some even have a negative effect.
It is generally accepted that
every school finance program should:
(l) help to assure
reasonable adequate and well rounded educational opportun ities for all youth throughout the state and (2) be based on a system of taxation and administration which assures that the burden will be equitably distributed among all of the citizenry and all taxing units. The percentages of public school revenues derived from the state, county and local property tax range from less than 20 per cent to more than 80 per cent.
There has
been a distinct tendency to broaden the tax base for the support of schools and at the same time to decrease the pro portion of the total school income derived from property taxes. The general trend, nationally, of public school expenditures has for a long time been upward.
Even so, only
in the depression year of 1932 has the schools' share of national incomes ever exceeded 5 per cent.
The public schools
17 received only 1 .5 per cent in 19^3-
School expenditures
were far below the amount spent for highway construction in the pre-war years * School plant deficiencies which were serious be fore the war have become many times more acute during recent years. and bounds.
The school population is increasing by leaps The Bureau of Census estimates that in the next
ten years there will be 7 ,500,000 more children in grades 1-12
than are now enrolled. With the changing times our habits of consumption
and our habits of distribution are changing.
Meeting these
changes will require not only more education but a different type of education both for our leaders and for the rank and file of the people.
Therefore, school expenditures will
also aid in maintenance, of high level of national income and economic stability.
CHAPTER III PRINCIPLES OP PUBLIC SCHOOL FINANCE Misner, Paul J., ’’School Support," The Nation's Schools, Vol. 33> No. 2. February, 1§44. P. 19The failure of Congress to enact Senate Bill 637 into law leaves that problem of adequate support of our nation's schools still unsolved.
How can provision be
made to achieve more adequate support? First, we should tackle the problems of school organization, support, and control within each of the forty-eight states.
To expect the federal government to
spend money on the thousands of one-room rural schools is a proposal that is financially and educationally unsound. Second, we should vigorously pursue the policy of improving schools and their services with the resources that are already at our disposal. Third, we should face squarely the need for equality of opportunity for all and not become involved in pork barrel politics. Fourth, we should vigorously promote the movement to develop schools that function as integral and dynamic agencies of community life.
It is a primary responsibility
of educational leadership to promote these local programs of community education and to safeguard their operation against federal domination and control.
19 Pearman, ¥. I., ”A Plan for State Aid Beyond a Minimum Program," The Nation’s Schools, Vol. 42, No. 3 > September, 1948. P. 26. There seems to be no valid reason why state support for public schools should be restricted to a minimum program as outlined in any equalization plan.
Somewhere between the
extremes of an established minimum program on the one hand, above which the locality may go at its own initiative and expense, and complete support on the other, should be a flex ible plan for state participation in public school support and control.
Along with a generous minimum program there
should also be provided stimulation in the form of additional aid to communities that wish for some reason to exceed the state's minimum program and need help in doing so... A flexible proposition would permit the local school to make any desired expansion of its services within the areas or costs specified by the state as maximum and minimum programs iin which the state agrees to participate, and to receive state aid for the increased services on roughly the same basis as specified in the basic equalization plan. The following simple formula would approach this objective:
20
State'is share of costs above minimum program
Local school State's share of cost over and minimum program above minimum X _________________ program Total cost of minimum program
This formula can change with the times and would provide a constant incentive for betterment of local schools.
21
Reller, Theodore L., "is Broadening Local Tax Power to Finance Education a Step Backward?" The American School Board Journal., Vol. 117, No. 1. July, 1948. P. 31* Many states argue for fuller assumption of cost by local districts.
Pennsylvania is an example of a state
that has been doing something along that line of thought. In Pennsylvania, as well as in many other states, local real estate taxes are not popular.
Therefore, the political
leaders of state offered school districts brand new taxing powers.
The argument was advanced that if the people of
local communities want to spend more on education, they should tax themselves and do so.
There are several types of taxes
that can be levied, (1 ) wage,
(2 ) amusement admissions,
ungraduated income tax, (4) retail sales,
(5 ) severance,
(6 ) real estate tr-ansfer, (7 ) miscellaneous licenses, tangible and intangible personal property, (10) mercantile.
(3 )
(8)
(9 ) per capita,
If equitable assessment practices can be
developed, there is justification for the view that a fair share of the costs of education may 'well continue to be borne locally.
The belief that local units can provide increas
ingly for educational costs themselves, if given the oppor tunity to levy taxes which by their nature should be reserved to very large units, is an illusion which should be destroyed. Unless it Is destroyed, there are those who may move backward when they believe they are moving forward.
22 Jarvis, E. D ., "Goals in Financing School Building Con struction," The American School Board Journal, Vol. 118, No. 5, May, 19^9P- 24. The writer attempts to provide some theoretical basis for the planning which must be done if states are to provide adequate and sound bases for legislation to finance school building construction in the future.
Sixty goals were sub
mitted to specialists in the educational field.
The sixty
goals were classified under the following headings: General Goals, ('2) Goals in Federal Financing, State Financing,
(4) Goals in Local Financing.
(l)
(3) Goals in In rating
these goals the educational specialists saw the greatest acceptance to goals stated in general principles.
Local
goals were rated second In general acceptability.
Federal
goals were rated third, and state goals were given the lowest vote of approval.
The article was part of Methods
of Financing School Building Construction in the Fortyeight States--the author's Doctor's Dissertation.
An analysis
of acceptability of the sixty goals as recorded by the judg ment and opinion of the educational specialists in school administration is recorded in the article as a summary of fifteen most noticeable agreements.
Tnere Is also an analy
sis of the state practice In relation to 42 of the 60 goals. Now by using the approved goals it is possible to describe a plan of school building finance containing some fifteen characteristics.
23 Ross, Cameron M., "State Taxation Covering All Governmental Needs," The American School Board Journal, Vol. 112, No. 4. April, 19^6. P. 51* The power to tax is the power to create.
The whole
tax structure in most states will have to undergo a complete overhauling.
In Iowa, for example, 97 per cent of total
cost of education is the burden of local property tax.
Why?
One reason is that the school people insist upon the prin ciple of fiscal independence. the state insists upon it.
No other essential service of
Writers of school finance have
denounced the property tax for the last 25 or 30 years; writers in the field of general taxation have also done so. Quietly, one by one, the other essential public services have shifted their base of support to other types of taxation-income tax, inheritance tax, severance tax, and the like. Schools still cling to the much despised property tax to the extent of 75 per cent in total of all the states. people have long avoided earmarking taxes.
School
The gasoline tax
for road maintainance discounts that antiquated idea too. There are very few experts available in field of school taxa tion.
The school people could well learn a lesson from the.
ward heeler.
When election time comes around be sure to do
something about letting everyone know what's needed. every door bell--not missing any.
Ring
As soon as we school people
24 abandon our rugged isolationism and recognize that education is but one of the many essential services of the state,, and that the other services deserve and merit our support , then we shall be in a position, to demand our fair share of the state's revenue.
25 Bushall, Thomas C., "An Educational Use Tax," The American School Board Journal, Vol. 112, No. 5, May, 19^6. P.51. When we sought to build new roads, we asked the great est beneficiary, the owner of the automobile to pay the cost. Thus the gasoline tax came into existence.
The usual nature
of tax as assessment had been converted to highly profitable' investment.
Suppose that real-estate tax had been looked to
as means by which our system of good roads was to have been built.
First, we'd never be able to have sold it to the real
estate owner because he couldn't see himself as direct bene ficiary.
Second, so heavy a tax on real estate would have
depressed its value beyond reckoning. The same process and principle could be applied to education.
The employer of more or less well-educated people
is the beneficiary of the degree of education possessed by his employees when they first report for work.
The equitable
thing would be to determine each employer's responsibility for the cost of the educational process by number of employees he retains.
Each state must determine the per capita charge
per employee, to be placed on employer by dividing the number of employed persons into the added sum needed to step up the educational process.
If business will agree that it is the
greatest beneficiary and it will set out voluntarily to make this investment for its own. welfare, then business will have established a new concept in responsibility and the rising well-being of our people.
26 Butterworth, Julian E., "Effect of Size of District on Pupil Transportation/' The Nation's Schools, Vol. 44, No. 2, August, 1949P. 42. The redistricting programs that are under way will' make transportation a factor in whatever is done.
The de
termination of what is "reasonable" cost and the equaliza tion of the financial burden for transportation are clearly responsibilities of the state. Three criteria are involved in a transportation system-it must be safe; it must also be efficient; it must not cost too much. 1. The larger unit will usually be able to purchase supplies and equipment more cheaply because of the larger quantities involved. 2. The enlarged district should be able to lay out routes that will require the shortest possible haul. 3 . The enlarged unit should be able to provide major re pair service at one center more economically than constituent districts could provide them. 4. In building garages the large' district .could probably make some economies by constructing larger storage units. 5 . A more highly trained supervisor can be secured. 6. In case of breakdown or other emergency, the larger
27 pool of vehicles and drivers should make it easier to get service quickly. This article contains some very good information relative to comparison of transportation costs in states with small and large districts.
28 "The Need for Equalization in School Finance In Paths to Better Schools/' 23rd Handbook of A.A.S.A., 19^5* Pp. 226-233Students of public education generally agree that the only possible solution to the problem of equalization,, granting that some reasonable, uniform national minimum ‘ standard of education is desirable, is increased federal aid.
The problem is becoming ever more acute.
Although
substantial amounts of federal aid are a reality, the need for more federal aid is even greater today than say, ten years ago.
Federal aid is agreed on generally as a
necessity if the nation is to have a reasonable minimum program of educational opportunity.
But in addition to
being an educational device, federal aid is also a financial device; it can be a vehicle for redistribution . of the tax load among governmental units. Public education is clearly established as essential to economic wellbeing and that expenditures for public education can be defended on purely economic grounds.
29 Church, Harold M., "Finance at A.A.S.A. Meeting in St. Louis," The Nation's Schools, Vol. 43, No. 4, April, 1949. .P. 36. Superintendent Horace M. Ivy of Meridan, Mississippi, spearheaded the discussion on federal aid to education. He summarized his remarks by saying, "Unless we stub our toes, we will have federal aid for education by July next through the enactment of Senate Bill 246."
He went on to
say that this is the first time In his memory both the minority and majority parties in the House of Representatives favored federal aid. Answering the question, "Why is it necessary to tap federal funds for aid to education?" Superintendent Welborn S. Dimmett, ForeSt.Park, Illinois, pointed out that 40 per cent:of the public wealth cannot be reached by local or state sources and can be reached only by the federal government. The question, "What principles should control salary schedule?" arose.
Superintendent P. L. Ewing, Rockford,
Illinois, listed six factors in answer: 1.
Salary classification
2.
Basic wages
3.
Wage increments
4.
Maximum wage
5.
Job classification
6.
Flexibility
30
The feeling prevailed among the discussion group that schoolmen need to speak more forthrightly to business and industry concerning the relationship between educa tional levels and economic wealth.
If one accepts the
general thesis, and believes it, that education is an invest ment in the future, we should not hesitate to spend our money Just as freely for education as we.-would spend it for a guaranteed investment in our future.
i
31 "Statutory Bases of State Foundation Programs for Schools," Research Bulletin N.E.A., Vol. 26:2, April, 1948. This bulletin deals with the complete picture of the foundation on equalization programs in each state that has such a program. The bulletin also discusses the foundation program from the following standpoints: 1. Theory of state resppnsibility. 2. Measures of educational need and local financial ability. 3. Definition of program. 4. Formulas for computing costs. 5. Factors affecting local financial ability. 6. Advantages of Equalizing Plan. 7. Amount of state contribution. 8. Source of funds for the support of foundation program.
32 SUMMARY When we sought to build new roads,, we asked the greatest beneficiary, the owner of the automobile, to pay . the cost.
The same process' and principle could be applied
to education.
The idea of the educational use tax is per
haps the most radical of many suggestions.
Writers of school
finance have denounced the property tax for the last 25 or 30 years; writers in the field of general taxation have also done so.
Quietly, one by one, the other essential public
services have shifted their base of support to other types of taxation--income tax, inheritance tax, severance tax, and the like.
Schools still cling to the much despised property
tax to the extent of 75 per cent of the states. insist upon the principle of fiscal independence.
School people No other
essential service of the state insists upon it. Many states argue for fuller assumption of cost by local districts.
The argument is advanced that if the people
of local communities want to spend more on education, they should tax themselves and do so.
If equitable assessment
practices can be developed, there is justification for the view that a fair share of the costs of education may well continue to be borne locally. The inability of districts to support education so
33 that all youth can have equal chance at enjoying their birthright,, is the factor that discounts the local sup port theory. Students of public education generally agree that the only solution to the problem of equalization is increased state and federal aid.
CHAPTER IV THE SCHOOL BUDGET Churchy Harold H., "Budget Making Need Not Be a Chore/' The Nation's Schools, December, 1948. P. 31According to Carter Good in his Dictionary of Education, the budget is "An estimate of proposed expendi tures for a given period or purpose and the purposed means of financing them."
It is the financial life line of the
school and Is the- responsibility of the school superintend ent . The democratic approach to preparation of the budget results in a better budget and a better informed staff.
The educational needs for equipment, materials,
and supplies are best known by teachers who use them.
To
invite staff members to participate in making the budget is not enough.
The superintendent should set aside a
special time at which requests for appropriations will be considered.
Although the staff assists in creating the
budget, the school head must retain for himself the authority to remove any items from the budget or add any items to it before presenting It to his reviewing board.
The superin
tendent porbably is the one person who knows best the financial limitations of the taxing unit.
If the budget
item is cut, staff members should be told why the request
35 was denied.
A continuous plan of budget making requires
less work, avoids errors and forgetfulness, provides right kind of information at the time it is needed, and makes more reliable, as well as simplifies, the actual preparation of the budget.
The budget should be publicized.
One of the best means of informing both board and public is through the annual report of the superintendent of schools.
36 Kline, Barton L. , "School Budgets Need Improvement," The American School Board Journal, Vol. 119* No. 2. August, 1949. P. 44. School administrators are careless about the preparation, presentation and administration of their school budgets.
Basic principles, such as relationship or ex
penditures and average daily attendance, the integration of the work and financing programs, long term planning, the inevitable necessity for careful calculation of revenue in advance--are either overlooked or not included as part of the official document. An attempt to remedy the situation should not come through passage of stringent laws covering school budgeting. Laws of that kind have the inherent danger of remaining on the statutes after the need for them is gone.
More power
granted to the state superintendent to inforce the law and basic uniform school accounting would improve conditions. The state superintendent can further render service by sup plying forms to school administrators that would aid them in'developing better budgets.
