Cornell University Library LB 2825.K35 A history of pub!i.c:school sgport i^"^ Research Putlications of the University of Minnesota Current Pro|lein9 N^^Ler 12 A HISTORY OF PUBLIC-SCHOOL SUPPORT IN MINNESOTA 1858 TO 1917 BY FRANCES ELIZABETH KELLEY, M.A. Price: 75 Cents PubJithtd hy the Unfvtrsity of Minnitota Minnttt^ojfs, Deeemher, 1920 Hntt ajoUegg of AgcicttUutc Kt (S,atnell Mntneraitg atljata, Ef. S- ivesearcn Publications of the University of Minnesota Current Problems Numter 12 A HISTORY OF PUBLIC-SCHOOL SUPPORT IN MINNESOTA 1858 TO 1917 BY FRANCES ELIZABETH KELLEY, M.A. Published hy the University of J^innesota J^inneaftolis, December, 1920 LB ^^'^S" KZ5' Copyright 1920 BY' THE University of Minnesota & ItO^I PREFACE Underl3dng every educational problem is the financial one, that of school support. Adequate buildings, better trained teachers, a more vital curriculum can be provided only as sufficient revenues are, first, furnished and, second, distributed in a manner to secure results commensurate with expenditure. Indeed, there is little doubt that a large proportion of the educational difficulties existing in the majority of our states are due to their antiquated systems of school finance. Methods and policies inherited from colonial days are still followed in many of our states, despite the fact that their inevitably dis- astrous effects have been pointed out again and again by students of school finance. Rapidly growing demands for vastly increased expenditures make reform imperative. But before we can undertake to formulate and adopt new laws and new policies it is necessary to know those now in force and the effects of the same. Nevertheless, at the present time such knowledge is exceedingly difficult to obtain. Indeed there are states in our Union in which not a single official report shows the total expenditure for schools. In view of all these facts, and in view of the long standing need in practically every state in the Union of a thorough-going revision of school finance laws, policies, and methods, it is sur- prising that the subject has received so little attention from scientific students of education. It is true that several im- portant and valuable studies have appeared, but these have limited themselves either to certain selected aspects of the problem, or else to a few types of funds. What is needed first of all is a complete and detailed study of the systems of school support in a number of individual states. Such complete studies must take into account not two or three but every type of school fund, state, county, and district, permanent and current. It is because Miss Kelley has done this in her study of the history of school support in Minnesota that her work is a distinct contribution to the scientific literature of an all im- portant subject. Not only is it a distinctive contribution, but one which may, both in its method and in its scope, well serve as a model for similar studies of other states. iv PREFACE Miss Kelley has not confined herself to a description of Minnesota's existing system of school support, but has traced the genesis of this system from the time of the State's admission into the Union. Consequently her study presents us with both an account of what now is and an explanation of why it is. Her work throughout bears the marks of indefatigable care, conscientiousness, and zeal. To one who has long been deeply interested in the problems of school finance and who has followed closely the development of the present study, it seems not too much to say that the importance of Miss Kelley's study and the quality of her work can scarcely fail to gain quick recog- nition, and that her history of school support in Minnesota will be given a place both permanent and honorable among scientific studies of the economic aspects of public education. Fletcher Harper Sv/ift The University of Minnesota, October 11, 1920. TABLE OF CONTENTS Page Chapter I. Introduction 1 The problem 1 Sources 1 Purpose of 'this chapter 2 Educational rank of Minnesota 2 Distribution of population and wealth 2 School units 8 Public schools classified and defined 9 Chapter II. Survey of existing methods of state school support „ 12 School revenues in Minnesota, 1915-16 12 Constitutional provisions 13 Sources of state support 14 School funds named and defined 14 Defects in these titles and definitions 15 Permanent public-school funds 16 Permanent school fund in 1916 16 Swamp land fund in 1916 16 Basis for estimates of value of school lands 16 Management and investment of state permanent public-school funds 17 Reinvestment of trust funds 17 Management of school lands 19 Annual fund or special appropriations 19 State school tax or current school fund 20 Fines and forfeitures 20 Disbursements of state aid 20 Importance of the problem of disbursement 20 Types of apportionment of state school funds in Minnesota 21 Apportionment of the current school fund 21 Forbidden uses of the current school fund 22 Conditions for participation in the current school fund 22 Penalties for misuse of the current school fund .... 22 Disbursement of the proceeds of the state school tax. . 23 vi CONTENTS Page Disbursement of the annual fund 25 Objects of the annual fund 25 Requirements for participation in the annual fund . . 25 Forbidden uses of the annual fund 26 Deficits in the annual fund , • 27 Chapter III. A survey of existing methods of local school support 29 Importance of local school support 29 Sources of local school support 29 County or local one-mill tax 29 Taxes on moneys arid credits 29 Fines and forfeitures 30 Special local school taxes 30 Local bond issues 31 Disbursement of local school funds ■ 32 Disbursement of the proceeds of local taxes 32 Disbursement of fines and forfeits 32 Requirements for participation 32 Chapter IV. History of the permanent public-school funds in Minnesota 2>2> Titles of permanent funds 33 Inaccuracy of much current data . 33 Origin of the permanent funds 34 Origin of the permanent school fund 34 Origin of the swamp land fund 35 Growth of the permanent funds 36 Management of permanent funds 38 Sale of school lands 38 School land losses 39 Timber land frauds 39 Adjustment of swamp land claims 40 Investment of permanent funds 41 Board of investment 42 Lawful investments 42 Titles for income froin permanent funds 44 Income from the permanent school funds 45 Apportionment of the endowment fund 45 CONTENTS vi i Page Requirements for participation 48 Length of school term 48 Required reports 48 Lawful objects 49 Forbidden uses 49 Penalties 49 Chapter V. History of special state appropriations for the support of public schools in Minnesota 50 Title 50 Importance of the annual fund 50 The state high-school board 51 Growth of special state aid 52 State aid to high schools 55 Number of schools aided 56 Aid to graded schools 58 Aid to rural and semi-graded schools 59 Association aid 60 Aid to consolidated schools 61 Aid to special departments 63 Teacher-training departments 63 Agricultural departments 65 Putnam act 65 Benson-Lee act 66 Regular appropriations for special aid 66 Effects of aid to agricultural departments 66 Aid to manual training and home economics "67 Effects of aid to manual training and home economics . . 67 Commercial departments 68 Aid to school libraries 69 Lawful uses of the annual fund 69 Other types of special aid 71 Chapter VI. History of state-school taxation 72 Introduction 72 State school tax . . 72 Disbursement 72 Use of proceeds 73 Proceeds from the state one-mill school tax 73 viii CONTENTS Page Chapter VII. History of local school support in Minnesota. 76 Compulsory local school taxes 76 County school tax 76 District school tax ; . . 78 Permissive or special local school taxes 79 Maximum tax levies 79 Taxes levied in common and in independent districts ... 80 Fines and forfeitures 82 Chapter VIII. Conclusion 83 Effects of the present system of school support 83 Effects of the current school fund 83 Effects of the state one-mill tax 84 Effects of special state aid 84 Needed reforms in school support 90 Educational commissions 90 Reforms in administration 90 Reforms in the disbursement of the current school fund 92 Reforms in the disbursement of the state one-mill tax.. 92 Reforms in special state aid 92 Conclusion 92 TABLES I. Educationalrankof the state of Minnesota, 1913-14 4 II. Expenditure for education in Minnesota, 1905-15 4 III. (1) Population, (2) Total valuation of taxable property, (3) Average rate of special school tax for 1915-16, (4) Per capita expenditure for each pupil enrolled, (5) Amount raised by local taxation for each dollar of state aid, for the counties of the state of Minnesota lo IV. Minnesota school revenues for 1915-16 17 V. Investment of the money principal of the perma- nent school fund 28 VI. Investment of the money principal of the swamp land fund 29 VII. Objects aided by the annual fund 37 VIII. Deficit in apportionment of annual fund for 1915- 1916 41 CONTENTS ix Page IX. Special state aid for 1915 and 1916 43 X. Permanent school funds in Minnesota, 1916 53 XI. Sources of the principal of the permanent school fund 56 XII. Growth of the permanent school fund 57 XIII. Sources of the swamp land fund, 1916 58 XIV. Growth of the swamp land fund'. 58 XV. Income from the permanent school funds, 1864- 1917 71 XVI. State aid to public schools, 1882-1916 86 XVII. Number of high schools receiving aid and the amount of aid provided by law, 1882-1916. ... 90 XVIII. State aid to consolidated schools in 1911 96 XIX. Number of normal training departments in Minne- sota, 1896-1917 •. 99 XX. Departments of agriculture, enrollment and aid. . . . 103 XXI. Departments and enrollment in manual training and home economics in Minnesota, 1894-1917 .104 XXII. Commercial training departments and enrollment in Minnesota, 1903-1917 105 XXIII. Amount of school revenue derived from the annual fund, 1878-1916 108 XXIV. Proceeds of the state one-mill tax, 1888-1916 114 XXV. Income from the county school tax, 1858-1874. ... 118 XXVI. Comparison of voluntary school tax rate levied in common, and independent and special districts . 123 A HISTORY OF PUBLIC-SCHOOL SUPPORT IN MINNESOTA, 1858 TO 1917 CHAPTER I INTRODUCTION PRESENT SOCIAL AND EDUCATIONAL CONDITIONS —UNITS OF ADMINISTRATION— - CLASSES OF SCHOOLS In 1913 the total expenditure for common schools" in the United States was $555,077, 146. i'' This amount was raised in the forty-eight states by widely varying methods. In many states the existing method of school support is not the result of any scientific plan based upon sound economic and educa- tional principles, but is merely a chaotic system growing out of successive attempts, some legislative, others administrative, to meet temporary needs and situations. There is no more fundamental problem in American education than the financial one. The amount of available school revenues determines the character of buildings and equipment, the quality of teachers, and, consequently, to a large extent, the quality of teaching. Those political and administrative units which furnish the major portion of school support exercise the strongest influence over school policies. The mode of apportionment of such moneys determines the educational standards and the lines along which the schools of the community develop. The problem of school support in the United States has been treated in certain studies of the permanent school funds and of state aid, but for the most part specific information as to the school revenues of any state is scattered through the pages of state reports and statute books. The present study will attempt to trace the history of school support in one state, Minnesota, from 1858 to 1917. This covers the period from the admission ' Rett. U. S. Commissioner of Educ, 1916 2:33 Table 14. » Includes public elementary and high schools. See Rett. U. S. Commissioner of Educ., 1916 2:15. I" Data for 1913-14 are used here owing to the fact that they are the latest available for the whole United States. j FRANCES ELIZABETH KELLEY of the state into the Union to the latest date for which informa- tion is available at this time. In order to approach intelligently our specific problem of school support, it is necessarj^ to survey briefly some of the more important social and industrial conditions underlying the general educational situation, the salient characteristics of the school system, and its general organization. EDUCATIONAL RANK OF MINNESOTA Something of the general educational situation may be inferred from the following tables which show Minnesota's rank in the Union" in the year 1913-14 with regard to wealth and to certain matters pertaining to the school system. TABLE I Educational Rank of the State of Minnesota Rank of Minnesota Total area (80,858 square miles) Value of taxable property Total valuation of property Total expenditure for education Expenditure for education per child Literacy School population (children 5 to 18 years) . Per cent of school population enrolled .... Per cent of enrollment in attendance Length of school term '. 13 10 11 10 14 9 19 28 18 27.5 TABLE II Expenditure for Education in Minnesota 1905-15 Year Total expenditure Total enrollment Expenditure PER child 1905 $ 8,954,064.262 19,833, 230.00= 430,005' 466,060= $20.82 42.55 1915 DISTRIBUTION OF POPULATION AND WEALTH Minnesota's school problem is essentiallj^ a rural one, with great inequality of educational opportunity as the most serious 2 Fourteenth Bienn. Rept. Minn. Supt. of Public Instr., 190S-6 p. 26. ^Nineteenth Bienn. Rept. Minn. Dept. of Educ. 191S-16 p. 199 Table 18. * Fourteenth Bienn. Rept. Minn. Supt. of Public Instr., 1905-6 p. 24. ' Nineteenth Bienn. Rept. Minn. Dept. of Educ, 1915-16 p. 174. c Including the forty-eight states and the District of Columbia. PUBLIC SCHOOL SUPPORT IN MINNESOTA 3 defect. Wealth and population are very unequally distributed over the state; 70 per cent of the people live outside the cities of ten thousand or more, and the urban population is gathered into comparatively few cities. St. Paul and MinneapoHs contain more than 25 per cent of the total population;" Duluth contains 3 per cent; and these three cities together with Mankato, St. Cloud, StiUwater, Virginia, and Winona, each of which has a population of more than ten thousand and fewer than twenty thousand, contain approximately 31 per cent of the total popula- tion of the state. The northern part of the state, where the population is least dense, contains rich mineral deposits. The central and southern sections are excellent agricultural regions. In 1909 Minnesota ranked eleventh among the forty-eight states of the Union in regard to the total value of the farm crops produced. The great differences in population are apparent from the average population per square mile of the counties of the state, varying as it does from fewer than 2 inhabitants per square mile in Cook Cotmty to 90 or more in Hennepin and Ramsey Cotinties. The valuation of taxable property varies from $1,992,684 in Cook Covmty to $324,256,080 in St. Louis County; the per capita expenditure for each pupU enrolled ranges from $15.63 in Beltrami County to $106.97 in Cook County with its small property valuation and population of fewer than two to the square mile. Benton County raises $1.74 by local taxation for each dollar of school money received from the state, while Cook County raises $5.80, and Hennepin County $8.73.^ The following table presents the facts concerning the density of population, the valuation of taxable property, the rate of special tax levies, the per capita expenditure for schools, and the comparative amoimts of school support derived from county and from local sources for each county of the state. These statistics show which counties are taxing themselves to the point of sacrifice on behalf of their schools and which are depending upon state funds as a substitute for, rather than a supplement to, local funds. ^ Thirteenth Census of the U. S.. 1910 2:959. i See Table III. o [ >J J Ov n O K u W < M H b J ?; U n O M X H () rn X < H O Id rr J - a W H o < w P^ 1— 1 <: P^ f, H a ?; w P > o < S ,_, < ^ ai CM M W w o S W s s S w EH z o H " 5 ii £ C m O ^ H ^ en >■ b ° < w p a ^ H p J J is 2 J « H o H < -< X g Q < ei H U ro O CO -^ Tji O 00 \0 Oi i^ lO lO Cv t^ 3i lO -^ oT ui" "O»oo f^-^fu-j^r* oooOt^Oi vOi-ifOiOiO m-*to*^0 f^CvO'-''-' cNrs(NO»^or t^ooioo>co o\0>0*0<^ o\r^OO*to 'OMfO'-^t^ ^fOOlOOO O*0l0'-"l0 OoTtoocv" lOoTioMpi W'.-r(*i'rco <; oS J <; a. .¥5 S a S m m m o o : ;s 6 b •^ -a O o o Q Q i" ^ O H So "s s J 01 a " r* C*5 Ov "O ■ M (N CN CN o <^ ^s £: w o! 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CO a J O a 3 .i o > s 25 ffi" <5 OF PERTY OF .ND 1915" Tt< f', M -+• ■* Cv O ■— 00 « I- so so t^ ■* rt i-^ w r^ C e t^ CO o »^ Total LUATION BLE PRO ICLUSIVE ONEYS A ITS FOR r^ OS r- cc O ■^ 00 (N \0 CM CO Os c^ ^0 (*! '-' O 00 Cs r- 'O Tt* 00 so lO ro t^ 00 i^j O — <_ t^_ r*^ SO "* 00 Tji so o i- lO ..-i (O NO so O i^ ■* t^ o t^ -t -H r~." r-T fO On' r~-* lO On lo" r-T t^' r-' o> (N oo" — " -# O I/", 00 i-T (N i-T PO f^ o> u-> o\ 00 <0 fn -^ « ■^ 00 1^ t~- lO to 00 O 00 r-i '^1 Os so fO lO **! '^- "1 •*! "1 t^ tN — O OS 00 -^^ O O M X a "^ B <: pj H u Oi s. a-. S a J o z 5 o ■* H a < a 1--. 1/1 00 »o lO lO lO i/-, M »0 >0 00 lO u- 00 00 li" »/' ly- 2 00 "-. lo o ^ 7 7 t ? Tf ■* vO -- ■* 1 1 1 1 1 T T T T7 - T Y7 Y T 7 7 f t "i CO CO fM O 00 00 00 00 oc so oo 00 so 00 OC O O X 00 M ll J^ ' 3-4 3P 0. c o yi P. (fl a H O o c > c a. c 11 01 ct 1- a c oi ►J s ii t .•;: c a 3 > z s i « 1 o 1 J r- M O t-^ O CM tN CO CS M ■-H* T)^ cs CN ^^ ■* fO CS CS »- CO c>i rs o (N M Tt- S J oj W ^ a ti. o ^■=■^2 APIT URE PUPI .LED t^ O Ov ■* O. »0 OS o* *0 Oi -- 00 Tt< ^ lO O t^ <2 io < 1 H»o tn O tn 82 gS5 u u H U BO BO BO Ui BO td lO ■ -o c ■ - o r- ■ CO ■ ro (N fv] tJ< t^ ■ ■ ■ ■ ■ < y Q 2h S;« m 5 OS ^ t£ BO .H » Wl U tfl -H ■ ■ »0 ■ u^ ■^ o o o o — ■* o ■ ■ o ■ -^5 d ■ - « '. '. . ^ OS O lO t^ C ■tj" O fO ■ -* <^ ■ ■ (N CO (N lO (N C^ ^ tS tN . . ^ Is > s rfroO'*»0 OPD»OCSiw ^(Nt^OOt- t-. O ro o 00 0\ ^ 2: o w < _. lOTfoOTjiOi O'-'OOOvt- TfsOoO^u- to ■* 00 Os 00 I~- Tota: LUATIO BLE PR CLUSIV ONEYS ITS FOP (N 00 O O* W Ov Ov^ wi « »- ■rH to O '-I t- ■^_ 0_ Os_ 0_ CO 00 • lo CO ^d" '*" O* 00 oT « o' 't X « * H 1-1 CN «-< (O < « H U U s ss IS 1/1 00 IO lO w lOtOlOOOOO 10001000»0 OtOOOOlOul •* -H ^ ^ ■<* TTTt" iiiii Tl • < < < •s.s E a p c •d .£■ I rt ^ 12 8 FRANCES ELIZABETH KELLEY SCHOOL UNITS The units of organization and administration in the Min- nesota school system are the state, the county, and the district. Of these, the state and the district are of greatest importance at the present time in the matter of school support. The state officers in charge of education are (1) the superintendent of education, appointed by the governor and approved by the senate; (2) a deputy superintendent; (3-5) three assistants; (6) a rural school commissioner; and (7) supervisor of school libraries, all of whom (2-7) are appointed by the superintendent of education ;^^ (8) the State High School Board.' This board is composed of the state superintendent, the president of the State University, the president of the Board of Normal Directors, the superintendent or principal of a high school, and one other person appointed by the governor and confirmed by the senate. '' Other state officers whose duties include some phase of school administration are (9) the auditor of the state, who has super- vision of all state lands;" (10) the board of investment, com- posed of the governor, state treasurer, state auditor, attorney- general, and the president of the board of regents, who have charge of the investing of state trust funds, including the school funds." There are eighty-six counties in the state; in these the chief educational officer is the county superintendent of schools, who is a local supervisory officer with general advisory duties, elected by the people of the county for a term of four years.'* In counties in which not all the territory is organized into school districts, there is also a county board of education composed of the chair- man of the board of county commissioners, the county superin- tendent of schools, and the county treasurer," whose duty it is to provide for the education of pupUs in the xmorganized territory. 1* School districts in Minnesota are of three kinds: special, independent, and common.'^ The term, consolidated district, also ^ Revised Statutes of Minn., 1913 sec. 2870 p. 642. " Ibid. sec. 2888 p. 644. ^^ Gen. Laws of Minn., 1913 chap. 4 sec. 65 p. 20. ^Revised Statutes of Minn., 1913 sec. 5245 p. 1144. " Ibid. sec. 810 p. 177. " Ibid. sec. 2777 p. 626. ^^ Ibid. sec. 2776 p. 626. ^^ Ibid. sec. 2671 p. 604. 1 The law mentions a state board of education, but expressly directs that if that board is not provided for by law, the authority granted it shall vest in the State High School Board and the state superintendent. (Gen. Laws of Minn., 1915 chap. 296 Sec. 16, p. 419 ) PUBLIC SCHOOL SUPPORT IN MINNESOTA 9 occurs, but this indicates the origin of the district and the type of school maintained rather than a peciiliar type of organiza- tion,^" for the law provides that "the board of a consolidated school district shall form, and after the foundation of the con- solidated district shall have all the powers, privileges, and duties now conferred by law upon boards of independent districts."^* While there are no requirements made by law concerning the differences between common and independent districts, it is the evident intention that larger and more populous districts are to be organized as independent districts, since the board of a common-school district of ten or more townships is under the same requirements and provisions as is that of an independent school district. ^^ A common-school district elects a school board of three members: a chairman, a treasurer, and a clerk.^' An independent school district has a board consisting of six members, two of whom are elected each year.^'* The school board of an independent district exercises certain functions, including that of levying the school tax, which in a common district are reserved to the electors. The chief differences between common and independent districts lie in this extension of the powers of the school board of the independent district and in the amoxmt of tax levy permitted. As this concerns school revenues directly, it wUl be discussed under the head of the sources of local support. Special districts are those which have been organized under special acts of the legislature. Special legislation in such matters was forbidden by an amendment to the constitution adopted in 1892,2^ but owing to the small number of cities in the state, certain provisions concerning districts Qontaining more than ten, twenty, or fifty thousand inhabitants are practically special legislation. These, however, affect very few communities. PUBLIC SCHOOLS CLASSIFIED AND DEFINED The statutes of Minnesota classify and define the public schools. The character and amount of state aid given to schools in Minnesota as well as the amount of local tax levy permitted ™ Session Laws of Minn., 191S chap. 238 sec. 4 p. 337. 21 Ibid. ^ Gen. Statutes of Minn., 1913 sec. 2785 p. 627. ^ Ibid. sec. 2732 p. 617. ^ Ibid. sec. 2733 p. 617. ^ Minn. Constitution art. 4 sec. 33. 10 FRANCES ELIZABETH KELLEY • for their support is largely determined upon the basis of the class to which any particular school belongs. It is, therefore, necessary at the outset to present this classification. The laws of Minnesota for 1915 and later years define the various classes of schools more carefully and explicitly than was done in the earlier statutes. As will be observed, however, from the follow- ing quotation, there seems to be no clear distinction made between the terms public school and district school. Aside from this, the classification formally provided in the laws is generally con- sistent and will be followed in this paper. The following is the classification and definition provided in the statutes: All schools supported in whole or in part by state school funds shall be styled public schools, and admission to and tuition therein shall be free to all persons between the ages of five and twenty-one years, in the district in which such pupil resides, provided, that the school board of any district may, by resolution, exclude all children under six years of age.2^ District schools are divided into four classes, as follows: (1) high schools, (2) graded schools, (3) semi-graded schools, (4) common schools. ^^ In order to be ranked as a high school, a school must satisfy the following requirements: 1. It shall be in session not less than nine months in the year. 2. It shall admit, free of tuition, students of either sex resident in the state who have passed the prescribed entrance examination. 3. It shall have a regular and orderly course of study as prescribed by the State High School Board and an optional English or business course in addition thereto or in lieu thereof. 4. It shall be subject to the rules and open to the visitation of the State High School Board. ^^J Graded schools include all schools below high schools which (1) are in session at least nine months in the year; (2) are well organized, having at least four departments in charge of a princi- pal holding a state professional certificate, or a graduate from the advanced course of a state normal school, or of a reputable college or university; (3) have a suitable schoolhouse and other ^ Gen. Statutes of Minn., 1913 sec. 2670 p. 604. ^'' Ibid. sec. 2798 p. 629. 