Along with these forms should
be supplied guides for interpreting the educational program of the school system and plans permitting flexibility within the budget, yet maintaining strict fiscal control. Responsibility for school budget preparation should
37 be that of the school administrator; approval and adoption of the budget is the responsibility of the board of educa tion.
.. The proposed school budget should be given wide
publicity before it is adopted.
It should be circulated
so that it may be integrated with financing program other local public agencies.
of
38 Thurston, Lee M. , and Walter H. Church, "Budgets Can Be Useful," The Nation's Schools, Vol. 33; No. 1. January, 1944. P. 26. Judgment of the worth of the school budget as an administrative device should take account of the extent to which it serves as a restrictive and controlling instrument in the financial operations of the school system. There seems to be a low correspondence between budgeted amounts and actual receipts and expenditures in many in stances.
It was assumed at the outset that a school budget
would normally and necessarily be administered with some ■flexibility.
A budget is not so much a contract as a plan
of action prepared in advance of operations involving adjust ments in matters of detail as the program unfolds.
Thus,
the moderate overspending or underspending of the instruction budget in a particular case may not be significant, but if the Instruction budget should repeatedly be ove-rspent by 20 per cent, the reason, though possibly justifiable, should be sought. It would be Idle to urge that an improvement in budget making would necessarily lead to corresponding improvement in financial administration.
General budgetary inefficiency
may stem from other conditions that need correction.
One
of these conditions is a nonfunctional organization.
A second
39 contributing factor is the uneveness of technical capa bility among the fiscal officers.
Third., financial
accounting in most districts is conducted on a cash basis rather than an accrual basis with the result that the true financial condition of the school district is not reflected in the books of account. may be ineffective.
Fourth, the process of auditing
Fifth, Regional clinics should be con
ducted with a view to the clearer definition of financial policies and procedures.
"School Finance Practices In Forty-eight States/' The Forty-eight State School Systems, The Council of State, Governments, Chicago, Illinois. Pp. 132-159■>
Many state legislators are no longer satisfied to make series of appropriations for schools using various bases for distributing the funds--just hoping that results will be satisfactory.
Few states have developed satisfac
tory measures for local taxpaying capacity.
However, most
states have established some requirements to be observedb by local systems as a basis for getting aid from state funds. Practices vary greatly among states with reference to county and local tax levies. Local school officials in most states have full responsibility for preparation of budget.
However, in one-
third of the states the school budget must be approved by some local agency other than the school board.
Some states
also require that budgets must be submitted to state agencies for review and final approval. Audits are'not required in some states while in others every school district must have an audit at least once each year. The fiscal year in most states coinsides with the state fiscal year beginning July 1st and ending June 30th.
41 Asfohl, William D. , "Control That Budget/' Schools, Vol. 34, No. 2. August, 1944.
The Nation’s P. 44.
Efficiency in school administration can he obtained by the use of suitable devices providing a ready reference to the essential facts upon which intelligent executive decisions are made. The school budget represents the educational finance plan for the community.
The superintendent and the
business manager of the schools need to know at a glance the status of each budget appropriation at any moment. A graphic device method of budget control has been used at Delta, Colorado, for several years.
The plan is
simple and can be adapted to a school system of any size as well as to any type of school budget. The budget chart consists of a white sheet of graph paper superimposed on a black sheet of paper.
The graph
bars are made on white sheet by tearing off narrow strips of white paper leaving black bars exposed.
The white
paper is perforated to facilitate tearing. The graph is divided into the major divisions of the budget.
Red pins indicate budget limits.
Once each
month, when the bookkeeper closes her books, the chart is brought up to date by tearing off the strips of paper leav ing the black bars showing the total spent to date.
Hours
of time are saved by the administrator in obtaining the upto-date financial data he needs.
42 SUMMARY According to Carter Good in his Dictionary of Education, the budget is "An estimate of proposed expendi tures for a given period or purpose and the purposed means of financing them."
It is the financial life line of the
school. In spite of the significance of this all-important item, school administrators are careless about the prepara tion, presentation, and administration of their school budgets.
Basic principles, such as relationship or expendi
tures and average daily attendance, the integration of the work and financing program, long term planning, and the inevitable necessity for careful calculation of revenue in advance--are either overlooked or not included as part of the official document. Budget making need not be a chore.
The democratic
approach to preparation of the budget results in a better budget and a better informed staff.
The educational needs
for equipment, materials, and .supplies are best known by teachers who use them.
The superintendent, being the one
person who probably knows best the financial limitations of the'taxing unit, must retain for himself the authority to remove any items from the budget or add any items to it.
43 If the budget item is cut, staff members should be told why their request was denied. A continuous plan of budget-making requires less work, avoids errors and forgetfulness and provides right kind of information at the time it is needed. The budget should be publicized. public is a satisfied one.
A well Informed
The budget should be circulated
so that it can be integrated with financing program
of
other local public agencies. The adoption of the budget Is the responsibility of the school board.
Though the superintendent has as his
responsibility the drawing up of the budget, all school directors should thoroughly understand the document.
Some
times it is necessary for them to defend the budget. The school administrators are expected to adhere to the budget once it is adopted.
Frequently this educational
finance plan is discarded, forgotten, as time goes on.
Delta,
Colorado has adopted an excellent graphic device of budget control.
The plan is outlined in William D. Asfohl's article
Control That Budget.
It is a plan that is simple and can be
adopted to a school system of any size or wealth.
CHAPTER V SOURCES, MANAGEMENT, AND DISTRIBUTION OF SCHOOL INCOME Howell, Harry M . , "Equalize Tax Assessments," C.T.A. Journal, Vol. 46, No. 3 . March, 1950. P. 9Chapter 1466 of the California Statutes of 194-9, more commonly known as Assembly Bill No. 2027, provides for inter-county equalization of assessed valuation.
This law
was enacted when it became apparent that relative taxpaying abilities of the various school districts as they operated under the formula for the granting of equalization aid, were not being adjudged on an equitable basis. The following facts became apparent: 1. That due to a lack of equitable inter-county equal isation of assessments 21 of 35 counties sampled showed no median increased valuations, 1947-48 as compared to 1946-47, whijTe^the remaining 14 counties sampled made general in creases in assessments for all properties. 2. Assessed valuations from 1940 to 1948 lagged far behind other indices of the economy. 3 . Excluding new construction, the actual total increase in assessed valuation in California for period 1940 to 1948 was ,14.36 per cent--attributed to re-evaluation of property
45 for assessment purposes. 4. Assessed valuations did not adequately reflect the presence of increased wealth in the state.'5. Finally the distribution of equalization aid did not necessarily parallel the need of the recipient school districts for such aid. Equalization in true sense can only become an actuality when assessed values keep pace with market values and when property in one school district is assessed at same percentage of market value as any other property in the state.
46 "School Support In the Forty-eight States/ 1 The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois. Pp. 111-131. Revenues for schools In the forty-eight states are derived from three sources, Federal, State,'and Local. These sources are obtained in different ways in the different states. 1. Federal funds furnish only 1 per cent to a little more than 2 per cent. 2. The percentage of receipts derived from state sources has increased in most states-~3-0 per cent in Nebraska to 84.9 per cent in New Mexico and 87 per cent in Delaware.
The average is 39-8 per cent.
The source of this state revenue varies greatly with the states.
However, most states have done
with the
permanent school fund, and they now derive their money from current tax sources. Appropriations are now made from general funds as well as from earmarked tax sources. The .kinds of state school funds on appropriations include:
(l) General school purpose,
(2) Limited,
(3 ) General
Purpose. Appropriations are made as: (l) Flat grants, Equalizing on foundation, program,
(3 ) Matching.
(2 )
Johns, R. L . , "Financing the School Lunch Program," The Nation’s Schools, Vol. 4l, No. 4. April, 19^)8. P. 43Despite all the evidence of progress, the national school lunch program is in an unsatisfactory condition, financially and operationally.
Neither the federal govern
ment nor the state nor the local school unit is assuming its responsibility with respect to financing the school lunch; such funds that are available for it are generally earmarked and surrounded with objectionable types of control.
The lunch
program is not generally included in the foundation program which the state supports; provisions have not been made for competent personnel, necessary supervision or sound account ing procedures. The cost of school lunches should be included in the state financial program just as transportation;--for instance, it could be based on the number of children served in the same way as transportation aid is based primarily on the number of children transported.
Provision for the capital outlay
needs of the school lunch program should be included in the foundation program.
There are some who argue that the entire
cost of the lunch program should be paid from public funds. Others believe that parents should pay the food costs and that all other expenses should come out of tax funds.
Federal
48 aid at present is likely to be more harmful than benefi cial to the program.
The detail accounting required and
the types of federal control'now. being'exercised are prejudicing many people against federal aid for education.
49 Votter, A. D., "Long Term Financial Planning/' The American School Board Journals Vol. 117 ^ No. 6 . December,, 1948. P. 43Entirely too many school districts operate their financial affairs from the standpoint of expeditures.
Long
term financial planning is planning which looks toward the future, trying to anticipate the needs of the years to come, as well as the present.
Future financial planning must take
cognizance of the fact that the school district may have neglected part of its program and that the district may be forced to undertake deferred or acquired obligations.
Many
districts would be wise if in their long-term financial planning, they would provide for rented or temporary housing for their peak enrollment.
Before bonds are issued a careful
study should be made of the community's unused financial capacity.
Any long-term financial plan should aim to keep the
burden on the taxpayer constant. greater the need of planning.
The better the schools, the
The basic problem of any school
district in its long-term planning is to keep the financial structure of the district stable by keeping the district's obligations within its financial capacity.
Many districts
employ experts or school specialists to make surveys that will help determine efficient long-term planning for 5 , 10, or 25 years ahead.
50 Macy, C. Ward, "An Evaluation of Sources of Revenue for Public Education," The American School Board Journal, Vol. Ill, No. 3 . September, 19^5P- 21. There is little to contest the view that educated citizenry is more desirable than one steeped in ignorance. But the selection of desirable sources of revenue to support public education continues to be an "issue of controversial nature.
The three basic criteria concerning taxes levied
to finance education are that they must meet requirements of productivity, economy and justice.
Other canons of lesser
importance, elasticity, certainty and convenience, are often listed as requests of good tax system. Revenue to support functions of state and local government in the United States' is derived principally from three main sources--property taxes, income taxes, and various forms of consumption taxes.
There are many arguments pro
and con the use of these sources of revenue for schools.
The
conclusions might be: (l)
Property tax must continue to be used as chief
source of funds to be raised directly by local school dis tricts.
Correction of faulty assessment practices would
eliminate the present weakness of this tax. ' But primary de pendence on local financial support of education is almost universally condemned by educators.
The solution to this
51 problem lies in 'more state aid. (2)
State funds to be distributed to local dis
tricts should be obtained chiefly from income taxes which meet the canons of taxation very satisfactorily.
Relief
to overly burdened tax-payers in local districts could thus be provided in an economical and just manner. (3 )
Although pressure for consumption taxes is
strong, it should be resisted because this form of taxation has no justifiable place in the educational finance picture.
52 Moffett, J. C., "State Constitution Obligations and Limita tions on Financing Public Education," The American School Board Journal, Vol. 115* No. 2. August, 19^7P. 13Each of the forty-eight state constitutions makes some reference to state obligation for system of public education. At least eighteen of these constitutions specifically state the legislature shall provide for a "uniform" system of public schools prescribing many areas that are uniform, such as certain subject-matter to be taught, length of school year, and teacher certification.
Uniformity doesn't cover
source of wealth for support of such schools. A number .of the constitutions as they currently exist precludes an equitable distribution of state revenue.
They
fail to consider school district "need" or "ability" to pay. Some of the states have written maximum limitations as the states share of financing schools. Other states have limitations on spending state money as to items of cost.
For example, Delaware, state money to
be used exclusively for payment of teachers' salaries and for furnishing free text books. In a few instances (California for example) the cur tailment clause establishes the minimum and not the maximum. The tax restrictions are invariably restrictive.
The unusual
53 and rapid growth of education and sudden shifts from de pression to inflationary economies attest to the fact. . Utah is trying to equalize both tax burden and educational opportunity by requiring state to guarantee and pay for minimum educational program.
California is also
equalizing the burden in similar manner. Here are a few examples of other states’ constitu tional obligation for educative purposes: Connecticut.--Reserve available from general school fund shall be equal benefit for all people Florida.--State money is' to be distributed among the several counties of the state in proportion to average attendance. Kentucky.--Appropriates the school fund on its census of pupil children for each school year. Mississippi.--State commonwealth fund shall be distrib uted
among school districts in proportion to number of
educable children in each. New Mexico.--Establishes and maintains reserve fund that is to be used when local districts cannot operate school minimum period of time. Delaware.--Lawmaking body may recognize divergence of ability to.support a school program and make different state allocations from district to district.
54 Mort, Paul JR., "New Insights Into the Financing of Educa tion/' School Management, Vol. 15* No. 9- May, 1946. P. 478. We are now experiencing a period of major financial readjustment.
Unprecedented demands will be made to catch
up on the school building program.
New proposals are not
necessarily good just because they are different.
Here
are stable principles out of the experience of the past which may be used to judge or modify the proposed variations. 1. Any plan for extending to more people opportunities for growth in understanding will likely add more than Its cost to the economic productiveness of our people. 2. No school system should be permitted to spend less than an amount which will promise an effective educational program. 3 . All communities must be urged to support education on as high a level as they can. 4. Very few public school systems are spending enough to make it likely that the civilizing influences purchased will be as powerful in the lives of indivi duals and in the shaping of the social pattern of our people as public education can be. 5 . Administration should be alert to assess trends
55 requiring changes in financial arrangements; it should not sit back and wait for pressure groups to take the initiative.
School boards and state
legislatures have been too prone in the years past to wait for pressures to come up from those af fected.
This has frequently led to the solution
of problems under stresses and strains that are not conducive to well-balanced judgment and at the same time has often warped morale of staff and community.
56 SUMMARY There Is little to contest the view that ah educated citizenry is more desirable than one steeped in ignorance.
But the selection of desirable sources of
revenue to support public education continues to be an issue of controversial nature.
The three basic criteria concern
ing taxes levied to finance education are that they meet requirements of productivity, economy and justice.
Other
canons of lesser Importance are convenience, certainty and elasticity. Pew states thus far have developed satisfactory measures of local tax paying capacity.
Many states still
require a uniform tax levy regardless of variations in local assessment practices. Regardless of the source of state funds for the schools, it is essential that the appropriations be adequate to meet the needs.