28 Ihid. I Many of the most important requirements tor classification as a high school are deter- mined by the rules of this board. PUBLIC SCHOOL SUPPORT IN MINNESOTA 11 necessary buildings, library, and apparatus; (4) have regular and orderly courses of study embracing all such branches as may be prescribed by the High School Board.^^ Semi-graded schools are those not compljdng with the pro- visions for high or graded schools, but which (1) maintain a school for at least eight months in a year; (2) are well organized with at least two departments in charge of proficient teachers, at least one of whom holds not less than a first-grade certificate; (3) have a regular orderly course of study and comply with rules established by the state superintendent ;'" (4) have suitable buildings, library, and apparatus. All other district schools are common schools.'^ ™ Gen. Statutes o/ Minn., 1913 sec. 2799 p. 629. '° Ibid. sec. 2800 p. 629. " Ibid. sec. 2801 p. 629. CHAPTER II SURVEY OF EXISTING METHODS OP STATE SCHOOL SUPPORT Present public-school support in Minnesota is divided into two types, state and local." For the purpose of this study, local school support may be defined as consisting of all moneys kept by or returned to the district where they originate, even though they are raised under a compulsory state law. State school support consists of those moneys derived from sources immediately under the control of the state and disbursed by it to the various school units upon other bases than the source of the revenues. State support may be again divided into the moneys arising from permanent or trust funds and those derived from the current revenues of the state. School support in Minnesota is derived from aU of these sources. The present chapter is concerned with a study of the system of the state support of public schools. The total revenues for public schools in Minnesota for the school year 1915-16 amounted to $21,784,421.82. These were derived from the sources named in the foUowdng table. TABLE IV Minnesota School Revenues for 1915-16'' Sources Amount Per cent of total revenue All sources $21,784,421.82 4,330,433.37 17,453,988.45 2,388,218.70 1,942,214.67 1,510,933.16 10,547,366.33 5,395,688.96 100 All state sources 19+ 80+ 10+ 8+ 7+ 48+ 24+ State apportionment (current school fund) State special aid Special local tax Bonds sold and all other sources . . . ^ No treatment of federal support of public schools is included here, since it is neither a present nor historical type of support but belongs purely to the future development of the school system. ^ Data in this table coitiputed from Rept. Minn, Dept. of Educ, 1916 pp. 18-19 Table 7. PUBLIC SCHOOL SUPPORT IN MINNESOTA 13 The sources of school support in Minnesota are provided in part by the constitution and in part by statutes. The present state constitution provides: , (1) that the principal from the sale or lease of school lands shall be a permanent school fund/ (2) that not more than one third of said lands may be sold in two years; one third in five years; and one third in ten years; but the lands of greatest valuations shall be sold first; provided, that no portion of said lands shall be sold otherwise than at public sale, (3) that the income from this fund shall be distributed to the townships of the state in proportion to the number of scholars in them, (4) that one half of the income from the Swamp Land Fund shall be a school fund,^ (5) that no state moneys shall be expended for the support of sectarian schools,' (6) that the permanent funds of the state may be invested in local bonds.* The provision for the investment of the principal of the permanent fund in local bonds was adopted as an amendment in 1904. Its adoption was secured only after it had been re- peatedly submitted to the voters of the state. When that pro- vision, in turn, needed revision, no further amendment was offered, but a law was passed by the Legislature of 1913 increas- ing the required rate of interest to 4 per cent,' and under this law the moneys of the trust fund are now invested. The operation of these clauses indicates the nature of the problem of determining what provisions should be included in a state constitution. The difficulty of changing constitutional provisions is a distinct aid in the maintaining of wise and con- servative measures, but is also a great hindrance in making such changes in administration as new conditions may require. * Minn. Constitution art. 8 sec. 2. 2 Ibid. ^ Ibid. sec. 3. * Ibid. sec. 6. ' Gen. Statutes o/ Minn., 1913 sec. 5245 p. .1145. 14 FRANCES ELIZABETH KELLEY SOURCES OF STATE SUPPORT Minnesota derives its revenues for state support of public schools from the two types of sources mentioned above: perma- nent or trust funds, and the current revenues of the state. These may be divided as follows : I. Permanent school funds A. The Permanent School Fund B. The Swamp Land Fund II. Current revenues of the state A. The Annual School Fund or special appropriations for school support B. State 1-mill school tax C. Proceeds of certain fines Five state funds are named in the school laws.'' The more spe- cific definitions of these funds are found in the later statutes. The constitution of Minnesota provides no name for any of the school funds except the Common School Fund, and here the name and definition are matters of implication rather than of specific provision. A clause of the amendment of 1881 provides that one half of the income from the principal derived from the sale of swamp land "be appropriated to the Common School Fund of the State. "^ Inasmuch as the income from the Swamp Land Fund is disbursed with the other apportioned funds, the term Common School Fund as used here may be regarded as equiva- lent to the Current School Fund' of the Statutes of 1913, that is, the whole available annual revenue apportioned among the schools of the state. The State has two permanent school funds, the Permanent School Fund and the Swamp Land Fund. These names are used for these funds in the state reports and are established by custom and usage. ^ Minnesota ConstituLion art. 8, sec. 2. ^ Gen. Statutes of Minn., 1913 sec. 2915 p. 648. <■ No discussion is given of the Teachers' Insurance and Retirement Fund, inasmuch as this fund is derived from assessments upon the members of the fund association and from a special tax, and the fund is not included in any report of educational receipts or expendi- tures. (See Session Laws of Minn., 1915 chap. 199, 268.) In the same way the receipts from the State Teachers' Employment Bureau, which are turned into the general revenue fund of the State, are not included here. (See Gen Laws of Minn., 1913 chap. 523.) Fees collected for teachers' examinations go into the Institute Fund, from which state expenses for holdinsr examinations and teachers' institutes are defrayed. PUBLIC SCHOOL SUPPORT IN MINNESOTA 15 Definite effort has been made to provide names for the cur- rent or annual school revenues, but the result is often confusing rather than helpful. The Statutes of 1915 name and define the following funds: (1) the Endowment Fund, which shall consist of the income from the Permanent School Fund;^ (2) the Annual Fund, which shall consist of the sums appropriated by the legislature for special aid to public schools or departments in the schools;^ (3) the Current School Fund, which shall consist of the amount derived from the state 1-mill tax.^" In several particulars these titles and definitions are not entirely satisfactory. The definition given for the Endowment Fund is incomplete, since it ife provided by law that one half of the income from the Swamp Land Fund be added to that from the Permanent School Fund," and this combined income must be regarded as the Endowment Fund, although it is not specifically so stated. The term Endowment Fund is, itself, misleading, as it might lead the reader to suppose that it referred to the principal of another permanent fund, and that Minne- sota possessed a third endowment fund in addition to the two permanent funds mentioned above, while, as a matter of fact, it refers only to the annual income from these funds. The definition of the Current School Fund is particularly unsatisfactory because this term had already been differently defined in the Statutes of 1913. Th^se provide that the proceeds of the state 1-mill school tax "shall be added to the General School Fund, which shall then be known as the Current School Fund."^^ It is in this sense that the term Current School Fund appears to be used in the report of the Department of Education for 1915-16." Unless this definition of Current School Fund is retained, we are left without any terms to designate the total state school revenues apportioned with the income from the permanent school funds. * Session Laws of Minn., 1915 chap. 296 sec. 1 p. 416. » Ibid. 1" Ihid. ^^ Minn. Constitution art. 8 sec: 2. ^ Gen. Statutes of Minn., 1913 sec. 2915 p. 648. " Rept. Minn. Dept. of Educ, 1915 p. 12 Table 3. 16 FRANCES ELIZABETH KELLEY Although these titles and definitions are frequently con- fusing rather than helpful, they are the only ones provided by the laws of Minnesota and will be used here, as far as possible, in the sense apparently intended by law. PERMANENT PUBLIC-SCHOOL FUNDS We may now turn to a consideration of the permanent public-school funds, of which Minnesota has two, the Permanent School Fund and the Swamp Land Fund. The total income from the Permanent School Fund is devoted to the public schools; one half of the income from the Swamp Land Fund is appropriated to the same use, and the incomes from the two are apportioned together. These are bona-fide trust funds arising from the proceeds of federal-land grants. The principal has always been carefully invested, and the state reports reiterate the statement that not a dollar of the money principal has ever been lost. According to the report of the state auditor, the Permanent School Fund in 1916 consisted of $26,411,769.46" and 649,129.31 acres of unsold lands, with an estimated valuation of $3,537,799.40.15 In 1916, according to the auditor's report, the Swamp Land Fund consisted of $5,328,325,351"= and of 1,378,265.24 acres of unsold swamp lands." The minimum valuation fixed by law for swamp lands is $5/^ but the swamp lands sold in 1916 brought an average price of $6.97." Estimated upon this basis, the value of these unsold lands would amount to approximately $9,606,508.72. No reliable estimate, however, of the value of Minnesota's swamp land is possible, for title to 1,097,147.35 acres of swamp land is in dispute between the federal govern- ment and the state of Minnesota.^" In this connection it shotdd be noted that estimates of the value of Minnesota school lands vary widely. The 1913-14 report of the commissioner of education estimates the value of the school and swamp lands at $180,000,000. It is evident " Refl. Minn. Slate Auditor, 1915-16 p. v. 15 Ibid. '" Ihid. p. vi. " Ihid. p. 3. •' Gen. Statutes of Minn., 1907. i» Ibid. ^* Ibid. p. xviii. PUBLIC SCHOOL SUPPORT IN MINNESOTA 17 that this differs greatly from the estimates given above of $3,537,799 and $9,606,508.72 respectively for the funds. It is probable that this divergence arises from an attempt, on the one hand, to include the mineral and timber values together with the surface value, \ while the smaller sums represent the surface value alone. The management of the principal of the Permanent School Fund and of the Swamp Land Fund is in the hands of the Board of Investment, which is composed of the governor, the state treasurer, the auditor, the attorney-general, and the president of the Board of Regents of the state university.^' The first three are empowered to act upon loans of trust funds to counties, districts, towns, and cities within the state, but the action of the whole board is necessary for the purchase of any other securities than these local bonds. ^^ Because of the amount of money to be invested annually and the technical nature of some of the investigations which are necessary in order to guard the interests of the state, the Legis- lature of 1917 empowered the Board of Investment to employ a secretary at a salary of $3,000 per year. He "shall, under the direction of said Board of Investment, have general supervision of the investigation of applications for loans, the negotiations of new investments, examination of securities, and the records of municipalities appl5dng for loans. "^^ Mr. W. H. Lamson was appointed as the first secretary under this act and entered upon his duties August 1, 1917.