It is equally important that the
revenues be sufficient to permit the appropriations to be paid in full. Sources of school revenues should be sufficiently stable to encourage long-term planning.
Entirely too many
school districts operate their financial affairs from the standpoint of expediency rather than long-term planned
57 receipts and expenditures.
The well managed school districts
often employ experts or school specialists to make surveys that will help determine efficient long-term planning for 5 , 10, or 25 years ahead. Approximately forty states have established some type of equalizing or foundation program for distributing funds. This is to assure desirable educational opportunities for all the children.
The states are recognizing increasingly the
desirability of a comprehensive foundation program which makes provision for all essential school services, such as, school lunches and transportation.
CHAPTER VI ACCOUNTING FOR PUBLIC SCHOOL FUNDS, FINANCIAL STATEMENTS, AND REPORTS Miller, Van, "The Reclassifieafcion of School Expenditures for Accounting," The American School Board Journal, Vol. 108, No. 3 . March, 1944. P. 33 . A reclassification of school expenditures for accounting has been dared!
It is not a completed system
ready for adoption in place of the traditional eight, but rather a new approach which can be developed through discussion and exchange of opinion.
A set of expenditure
classifications such as was presented represents so radical a departure from the accepted system that local schools (Connecticut) will be more likely to adopt the system sug gested than to make troublesome interpretations from their current systems. The suggested classifications are: 1.
Administration
2.
Instruction
3.
Housing
4.
Transportation
5-
Health Service
6.
School Lunches
7.
Community Center Service
8.
Tuition
59 Case,, R. D., "Annual Reports Pay Dividends," The American School Board Journal, Vol. 114, No. 2. .February, 1947P. 54. Patrons and boards of education are much more interested when they are kept currently informed with statistical facts and educational features of the school. The annual report dispells suspicion and misdirected curiosity.
It also provides an accurate record that may
be used for comparisons of items, one year after another. It serves, incidentally, as source of research and study materials for other school officials. Here are items contained in the very brief, concise, and comprehensive Salinas report. planatory page of transmittal, Elementary school income, college income,
(l) Title page,
(2) Ex
(3 ) Sources of income,
(5 ) High school Income,
(7 ) Evening school income,
(4)
(6) Junior
(8) Charts show
ing expenditures by classifications required under California law,
(9 ) Charts showing expenditures per school, per teacher,
per pupil, 1946),
(10 and ll) Expenditures for each year (1931-
(12) Expenditures per unit of A.D.A. compared with
like data for 19 other California elementary school systems, (13) Comparative expenditures- among 19 other High school systems,
(14) Bonded indebtedness showing amounts, date of
6o issue, final maturity dates, interest rates, amounts outstanding each year,
(15) Assessed valuation and tax
levies for the past 15 years,
(16 and 17) Costs of sites
and buildings a n d 'building projects from I87O to date, (18) Graph showing A.D.A. by month in elementary school for last 15 years,
(19) Attendance by years in High
School, Junior college, and evening school over last 10 years,
(20) Number in faculty each year for past 15 years
in each school,
(21) Number of teachers on each salary
level, also number on life tenure, costs for outside students,
(22) Junior College
(23 ) Costs of buses and year
of purchase, and total transportation costs for 10 years, (24) School map of Salinas.
Front cover carries photo
graph of one of schools--the back cover a montage of schools and children. In 1941, this report cost about 11^ per copy. There were 24 pages 6 1/2" x 11" lithographed.
61 Grieder, Calvin, "What Should School Directors Know About Finance?" The American School Board Journal, Vol. 104, No. 4. April, 1942. P. 27Many school board members are not very well Informed as to how school finance functions.
Mr. Grieder suggests
some information each member should have or should acquire. I.
Lqcal Financial Administration All school district financial planning should be
done with the leadership and advice of the superintendent of schools. Educational planning should precede any considera tion of dollars and cents.
After the educational plan is
developed in detail, the spending plan is devised.
The
third step is to determine from what sources the money is to be derived to finance the program. The terminology of the budget should be mastered by every board members
Each should also become well versed
about the current problem of teachers' salaries which is a vexatious problem.
Understanding and judgment concerning
bond retirement schedules should be developed.
Knowledge
about the auditing of school financial accounts is very important. II.
Problems of State Finance Experts in school finance hold that 25 to 50 per cent
62 of the support of the public elementary and secondary educa tion should come from state appropriations.
The problem of
state support is the most.critical problem facing the state and the school districts at this time.
Another crucial need
is a thorough-going and scientific redistricting of the state. There is no question as to this state's (Colorado) ability to raise revenues.
The critical question is how long school
directors and their constituents will stand by and permit the children of the state and the owners of real property to suffer under a completely outmoded form of school support.
Pattington, Meader G.* "Why Keep the Budget a Secret?" Nation's Schools* Vol. 38* No. 6. December* 19^6. 29This article deals with very good idea ing the voters with school budget.
The P.
for acquaint
The Principal prepared
an annual budget booklet* following the adoption of budget by the board.
Copies were sent to centers through the dis-
triet--one copy going to the newspaper.
Sheets* 8 1/2" x
l4'V cut in two* and stancil duplicated on each side* made up this booklet.
The outside* a copy of the annual notice*
gave time* place and date according to requirements of the law. A clear cut picture of needs and educational objec tives as well as proposed budgetting of funds gave the patrons a feeling of being informed and of belonging to the school district. The report was in general only another copy of material which the clerk* treasurer* collector* and principal prepared for financial accounting.
Oftentimes a new proposal
thus submitted would obtain quick approval and acceptance. Ob
64 Grimes, Leslie K . , "The Monthly Budget Review," The American School Board Journal, Vol. 114, No. 3- March,
19^7
•
The monthly budget review' is an excellent instrument for keeping school board members informed with respect to the financial affairs of the school district.
The writer,
Leslie K. Grimes, Superintendent of Schools, Eureka, Mo., has used it for two years and has found that board members receive it enthusiastically. As used in Eureka School District, the monthly budget review consists of two sheets of paper on which are mimeo graphed the items of receipts and expenditures exactly as they appeared on the approved budget.
Pour columns of
figures appears at the right of each item listed.
In the
first column appear the mimeographed figures for the budget estimate of receipts and the budget appropriations .
In the
second column are listed the receipts and expenditures for the current month.
The cumulative receipts and expenditures
are given in the third column.
The fourth column shows the
anticipated receipts and unexpended appropriations for the remainder of the fiscal year.
The figures in the second,
third and fourth columns as typed In at the end of each month immediately after the financial accounting records are closed for the month.
65 The monthly budget review makes it possible for each board member to appraise the operation of the budget twelve times yearly rather than once a year at the time of consideration of the new budget.
66 SUMMARY A reclassification of school expenditures for account ing has been dared in Connecticut.
Van Miller,, Superintend
ent of Ridgefield Connecticut Public Schools reports that the new plan is not a completed system ready for adoption in place of the traditional eight, but rather a new approach which can be further developed through discussion and exchange of opinion.
The new divisions are: (!) Administration,
Instruction,
(3) Housing,
ice,
(6) School Lunches,
(4) Transportation,
(2)
(5) Health Serv
(7) Community Center Service,
(8)
Tuition. Whatever accounting classification is used--all author ities recognize the desirability of periodic audits.
Whether
these can best be carried out by a state agency or in some other manner will necessarily be decided by conditions in each state.
There are certain principles with reference to
auditing however, which are recognized as of major importance and which apparently have been violated from time to time in various states.
Audits should serve to provide a public ac
counting for all receipts and expenditures.
Audits should
show whether all funds have been properly accounted for, whether the district has exercised proper stewardship over its funds, and whether any expenditures have been made in violation of specific provisions of law.
67 Patrons and boards of education are much more interested when they are kept currently informed with statistical facts and educations features of the schools. The annual report prepared by the Superintendent dispells suspicion and misdirected curiosity.
It also provides an
accurate report that may be used for comparison of items one year after another.
It serves, incidentally, as
source of research and study materials for other school officials.
CHAPTER VII AUDITING SCHOOL ACCOUNTS Elsdon, Cyril L ., "Are Your Internal School Accounts Audited?" The Nation's Schools, Vol. 35, No. 2. 1945. P. 44.
April,
Internal school accounts are those which are set up to handle funds usually collected by pupils and spent by them as they see fit, subject to established regulations. The auditing of internal school accounts is distinc tive in that the auditor is examining a situation in which educational and fiduciary considerations are intermingled. Student fund audits fall into two main categories: centralized and decentralized.
Under the centralized system
the auditing of all student accounts is done through the administration or other central office by staff accountants of by outside professional accountants.
Under the decentral
ized system the auditing is done in the various schools by the principal, teacher, or by an independent agency. It is an axiom of public administration that public funds should be subject to regular audit.
In most cases
professional auditors are preferable as so much verification and test checking is neglected entirely.
69 Christy, J. C., "Handling Student Funds," Schools, Vol. 42, No. 1. July, 1948.
The Nation’s P. 49.
At Shreve, Ohio, the school developed a central treasury plan for handling student activity funds.
These
funds are now in custody of a central treasurer, a com mercial instructor, and an assistant who is a commercial student.
The fundamental principle underlying the plan
is uniformity. The ledger of the treasurer is composed of separate accounts for each organization showing the amounts and dates of money received and all cash disbursements. Receipts are made out by the central treasurer to the organization treasurer for all money deposited in the central fund. Funds of all organizations are put in the one bank account.
Requisitions are issued for all organization
expenditures.
All bills are paid by check, thus providing
the necessary record of disbursements. Such a system of record keeping offers all safeguards of adequate accounting and introduces students to the responsibilities and procedures of such phases of business with a minimum of opportunity for carelessness or dishonesty. The central treasurer has triple check on his ledger because the total of the individual account balances must equal the checkbook balance which in turn must equal the bank balance.
70 Meade., Raymond D., "Extracurricular Finances--Their Steward ship and Control*" The American School Board Journal, Vol. 113,- No. 5 . November, 1946. P. 2 3 . The rapid expansion of all phases of extracurricular activities, particularly at the high school level, has introduced new problems into school administration.
As
funds gathered by various school activities are semi-public in character, a proper stewardship and administrative control of such funds must be established.
There are two types of
control--centralized and decentralized.
In the decentralized
type, sponsors acting in accordance with general policies of accounting are empowered by tradition to administer organ ization funds as they see fit. an unwholesom situation.
This policy often leads to'
A division in authority and responsi
bility which may arise will create problems which the school board will have to solve.
The centralized type of control
fixes responsibility for the administration of extracurricular activities and the accountability of all funds. Here are listed some of the features of centralized control system: 1. A specifically qualified and bonded adult member of school staff acts as treasurer. 2. A single bank account for. all organizations of the school, subject only to joint order of general
treasurer and the principal. 3. Monthly statements rendered by the general treasurer to all organizations to show status of each account. 4. Periodic reports to superintendent which show' receipts, disbursements, and cash balance of all organizations. 5. Suitable system of organization accounting and routine of administration to which student treasurers are trained. In the final analysis, the aims and objectives of proper stewardship and adequate control of extracurricular activities will be achieved only through mutual understand ing and appreciation by administrators and board members of the many problems Involved.
72 Lurington, William W. , "Procedure in Public School Audits," School Business Management, Vol. 13, No. 4. March, 1948. P. 11. By actions of the 19^7 State Legislature all Cali fornia school districts will be audited by some agency. Some of the points covered by an audit are: 1. Cash on hand 2. Emergency cash fund 3. Non-district cash 4. Minutes of board are read to determine policies of financial transactions 5 . Tuition fees collected 6 . Purchase orders This article goes into detail on all of the above listed items and many more not listed.
It is a very fine
article and gives a clear picture of what to expect and be prepared for in a school audit.
73 Wickstrom, P. A., "How We Handle School Petty Cash," The American School Board Journal, Vol. 118, No. 3- March, 1949. P. 47. The management and accounting of the petty cash fund perplexes many superintendents and school board secretaries. The chief difficulty with petty cash accounting lies In the fact that provision must be made, not only for recording and accounting of moneys received and spent, but the outlays must be correctly classified and find themselves in the school district's final report at close of the fiscal year. Michigan, uses a simple unified petty cash system.
Merritt, The first
step is to have board of education set the system up by a resolution authorizing and designating amount to be withdrawn from the bank at certain intervals of time, and authorizing some person to handle it. cash vouchers.
Expenditures are recorded on petty
At the end of stated periods, say weekly or
monthly, a detailed report is made to board of education of all expenditures from petty cash fund.
This report is made
on a blank resembling a cash book and contains nine items of information.
There are several advantages of this tyjbe
of petty cash accounting. 1. It provides protection for administrator and clerk who handles petty cash. 2. It conforms to most state laws concerning municipal expenditures.
74 3- It is simple to operate and audit. 4. It is good public relations to have the smallest funds accounted for in a businesslike manner. 5 . It permits classification and identification of expenditures under school and municipal laws.
75 Elsdon, Cyril L . . "Cash Audits Only Are Inadequate," The Nation’s Schools, Vol. 37* No. 1. January, 1946. P. 42. 'In a recent nationwide study.concerned with practices and procedures followed in the auditing of internal school accounts, the findingssshowed that it is prevailing audit procedure to verify carefully the accuracy of the most liquid asset, cash.
An audit of other assets and liabilities
is almost completely ignored. Internal school accounts are those set up to handle funds usually collected by students and spent by them. The audit of cash would naturally receive top priority in the attention of any auditor, whether he is professional or non-professional.
However, many articles of value have
been purchased out of these funds. A tendency to Ignore the taking of ticket Inventories and to fail to have a person responsible for this work is apparent.
Loose handling of tickets has often resulted In
embarrassing situations. The audit of inventories of supplies, equipment, and furniture is also too frequently neglected.
Various types
of equipment are bought in large quantities, are usually rather expensive, and are easily carried away.
Over a .period
of years these soon run into sizable sums of money. petual inventory system should be used.
A per
76 Auditors must satisfy themselves as to the existence of any account.receivable and notes receivable.
Too often
these are not a matter of recprd but carries as ’’mental notes” in the minds of the principals or faculty sponsors. The endeavor to show a financial statement at the end of the school year with no liability for unpaid bills is highly commendable since it indicates a responsibility for paying all debts.
Such practice, however, may result
in hastily paying bills for which full value has not yet been received. A cash audit of internal school accounts is good as far as it goes, but it does not go far enough.
77 SUMMARY Regulations requiring the periodic auditing of school funds include those funds known as internal school accounts.