° The constitution provides for the investment of state trust funds, including the school funds, in bonds of the United States, of Minnesota issued since 1860, of any other state designated by law, or of any county, township, town, city, vUlage, or school district in the state of Minnesota, provided that such bonds bear not less than 3 per cent interest, and together with all other liabilities do not constitute an indebtedness greater than 15 per cent of the assessed valuation of the real estate of the munici- pality.^* This 'constitutional provision is now superseded by 'I Gen. Statutes of Minn.. 1913 sec. 5245 p. 1144. 22 Ibid. ^ Session Laws of Minn., 1917 chap. 271 p. 409. ^Jbid.. 1915 chap. 296 sec. 1 p. 416. = Information furnished by the state auditor's ofRce in response to author's personal inquiry. May 4, 1918. 18 FRANCES ELIZABETH KELLEY a statute of 1913 requiring that such bonds bear not less than 4 per cent interest. ^^ Investment in bonds issued to aid in the construction of any railway is expressly forbidden.^* The following statement of the investment of the Permanent School Fund is taken from the report of the auditor for 1915-16. TABLE V Investment of the Money Principal of the Permanent School Fund" Cash in treasury, (less $7,780 O. S. warrants) $ 566,148.98 Land contracts' 5,944,602.83 Bonds as follows: Alabama, ($143,000) 4 per cent 138,637.50 Delaware, 3 per cent 4,000.00 Massachusetts, 3^ per cent 2,595,000.00 Massachusetts, 3 per cent 300,000.00 Virginia, ($714,000) 3 per cent 663,600.00 Utah, 3}4 per cent 100,000.00 Minn, school districts, cities, townships, counties, etc. 15,675,597.15 Minn, inebriate hospital certificates of indebtedness"! 30,000.00 Minn, prison building certificates of indebtedness «. . 177,000.00 Minn. Armory building certificates of indebtedness^ 92,200.00 Minn. Itasca Park land certificates of indebtedness^ 125,000.00 Total $26,411,796.46 Table VI, on opposite page, shows the investment of the Swamp Land Fund. The provision that no part of the trust funds of the state shall ever be alienated has been very scrupulously observed in Minnesota. In 1917 the state held, representing investments of portions of the Permanent School Fund and of the Swamp Land Fund, certain bonds of other states which bore as little as 3 per cent per annum, but which were not salable at the ^ Gen. Statutes of Minn., 1913 sec. 5245 p. 1143. 26 Ihid. ''' Rept. Minn. State Auditor, 1915-16 p. v. ' Land contracts are those contracts under which settlers are paying for state lands purchased by them. « Concerning these investments the state auditor writes as follows; "The state has no bonded debt, but certificates of indebtedness have been authorized by the legislature for various purposes. Many are held by the school and other state funds. They run only a few years. Payment of the above (state certificates of indebtedness for prison buildings, inebriate hospital, educational buildings, national guard armories, and Itasca Park) are all provided for by special tax levies, except the inebriate hospital cer- tificates, which are payable from the income from the two per cent received from liquor licenses issued by local municipalities." (.Rept. Minn. Slate Auditor, 1913-14 p. ix.) PUBLIC SCHOOL SUPPORT IN MINNESOTA 19 price which had been paid for them originally. Since it would be possible to reinvest the proceeds of these bonds in such a manner as to yield the state a higher rate of interest, it was thought wise to sell them. In order to legalize their sale at an apparent loss, the Legislature of 1917 empowered the board to sell them and to make provision to reimburse the permanent funds for this loss.-^ The profits from previous bond sales and an appropriation of $100,000 were made immediately available for this purpose, and the board was further empowered to cover any prospective loss by creating a fund derived from charging a bonus upon the bonds of municipalities of the state purchased by the board, not to exceed one-fourth per cent per annum for the period of the loan. Exemption from such a bonus is at the pleasure of the board. ^' TABLE VI Investment of the Money Principal of the Swamp Land Fund'" Cash in State treasury, (less $9,312.50 O. S. warrants) .7. $ 81,892.55 Land contracts 2,649,312.80 Bonds as follows: Virginia ($100,000) 96,980.00 Minnesota school district, township, counties, etc.. . . 2,456,140.00 Minnesota Armory Board certificates of indebtedness 45,000.00 Total $5,328,325.35 AH state lands, including the school lands, are under the general supervision of the auditor of the state, who has charge of the leasing and sale of them." The amount to be sold in any year is limited to 100,000 acres,^^ and no pine land can be sold until the timber has been sold.^' The law puts a minimum valuation of $5 on the school land^* and swamp land^^ of the state. ANNUAL FUND OR SPECIAL APPROPRIATIONS The special appropriations for the aid of pubHc schools made by the state legislature are known as the Annual Fund. ^' Session Laws of Minn., 1917 chap. 464 p. 765. 23 Ihid. ™ Retl. Minn. Slate Auditor, 1915-16 p. vi. '■ Cen. Statutes of Minn., 1913 sec. 65 p. 20. ^ Ibid. sec. 5402 p. iiSS. 33 Ibid. ^ Ibid. ^ Gen. Statutes of Minn., 1907. 20 FRANCES ELIZABETH KELLEY At the present time the law names twenty-one types of schools, districts, and departments of instruction which are entitled to aid from the Annual Fund.' Besides these, the state makes other special appropriations: (1) for schools which are located on Indian reservations, (2) for training schools and teachers' examinations, and (3) for replacing the income lost by the State's use of school lands. For all these purposes, and for the Annual Fund, the Legislature of 1913 appropriated $2,098,475 for 1915.58 STATE SCHOOL TAX OR CURRENT SCHOOL FUNDS For the support of public schools and of the state university a tax of 1 . 23 mills is levied annually. The proceeds from the . 23 mill are appropriated to the state university ; the proceeds of the 1-mill tax are added to the General School Fund, which is then known as the Current School Fund.^^' FINES AND FORFEITURES The fourth source of state aid is foimd in the forfeiture for insurance on an excessive valuation, which is payable to the state school fund.'^'' DISBURSEMENT OF STATE AID Second only in importance to the provision of adequate school revenues is the method of their disbursement, particiilarly that of the moneys arising from state funds or state taxation. The apportionment of these revenues usually gives the chief, if not the only, means for a centralization of administration and for securing equality of educational opportunities and con- ditions. If state funds are so disbursed as to encourage or permit some districts to regard them as substitutes for, rather than supplements to, local taxation, they may largely fail of their purpose, namely: to provide adequate and equal educational opportunities for the children of the whole state. And it is with this purpose in mind that the basis of apportionment should be determined. ^Eighteenth Bienn. Rept. Minn. Supt. of Public Instr., 1913^14 p. 14. " Gen. Statutes of Minn., 1913 sec. 2915 p. 648. '^ Hid. sec. 3323 p. 741. ■ These objects benefited by the Annual Fund are discussed in detail under the dis- bursement of that fund. See p. 24. i This is the definition provided by the Statutes of 1913 and is the meaning of the term as used in current state reports. See chap. 1. k Many other fines and forfeitures go to the school fund of the county or township where they are collected and are administered with it by the same officials. PUBLIC SCHOOL SUPPORT IN MINNESOTA 21 Three types of apportionment are used for state aid in Minnesota: (1) those based upon school attendance, (2) those based upon financial weakness of districts, and (3) flat sums for the benefit of special types of education. The laws provide a different basis of apportionment, dif- ferent requirements for participation, and different penalties for misuse for each of the school funds. For this reason the disbursement of each fund will be discussed separately. APPORTIONMENT OF THE CURRENT SCHOOL FUND' The income from the Permanent School Fund, one half of the income from the Swamp Land Fund, and the residue re- maining after certain amounts have been subtracted from the proceeds of the state school tax are combined, and the total revenue so derived is designated as the Current School Fund.^' This money is ' distributed semi-annually to the school districts whose schools have been in session at least six months, in pro- portion to the number of scholars of school age who have attended school at least forty days during the preceding year."*" The constitution provides that distribution be made "to the different townships throughout the state, in proportion to the number of scholars in each township, between the ages of five and twenty- one years."*' It further adds the requirement of a six months' term of school and defines a "scholar" as a pupil who has been in attendance at school forty days or more. The state superin- tendent apportions this fund among the counties of the state on the first Monday of March and of October of each year.*^ Upon receiving a copy of such apportionment, the state auditor draws his warrant on the state treasury payable to the state treasurer, for the amount due each county. The state treasurer applies this amount in his semi-annual settlement with each county named in the apportionment, and, if the amount due any county exceeds the amount due from that county for state taxes, he transmits to the county treasurer the amount of such excess.*' Distribution on this basis entirely fails to further the equalization of educational opportunities, as is apparent from a ^' Gen. Statutes of Minn., 1913 sec. 2915 p. 648. *^ Session Laws of Minn., 1915 chap. 296 sec. 3 p. 416. ^^ Minn. Constitution art. 8 sec. 2. ^^ Laws of Minn. Relating to the Public School System, 1915 sec. 183 p. 60. ^ Gen. Statutes of Minn., 1913 sec. 2896 p. 645. • Current School Fund is used here in the sense of the 1913 definition of that term. See p. 15. 22 FRANCES ELIZABETH KELLEY comparison of the amount of state aid received by a twenty- pupil school in a poor district with that received by a forty-pupil school in a populous and wealthy district. The money thus apportioned can not be used in the support of any sectarian school," nor any school classifying or separating pupils according to race, color, social position, or nationality.^* Neither can it be used for any other purpose than the payment of the teachers' wages. ^* Three requirements are made for participation in the Current School Fund. The district must have maintaihed a school for a term of six months within the j^ear.^'' The term reports must have been made by the teacher to the county superintendent, and by him to the state superintendent on or before September 20th. ^' The third requirement is that no district shall receive in any year from the apportioned fund (i.e., the Current School Fund and local funds apportioned on the same basis) a greater amount than that appropriated by such district from, its special and local l-miU tax for that year, unless such district has levied for such year the maximum amount allowed by law for school purposes.*' It is further provided that the year's apportionment shall be forfeited by any district not complying with the law concerning participation and forbidden uses. Besides these penalties put upon the districts, the law provides penalties also for officials who fail to fulfill their duties. Any treasurer who uses money applicable for teachers'" wages for any other purpose shall be personally liable to any teacher who becomes entitled to any part of such fund for such amount.^" Any county auditor who fails to make to the state superin- tendent any report of apportionment required by law,*^ or any county superintendent failing to make required reports to the county auditor or to the state superintendent*^ shall forfeit S50 to the benefit of the school fund of the county. And no *^ Minn. Constilulioii art. 8 sec. 2. ^ Cen. Statutes of Minn., 1913 sec. 2901 y. 646. * Laws of Minn. Relating to the Public School System, 1915 sec. 183 p. 60. *' Session Laws of Minn., 1915 chap. 296 sec. 3 p. 416. ^ Laws of Minn. Relating to the Public School System, 1915 , note on sec. 181 p. 60. " Ibid. sec. 183 p. 60. *" Cen. Statutes of Minn., 1913 sec. 2762 p. 624. " Ibid. sec. 2906 p. 647. °2 Ibid. sec. 2907 p. 647. PUBLIC SCHOOL SUPPORT IN MINNESOTA 23 payment of wages can be made to any teacher who is in default in making required reports.^^ DISBURSEMENT OF THE PROCEEDS OF THE STATE SCHOOL TAX The net proceeds of the state school tax, sometimes referred to as the Current School Fund,"" are disbursed in two parts. 1. The state auditor sets aside from it annually an amount not to exceed $150,000, which is used for the following purposes: (a) to assist districts not having a state high school or graded school where a levy of 15 mills does not raise $500 for each school in session seven months, (b) to make up any deficit in the Annual Fund, (c) to pay the tuition of non-resident pupils in industrial departments.'* 2. The balance, as has already been said, is then added to the Endowment Fund and is distributed on the same basis and at the same time as that fund, the whole being known as the Current School Fund.'^'" Not more than $200 may be apportioned for the aid of any one school in a district where a levy of 15 mills does not raise S500 for each school in session seven months.'^ With regard to the use of the fund for the payment of non-resident pupils' tuition, the law says: The State Board of Education shall make proper rules relating to enrollment, attendance, rates of tuition, payment of endowment and current funds on account of such non-resident pupils." A further use of the Current School Fund" is found in the laws for 1915 which provide that the state superintendent may grant permission to any district having not fewer than five deaf or blind or speech-defective or subnormal pupils between the ages of four and ten years to establish separate classes with separate teachers for such pupils. There shall be paid of the Current School Fund in the state treasury annually in the month of July the sum of $100 for each defective child instructed in such school or schools.'* ^ Ibid. sec. 2834 p. 636. ^ Session Laws of Minn., 1915 chap. 296 sec. 13 p. 418. " Gen. Statutes of Minn., 1913 sec. 2915 p. 648. •* Session Laws of Minn., 1915 chap. 296 sec. 13 p. 418. *' Ibid. chap. 296 sec. 14 p. 418. " Ihid. chap. 194 p. 259. m The definition and discussion of this fund will be found on p. 15. n The law was passed in the same year as the act defining the Current School Fund as the income from the state 1-mill tax. See p. 15. TABLE VII Objects Aided by the Annual Fundo Department, etc., School, for which apportionment IS MADE Requirement for participation [ 1. In session 8 months 1. Rural school ■( 2. Teacher holding a first-grade certi- [ ficate j 1. In session 7 raonths 2. Rural school ■{2. Teacher holding <* second-grade cer- [ tificate 3. Associated rural school ... 1. Associated with a central school 4. Central school with which Amount of annual aid $150 for teacher^® each $100 for each teacher^" $50" rS200 for each as- a rural school is associ- > \ sociated school*^ ated . • J 5. Graded school. [1. In session nine months I 2. In addition, for each grade teacher | Imore than 4, counting the principal as ( a teacher 3. In addition for each high-school teacher (Aid not to exceed $1,300 on this basis) 6. High school 1. In session 9 months 7. Agricultural department j (Aid 'not to exceed M. In high, graded, or consolidated school salaries paid) J 8. Commercial department . . 1. In high, graded, or consolidated school (Aid not to exceed salaries paid) f 1. In high school 2. More than 1 teacher 9. Teacher-training depart- ments. $600^ $100^ $250^ $1,800^ $1,000^^ $600^^ 10. Consolidated schools . 3. More than 2 teachers and not less than\ 50 pupils 1. Class Ap 2. Class Bp 3. Reimbursed for transportation. . , SI,: $2,000'^ (not to exceed) $2,800"! 11. Library 1. 1 2. Schools in districts levying [ a local school tax of ?■ I. more than 20 mills J A. High school. , B. Graded school . C. Rural school. / (not to exceed) $500^2 $250^^ $2,000^^ (not to exceed) Reimbursed for one fourth the cost of \ S2,000^ building / (not to exceed) For each teacher employed /$10™ (not to ex- \ ceed $25) One third of Annual local tax levy in excess of 20 amount raised in mills excess of that re- - ceived from the 20-niills levy. { S2,500" \ (not to exceed) { Sl.800^8 \ (not to exceed) '• / $200^9 \ (per teacher) ^^ Session Laws of M innesota, 1915 chap. 296 sec. 4 «o Ibid. 61 Ihid. chap. 296 sec. 12 p. 418. 62 Ibid. 63 Ibid. chap. 296 sec. 5 p. 416. « Ibid. ^ Ibid. ^ Ibid, chap, 296 sec. 6 p. 417. " Ibid. chap. 296 sec. 7 p. 417. 68 Ibid. 69 Ibid. chap. 296 sec. 8 p. 417. ° A history and more detailed discussion of each of these objects aided by the Annual Fund will be found in Chap. V. p For definitions of these classes of schools, see Chap. V. ). 416. ^« Ibid. '' Ibid. '^ Ibid. chap. 296 sec. " Ibid. "'^ Ibid. ^^ Ibid. '® Ibid. chap. 296 sec. " Ibid. chap. 296 sec. ^s Ibid. ^» Ibid. 9 p. 417. 10 p. 417. 11 p. 417. PUBLIC SCHOOL SUPPORT IN MINNESOTA 25 DISBURSEMENT OF THE ANNUAL FUND In the disbursement of the Annual Fund we find the appor- tionment both of flat sums and of amounts determined upon various bases. The following types of apportionment appear: (1) flat sums to schools and to departments of instruction, (2) aid on the basis of number of pupils and teachers in various courses, (3) aid according to the amount of local tax, levied, and (4) aid on the basis of library equipment. The importance of this type of state aid may be seen in the objects for which it is apportioned. As has been stated in an earlier paragraph, the classification of schools in Minnesota (see pag^ 9) is of great importance, because it serves to indicate the requirements for participation in the Annual Fund. The law merely names the types of schools to be aided. The details of the administration of the Annual Fund are left entirely to the State High School Board," who "shall apportion the annual funds and any other sums ap- propriated by the state to schools and libraries in such manner and upon such conditions as will enable them to perform ef- ficiently the services required by law, and to further the educa- tional interests of the state. To this end the state board shall have power to fix the requirements for receiving and sharing in state aid."*" Acting under this provision, the State High School Board has gradually but steadily raised the requirements for partici- pation in state aid, making consistent improvement necessary for the continuation of that aid. The rulings of the board are published as bulletins by the department of education and have all the force of laws. The requirements are so detailed that space forbids giving them in full here. They cover matters of (1) building and equipment, (2) sanitary conditions, (3) heating and ventilating, (4) school grounds, (5) length of school term, (6) preparation of the teacher, (7) courses of study.*' The following brief quotations will serve to indicate the definite nature of the requirements. "■ Ibid. chap. 296 sec. 2 p. 416. '' High School Board Rules Relating to High and Graded Schools Bulletin no. 45, May, 1916. 1 These duties would have devolved upon the State Board of Education if that body had been organized. 26 FRANCES ELIZABETH KELLEY A graded school building must be equipped with a fan system of ventilation. When the outside temperature is lower than 55° above zero Fahrenheit, the fan must be in continuous operation during the entire time the schools are in session.*^ Book supports shall be provided [in school libraries] to keep the books straight on the shelves.'^ The rtiles of the board as appHed to graded and high schools are enforced through the efforts of five state inspectors, one of whom must visit and report upon every school applying for state aid. The number of rural schools makes such state inspection impossible with the present meager appropriation for rural inspec- tion purposes, and state support to rural schools is distributed upon the basis of reports made out by local officials and approved by the county superintendent. As long ago as 1906 the inherent dangers attendant upon making a local official serve as a state inspector were observed, and a system of true state inspection of rtu-al schools applying for state aid was urged by the state superintendent . ^^ Besides the requirements put upon the particular types of schools, all districts are required to take an annual school census, and it is made the duty of the state superintendent and of the High School Board to withhold the special state aid until such census has been completed. ^^ Only one prohibition is put upon the expenditure of the Annual Fund. It can not be used for the purchase of any site nor for the erection of any school building.^" A large part of the details of administration of the Annual Fund date from 1915, but special appropriations for the aid of particular types of schools have been made since 1878. For the past three years the appropriation and apportionment of the moneys of the Annual Fund have been matters of great interest and debate. The sums appropriated by the legislature have not been sufficient to pay the maximum apportionraent due to the districts and schools meeting the requirements. The deficit thus created was distributed proportionately among the various schools. The increase in the deficit appears in the following table. ^ High School Board Rules Relating to High and Graded Schools Bulletin no. 45, May 1916 p. 39. ^ Ibid. p. 34. ^Repl. Minn. Supt. of Public Inslr., 1905-6 p. 9. ** Gen. Slalutes of Minn., 1913 sec. 2985 p. 660. ^^ Gin. Laws of Minn., 1911 chap. 341 sec. 3. PUBLIC SCHOOL SUPPORT IN MINNESOTA 27 TABLE VIII Deficit in Appoktionment of Annual Fund for 1915-16" Schools 1915 1916 High schools including special departments. . Graded schools and departments $162,265 44,187 209,656 $278,638 69,933 305,513 The following table shows both the apportionment of and the deficit in the Annual Fund and in the portion of the Current School Fund which is set aside for special aid to subnormal classes and to weak districts : TABLE IX Special State Aid for 1915 and 19168' 1915 1916 DEPARTMENT Num- ber AIDED Total amount paid Deficit NOT PAID Num- ber AIDED Total .amount paid Deficit NOT PAID 221 242 146 $38^,751.00 176,750.00 231,415.00 30,894.00 118,512.00 $ 96,687.75 44,187.50 57,853.75 7,723.58 230 241 555 130 $322,593.00 163,177.00 277,093.00 50.470.00 151,780.00 34,895.00 35,700.00 6,475.00 $138,254.00 Graded, schools Agricultural, industrial, and other special de- 69,933.00 118,754.00 21,630.00 Teachers' training de- 120 Consolidated schools Class A 62 4 35 74,400.00 3,387.00 21,000.00 22,363.00 18,600.00 864.75 5,250.00 102 37 15,300.00 Class B 2,775.00 57,092.00 128,790.00 110,250.00 419,180.00 141,260.00 Semi-graded schools . . . Rural schools '478 3,618 1,311 776 46 114,240.00 434,160.00 104,880.00 46,560.00 11,287.50 28,560.00 118,540.00 26,220.00 11,640.00 507 3,992 2,018 47,250.00 179,648.00 Class B 60,540.00 Reservation schools 41 8,696.00 27,219.00 16,239.00 119 7,059 $1,777,599.50 $416,109.33 7,972 $1,950,909.00 $654,084.00 *' Nineteenth Bienn. Reft. Minn. Deft, of Educ, 1915-16 p. 24. ^ Nineteenth Bienn. Rept. Minn. Suft. of Educ, 1915-16 p. 115. 28 FRAN,CES ELIZABETH KELLEY In 1917 the governor vetoed a bill passed by the legislature appropriating moneys to pay the deficit for 1914-15 and 1915- 16. Such a deficit can not occur in the 1917-18 aid, since the legislature specifically announced that, if the amount available for this year is not sufficient to pay all claims in fuU, there shaU be a pro rata settlement which shall be final.*' The attorney- general held that the deficit for 1914-15 and 1915-16 might legally be paid out of the legislative appropriations for state aid for 1916-17 and 1917-18, thus recognizing the legality of the districts' claims against the state.'" An injunction prevented the State High School Board from taking such action, and the matter was appealed to the State Supreme Court. ''^ The court sustained the injunction; the money appropriated was paid out for state aid for the years for which it was appropriated;'' and any further action must come from future sessions of the state legislature.' The whole matter of the disbursement of state aid is prob- ably the most pressing problem in Minnesota's school system today. Its lack of recognition of scientific principles, its com- plexity, and its uncertainty from year to year combine to deprive the moneys distributed of much of their possible value. ^^Nineleenih Bienn. Repi. Minn. Supl. of Educ, 1915-16 p. 115. ^ Tweniy-foiirih Ann. Kept. Minn. Inspector of Slate High Schools 1917 p. 9. 