Internal school accounts are those which are
set up to handle funds usually collected ;by pupils and spent by them as they see fit, subject to established reg ulations . The auditing of these student accounts is distinc tive in that the auditor is examining a situation in which educational and fiduciary considerations are intermingled. In a recent nationwide study the findings showed that it Is prevailing audit procedure to verify carefully the accuracy of the most liquid asset, cash.
An audit of
other assets and liabilities is almost completely ignored. Ticket inventories, inventories of supplies, equipment and furniture are the most frequently neglected.
A cash audit
of internal school accounts is good as far as it goes, but it does not go far enough.
CHAPTER VIII COST ANALYSIS Davis, Randall, "Components of Pupil Transportation Costs," The American School Board Journal, Vol. 117, No. 6 . December, 1948. P. 45. The costs of pupil transportation will no doubt con tinue to vary in different sections in the United States in proportion to the prevailing economic conditions of each. Standardization of the components which go to make up pupil transportation costs is possible, however, and should be the goal of school officials throughout the country.
These
items go to make up the true and complete cost of providing pupil transportation service: 1. Driver wage (40 to 45 per cent of total cost). 2. Operation and Maintenance (25 to 30 P©r cent of the total). 3- Depreciation of buses (25 to 30 per cent) a. Quality of equipment b. Original cost c. Basis of depreciation d. Standard of operation and maintenance 4. Depreciation of garage and equipment (10 per cent). 5 . Districts' contribution to employee’s retirement. 6 . Administrative costs (3 per cent). Once the total cost of providing transportation service is obtained it may then be indicated in several ways.
79 Some of the units that may be used are as follows: 1. Cost per mile. 2. Cost per pupil trip. 3- Cost per pupil per day, per month, per year. 4. Cost per bus per day (according to capacity). 5 . Cost per available seat mile.
80 Moonie, Ray H., "Comparative Costs of Pupil Transportation/’ School Business Management, Vol. 14, No. 1. July, 1948. P. 8 . This article takes into consideration all the records necessary to get an accurate account on the cost of trans portation.
Since the State allows money for school trans
portation accurate records are most important. Some of the records necessary are:
numbers of pupils
transported, miles traveled, cost of gas and oil, tires, repairs, salaries, and replacement of equipment. A description of the records that are needed and the reports filed by the bus drivers is given by Mr. Moonie. The article also explains how various costs which are not chargeable to 5A are added to the 5A items to give the total cost of transportation. The actual cost for bus transportation over a six year period with the cost comparison for the Victor Valley Union High School District is included in this article.
81 Johns, R. L., "Determining Pupil Transportation Costs," The Nation's Schools, Vol. 43, No. 2. February, 1949P. 48. The development of school transportation has involved boards of education in some rather serious financial prob lems.
Many rural areas are compelled to allocate as much
as 20 per cent of their current expense budgets to transporta tion.
Rural areas have, in general, lower per capita wealth
than urban areas.
Most states are trying to equalize educa
tional opportunities within their borders.
It has become
apparent that school transportation is a key to equalization. Many formula and solutions have been advanced by the several states to figure per-pupil-cost of transportation. No plan for state support for school transportation is adequate unless it: 1 . Provides adequate transportation services for all pupils who need it. 2.
Encourages efficiency and discourages extravagance in local transportation management.
3-
Is based on a completely objective formula, leaving nothing to the subjective judgment of state officials.
4.
Is based on an equitable formula which takes into consideration all substantial variations in necessary transportation costs resulting from factors beyond control of local boards.
82 5 . Is a part of a balanced comprehensive foundation program of education financed by an equitable tax ing system. The article contains formula developed by Flathmann under the supervision of Herbert A. Meyer, Professor of Mathematics, University of Florida, which meets their criteria better than any existing plan of state support for transportation.
The formula based mainly on relation
ship of density of transported pupils and road conditions can also be used as an index of the efficiency of the local financial management of school transportation.
83 Bechdolt, B. V'., "Transportation Cost Creates Inequalities," The Nation's Schools, Vol. 37, No. 1. January, 19^6. P. 48. Pupil transportation and related problems in rural education received intensive study at a conference of community leaders and educators from throughout Indiana. One of the most important facts emerging from the conference is that transportation costs are a major factor in creating inequalities in educational opportunities which exist between city and rural pupils.
Township schools
would have to spend $23 more per pupil than did the cities and towns to provide equal educational opportunities and the transportation required.
Despite the fact that town
ships have less wealth per pupil than the cities, the former must expend approximately one fourth more per pupil. more than 13,000,000 children in the nation-, nearly 8 ,000,000 are in farm areas.
Of the
84 Davis, Clifford, "The Problems of the School Lunch Program from the National Point of View," California Associa tion Public School Business Officials. Proceedings of 22nd Annual Convention. April 6-9, 1949* 232. Mr. Davis, Supervisor Los Angeles City School Dis tricts presents a wealth of statistical material to present the problems of the well organized lunchroom program. In order to solve such problems he considers these six factors: 1. More adeqiate financing. 2. Better use of surplus commodities. 3- Competent supervision. 4. Simplified menus. 5 . Improved purchasing and storing. 6 . Better planned equipment and lay out.
85 Hemphill, James M., "The School Lunch Program from the State Point of View/' California Association Public School Business Officials. April 6 -9 , 19^9* Proceed ings of the 22nd Annual Convention. P. 227This article is a part' of the report of the operational problems of the local districts as they appear to Mr. Hemp hill, Supervisor of School Lunch Program, California State Department of Education. The greatest problem facing the local districts is that of financing sehool lunch programs.
It has about
reached the point that very few school lunch operations can be entirely self supporting.
Records show that practically
every school lunchroom which is operating in the black is able to do so only because of substantial contributions from the general funds of the district.
Many districts are get
ting by with falsifying positions so that cafeteria employees can be paid. The state office is very interested and concerned with operational losses sustained by the districts.
Very
often field nutritionists are requested to visit the respec tive districts in an attempt to discover apparent causes for the loss.
The following are some of the most common causes
for operational losses: 1. Excessive labor costs.
In general labor expenses
should not exceed 33 per cent of total program ex penses .
86 2. Purchase of high cost foods and inadequate’use of donated commodities.
Food expenditures should
approximate 60 per cent of total expenditures. Between Nov. 1, 1948 to Feb. 29, 1949 a total of 105,344 cases or sacks of commodities were shipped to schools.
These commodities has a total
fair value of $731,515*94, and the total charge to schools was only $79,800.22. 3. Laek of coordination between the office of super intendent or business manager and that of lunch room supervisor.
Business manager may buy unwisely
ignoring the judgment of the Cafeteria manager. 4. A-la-Carte service with a wide choice of entres, desserts, salads, etc.
Very few children are
able to assemble at a reasonable cost, a good nutritious lunch from foods offered in many eafeterias.
87 Dawes, Thelma E., "The-Teaching Load and School Costs," The American School Board Journal, Vol. 117* No. 1. July, 1948. P. 33* The problem of adjusting teaching load to a fair level cuts across both financial administration and personnel administration.
Adequate school funds are
necessary if class size and loads are to be held within reasonable limits.
Two tables of comparative information
concerning teachers' loads in hours and in cost per loadhour are assembled.
Since these comparisons show that the
variations in actual salaries paid per load hour and varia tions in instructional-costs per load-hour are greater than variations in the yearly salaries of teachers, we see that the teaching loads differ relatively more than the teaching gross salaries.
On the basis of teaching loads, the teach
ers are poorly paid. These tables are based on Dr. Almack's formula for measuring the load of an elementary school teacher.
This
formula measures the teaching burden in terms of the hours spent each week in teaching 30 pupils, plus the fraction of the time represented by the number of pupils more than 30, plus one half the hours given to clerical tasks.
88
Load = a + b + 1/2 c a - Hours teaching 30 pupils b - Fraction of "a" represented by number of pupils more than 30 c-
Hours given to clerical tasks.
89 Raines, Earl L . , "Reimbursement for Privately Owned Cars Used in School Business," The American School Board Journal, Vol. 116, No. 2. February, 1948. P. 32. Educational literature is notably barren of data on reimbursement for use of personal cars employed in school business.
The practices existing within a given territory
where employees of several agencies work almost side by side and travel over the same territory in which most cost fac tors are common to all.
This diversity makes for dissatis
faction and lower morale.
Legislation of most states makes
obligatory upon school district to provide for the actual and necessary traveling expense of any district employee while under the governing board.
Such an allowance should
be sufficient to encourage the employee to use his car in promotion of the best interests of the school and community. Fixed costs occur whether car is used little or much. The following are recognized fixed costs: A. Depreciation B. Insurance C. Taxes--license costs D. Interest E. Storage costs. Variable costs are due almost wholly to usage.
They are
determined by finding cost per mile of these,factors:
90 A. Gasoline B. Oil C. Tires and tubes D. Battery costs E. Washing P. Anti-freeze G. Parking H. General maintenance I. Repairs Only by compiling accurate data on all cost factors may one arrive at a logical and accurate rate of re imbursement.
The ideal rate neither gives the employee a
bonus nor makes an indirect deduction from his salary check.
91 SUMMARY The general trend of public school expenditures has for a long time been upward.
The public is demanding,
and rightfully so, an analysis of the relative costs of various services of the school.
The business managers
are eager to test the efficiency and effectiveness of their financial policies by means of cost analysis. Two of the main items that figure prominently in cost analysis today are pupil transportation and the school lunch program.
To date these two services have been so
poorly managed by so many districts that they are the object of many surveys and much research in an attempt for improve ment.
How can these very vital services be extended to more
children and be handled in a more economical manner? The cost of pupil transportation will no doubt con tinue to vary in different sections in the United States in proportion to the prevailing economic conditions of each. Standardization of the components which go to make up pupil transportation costs is possible, however, and should be the goal of school officials throughout the country.
Each
district could analyze its own set up by using these items: 1. Driver wage (40 - 45 per cent) 2 . Operation and Maintenance (25 - 30 per cent)
3. Depreciation of buses (25 - 30 per cent) 4. Depreciation of garage and equipment (10 per cent). 5 . Districts' contribution to employees retirement 6 . Administrative costs (6 per cent) The costs may be then expressed in these units: 1. Cost per mile 2. Cost per pupil trip 3- Cost per bus per day 4. Cost per available seat mile The school lunch program, like the transportation situation, needs to have cost broken down in order that more and better food can be provided to more children. These factors should be considered in solving the problem of better school lunch program: 1. More adequate financing 2. Better use of surplus commodities 3. Competent supervision 4. Improved purchasing and storing 5* Simplified menus 6 . Better planned equipment and lay out
93 CHAPTER IX FINANCING CAPITAL OUTLAY AND SCHOOL INDEBTEDNESS Chisholm, Leslie L,, "Financing a Building Program?" The Nation's Schools, Vol. 3^* N o . 1. July, 1 9 ^ - • P- 26. Many schools are faced with the problem of school building construction on a large scale.
America needs to
spend at least $500*000*000 annually to bring the school building situation up to a reasonably adequate level.
The
building and the grounds together are an essential weapon for teachers in fighting the battle of the open door to equal opportunity for all children. The traditional plan of leaving the financial burden to the local school district, which still is used in more than 40 states, is definitely inadequate. the burden on the local property tax.
First, it puts
Second, the plan
usually calls for a special election and a long term program of bonding in which interest payments frequently surpass the total cost of the building. An adequate plan for financing school building programs will do two things. economically.
First, it will finance the program
Second, it will provide funds in each district
at the time these funds are needed.
94 Due caution should be exercised in advance so that money will not be wasted through the construction of buildings in school districts which would reasonably be expected to be abandoned soon. The best safeguard against construction of buildings that are improperly designed is a capable school building division in the State Department of Education.
The
approval of an architectural plan by that department should be required before public funds are spent on construction.
95 Higgins, Thomas J., "Answering Tax Payers Questions," The Nation's Schools, Vol. 43, No. 2. February, 1949P. 43One of the most important items on legislative calendars now is school house construction.
Campaigns for
added school support usually are spearheaded by teacher groups, with increased wages as the goal.
Campaigns to
provide adequate housing for pupils have had little con certed support before legislatures. The following questions and many more, will be asked by tax payers and legislators before additional funds are voted: 1. Should construction wait until costs go down? 2. Where does economizing start? 3- What kind of building should it be? 4. What are the minimum requirements? 5. When should planning be done? 6. Should substitute materials be used? 7- How should contracts be awarded? 8. Is a negotiated contract desirable? 9. Should a guaranteed top price be established? 10. What is fair interest rate on school building bonds? 11. How should a school site be selected? 12. Are all the present school facilities being used?
96 If it is necessary to ask the community at this time, when all taxes are soaring, to vote bonds for con structing school houses, it is desirable to be able to tell the people honestly that every other means of housing the pupils has been carefully explored and has been ex hausted.
97 Klazer, Benjamin, "Bay City Holds Successful School Elec tion," The American School Board Journal, Vol. 110, No. 1. January, 19^5. Loss of the Eastern Junior High School by fire made development of a program to raise necessary funds for re building absolutely necessary. In arranging this program, the superintendent and board set up three important essentials
(l) to obtain the
confidence of the public in the integrity of the board, (2) to plan a community program in which the general public would form a part,
(3) to base the campaign upon actual in
formation and to conduct publicity in an open manner. The Superintendent planned a program based on a school plant survey.
A questionnaire was presented to
citizens' group to determine the thinking of the public.
A
steering committee was chosen to take full responsibility for projecting and conducting the campaign.
The committee
consisted of an editor of daily newspaper, radio station manager, commerce secretary, two board members, superintendent and four other community leaders. ganized ward groups.
The general committee or
A registration of school electors was
successfully conducted.
All kinds of school projects and
community affairs publicized the need for additional educa tional facilities.
The concerted effort brought about a very
successful result on election day--85 per cent of votes affirmative.
98 Butterfield, Richard D., "Your Construction Dollar," Journal of Education, 132. January, 19^9* P* 9
-
The purpose of this article is to decide when it would be wise to cut corners in planning schools and where it would be a mistake. It is very important to start the school building plan with an over-all survey, appraising the physical condition of existing buildings, their adequacy for present needs, and their location in relation to population. important is acquisition of a really adequate site.
Equally Select
the architect before the site so that he may keep the whole problem in mind all the time.
The new building must be one
that provides flexibility as well as economy.
The one-story
building of wood construction is the best answer, with fire proof insulation, boiler encased in concrete, the rooms on concrete slabs,--no stairways--this building will be safer than most buildings now in use.
A more informal building
scaled to the childrens' needs may have a "new look" but will be the best investment.
Light-directional glass block con
tinuous windows will cut out glare and make it unnecessary to buy window shades.
A realistic plan within the means of
the community for present construction is worth more than any number of gold plated plans which must be shelved "until costs come down."
99 Bradshaw, Roch, "Planning a Co-ordinate School County-City Tax Program," The American School Board Journal, Vol. 113, No. 3 . September, 19^6 . P. 2 7 . Ten year co-ordinated tax programs for schools city and county are taking shape in Eugene-Springfield, Oregon area under leadership of Superintendent Henry M. Gunn of Eugene, Superintendent E. H. Silke of Springfield, and City Manager Deane Seeger of Eugene. The two major purposes:
(l) To equalize levies from
year to year so that property owners will not be burdened by avoidable high tax peaks.
(2) To enable city, county,
and school districts to plan special construction projects in such a way that financing will not cause excessive tax loads in any period. Superintendent Gunn has pioneered in Oregon in complet ing his ten year program. shows:
In tabular form and in text it
(1) What the anticipated budgets and tax levies will
be over 10 year period for Eugene school system.
(2) What
the special levies and debt service already incurred will cost year by year, and what the costs will be if special levies are voted to finance construction which will be needed for the decade.
100 Mulford, Herbert B., "Financing Your New School Buildings/' The American School Board Journal. Vol. 114, No. 1. January, 19^723The following situations affecting school finance are:
(1) Continued shortage of building materials and labor.
(2) Increase of about 100 per cent in building costs since the war.
(3) Greater increase in the supply of municipal
bonds.
(4) Steady upward creep of Interest on municipal
bonds.
(5 ) Continued heavy shortage of teachers, thousands
of closed classrooms and smaller schools, and small enroll ments in teacher training Institutions to make up the deficit. (6) The influence of Congress with its avowed intention of cutting federal income taxes has been felt in use in federal tax-exempt municipal bond interest rates.
(7 ) The unpredict
able outcome of changing business conditions. Dangers to avoid (guidance for school boards and administrators). (1)
Avoid single long-time maturity of new bond.
(2 )
Do not make presale tentative contracts with one bond house, thus excluding competition in buying bonds.
(3)
Bo not give authority to school lawyers to sell your bonds.
(4)
Do not permit the profit to bond dealers to be too high without making check on market.
101 (5 )
Be careful that attorney fees are not too high (normally $1.00 per $1,000 of face value of bonds for services from beginning to end of bond transaction.)
Things that should be done: 1. Get best information in respect to all details on borrowing long before building contracts are entered into. 2. Bonded debt should be planned to mature serially-to fit in with any previously outstanding debt. 3- Ascertain where the chief markets are located that would absorb your bonds. 4. Endeavor to have interest rate borne by bonds as close as possible to the current rate of borrowed money. a. Check list is included to aid administrators in financial matters, from recognition of need for more funds to technicalities resulting in bond election.
102 Horrall, Albion H. , "Planning a School Bond Campaign," The American School Board Journal. Vol. 113, No. 2. August, 1946. P. 3^In California there are two principal ways of obtain ing building funds:
(1) The school board may add an amount
to the general budget requirements for building purposes as long as taxes do not exceed the rate fixed by law (90^ on $100 for systems maintaining kindergarten and elementary schools only).
(2) The boards may call a bond election at
which a 2/3 majority must be obtained to carry the election. The San Mateo School Board, recognizing the over whelming growth of school population, decided that the erection of necessary school buildings could not wait for pay-as-yougo method of accumulation of funds. a bond campaign.
They decided to launch
This is what they did:
(1) Contemplated building program outlined and pre sented to school board at a special meeting. (2) A committee of citizens was formed. (3) All civic, labor, school
and other community
groups were told of the proposed bond issue, the reasons for it, and the approximate cost in terms of the average taxpayer. (4) All possible opposition was anticipated and answer figured out. (5 ) Campaign was short but intense.
(6) Children took p a r t ,in publicity with school activity. (7 ) Publicity committee was able to get exceptionally fine cooperation from local newspaper. • (8) All voters were contacted in various ways. (9) Last minute refreshing publicity reminded any forgetful voters. (10) Transportation was provided. Community was welded together into a unit to work for common cause.
104 Kiernan, Quen B ., "Pictures Give Punch to School Campaign/' The Nation's Schools, Vol. 4l, No. 7 . July, 1948. P. 24. Facts and figures, when presented from a speaker's rostrum, become dry statistics and are likely to fall on deaf ears.
To overcome this a school planning committee
decided to use visual means to get a program for expansion across.
The findings of a survey group were reviewed
carefully and together with the recommendations were illus trated by 2" x 2" colored slides.
To depict the needs,
several cartoons portraying the effects of sharply increas ing population trends were produced.
Every conceivable
solution to the problem was worked out and presented in "Best Buy,"
"Acceptable" or "Not Acceptable" fashion.
The cost
slides showed break downs in terms of the over-all cube, general facilities, and later operational costs, including tax load for a period of from fifteen to twenty years.
Com
parison graphs were drawn involving other towns in the same class throughout state.
These figures demonstrated the fact
that the requests were well within reason and in no way out of tune comparably. An attempt was made to appear before every organiza tion in the community and present the program as an illustrated lecutre.
Constructive suggestions that were offered during
105 question period at each meeting were incorporated and slides were drawn.
The whole community entered into the
campaign which was very successful.
106 Hatton, Otis C., "Garnering Good Will Along With School. Funds," The Nation’s Schools, Vol. 42, No. 3* September, 1948. The tax-burdened public is not always very receptive to pleas for more school money. The following factors contribute much toward one very successful campaign for additional school funds: 1. A good continuous public relations program that provides a background for activities. 2. An active representative group of citizens who give of their time and abilities. 3. The endorsement and positive support of the function ing community organizations. 4. The cooperation of press and radio. 5- A clear, concise statement of the issue with its objectives briefly presented. 6.
A well planned method of attack.
7.
A united front on the part of themembers of
board
of education and its employees. 8. Campaign literature presenting the importance of the schools and the need to expand services, improve school plants, and raise salaries. With a program like this not only likely
is the tax levy
to be approved--but the teachers all benefit in other
ways--by being brought into a closer relationship. Morale is strengthened, greater understanding developed. The whole school personnel has an opportunity to.function as a team.
108 Schmidt, H. W . , "Can I Reduce Our Building Costs By 25 Per Cent?" The American School Board Journal, Vol. 120, No. 1. January, 1950. P. 27 This article is presented as a dialogue between a superintendent of fairly large industrial city and Mr. Schmidt, the School Building Consultant.
The Superintendent
is in need of help because his school board can't finance within $100,000 of the construction needed.
Three prelimin
ary questions were asked by Mr. Schmidt before he looked into the actual plans.
(1) Did your architect know your
financial limitations?
(2) Did you go into a huddle with
him and your board and let him know what you want in the way of building arrangements, etc.?
(3 ) Are you satisfied with
the present plans? After these questions were answered the plans were examined and changes in size of classrooms, arrangement and economical heating and lighting were discussed.
All the
changes discussed were not due to expensive materials but also to .extended plans, but there is enough to show that a good building may be erected without penny pinching or using inferior materials.
The architect must be informed as to
limitations of budget and many discussions indulged in to get the most for the money.
109 Bursch, Charles, "California Votes $250,000,000 State Aid," The Nation's Schools, Vol. 120,.No. 1. January, 1950* P. 32. An amendment to California's Constitution authorizing the state to issue bonds in the amount of $250,000,000 to be used for loans and grants to school districts financially unable to construct needed buildings was approved at special election November 8th.
This constitutional amendment puts
state aid for building schools on relatively permanent basis. It makes the legislature responsible for providing the machinery through which state funds will be distributed to school districts. The amendment specifically states that the proceeds of the
bonds shall be used (a) to provide loans and
grants
to the
several school districts of the state subject
to such
legislation, rules or regulation as legislature from time to time may determine;
(b) to pay the expenses thay may be
incurred in preparing advertising, issuing and selling the bonds and in administering and directing the expenditures of the
monies realized from the sale of such bonds. Repayments by the school districts to the state are
to be based upon the proceeds of specified tax rates on local assessed valuations.
All the school districts applying for
state aid will be bonded to legal capacity.
110 The term of contract between the state and a school district is the time required to repay the funds advanced by the state with Interest but In no case can the contract be for more than 30 years.
Ill Mulford, Herbert B . , "What Are Your School Bonds Worth?" The American School Board Journal, Vol. 112, No. 1.. January, 1946. P. 35The one subject uniformly slighted has been how to finance the district, and more particularly, what price the school boards must pay for their building money through the sale of school bonds.
This subject, if adequately treated
in conferences or in school board literature, would include the following points: 1. Where shall the board go to get thoroughly honest and competent advice? 2. What type of attorneys will best serve the board in guiding accurately in the legal formalities so as to avoid any technical pitfalls, and not "gyp" the board through exhorbitant fees. 3. Where are the best markets in which to sell school bonds, or in other words, to buy the use of money? 4. How should preliminary plans be made for financing, so as to obtain the best price for the school dis trict's securities? 5. What price must be paid for borrowed money? 6. H ovj may the district .officials know when they have
a good price?
112 This article offers answers for each of the crucial questions.
In the light of the large amount of financing
soon to be done by school boards, it behooves all school officials to take some time off to study their own approach ing civic responsibilities.
113 Grieder, Calvin, "School Bonding Policy," The American School Board Journal, Vol. 106, No. 1. January, 19^3* P. 41. Careful preparation and cautious procedure on part of administrator will ascertain that the school bonding policy will be effective. I. Before the question of bonding is submitted to the voters: A. A careful analysis of the educational needs of the school district, both immediate and future, should be made. B. A careful estimate of the amount of money needed should be made. C. A study of the ability of the community to finance a proposed program should be made. D. The bonding limit of the school district must be determined, as well as the annual amount of revenue that may be available for debt service. E. Records of board meetings leading tto the submission of a bond issue to the voters must be scrupulously kept. P. The administration should familiarize itself with all the legal technicalities associated with the election on bond issues, and limitations on the district’s discretion.
114 G. When the amount needed has been carefully ascer tained, a scheme of retirement should be tenta tively drawn up. II. Upon obtaining the voters approval of the proposed bond Issue, the administration should be governed by the following principles: A. The legal authority for the Issue must be shown. B. The date of issue of the bonds, to which the dates of principal and interest payments are directly related in most cases, should be co-ordinated with the tax collection dates. C. Bonds should be marketed by public sale. D. Sufficient advertising should be done to give notice of the sale of the bonds wide publicity. E. Alternate bids with and without the callable feature should be taken. F. Best bids should be calculated according to methods shown in books on bonding and public finance. G. Bonds should be prepared and printed by a firm which specializes in this business. H. A bond and interest record in which to keep a com plete record of the issue should be provided for the secretary or other responsible official.
115 I. Registration of bonds as to principal, or as to principal and*interest, is not advisable for small communities because of lack of trained personnel and lack of continuity in records. J. School officials should not rely exclusively upon investment houses for advice in planning a bond issue.
116 SUMMARY •>
Many schools are faced now with the problem of school building construction on a large scale.
America needs to
spend at least $500,000,000 annually to bring the school housing situation up to a reasonable adequate level. Where are funds to come from to finance this capital outlay?
In many states one of the most Important items on
legislative calendars now is school house construction.
Cali
fornia recently amended her constitution so that the state is authorized to issue $2 50 ,000,000 to be used for loans and grants to school districts financially unable to construct the needed buildings.
All school districts applying for this
state aid must be bonded to legal capacity. Many communities are able to support their own bond issue.
The major problem there is to convince the taxpayer
that he should support such a bond indebtedness.
That is
the problem confronting the school administrators and school boards.
Most writers heartily agree with the use of a simple
principle of psychology to secure success for bond campaigns. Make the taxpayer believe that he initiated the idea--he’s sold on it immediately.
This is accomplished through citizen
committees who survey the situation and decide the needs and recommend improvement which, of course, will be paid through floating of additional bonds.
117 While the citizen committee is functioning the school people see that school activities are featured everywhere--by means of the press * radio, or even by the newest medium, television.
Illustrated lectures are given
to service clubs or any other influential group. terested public becomes a very supporting one.
An in Teachers,
administrators, and John Public become one in purpose, and the success of the school bond campaign is assured.
CHAPTER X FINANCING SALARIES OF SCHOOL EMPLOYEES McMeekin, G. D . , "Personnel Problems Committee Report," California Association of Public Business Officials Proceedings of 22nd Convention. April 6, 19^9* P* 90. This report concerns setting up specifications for the 26 classes of positions which are ordinarily found to be employed in the school districts of California.
Duties
of these positions are defined and wage surveys have been obtained so that a solution of the problems of wage admin istration and personnel practices may become more efficient. The many school districts vary so in size that it was thought wise to tabulate results by the A.D.A. of the schools.
This makes data more meaningful to district ad
ministrators in comparing their rate with other districts of somewhat similar size. The tabulations accompanying this report include the number of employees in each group, and the number of employees per A.D.A.
Of the fifty districts used it is. noted that there
are 62 A.D.A. for each classified employee. Most of the districts expect employees to work between hours of 8:00 a.m. and 5*00 p.m., paying for over-time. There are very splendid tabulations of salaries paid for the 26 classified positions by each of the seven groups so divided by A.D.A.
119 Solberg, Carl E . , "Shall Teachers Fix Their Salaries?" The American School Board Journal, Vol. 117^ No. 2. August, 1948. P. 31Teachers, like other professional people, should state their fees.
The teachers themselves must accept a
schedule before they can expect lay people to adopt it. In trying to determine what pay is fair for teachers there are two things which must be accepted: the schedule,
(2) the rate of pay.
(l) The basis for
There should be a basic
amount paid to each teacher which could be considered a minimum for only those teachers who could not qualify for other items as: (4)
dependents,
(1) training,
(2) experience,
(5 ) special duties and skills.
(3) merit, The author
does not believe in fixed minimum nor maximum salary.
A
probationary period is a necessity for the effective admin istration of a high salary schedule.
The teachers determine
by point system based on five items in schedule— then this figure would be multiplied by a predetermined number of dollars per point value.
This amount should be based on
reliable cost of living index and should be recommended by the organized teachers, and then accepted by some organiza tion like State School Board Association.
Thus we set our
own fees, but do not ignore our legally constituted employers.
120 Spears, Harold, "Teachers Depend Upon the Administrator for Adequate Salaries," The American School Board Journal, 37o1. Ill, Wo. 2. August, 19^5* P* ^1* The new superintendent is expected to pay first attention to teacher welfare— in other words, to salary increases.