91 Ibid. •■ Information furnished by the State Department of Education in response to author's personal inquiry, April 30, 1918. CHAPTER HI A SURVEY OP EXISTING METHODS OF LOCAL SCHOOL SUPPORT Local school support constitutes the second main division of the types of school support. In 1916, for every dollar of state aid apportioned to the schools of Minnesota, local units raised $4.03 in local revenues. ^ The chief interest attaching to local school support in a study of this kind lies in its impor- tance as a measure of the effect of state aid upon the school system. In Minnesota it is important, also, as one of the factors contributing to the inequality of school opportunity already spoken of among the chief defects of the present system. SOURCES OF LOCAL SCHOOL SUPPORT There are no local permanent or trust funds in Minnesota, and local school support is derived from (1) the county 1-mill tax, (2) the state tax on moneys and credits, (3) miscellaneous fines and forfeitures, (4) special local taxes levied by school districts, (5) bonds issued by school districts or by counties. The county is the unit through which all school taxes are collected, to which all levies must be certified on or before October 10 in each year, and through which all school funds are distributed to the separate districts. The annual county tax or, as it is sometimes called, the local 1-mill tax, is required by state law, and the proceeds from it are "credited to the school district in which the property taxed is situated."^ In 1915 the proceeds of this tax amounted to a total of $1,492,492.65.3 A state tax of 3 mills upon all moneys" and credits" is directed by law.^ The proceeds of this tax are divided as follows: one ' Nineteenth Biennial Rept. Minn. Depl. of Educ, 1915-16 p. 18-19 Table 7. - Gen. Statutes of Minn.. 1913 sec. 2916 p. 648. ^ Rept. Minn. State Auditor, 1915-16 p. 561. ' Gen. Statutes of Minn., 1913 sec. 2328 p. 525. '^ "Moneys and Credits" as used here are defined as follows: "'Moneys' or 'money' shall mean gold and silver coin, treasury notes, bank notes, and other forms of currency in common use, and every deposit which any person owning the same, or holding in trust and residing in this state, is entitled to withdraw in money on demand" (See Revised Laws of Minn., 1905 chap. 2 sec. 798 p. 141.) '"Credits' shall mean and include every claim and demand for money or other valuable thing, and every annuity or sum of money receivable at stated periods, due or become due and all claims and demands secured by deed or mortgage, due or to become due, and all shares of stock in corporations the property of which is not assessed or taxed in this state." (See Gen. Laws of Minn., 1917 chap. 130 sec. 1 p. 181.) 30 FRANCES ELIZABETH KELLEY sixth to the revenue fund of Minnesota, one sixth to the coiinty fund, one third to the village, city, or town, and one third to the school district in which the property is assessed.* In 1915 the proceeds of this tax which were apportioned to school districts amounted to $213,082.88.'^ The proceeds from the sale of all estrays are payable to the county school fund.^ The same fund is further increased from certain fines and forfeitures for violation of laws bearing upon the following matters: (1) sale of liquor,* (2) shipment of liquor,' (3) railroad crossings,^" (4) practice of osteopathy," (5) practice of dentistry,'^ (6) practice of optometry, i' (7) provision of fire escapes,^* (8) weights and measures,'^ (9) usury, ^* (10) injury to the United States beacons or buoys. ^^ Besides those fines and forfeitures which are added to the state and county school funds, certain others go, in whole or in part, to the school district in which they are collected. These are provided for by the laws concerning (1) delinquent taxes, ^^ (2) breaches of the compulsory school attendance law," (3) the sale of cigarettes,^'' and (4) the registration of burials.^' The county or district may also provide that all fees for liquor licenses be added to the school fund.^^ Special local school taxes are levied by aU districts, common, independent, and special. In common districts the levy is voted by the electors at the annual school meeting,^ but if they fail ' Gen. Slalulcs of Minn., 1913 sec. 2328 p. 525. ^ Reft. Minn. Stale Auditor, 1915-16 p. 553. ^ Gen. Statutes of Minn , 1913 sec. 6040 p. 1315. ^ Ibid. sec. 3173 p. 697. ' Revised Statute'; of Minn., 1913 sec. 3174 p. 697. '" Ibid. sec. 4406 p. 982. " Ibid. sec. 4994 p. 1096. ^- Ibid. sec. 5021 p. 1101. ^^ Ibid. sec. 5028 p. 1102. ^* Ibid. sec. 5112 p. 1117. i» Ibid. sec. 5804 p. 1287. I" Ibid. sec. 5806 p. 1288. " Ibid. sec. 8930 p. 1967. '' Ibid. sec. 2075 p. 442. " Ibid. sec. 2983 p. 660 and sec. 2989 p. 661. ''"Ibid. sec. 3211 p. 704. 2' Ibid. sec. 6278 p. 1363. ^ Ibid. sec. 2897. -= Ibid. sec. 2716 p. 613. PUBLIC SCHOOL SUPPORT IN MINNESOTA 31 to make a levy sufficient to provide funds for the support of the school for the length of term agreed upon, the district school board is directed to levy a tax sufficient for that purpose.^* Common districts are not permitted to levy more than 15 mills on the dollar for the support of schools unless they maintain a graded or high school, when the levy can not exceed 25 mills. ^' For the purpose of purchasing school sites or for the erection and equipment of schoolhouses, a common district can not levy more than 10 mills unless 10 mills will not produce $600, in which case the levy must not exceed 25 mills on the dollar nor produce more than $600.^^ In common districts having less than ten voters the district school tax shall not exceed $400.^' In independent districts the school board determines the rate of the tax levies, and the length of the school year,^^ which must be between five and ten months in any district.^' The only limitation provided by law as to the amount of taxation is that no tax in excess of 8 mills on the dollar shall be levied for the purpose of school sites and the erection of schoolhouses.'" In '■'special districts such amounts may be levied as may be allowed by special law at the same time when the Revised Laws [of 1913] took effect. "'' In territory not included within any school district, the county board of education makes a "special unorganized school levy" which is in lieu of a special district levy.'^ The levying of this tax is regulated by the provisions concerning the school taxation in a common-school district. '' The regulations governing the issue of local school bonds provide that any school district may, by a two-thirds vote at a regular or special election, direct the school board to issue bonds payable within fifteen years and bearing not more than 7 per 2'' Ibid. sec. 2756 p. 622. 25 Ibid. sec. 2917 p. 648. ^ Ibid. " Ibid. '* Opinion of Attorney-General Young, June, 1906. Quoted from Lau-s of Minn. Re- lating to the Public School System, 1915 p. 59. 2' Ibid. sec. 147 p. 53. ™ Revised Statutes of Minn., 1913 sec. 2917 p. 648. 3' Ibid. ^ Gen. Statutes of Minn., 1913 sec. 2781 p. 626. ^ Ibid. sec. 2783 p. 627. 32 FRANCES ELIZABETH KELLEY cent interest, for the purpose of "purchasing sites for school- houses and for defraying the e/cpense incurred and to be incurred in building, remodeling, repairing, and furnishing schoolhouses, and installing heating and ventilating and plumbing plants in same, and equipping the same with libraries, apparatus and other school furniture."^* The constitution provides that the principal of the state trust funds may be invested in such bonds.'' DISBURSEMENT OF LOCAL SCHOOL FUNDS The disbursement of local school funds is much simpler than that of state funds. The district is the recognized unit, and no attempt is made to equalize either school opportunities or burdens. The proceeds of the county 1-mill tax,'^ and of the tax on moneys and credits,'^ as well as those of special local taxes, are credited to the district containing the property taxed, so no one of them in any way serves to aid in the equalization of school burdens or school opportunities. "The amounts collected from liquor licenses, fines, estrays, and other sources" are apportioned, together with the amount received from the Current School Fund, by the county auditor upon the same basis as the state apportionment," and "such money shall be used only for the payment of teachers' wages. "^^ With regard to the revenues derived from liquor licenses, the law provides that no district shall receive any part of them unless all sums paid for such licenses in such district are appor- tioned to the county school fund.'' *■ Gen. Slalules of Minn., 1913 sec. 18S5 p. 383. '^ Ibid. sec. 2915 p. 648. '^ Ihid. sec. 2328 p. 52.V ^ Ibid. sec. 2897 p. 646. ^Ibid. b See provisions concerning such investment, p. 17. <= See treatment of the apportionment of the Current School Fund in Chap. II. CHAPTER IV HISTORY OF THE PERMANENT PUBLIC- SCHOOL FUNDS IN MINNESOTA The history of Minnesota's permanent school funds is of particular interest since Minnesota ranks second in the United States in the amount of the principal of its permanent public- school funds, acreage and value of unsold school lands, and the total value of permanent school funds. It is surpassed in each of these particulars by Texas alone. "^ Minnesota has two permanent public-school funds, the Permanent School Fund and one half the Swamp Land Fund. The entire income from the Permanent School Fund^ and one half the income from the Swamp Land Fund are devoted to the support of the public schools of the state.' It is frequently very difficult to secure accurate and reliable data on school revenues. The figures concerning the Minnesota Permanent School Fund given in the report of the United States Commis- sioner of Education for 1914 illustrate the unreliability of much current data. This report gives the following statistics for Minnesota for that year. Permanent school funds $ 24,668,248^ Acres of unsold school land, 2,555,000 Value ofunsold school land 180,000,000 Total value of permanent funds and school lands . j!204,668,248 The amount given in this report for the Permanent School Fund is the principal of the fund of that name only, and entirely ignores the Swamp Land Fund of $4,292, 789.37,^ one half of which is also a permanent school fund. On the other hand, the number of acres of unsold school land given includes both the 735,648. 79« acres of school land and the whole of the 1,459,834.23^ '^Rept. U. S. Commissioner of Educ, 1916 2:36 Table 17. ^ Minn. Constitution art. 8 sec. 2. » Ibid. * Repl. U. S. Commissioner of Educ, 1016 2:36 Table 17. ' Reft. Minn. State Auditor, 1913-14 p. v. « Ibid. p. 3. ' Ibid. 34 FRANCES ELIZABETH KELLEY acres of unsold swamp land, although not more than one half of the latter can be said to belong to the permanent school funds. It is evident, then, that the total of the permanent school funds of Minnesota for 1914 amounted to $26,814,647.68 instead of $24,668,248 as given by the federal report. The amount of unsold land belonging to the school funds in that year was only 1,465,565.9 acres instead of 2,555,000 acres as reported by the commissioner of education. No basis is given in the report for the estimated value of $180,000,000 or average of $79.82 per acre put upon the 2,555,000 acres of unsold school and swamp land. This estimate, however, prob- abh' is based upon an attempt to include the surface value together with the timber and mineral values of these lands. If so, it is probably not exces.sive. The following table shows the true condition of these funds in 1916. TABLE X Permanent School Funds in AIinnesot.^ — 1916 Permanent School Fund $26,41 l,796.46t One half of Swamp Land Fund $2, 664,162. 67t Unsold school land (acres) 696,086.73tt One half of unsold swamp land (acres) 689, 132.62 jf Estimated value of unsold school and swamp land belonging to permanent school funds 5110,568,208 51* ORIGIN OF THE PERMANENT FUNDS The permanent school funds of Minnesota are derived from the school land granted the state by the federal government at the time of its admission to the Union, and from the swamp lands granted in 1880. In 1849, sections 16 and 36 were reserved for the use of schools b}- the organic act of the states which pro\'ided that "when the lands in said territory shall be surveyed, under the direction of the government of the United States, preparatory to bringing the same into market, .sections sixteen and thirtA'-six in each- township in said territory shall be, and the same are hereby reserved for the purpose of being applied to schools in said territory, and in the states and territories t Report of Stale Auditor, 1915-16, p. v. t Ibid, p. VI. tt Ibid. p. 3. a Estimated on the basis of the average valuation of S79.82 per acre used in Rept. of the U. S. Commissioner of Educ., 1916 2:36. PUBLIC SCHOOL SUPPORT IN MINNESOTA 35 hereafter to be erected out of same."