It isn't easy for a new administrator to
determine proper salary policies or to push through the board meetings the policies that seem just.
It is hardly
the administrator's place to sit back and ask the board each year how much they would like to spend for salaries. He should be a student of school finance in general and of the local situation in specific.
He is the agent for
the teachers, and only in so far as he discharges this duty properly may he expect to maintain staff morale necessary. The superintendent must fight to secure decent salary* otherwise the exodus from the profession will grow even more startling.
121 Hutchins, Clayton D., "Employing the Highly Qualified Teacher: A Financial Problem," The American School Board Journal, Vol. 117, No. 6. December, 1948. P. 13* Several states are experimenting with new type of state distribution of funds for education.
These funds
are distributed to local school units somewhat in propor tion to the qualifications of teachers.
The distribution
formula allows larger amounts to schools that employ teachers with higher levels of preparation and experience and less to schools that employ teachers with lower qualifi cations.
Administrators in states having this plan contend
that it saves superintendent and board of education from boycotting applicants having high qualifications as a means of holding the budget within fixed limitations.
Within a
system teachers will plan inservice training to increase their own salaries and to earn greater allocations of state money to their school districts.
Charges of "inequitable
ness", and of "centralized control" can be made against plan, but some administrators maintain that plan actually secures more teachers with advanced.training and experience. of the local district reap the benefits. teachers.
Pupils
They get better
Further study is needed on the plan.
122 "Salary Schedules." 1947. P. 106.
N.E.A. Research Bulletin 2 5 .
October,
No phase of school administration Is of greater direct personal concern to teachers than salary scheduling. Teacher participation has been operating ih this field for a number of years.
The application of the best thinking of
the board, administrative staff, and classroom teachers to the problems of salary scheduling will do much toward develop ing policies that will promote the morale of the professional staff.
Each statement of salary policy should contain the
following information:
(l) Name and location of district
(2) Official title of the board and committee by which the policy is adopted (3 ) dates when adopted and when effective (4) Introduction as to the purpose of the schedule (5 ) Description of salary classification (6) Basic salary schedule for regular classroom teachers (7 ) Regulations governing the application of the salary schedule
(8) Transition from former
salary to new salary schedules (9 ) Administrative and super visory personnel and special assignment (10) Schedule for salary of non-certiflcated personnel are appropriately in cluded in same policy document.
123 Hansen, Earl H., "Maintain the Salary Schedule/' The American School Board Journal, Vol. 118, No. 5 . May, 1949. P. 37* As the business cycle begins leveling off~-the follow ing stock arguments are likely to be used to exert pressure for reduction of teachers' salaries. 1. Teachers are getting too much money. 2. Teachers work only 9 1/2 months, therefore pay them less. 3 . Since teachers do work only 9 1/2 months, cut their salaries and let them find other Jobs to supplement their incomes. 4. Teachers make a lot of money compared to other professional groups. 3 . Teachers much much money compared to non-professional groups. 6. Teachers have too high, a standard of living. 7 . The teacher's Job is a very easy one. 8. Teaching isn't very important.
It's Just glorified
"baby sitting." Mr. Hansen in anticipating these usual complaints about teachers' salaries, gives the board members crisp thumbnail arguments for Just salaries for teachers to refute stock complaints.
He closes the letter with a formula that
Just about tells the story:
124
R + Se = St = GT = Fy = GC R is a teacher recruit of capable mind and outgoing personality attracted by adequate salary. Se is security. St is stimulation, professional and democratic. GT is a good teacher. FY is a fine youth. GC is good citizen for free America.
125 Newell, Clarence A., "Scheduling Salaries for Teachers." The American School Board Journal, Vol. 114, No. 4. April, 1947. Pp. 31-33. A salary schedule for teachers should be developed by a special salary committee.
Such a committee should
prepare recommendations for consideration by the board of education, which carries full authority and responsibility for the adoption of salary policies. Whether members of the board of education should be included on the salary committee is debatable.
The superin
tendent of schools should be ex officio a member of the committee. The following subcommittee might be appointed to prepare reports for consideration at the meeting: (a) Nature and type of Schedule 1. To make recommendations to the salary committee on questions of policy. 2. To study the literature on salary scheduling and secure information relative to salary schedules in other communities. (b) Salary Conditions and Cost of Living 1. To report on costs of living of the teaching staff. 2. To study salaries and working conditions afforded by other types of employment both in local area and in comparable communities.
126 (°) Status of Teaching Personnel 1. To secure Information relative to qualifications and characteristics of the teaching staff. (d) Financial Ability 1. To estimate costs of the proposed schedule. 2. To secure data relative to financial ability of community.
t
127 Anderson, Stuart, "Factors to be Considered In Teachers' Salary Schedules." The American School Board Journal, Vol. 117, No. 6 . December, 1948. P. 16. In an attempt to aid individuals who are faced with problem of establishing a new salary schedule or of revising an old one, the following outline of factors to be considered has been compiled.
The materials presented should necessarily
be adapted to the philosophy, needs, and resources of the local community.
1 . Minimum salary 2 . Maximum salary 3- Salary increments 4. Application of new salary schedule 5- Cost of living bonus
6 . Special teachers 7. Prior experience credit 8 . Men favored 9. Summer school 1 0 . Recognition of meritorious service 1 1 . Sick leave provisions 1 2 . Compensation for extra services 13. Probationary period 14. Appoint,ent of new teachers 15. Leave of absence
VJ
128 16. Salary schedule committee 17. Term of employment 18. Dependency allowance 19. Retirement 20. Advancement insalary schedule 21. Placement on salary schedule 22. Minimum qualifications for employment 23- Method of payment 24. Miscellaneous provisions
129 Dans, Hazel, "Salary Schedule in the Twelve Largest Cities," The American School Board Journal, Vol.115, No. 5 . November, 1947* P. 17More than 1/6 of nation's public school teachers are employed in twelve great cities.
The cities include all
that had population of more than 600,000 in 1940.
The cities
are New York, Chicago, Philadelphia, Detroit, Los Angeles, Cleveland, Baltimore, St. Louis, Boston, Pittsburg, Washing ton, and San Francisco.
Ten of these cities have changed
since 1940-41 from position schedules to single salary schedules.
The amounts of salaries have increased from an
average minimum of $1360 and an average maximum of $3240 in 1940-41 to corresponding figures of $2300 and $4500 in 1947-48.
At the maximum salary the average increase is less
than the increase in consumer prices for seven year period. Salaries must rise further or prices must come down if the big cities are to see a restoration of the average prewar value of teachers' top maximum salaries.
It is the
maximum salary that means most in the choice of teaching as a life career and in the retaining of able teachers in the schools.
130 "Salaries and Salary Schedules of City School Employees, 1948-49." N.E.A. Research Bulletin, Vol. 28, No. 2. April, 1949. This bulletin gives the following information regarding salaries: 1. Trends in salaries 1930-1949 a. b. c. d. e.
Teachers Principals Vice Principals Administrative and Supervisory Staff Other school employees
2. Purchasing Power and Comparative Value of Salaries 3 . Range and Distribution of Salaries 1948-49 4. Indexes of relationship of Median Salaries 5 . Salary Schedules for Classroom Teachers 6. Minimum and Maximum Salaries 7- Scheduled Salary Increments
13$
Blyler, Dorothea, "Single Salary Standard," The American School Board Journal, Vol. 117* No. 3* September, 1948. P. 40. There must be single standard throughout.
Industry
during war, began to see that for same amount of work, the same amount of pay must be given regardless of the sex of the worker.
Industry is moving forward in its thinking—
yet school administrators and boards of education say bluntly that this will never happen in the field of education. Various reasons are given for the attitude, all of which can be reguted by considering three things:
(l) family responsi
bilities (2 ) provisions for old age, and (3 ) time spent on the job. (1) The favorite argument for large salaries for men and lower ones for women is that men marry and have families to support.
True enough, but about 99 per cent of men marry
regardless of salary,, of their own free will.
Other things
being equal why penalize women to pay men for what they would do anyway?
Many women have to support and care for aged
parents or finance the education of younger brothers and sis ters.
Many, also, are actual heads of families, in that
they are widows with children. (2) There are many unmarried women or childless women who have no one to look to for aid in their old age.
Are
their salaries sufficient to maintain a decent personal standard of living* permit family aid, and provide for a comfortable and independent old age? (3)
Students of psychology who have tested and
evaluated the abilities of men and women agree that in many respects there is no comparison, but rather that sexes complement each other. differ with sexes either.
Time spent on job doesn't
133 Mulford, Herbert B., "Equalizing Salaries for Men and Women Teachers." The American School Board Journal, Vol. 115? No. 6 . December, 19^7* The basic problem is not whether teachers of one sex are better than those of another, and, therefore, re quire higher salaries.
Rather, it is the condition which
confronts given school board of getting men at all to balance the present unbalanced faculty.
Our schools are an example
of one of the most overfeminized of public institutions. Psychologically and sociologically children need to meet normally both men and women in their daily school life as they must in later life. To many professors of school administration, the idea of any discrimination in salary on an acknowledged basis of sex is anathema.
They say that it is not fair and that many
of the explanations set up for the discrimination are faulty in logic.
The fact remains, however, that currently many
subterfuges are being resorted to to maintain that balance in faculty which administration has long striven to. build up.
It is a condition and not a theory which confronts school
boards and administrators.
134 Swan, Lewis, "How to Underpay Our Teachers." The American School Board Journal, Vol. 118, No. 3* March, 19^9. Women teachers are getting more pay than men in most American schools.
The average school teacher (female)
is single and solvent.
Her male colleagufe receives the
same pay for the same work in dollars and cents--but-he usually has an ever-wanting wife and ever-needing off spring.
One reason for the high morale of our servicemen
and women during the recent war was the admirable salary schedule our government put into effect.
Consideration for
each soldier's varying family obligations was expressed in gratifying terms of dollars and cents.
The writer works
out schedule whereby the head of family (man or woman) would be paid according to dependents.
With the blanket
raises practiced in most school districts, the single women teachers rejoice to again receive a livable wage, while their colleagues, the husbands and fathers, will still be pitifully underpaid.
135 Hunkins, R. V . , ”The Family Allowance in Teachers' Salaries,” The American School Board Journal, Vol. 114, No. 6 . June, 1947. P. 24. The single-men minority in industry, profiting from a wage standard elevated to include unlabeled family allow ance, has had its counterpart in the teaching profession in the family-supporting minority, suffering from a wage standard evolved for teachers without dependents.
What can
be done to give a family man a decent teaching salary?
One
makeshift solution is to put married men teachers into positions that customarily pay better, that is, to make them principals, heads of departments, and so on.
Another
solution attempted in financially favored areas is to pay all teachers at levels supposedly adequate for family support. These solutions raise questions as to fairness of giving best jobs for any other reason than efficiency. • Can all districts raise all salaries high enough to guarantee livable salaries for family teahhers?
The family allowance is a simple ef
fective solution of the great problem. pays more to those who need more.
It is fair.
It
The allowance should be
graduated since the extent of the need increases with size of family; the size of allowance within limits, should vary to suit, to refine the application of the principle.
136 Grieder, Theodore G ., "Service Factors in a Teacher's Salary Schedule." The American School Board Journal Vol. 115, No. 1., July, 1947. P. 2 7 . This article is addressed to salary committees.
In
the analysis of any salary schedule it is necessary to take many factors into account.
Most salary schedules are care
fully worked out programs on the basis of economic considera tions only.
For purposes of establishing certain perspec
tives and relationship the following outline was presented for study by salary committees. ices rather than salaries. is far from complete.
Emphasis is placed on serv
The list of items which follows
It neglects to take into consideration
such matters as establishing sound policy of education, basic teaching procedures, and cultural aspect of teaching.
The
writer assumes that certain fundamental principles, knowledges, and attitudes exist by definition of teaching and teachers. I. What are the professional responsibilities of teachers? A. Instructional responsibilities B. Guidance responsibilities C. Extra Curricular responsibilities D. Community E. Time II. Is teaching a profession?
137 Morrison, J. Cayce, "Basing Salaries on Quality of Teaching." The Nation's Schools, Vol. 44, No. 3* September, I9 4 9 . P. 52. What is good teaching?
Obviously a just evaluation
of a teacher's service is not based on only objective evidence but also upon evidence that is comprehensive in scope.
The evidence collected over considerable length of
time might be:
(l) Supervisory reports-descriptive not rat
ing (2) Administrative records of services other than class room teaching
(3 ) Evidence of pupil development (4) General
experience record, including such items as travel, occupational experience, or summer employment (5 ) Professional experience in and outside district (6) Education (7 ) Salary records, in cluding previous promotions and increments (8) Records and materials voluntarily contributed by teacher concerned, such as teaching plan, research, or published articles (9) Anec dotal records of significant teacher behavior indicating exceptional service.
A permanent advisory committee represent
ing all elements of teaching and supervisory staff is good way to allow teacher participation in formulating policies as to formulating standards by which their work will be evalu ated.
This plan is being tried out by New York.
138 Burke, Arvid J., "Basing Salaries on Quality of Teaching." The Nation's Schools, Vol. 44, No. 3 . September, 1949. P. 53According to Mr. Burke there are six underlying causes of teacher attitudes toward merit schedules of the type incorporated in the New York Law: (1) Teachers are.rated now, and they don't thinkmuch of the way the rating is done. (2) Merit schedules do not get at fundamental problem of merit. (3) Merit schedules begin at wrong end. (4) Sorting teachers is not the right answer. (5 ) Merit schedules are often superimposed upon a subprofessional schedule. (6 ) Placing economic values upon teaching services is a hazardous undertaking. Although the New York law makes it mandatory upon local school systems to provide for teacher participation in the determination of standards for the awarding of pro motional increments, the law is purely paternalistic. was not the result of bargaining or Joint deliberation. was simply handed down.
It It
139 Kriner, Harry L . , "Extra Compensation for Teachers Who Direct Student Activities." The American School Board Journal, Vol. 113, No. 4. October, 1946. P. 33Program adopted by Altoona, Pa., Board of Education from plans submitted by teacher-administrator committee: (1) Plan applies to classroom teachers who are en gaged in special activities not connected with regular classroom teaching. (2) Teachers who are scheduled to teach less than 50 per cent of regular teaching load are considered administrators. (3) Normal assignment of classroom teaching in Altoona School District--at least 25 schedules teaching hours per week. (4) In addition to scheduled classroom teaching load, teacher may be scheduled for at least ten hours of student activities per week, clubs, etc. (5) 35 hours will be considered full teaching and activity schedule per week. (6) The degree of responsibility for each extra activ ity shall determine salary schedule consideration. (7 ) Degree of responsibility shall be determined by committee (4,3*2,1). (8) To find figure which shall be basis of compensa tion multiply number of excess hours by degree of responsibility. (9) Hour-responsibility index table worked out.
140 Bragg, Louis A., "What About Administrator Salaries." The American School Board Journal, Vol. 118, No. 6. June, 1949. P. 37In most communities teachers have received substantial salary increases. picture?
Where are the administrators in salary
Superintendents and high school principals have
lost ground steadily since 1930 when it comes to viewing their pay in relation to that of high school teachers.
If this
trend is not halted fewer capable men and women will enter field of administration.
There are many reasons why teach
ers have been getting a larger percentage of salary increase than have administrators.
Perhaps group action would come
nearer the explanation of the differences in salary increases than anything.
In a given school system there are many
teachers and few administrators.
The demand for larger sal
aries from the larger group is more apt to be heeded.
Admin
istrators' salaries should be increased at once to 1.70 of their 1939 levels plys the amount withheld for federal income taxes.
The salaries of administrators should then be in
creased as rapidly as,feasible until high school principal's salary is between 1.553 and 2.028 times median salary of his teachers, and superintendent's salary between 2-304 and ^•993 times median salary of high school teachers in his city.
im Haisley, Otto W . , "The Superintendent's Salary." The American School Board Journal, Vol. 118, No. 2. Feb ruary, 1949. P. 35A formula has been worked out to determine salary for the superintendent of school system.
Basic in the idea
of this formula was the belief that the salary of the super intendent should bear definite relationship to the salary of the teacher of the school system which both serve. are six factors involved in formula.
There
The first of these
factors credits the superintendent with a status equal to that of teacher.
Factors 2, 3, 4, and 3 represent measures
of the magnitude of the superintendent's responsibilities as the chief executive of the school system.
These four fac
tors are matters of arithmetical computation based on pupil membership, number of teachers employed, wealth of community, and state and federal money received by local school district. The sixth factor is based on an evaluation of the services of the superintendent by the Board of Education. will have its own criteria for judging. include length of service.
Each board
This may likewise
The six factors that go to make
this formula are each given a weighting.
The sum of these
weightings constitute the index number of the superintendent. The index number times maximum salary of teachers gives reasonable maximum salary for superintendent.
142 Lewis, John W., "The Worm at the Core of our Retirement System." The Nation's Schools, Vol. 40, No. 4. October, 1947* 20. Weaknesses in retirement system have tended to retard professional development and are bringing provincialism and dry rot to the educational program.
Most of the difficulties
stem from the failure to provide so-called "deferred bene fits."
Under a deferred benefit plan the employe who moves
from one position to another does not lose the pension bene fits he has previously earned.
The plan would be of inestim
able benefit to bhe person who has found his greatest useful ness not in one position but in several fields of service. Once a person has built up several years of service in one system it becomes almost impossible to lure him away if he will lose all time accumulated.
To bar the transfer of men
and women to positions of greater responsibility will decidedly bring about dry rot again.
The employee may be held at salary
well below his worth because he cannot afford to sacrifice the value of his pension banafits.
Deferred benefits would
stimulate the growth of professional backbone.
This deferred-
benefit plan would not add greatly to the cost of employee contributions.
It is administratively simple and requires no
development of reciprocity among pension systems.
To simplify
accounting, it may be advisable, at least in early stages,to put some minimum limit of service--four or five years— before the deferred-benefit plan begins to operate.
143 Spouse ¥. L . , "State Teacher Retirement Systems." Educa tional Research Bulletin of Ohio State University, Vol. XXIII. September 20 1944. Pp. 143-148. In order that former teachers may be encouraged to return to the profession and that more young people of ability may be interested in teaching, greater security for teachers must be provided.
One means of greater security
is membership in a sound retirement plan.
Several funda
mental principles are characteristic of strong financially sound teacher retirement systems.
They are as follows:
1. Retirement system is sound financially if it is so organized that it can meet the retirement claims of all its members at any time. 2. The system should be statewide In its application and membership In it should be compulsory for teachers entering service subsequent to the en actment of the retirement law and optional for those already in service. 3- Qualifications for membership on the board which administers the teacher retirement system should be prescribed by law in such a way that both public and teachers will be represented by capable and trustworthy persons. 4. System should be supported by joint contributions on the part of teachers and public.
5.
A separate account should be kept for each teacher earned
and all payments made and interest both by teahcers1 salary deductions and
state contributions properly credited. 6.
Board should be required to invest retirement funds conservatively but should not be hampered by restrictions which are not required in interests of safety.
7.
Rules should be provided by which teachers may retire voluntarily or be compelled to retire when old age or disability renders further service impossible.
8.
The right of teacher on leaving the profession to withdraw what he has paid in accumulated interest
9-
together with
should be incontestable
Definite retirement allowance should be provided for disabled teachers.
10.
The teacher should be allowed to elect the manner in which he will receive his guaranteed income for life.
145 SUMMARY Thousands of wrods have been written bemoaning the unfortunate position of the teacher in the wage scale. Luckily
teachers' salaries are rising in every state, and
in most states increases are attempting to keep abreast of the rise in cost of living, although generally not in line with salary increases in other occupations.
The amounts
of salaries have increased from an average minimum of $1,360 and average maximum of $3.?240 in 1940-1941 to corresponding figures of $2 300 to $4 500 in 1947-1948.
In the big cities
the maximum salary average increase is less than the increase in consumer prices for this 1940-1948 period.
Salaries must
rise further or prices must come down if the cities of popula tion of 600 000 or more are to see a restoration of the average prewar value of teachers' top maximum salaries.
It
is the maximum salary that means most in the choice of teach ing as a life career and retaining teachers already in the profession. Whatever the status of the teachers' salary--the fol lowing questions arise in establishing a salary schedule: 1.
Shall the teachers fix their own salaries?
2. -Of shall they depend on the administrator for an adequate salary?
146 3-
Shall there he a single salary standard?
4.
Should family allowance be provided?
5 . Should salaries be equalized for men and
women
teachers? 6 . Should service be a determining factor? 7 . Should participation in extra curricular
activi
ties be awarded in salary? 8 . Should salaries be based on quality of teaching? Teachers seem to be united in effort to get bigger and better salaries, but there is contention within the ranks as to how much each shall get.
CHAPTER XI MANAGEMENT OP SCHOOL PROPERTIES AND SUPPLIES Pattington, M. G., "Let the School Board Reconsider Its Insurance Program," The American School Board Journal, Vol. 110, No. 5 . May, 1945 . P. 46. 1. An adequate insurance program is an essential in any school system.
Economical insurance is f.ine--
but not to the point of border line protection. Cheap insurance does not always save money. 2.
It is advisable to cover all possible sources
of
claims to an amount which will adequately protect the district in case of loss. 3.
Equalize annual premium so that no year is aheavy one.
4. Consult with agents adjusters, and underwriters or insurance counsel and follow their advice. 5. Insurance savings may be made through (a) adequate appraisals and surveys (b) 80 per cent of coinsur ance clause on fire coverage (c) bus fleet cover age insurance (d) 3 to 5 year policies on fire insurance. 6. It is generally advisable to divide policies total ing $40,000 or more of fire insurance among several companies.
148 7- Careful surveys should be made on amounts to cover by bonding. 8. The insurance register, report forms, and other data must be complete and immediately accessible.
149 Garvey, James J., "Your School Insurance," The Nation's Schools, Vol. 36, No. 2. August, 194-5. P. 58. Many schools have had or stand .to have serious financial losses that are not covered by insurance, not necessarily because the school system Is not paying a sufficient amount for insurance premiums--it may be pay ing too much--but because coverage is not up to date, the proper forms of protection have not been used or the amount of protection is inadequate. As a public servant the school administrator is obligated to the taxpayer to give special consideration to the selection of Insurance companies, their representa tives, the forms of policies used, the rates charged, and the protection offered. This article Is confined to fire insurance and Its supplemental coverages. First, one must know the sound insurable value of the property to be protected.
Once this value is correct
ly determined, it becomes the sound basis on which the insurance is issued.
The values of the school property
must be kept up to date.
At Oak Park, Illinois, every
five years an insurance engineer re-values the property. It is equally important to obtain also a similar appraisal of all contents of the buildings.
150
Before taking out new insurance or renewing the old a fire insurance engineer makes room-toroom survey to determine what can be done to keep down fire hazards. To preserve good will the stock company insurance is parcelled out among local representatives on the condition that these men write as much insurance as possible through one general agency.
i
Belknap, Burton H., "Recruiting and Training School-Bus Personnel," The School Executive. February, 19^7Pp. 51-53Much care needs be exerted in hiring and training the prospective school bus drivers. qualifications of bus drivers are: safely, (4)
(2) good moral, character,
Some of the desired (1) Ability to drive
(3 ) dependability,
tact in management of children,
(5 ) thorough knowl
edge of traffic laws and regulations,
(6 ) good health--
no disabilities that would in anyway limit his ability to operate his bus under any and all conditions. The hiring of drivers should be done through formal written contracts on an annual basis and providing for regular monthly salary payments. A certain amount of emergency driving should be anticipated in a general way in determining the salary schedule prior to drafting contracts. Maintenance duties should be understood as part of driver's duties. The driver should be provided with comprehensive insurance protection carried by Board of Education. There should be a minimum training program for all beginning bus drivers. A trained mechanic should see that drivers overcome any bad-driver habits and that the drivers make routine
152
check of tires, water, brakes and such in preparation for each trip. This article carries with it a very good table of comparative cost of transportation per pupil.
153 Cunliff, Donald, "Adjustment of Fire Losses," School Business Management, Vol. 13:3* January,.19^8. P. 11. This article describes in detail .the steps to be tak en in case a school has a fire.
This includes nine steps
to be taken prior to an actual settlement with the insur ance company. The article also describes the procedure in case the school and insurance company can not agree on the amount of loss to the district. Examples of loss by fire are used to show how adjustments are made by insurance companies.
Joyner, S. C., "Schools Need Fidelity-Bond Protection," The American School Board Journal, Vol. 108, No. 2, February, 1944. P. 25. Fidelity bonding is not a recent innovation in business affairs of today; the principle of suretyship was used in ancient times as far back as Bible days. Some public schools are still using personal bondsmen rather than corporate sureties.
There are
several reasons why this is not good practice. 1. Individual bondsmen are not sufficiently "safe" to be used by public schools. 2. A personal bond is no safer or stronger than the individual bondsman giving it, while corporate bonding spread the risks and offers increased protection by having large capital reserves. 3. Friendships are lost, embarrassing situations arise, and obligations are often created by use of personal bondsmen. There is a surprising difference in the extent to which school boards go in bonding their officials. bond almost every official and employee. only a few. amounts.
Some
Others bond
Some carry bonds in extraordinarily large
Others carry only minimum amounts.
Eichler, George A., "Planning an Insurance Program,," The American School Board Journal, Vol. 118, No. 5 . May, 1949. P. 39. The first step in planning an insurance program is to ascertain replacement values.
This is a difficult
technical matter and should be done by a reputable appraisal company.
A detailed Inventory of every article
of content of every room and its value is made.
The
original investment for such appraisal service is of necessity high at the beginning; but when once the groundwork and details have been completed, the valuation can be very easily kept up to date at a nominal cost. The next step is to select the most advantageous plan for insuring against hazards of fire, lightning, and extended coverage endorsement, which includes cover age against windstorm, hail, riot, smoke, vehicle, aircraft, explosion, etc.
Usually two sets of rates are considered--
a coinsurance rate and a flat r a t e .
If coinsurance Is
the type selected, it is very important to keep insurance up to the coinsurance limit required. available for various terms.
Insurance is
Five year term policy is
accepted as a very sound economical plan.
School
directors are custodians of much valuable public property.
11>6 They owe it to themselves and their community to put into effect a carefully planned insurance program, the principal elements of which are up-to-date appraisal and sufficient insurance to cover any loss that may occur.
157 Elliot, Robert T., and James H. Corson, "Segregated Bids vs. General Bids," The American.School Board Journal, Vol. 120, No.,1. January, 1950. P. 33The authors would like to help set school board members right about merits of the typical kinds of b i d s . By segregated bids is meant the. acceptance of subcontract o r s 1 bids direct to the owners or the recognized agent as against the general construction bid practice of sub bids given to the general contractor and used in the general bids submitted by the general contractor. A survey was made of representative school districts in California to obtain opinions as to economical merits of each type of bid.
Seven questions were included in
the questionnaire sent to the school districts selected. The concensus of opinion favored the general bids as the responsibility is in hands of one organization and better results are produced at no more cost. ■ Tine is saved many times with economy of paper work resulting from one main office.
Architectural expenses are usually
lower if there is no segregated work. There are quotations from the replies of the various school administrators that are very enlightning included in this article.
158
Holm, A. J., "Purchase Specifications for Public Purchasing," The American School Board Journal, Vol. 115, No. 4, October, 1947. P . 49. Requirements for bidding must be explicit enough and complete enough so that all bidders can meet on a common ground.
The laws covering competitive bidding'
require that common ground.
Specifications are merely
a means to accomplish this end. To be good, the specifications should be brought up to date with every purchase.
There are four main types
of specifications. 1. By brand or trade n a m e . 2. By statements of electrical, physical or chemical characteristics. 3. By a standard sample. 4. By description of purpose or use. Many variations and combinations of the types mentioned are in use, some of which use blueprints and sketches as the main method of describing what is wanted. Extreme care must be exercised on "use" specifi cations to make certain that all bidders meet on a common ground.
159 In general,, the courts hold that the law permits no private negotiation with an individual bidder, no change of plans and specifications submitted for the competition, no variances for the purpose of obtaining a change in the bid of one or more bidders.
These
restrictions are for the protection of the bidders. By the same token they protect the buyer because in the long run he is best served when all of the vendors have respect and confidence in his actions.
160 SUMMARY The newest development in education is recognition of the fact that a school plant is definitely dig business and should be directed by people trained in business management.
In recognition of this fact most school
systems are recruiting for and building up positions of business administration as well as instructional administration.
These positions are being filled by
people trained in large scale purchasing.
In many
states legal procedures have been adopted for securing bids for public purchasing-protecting both the bidder and the prospective buyer.
Individual school boards
usually set up their own local regulations in addition to the state law. One of the most important purchases a school district makes is one of protection.