* In 1857, the Enabling Act of Minnesota provided that "the sections numbered sixteen and thirty-six in every township of pubHc land in said state, and where either of said sections, or any part thereof, has been sold or otherwise disposed of, other lands, equivalent thereto and as contiguotis as may be, shall be granted to said State for the use of schools."' The land thus granted to the state amounted to 2,969,990 acres, ^^ or five and five-tenths (.055) per cent of the area of the state. The Constitution of 1857, which became effective upon the admission of the state, accepted this grant and provided that "the income arising from the lease or sale of said school land shall be distributed to the different townships throughout the state, in proportion to the number of scholars in each township between the ages of five and twenty-one years, and shall be faithfuUy applied to the specific objects of the original grants or appropriations." The Swamp Land Fund is derived from lands received under the federal grant of 1860. This act extended to Minne- sota the benefit of an act of 1850 which had granted to certain other states "all swamp and overflowed lands, made unfit thereby for cultivation, and remaining unsold."" The report of the state auditor for 1913-14 gives the following statement of lands received under this act : Acres Acres Selected by the U. S. surveyor-general as inuring to the State under the Swamp Land Grant 5,890,199.20 Patented to the State by the U. S 4,709,038.18 Approved to the State by the U. S. but not as yet patented 84,013.67 Swamp land claimed by State, claim unadjusted or cancelled by U. S. or relinquished by the State in favor of settlers 1,097,147.35 5,890,199.20 5,890,199.20'^ The constitutional amendment of 1881 provided that the principal of the Swamp Land Fund should be preserved un- diminished and inviolate, and that the income should 'be divided and one half appropriated to the Common School Fund and one half to the educational "and charitable institutions of ' Organic Act of Minn., Gen. Statutes of Minn., 1866 pp. 14-21. " Enabling Act of Minnesota., F. N. Thorpe, Federal and State Constitutions 4: 1989. '" Table of Land Grants, Report U. S. Commissioner of Educ, 1892-93 2: 1283. " Tables. Stale Grants of Public Lands, Gen. Land Office, March 12, 1896 p. 9. (Quoted here from F. H. Swift, Permanent Common School Funds p. 62.) ^' Reft. Minn. Slate Auditor, 1913-14 p. 17. 36 FRANCES ELIZABETH KELLEY the state. ^' No action was taken in the matter, however, until 1907 when a statute was passed directing that the provision of the amendment be carried out." Accordingly, since 1907 one half of the Swamp Land Fund has been a second permanent school fund, and its income has been devoted to the public schools. GROWTH OP THE PERMANENT FUNDS The capital of the Permanent School Fund and of the Swamp Land Fund may be regarded as comprised of two parts the lands belonging to these funds and the money prin- cipal derived from the sale or lease of these lands or from other sources. No land has been received by either of these funds in addition to that coming from the grants mentioned above. TABLE XI Sources of the Principal of the Permanent School Fund — 1916i* Source Amount Per cent OF whole** 1. Sales of land, right of way, etc 2. Sale.s of timber 114,876,186.10 7,048,788.63 316,000.77 3,809,231.02 361,589.94 56+ ■^6+ 3. Mineral permits and leases 1+ 4. Royalty on iron ore 14+ 5. Profit on sale of bonds 1+ $26,411,796.46 The principal of both of these permanent fimds has increased steadily through additions from five different sources. The Constitution of 1858 provided that all moneys received (1) from the sale, and (2) from the lease of school lands should be added to the Permanent School Fund.i"^ In the same way the proceeds from swamp lands are added to the Swamp Land Fimd.'' A con- siderable part of the lands belonging to these funds is valuable for timber or for mineral deposits. (3) Receipts from the sale ^^ Minn. Constitution art. 8 sec. 2. ^^ Gen. Laws of Minnesota, 1907 chap. 385. '^^ Rept, Minn. State Auditor. 1915-16 p. vi. ^® Minn, Constitution art. 8 sec. 2. " Ibid, b Computed from data in the table. PUBLIC SCHOOL SUPPORT IN MINNESOTA 37 of timber and (4) from the lease of mineral rights are added to the funds. (5) A fifth source of increase is found in the wise investment of the moneys of the fund. An analysis of the principal of the Permanent School Fund in 1916 will show the relative importance of each of these contribut- ing sources. The following table shows the growth of the Permanent School Fund since 1862. TABLE XII Growth of the Permanent School Fund — 1862-1916 Year Principal^^ Acres of unsold school land 1858 2,969,990" 2,931,742" 2,589,085" 2,285,113" 1,607,851" 1,271,460" 649,129'» 1862 $ 242,531.00 2,426,240.00 4,449,725.00 9,241,119.00 12,546,529.00 26,411,796.46 ' 1870 1880 '. 1890 1900 1916 The Swamp Land Fund has been increased from similar sources with the exception that it has received no moneys from the sale of bonds. The percentage of the whole furnished by each source appears in the following analysis. .. TABLE XIII Sources of the Swamp Land Fqnd — 1916™ Source Amount Per cent** Sales of timber, right of way, etc $3,298,432.18 1,496,934.91 79,737.00 453,221.26 61+ 28+ Mineral permits and leases 1+ Royalty on iron ore '" 8+ $5,328,325.35 •' Rept. Minn. Depl. of Educ, 1915-16 p. ii. ■' Rett. Minn. Slate Auditor, 1915-16 p. v. ™ Ihid. p. vi. " Only approximately correct. Computed by subtracting acres sold each year, (see note 10) without corrections for lands forfeited aiid resold. From table of land grants, Reft. U. S. Commissioner of Educ, 1S92-93 2:12S3. '' ** Computed from data given in the table. 38 FRANCES ELIZABETH KELLEY One half of the income from the principal is apportioned to the public schools. The following table shows the growth of the Swamp Land Fund since 1908, the year after it became one of the permanent school funds : TABLE XIV Growth of Swamp Land Fund Year Total Swamp Land Fund One half of Swamp Land Find'J 1908 1910 .. SI, 243, 272.3521 1,581,255.2022 4,292,789.372' 5,328,325.352* % 62J1,636.17 790,627.60 1914 2,146,394.68 1916 2,164,162.67 MANAGEMENT OF PERMANENT FUNDS The first message of the governor of Minnesota included a plea that the financial supervision of the public lands be vested in a separate central department at the seat of government.^ This very wise advice was ignored and has continued to be ignored to this day. State officials and others have continued to tu"ge the establishment of such a department, but to no avail.^^ Bills establishing a separate state land department were introduced in the legislative sessions of 1909 and 1911, but both were de- feated." In 1861 an act for the appraisal, sale, and lease of school lands was passed. It created a board of commissioners of school lands, consisting of the governor, attorney-general, and super- intendent of public instruction.^* Siace the duties of this board, however, conflicted with those of the board of commissioners of public lands, both boards were abolished in 1862, and the auditor was made ex officio state land commissioner with an 21 J?eii(. Minn. State Auditor. 1915-16 p. ix. 22 Repl. Minn. Supl. of Public Instr., 1909-10 p. 249. 2^ Repl. Minn^ Stale .Auditor, 1913-14 p. v. 2* Ibid.. 1915-16 p. vi. ^Annual Message of Gov, Ramsey. Minn. Exec. Documents, I860 p. 22. 2* Repl. Minn. State Auditor. I9I1-I2 p. xxxvi. 27 Ibid. 2* Gen, Laws of Minn.. 1861 chap. 14. ^ Computed from data given in the table. PUBLIC SCHOOL SUPPORT IN MINNESOTA 39 annual salary of $300 for the duties of that office.^' When the term "Minnesota state land commissioner" is used it should be borne in mind that it does not refer to a state official devoting his whole time to the care of state lands, but merely to the state auditor. Later enactments do not use the term "land commissioner," and the general supervision of all state lands remains in the hands of the state auditor. The policy of governing the sale of school lands has not varied greatly since the adoption of the first constitution.^ The Statutes of 1861 made $7 the minimum price for school lands, ^'' but this was reduced in 1862 to $5,'' which it is at the present time. At no time, however, have lands been sold without having been appraised. At the close of 1916, there had been sold 2,282,225.33 acres of school land, for which the state received $14,691,049.78.32 SCHOOL LAND LOSSES Minnesota has suffered serious losses through frauds con- nected with the management of the state lands. These losses have been for the most part in the form of timber. Only such part of them as has been proved can be computed, and the real total is undoubtedly much larger than any records show. In 1 893 , a joint resolution of the state legislature appointed a committee to investigate frauds charged in the sale of timber from state lands.3' When this committee reported to the governor in 1894, it had already succeeded in collecting $30,526.29, had suits pending to the amount of $157,284.28, and was preparing suits for $205,076.44, for timber illegally taken from state lands."^ It reported that it had not been able to cover all cases nor all parts of the state, and added: This committee believes that the school fund of the state has been robbed of hundreds of thousands of dollars worth of valuable timber, for which no return has ever been made to the stale; that thousands ^Gen. Laws of Minn., 1862 chap. 62 sec. 1 p. 122. ^ Ibid., 1861 chap. 14. " Ibid., 1862 chap. 12 sec. 1 p. 46. ^ Repl. Minn. State Auditor, 1915-16 p. 7. ^ Repl. Fine Land Investigating Committee p. 2. ^ Ibid. p. 78. \ •> See p. 13. 40 FRANCES ELIZABETH KELLEY of acres of valuable farming lands have been depreciated in value by- reason of the removal of such timber, and rendered practically unsalable, and that, in the aggregate, the direct loss to the school fund of the state, by these reprehensible and unpardonable practices will run into the hundreds of thousands of dollars. ^^ In spite, however, of thie work of this committee and of the recognition of its recommendations by the passage of a better timber law in 1895,'^ frauds in the sale of lumber did not entirely cease. In his report for 1915-16, the state auditor says: Palpable carelessness and frauds in numerous instances have been perpetrated by scalers appointed by the surveyor-general. . . . Short scales have been fully as prevalent in cases where the scale has been made by a scaler of the State Auditor. Carelessness and frauds have been extremely common. . . The net result of the activities of the timber investigation during the year extending from October 15, 1915 to October 15, 1916, without considering trespass, penalties, and stump scales not yet reported, have been as follows: Trespass 312,526.23 Stump scale and interest penalties 62,780.06 Interest penalties for extension of permits and on overdue drafts 19,609.10 $94,915.39 Coimnenting upon these facts, the auditor says: Prosecutions under the statutes now upon the books, and above referred to, have been found practically impossible by the attorney- general. It is imperative that the criminal provisions of these statutes be strengthened.'' For some years uneasiness has been felt conceroing the statutes of that part of the swamp land now under dispute with the federal government. The report of the state auditor for 1915-16 says that "1,097,14-7.35 acres of land [swamp land] are, as to title, in dispute between the federal government and the State of Minnesota."'* Since 1913 no swamp land has been patented to Minnesota by the general land office, charges having been filed with the Department of the Interior accusing Minne- sota of having been unfaithful to her trust of swamp lands ^ Rept. Pine Land Investigating Committee p. 2. * Gen. Laws of Minn., 1S95 chap. 160 sec. 10 p. 353. ^ Rept. Minn. Slate Auditor, 1915-16 p. xxviii. '^ Ibid. PUBLIC SCHOOL SUPPORT IN MINNESOTA 41 since the income from them was, in 1881, diverted from reclama- tion and devoted to public schools and state charitable insti- tutions. The same report says : The time is at hand when the government, as well as the state, will be best served by arriving at an agreement as to the status of all swamp lands within the state of Minnesota. It should be done with expedition, in order that all of these lands belonging to all of the people may be administered wisely either by the government or by the state of Minne- sota, as title may appear.'' Because of these unsatisfactory conditions, the last legis- lature constituted the governor, attorney-general, and auditor as members of the State Land Commission with full powers to consider and propose to the legislature terms of settlement of all claims and differences or controversies that now exist or may hereafter arise between the state and the United States over lands granted to the State of Minnesota under any act of congress. They have, also, the power to accept patents or to reconvey state lands to the United States.'"' In view of the unsatisfactory condition of the Swamp Land Grant and the great losses which are known to have occurred in the management of the various lands, it seems evident that some better provision for the management of the large land interests of the state is necessary. The experience of many states of the Union indicates that the appointment of a single officer charged with the administration of state lands and trust funds is probably the only means of safeguarding the interests of the state, particularly in a state having lands and funds of so much value as those in Minnesota.' The investment of the permanent school funds is governed by constitutional provisions, and its history is that of a widening range of lawful investments for the rapidly growing funds. The present lawful investments have been provided for in the following order: 1858 1. Bonds of the United States 2. Bonds of the State of Minnesota 3. Bonds of any state designated by law '" Ibid. p. XX. *" Session Laws of Minn., 1917 chap. 324 p. 4.';8. ' For a discussion of this subject, see F. H. Swift, Public Permanent Common School Funds p. 119. 