Insurance purchases
in the past so often been such a helter-skelter affair that many schools have had serious financial losses that were not covered by Insurance.
Usually these schools did
not keep coverage up to date,, the proper forms of pr.otection have not been used, or the amount of protection . was inadequate.
Economical insurance is fine--but not
to the point of border line protection. does not always save money.
Cheap insurance
It has been proved to be a
161
very wise investment, particularly in case of fire insurance, to buy expert advice of insurance experts for appraisal surveys to determine correct coverage and advice as to kinds of policies.
A good public
relations gesture is to distribute the policies among local reputable agencies. School districts cannot afford to ignore another type of protection--that is, against corruption within the school organization itself.
S. C. Joyner, recognized
authority on school insurances,
insists on fidelity bond
ing by corporate sureties instead of personal bondsmen.
CHAPTER XII FEDERAL FINANCING OF EDUCATION Corey, Arthur., H. M. Ivy, Clyde A. Erwin, David H. Stewart and George W. Gore, "What It Would Mean" (Passage of S-246), N.E.A, Journal, Vol. 39, No. 2, February, 195°• P- 97. These five leaders of various areas give specific answers as what S 246 would mean to their respective section of the nation. Mr. Corey brings forth some surprising informa tion that California's per-capita wealth is decreasing, that the pressure of organized groups of older citizens for increased social security is mounting, and the unpre cedented influx of school population from other states brings new problems to the state education system.
Large
blocks of wealth are invested in federal securities and are thus completely exempt from state and local taxation. S 246 would bring to California about $8,500,000 of added school support, about $5.60 for each child in average daily attendance in public elementary and secondary school. Some of the ways, according to Mr. Ivy, that Mississippi might make use of federal-aid funds are: 1. tional
Increase number of classroom teachers--801 addi white and 1277 negro teachers.
163 2. Employ teachers for special services. 3 . Add trained teachers--200 white and 250 negro-for adequate constructive supervision. 4. Lengthen school term to minimum of 180 days. 5 . Increase classroom teachers' salaries based on nine months of service. 6 . Remedy shortage of clerical and secretarial services. 7 . Further consolidation. 8 . Furnish additional transportation. 9 . Instructional expenditures increased. 10. School plant improvement. North Carolina has practically exhausted all her sources of revenue which can be made available for the sup port of the schools.
Local sources of revenue have been
tapped to the limit, according to Clyde Irwin. While North. Carolina is making one of the greatest efforts in proportion to its per capita wealth to support an adequate educational program, any further expansion is absolutely dependent upon support from federal aid. David Stewart reports that Pennsylvania has a serious problem caused by federal government taking so much of the more prolific sources of revenue.
The increasing population
will make heavier demands upon the state.
Federal aid would
raise national level of education and reduce problems caused
164 by Influx of pupils from sub-standard educational levels. A significant majority of negro boys and girls resides where a dual system of -public education is legally required.
Without federal aid, most southern states are
not able to maintain acceptable school systems for children of either social group. According to a recent study, at least a half million would be necessary in the South to make school plants avail able to negro children equal to those now available to white children.
George W. Gore believes that if S 246 becomes law
it will make available more funds to raise the educational expenditures for all groups and will guarantee a more equit able minimum expenditure for negro .boys and girls in dual educational system.
16 5
Aiken, George D . , "The Case for Federal Aid to Schools," New York Times Magazine. December 28, 19^7* Pp* 9-16, The federal government has a stake in education for reasons of national security.
The illiteracy brought to
light during World War II cost the government about $175 per month per man.
These men could have received that in
struction in their youth in school at cost of $100 per year. Certainly this illiteracy which was a handicap to the armed services in time of war was not a state or local problem. It was a national one, and the cost of teaching 1,750*000 grown men to read and write was a national expense.
Educa
tion is an economic asset which cannot be lost in times of economic adversity.
Inasmuch as 60 per cent of the people
in America are not living in states where they were born, it must follow than an uneducated person from one state may become a drag on progress and a financial liability in another state.
All interested persons concerned with education were
virtually unanimous in agreeing that federal assistance must not carry any degree of federal control other than the re quirement of an audit of expenditures to prevent fraud.
166 Nettleton, Tully, "Federal Aid Caught in Religious Cross fire/' The Nation's Schools, Vol. 44, No. 3- September, 1949. P. 2 6 . Since its inception some thirty years ago, the prop osition of federal aid for education has had to run the gauntlet between those who insisted that this tax money be distributed solely to public schools and those who demanded that pupils of parochial schools be included in the benefits. The Barden bill which was approved by subcommittee of the House Committee on labor and education, in a sense stops short of the question of whether private schools should re ceive federal aid money.
It proposes that the money appro
priated shall be used only for current expenses directly connected with public school operation.
Cardinal Francis
Spellman, Archbishop of New York, calls Congressman Barden "a new apostle of bigotry" for discriminating against parochial school children.
Non-catholics and believers in the impor
tance of a strong public school system are aware they may seem petty in appearing to begrudge free bus rides to paro. chial school children, but they are concerned with the use that may be made o*f such "token" services as an argument for more extensive public support.
Catholic spokesmen disavow
any desire to have their schools wholly supported by public money, yet no line has been drawn at which anyone apparently can say the requests will stop.
It is unfortunate that the
federal aid proposition should be caught in this crossfire,
167 but apparently any bill that succeeds In establishing federal aid as a policy is going to have to face the fact that it is also determining tne trend toward a unified public educational system or toward a splintered aggregation of sectarian schools*with some kind of state schools trying to carry the residual load.
168 Moffitt, J. C., "Federal Aid at Present Rate May Soon Exceed State and Local School Support/’ The Nation's Schools, Vol. 43 j> N o . 2. February, 19 ^ 9 * P* 51 • Many people seem to' think that most of the financial problems of American public schools will be solved when the federal government gives federal aid to education. Two facts are important as we consider that assump tion.
First, the amount of money proposed in the most
recent federal-aid bill will not pay the additional operation costs resulting from, the increase in the number of children who will enter the schools in the next few years.
Second,
the federal government is now paying huge sums for the education of the people of this nation.
It has' been doing
so since l787--increasing appropriations as various crises demanded.
Its annual expenditure for the last fiscal year
ending June 30, 1948 of $2,953,785,539 is an amount that may equal that paid for all public elementary and secondary education by all the states and local districts combined.
169 Joyal, Arnold E., "Federal Support For Schools/' The Nation's Schools, Vol. 37, No. 3 . March, 1946. P. 4 3 . No one can say for certain just how large an
annual
expenditure the nation can afford to make or should make for Its public school system.
The purchasing power of the
dollar, the current economic situation, the confidence the public has In its schools and the value which it places on education are all factors which affect expenditures. In a recent study the writers estimated first, the cost of a ten year minimum program which would provide a basic educational program for all children ranging in age from 6 to 15, inclusive.
The annual cost of such a program
was fixed at $75 per child, which would make a total cost of about $2,147,000,000 a year.
Secondary education would
need an additional $1,066,000,000. Building costs have soared. increased. felt.
The birth rate has
The back-to-school movement is beginning to be
Industry is decelerating.
In short, every factor
involved seems to justify the assertion that more money will be needed to operate the public school system.
Right
now the estimate of $1 ,000,000,000 to $2 ,500,000,000 would appear to be conservative.
170 SUMMARY Many people seem to think that all the problems of American public schools will be solved when federal government gives federal aid to schools.
These same
people fail to realize that the federal government is' now paying huge sums for the education of people of this nation. It has been doing so since l787--increasing appropriations as various crises demanded.
The annual expenditure of
federal aid for the last fiscal year ending June 30., 19^8 was $2,953,785,539There seems to be unanimity in the idea that the federal government has a stake in education for reasons of national security.
Illiteracy brought to light during
World War II cost the government $175 P er month per man. These same men could have received that same instruction in their youth in school at a cost of $100 per year. All interested persons concerned with education agree that further federal assistance must not carry any degree of federal control other than the requirement of an audit of expenditures to prevent fraud. With additional federal aid educational opportunities would closer approach equality for all the youth in our nation.
Unfortunately federal aid is caught in religious
crossfire.
The critical question shall federal aid be given
to parochial schools is jeopardizing the whole program.
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1947. Blyler, Dorothea, "Single Salary Standard," The American School Board Journal, Vol. 117, No. 3, September, 1948, p. 40. Bradshaw, Roch, "Planning a Co-ordinated School County-City Tax Program," The American School Board Journal, Vol. 113, No. 3, September, 1946, p. 2 7 . Bragg, Louis A., "What About Administrator Salaries," The American School Board Journal, Vol. 118, No. 6, June, 1 9 4 9 , p . 37• Burke, Arvid J., "Basing Salaries on Quality of Teaching," The Nation's Schools, Vol. 44, No. 3i September, 1949, p. 53, "All That Glitters Is Not Gold," The Nation's Schools, Vol. 40, No. 3, July, 1947, p. 2 9 . _______ , "New State Minimum Salary Schedules and Their Financing," The American School Board Journal, February, 1948. _______ , "Who Should Pay the School Tax Bill?" Journal, January, 1950, P- 2 3 .
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176
Miller, Van, "The Reclassification of School Expenditures for Accounting," The American School Board Journal, Vol. 108, No. 3, March, 1944, p. 33. Misner, Paul J.. > "School Support," The Nation's Schools, Vol. 33, No. 2, February, 1944, p. 19. Moffitt, J. C., "Federal Aid at Present Rate May Soon Exceed State and Local School Support," The Nation1s Schools, Vol. 43, No. 2, February, 1949 j p. 51. Moffett, J. C., "State Constitutions Obligations and Limita tions on Financing Public Education," The American School Board Journal, Vol. 115, No. 2, August, 1947, P. 13. Moonie, Ray H., "Comparative Costs of Pupil Transportation," School Business Management, Vol. l4:I, July, 1948,
p. 8. Morrison, J. Cayce, "Basing Salaries on Quality of Teaching," The Nations Schools, Vol. 44, No. 3, September, 1949* P. 52. Mort, Paul R., "New Insights Into the Financing of Educa tion," School Management, Vol. 15* No. 9, May, 1946, p. 478. Mulford, Herbert B., "Equalizing Salaries for Men and Women Teachers," The American School Board Journal, Vol. 115, No. 6, December, 1947. , "Financing Your New School Buildings," School Board Journal, Vol. 114, No. 1, January, 1947, p. 23 _______ , "What Are Your School Bonds Worth?" The American School Board Journal, Vol. 112, No. 1, January,'. 1946, P. 35Nettleton, Tully, "Federal Aid Caught in Religious Crossfire," The Nation1s Schools, Vol. 44, No. 3, September, 1949, p. 2&~. Newell, Clarence A., "Scheduling Salaries for Teachers," The American School Board Journal, Vol. 114, No. 4, April, 1947, PP. 31-33.
177 Pattington, M. G., "Let the School Board Reconsider its Insurance Programs," The American School Board Journal, Vol. 110, No. 5, May, 1945, p. 4b. Pattington, Meader G., "Why Keep the Budget a Secret?" The Nation's Schools, Vol. 38, No. 6 , December, 1946, P. 29. Pearman, W. I., "A Plan for State Aid Beyond a Minimum Program," The Nation's Schools, Vol. 42, No. 3, September, 194b, p. 254 Raines, Earl L., "Reimbursement for Privately Owned Cars Used in School Business," The American School Board Journal, Vol. 116, No. 2, February, I"9"48, p. 3 2 . Reller, Theodore L., "Is Broadening Local Tax Power to Finance Education a Step Backward?" The American School Board Journal, Vol. 117, No. 1, July, 194b, ■ p. 3 1 . Ross, Cameron M., "State Taxation Covering All Governmental Needs," The American School Board Journal, Vol. 112, No. 4, April, 1946, p. 5 1 . Schmidt, H. W., "Can I Reduce Our Building Costs by 25 Per Cent?" The American School Board Journal, Vol. No. 1, January, 1950, p. 2 7 .
120,
Solberg, Carl E., "Shall Teachers Fix Their Salaries?" The American School Board Journal, Vol. 117, No. 2, August, 1948, p. 3 1 . Spears, Harold, "Teachers Depend Upon the Administrator for Adequate Salaries," The American School Board Journal, Vol. Ill, No. 2, August, 1945, p. 71 Spouse, W. L., "State Teacher Retirement Systems," Educational Research Bulletin of Ohio State University, Vol. XXIII, pp. l43-4d, September 20, 19747 Swan, Lewis, "How to Underpay Our Teachers," The American School Board Journal, Vol. 118, No. 3, March, 1949, P. 32. Thurston, Lee M. and Walter H. Church, "Budgets Can Be Useful," The Nation's Schools, Vol. 33, No. 1, January, 1944, p. 267
178 Votter, A. D., "Long Term Financial Planning," The American School Board Journal, Vol. 117* No. 6, December^ l948~j P. ^3• Wickstrom, P. A., "How We Handle School Petty Cash," The American School Board Journal, Vol. 118, No. 3, March, 1949/ p. 47. Wochner, Raymond E., and Van Miller, "Correction for Sparsity in State Aid Formulas-," The American School Board Journal, Vol. 117* No. 5* November, 1948, p. 29.
PUBLICATIONS OF LEARNED ORGANIZATION "Need of Adequate School Support," N.E.A. Research Bulletin XXIII, October, 1945, pp. 84-87. "Provisions for School Plants, Transportation, and Supplies," The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois, pp. 88-119. "Salaries and Salary Schedules of City School Employees," 1948-49, N.E.A. Research Bulletin, Vol. 28, No. 2, April, 1949. "Salary Schedules," N.E.A. Research Bulletin, XXV, October, 1947, p. 1 0 6 . "School Finance Practices in Forty-eight States," The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois, pp. 132-59"School Support in the Forty-eight States," The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois, pp. 111-31. "State Legislation Affecting School Revenues 1944-1948," Research Bulletin N.E.A., Vol. 27:3* October, 1949. "Statistics of State Progress in Public Education," Research Bulletin N.E.A., Vol. 25:4, December, 1947. "Statutory Bases of State Foundation Programs for Schools," Research Bulletin N.E.A., Vol. 26:2, April, 1948.
179 "The Current Educational Situation in the States," The Forty-eight State School Systems, The Council of State Governments, Chicago, Illinois, pp. 10-32. "The Need for Equalization in School Finance In Paths to Better Schools," 23rd Handbook of A.A.S.A., 1945, pp. 226-233. "Transportation Costs Create Inequalities," The Nation's Schools, Vol. 37 j No. 1, January, 1946, p. 48.
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