42 FRANCES ELIZABETH KELLEY 1885 4. Bonds of counties and school districts of the state for the erection of public buildings 1896 5. Bonds of counties, districts, cities, towns, and villages of the state A statement of the present investments of both of the permanent funds will ,be found in Chapter I. Since 1863 the investment of state funds has been in the hands of the State Board of Investment. In 1861 the state treasurer was made receiver of the moneys of the school fund, and their investment was placed in the hands of the Board of Com- missioners of School Lands. ^^ In 1863 the Board of Investment was created, consisting of the governor, auditor, and treasurer.^ In 1873 the membership of the board was increased to five by the addition of the chief justice of the supreme court, and the president of the Board of Regents. ^^ In 1913, the attorney- general was made a member of this board instead of the chief justice of the supreme court.^^ The Constitution of 1858 provided that the principal of the Permanent School Fund should be invested in bonds of the United States, of Minnesota, or of any other state designated by law. The session laws of 1861 repeated this provision, adding that the bonds must be purchased at the current value in the city of New York." In 1873 an act was passed permitting investments in (1) Minnesota bonds, (2) United States bonds at 6 per cent, and (3) 4 per cent bonds of New York, Pennsyh^ania, Ohio, Illinois, Michigan, Wisconsin, Iowa, and Missouri.^* The same law specifically excluded all bonds issued to aid in the con- struction of any railway."" In 1885 the school fund had increased to more than seven million dollars, and a new type of investment was seriously needed. In 1875 the state auditor wrote: If some other investment is not authorized, we shall very soon be obliged to invest in United States five per cent bonds which at present ^^ Repl. Fine Land Investigaling Committee p. 2. ^^ Gen. Law^ of Minn., 1863 chap. 12 sec. 7 p. 49. *^ Ibid., 1873 chap. 32 sec. 1 p. 150. *• Ibid., 1913 chap. 515 sec. 1 p. 1144. *'' Ibid., 1861 chap. 14 sec. 43 p. 94. •"' Ibid., 1873 chap. 33 p. 150. " Ibid. PUBLIC SCHOOL SUPPORT IN MINNESOTA 43 rates of premium would reduce the interest to about four and one-quarter per cent. . . There are hundreds of thousands of dollars of city, county, school and district bonds many of which would not be exchanged for United States bonds, issued within our own State, now outstanding at rates of interest varying from seven to twelve per cent, and many, if not most of them, have been sold to eastern capitalists at rates con- siderably below par. The discount and interest exceeding seven per cent on all of these bonds now existing in this state must amount to an exceedingly large sum, all of which might have been saved to our tax- payers of the State, and a seven per cent loan secured to the state funds if the money had been invested in local bonds.** These conditions did not change, and in 1895 a constitutional amendment was adopted permitting the school funds to be loaned at 5 per-cent interest to the counties and school districts of the state for the erection of county or school buildings. The amount of such loans was limited to 3 per cent of the assessed valuation of the county or district .^^ Two provisions of this bin proved unsatisfactory. The limit put upon the amount of the loans ignored other debts of the county or district, although the total debt secured by the property of a corporation is very important in determining the safety of the bonds. The limit put upon the use of the money seemed unnecessary. In spite, however, of these defects the system proved popular. In 1896 the state auditor reported that a total of $1,801,117.41 had been lent to 2,105 school districts and 15 counties.'*" Local demand for funds continued, and in 1896 a further amendment was adopted which permitted the permanent school funds to be invested in bonds of counties, districts, cities, towns, and villages of the state, bearing 3 per-cent interest and running five to twenty years.'*! -pj^g amount loaned must not increase the entire bonded debt to more than 7 per cent of the assessed valuation of the unit issuing the bonds.^^ In 1897 it was proposed. to increase the maximum bonded indebtedness to 15 per cent of the assessed valuation of the property of the unit issuing the bonds. An amendment to this effect was submitted to the people and rejected. In 1901 the *» Reft. Minn. Stale Auditor, J 87 5 p. 33. " F. N. Thorpe, Federal and Stale Conslilulions 4:2010. '" Rept. Minn. Stale Auditor, 1895-6 p. 15. °' Gen. Laws of Minn., 1897 p. vii. *2 Ibid. 44 FRANCES ELIZABETH KELLEY attempt to secure this amendment was renewed. It was sub- mitted to the vote of the people and rejected by them in 1901 and 1903. In 1905 it was ratified.^' In 1913 it was found possible to secure investment for the funds at 4 per cent instead of at 3 as the law permitted. Without attempting to amend the consti- tution, the legislature passed a law raising the rate of interest on loans made on municipal® bonds to 4 per cent.*^ The importance of these later forms of investment appears from the statement of the present investment of the permanent funds given in Chapter I, and from the fact, also discussed in Chapter I, that it has been found advisable to legalize the sale of the bonds of other states in which the fimds had been in- vested so that the moneys may be reinvested within the state at a higher rate of interest.^" The laws of Minnesota have always provided a title for the annual school revenue derived from the permanent funds. From 1861 to 1915 this income- was known as the Current School Fund, since that time, as the Endowment Fund. The Statutes of 1861 provided that all moneys received as interest on the Permanent Fund or rents on leased lands should con- stitute the Current School Fund.^° Moneys derived from the rent of lands were, however, added to the principal of the Per- manent School Fund in accordance mth constitutional pro- ■ visions.^' Later provisions added the proceeds of the state l-miU school tax to the income from the permanent funds and designated the whole as the Cvurent School Fund.^* In 1915 the income from the permanent funds was specifically desig- nated by law as the Endowment Fund.'^ All of these changes in title, however, have been ignored by the state auditor.'^ In ^ Minn. Constitution art. 8 sec. 6. ^ Gen. Laws of Minn., 1862 chap. 2 sec. 43 p. .30. ^ Session Laws of Minn., 1917 chap. 464 p. 76.^. ^Gen. Laws of Minn., 1S61 sec. 42 p. 93. " Minn. Constitution art. 8 sec. 2. ^ Gen. Statutes of Minn., 1913 sec. 2915 p. 648. ^^ Session Laws of Minn., 1915 chap. 296 sec. 1 p. 41o. e "Municipal" is used to designate all local bonds upon which loans of state moneys may be made. ^ •i Verified by information in response to personal inquiry by the author, May 14, 1918 PUBLIC SCHOOL SUPPORT IN MINNESOTA 45 all of his reports the income from the permanent school funds is referred to as the General School Fimd."" Since 1864, the income from the permanent school funds has been apportioned to the public schools. Until 1880 the amount so derived was reported as a separate fund. Since 1880 the income from the permanent funds has been combined with the proceeds of the 1-mill tax and disbursed as the Current School Fund. For that reason there is no available statement of the amount actually received from the permanent funds. The amounts given in Table XV have been computed by select- ing from the auditor's report of the General School Fund"" those items which have been derived from the income of the permanent school funds. This method was followed on the advice of the auditor's office. The data in this regard given in federal reports are inaccurate and badly confused. Apportionment of the Endowment Fund The basis of the apportionment and the requirements for participatiori in school revenues are of great importance in determining both the usefulness and influence of those revenues. It has been pointed out in Chapter II that the present basis of apportionment of the Endowment Fund is that of school enroll- ment. This is a basis which can have only a very small effect upon the development of the schools. In all, only two bases of apportionment have ever been applied to the Endowment Fund. These are (1) school population and (2) school enrollment. This first holds out no incentive whatever for the improvement of the schools. The second encourages a community to secure the enrollment of all pupils and to keep them in school long enough to entitle them to be classed as scholars. The Constitution of 1858 provided that "the income arising from the lease or sale of said school lands shall be distributed to the different townships throughout the state in proportion to the number of scholars in each township between the ages of five and twenty-one years." All later provisions relating to apportionment are concerned with definitions of the term scholar as used in this section, or with prescribed requirements for participation in the moneys. ^ Rept. Minn. State Auditor, 191S-16 p. 83. 46 FRANCES ELIZABETH KELLEY TABLE XV Inxome from the Permanent School Funds- -1864-191; Year Income from permanent school fund Income from swamp-land FUND Total income from permanent school fund' Per CENT OF total SCHOOL REVENUES DERIVED FROM PERMANENT SCHOOL funds'' 1864' 570,016.45" 1865 55,474.106' 176,806.356' 1870 234-66 1875 191,578.5064 10+6" 1880 250,485.9065 15 + 6* 1885 282,505.7169 11+" 1890 375,642.07'! 08+ '2 1895 547,272.98" 11+"- 1900 658,256.70" 14+'" 1905 599,143.11" 06+'^ 1907 .... 678,577.61"« ?62, 144.72" 740,722.33 06+'° 1908 686,432.55*' 18,637. 16'> 705,069.71 05+ '2 1909' 64,807.49'= 22,356.62'^ 87,164.11 07+'- 1910 765,046.06'' 26,368. 26'= 791,414.32 05+ 'f 1911 781,878.40" 30,288.11" 812,166.51 07+" 1912 850,287.59'' 47,860.40" 898,147.99 06+" 1913 888,233.31" 62,875.22" 951,108.53 06+" 1914 956,256.9092 72,625.25=2 1,028,882.25 06+9= 1915 882,109.30'^ 69,412.88" 951,522.18 05+96 1916 963,878.21" 71,694.48" 1,035,572.69 06+9- ' Rept. Minn. Dept. of Educ. 1915-16 p. 12 Table 3. 2 Ibid. ' Ibid. * Ibid. ' Ibid. 6 Repl. Minn. Supt. of Public Inslr., 1870 p. 505. ' IbU. 1875 p. 553. ' Bienn. Rept. Minn. State Auditor, 1881-S2 p. 21. ' Ibid. 1885-86 p. 20. 9 Rept. U. S. Commissioner of Educ, 1885-86 p. 10. ' Bienn. Rept. Minn. Stale Auditor, 1889-90 p. 31. ^ Rept. U. S. Commissioner of Educ, 1890-91 1 :20. = Bienn. Rept. Minn. State Auditor, 1895-96 p. 77. * Rept. U. S. Commissioner of Educ, 1895-96 l:lxx. 6 Bienn. Rept. Minn. State -Auditor, 1899-1900 p. 42. ' Ibid. 1905-06 p. 65. ' Rept. Minn. Supt. Public Instr., 1901-02. ' Rept. U. S. Commissioner of Educ, 1905 1:410. PUBLIC SCHOOL SUPPORT IN MINNESOTA 47 The Statutes of 1862 provided for apportionment on the basis of the number of persons between five and twenty-one in the several counties of the state, making the apportionment on the simple basis of school population. ^^ In 1887 the basis of apportionment was changed from school population to school enrollment.^'"' The apportionment was in proportion to the number of scholars between the ages of five and twenty-one who had been enrolled and had been in atten- dance forty days in the pubHc schools that had been in ses- sion at least five months within the year.^^^ This basis of apportionment remains unchanged although the requirements for participation have been raised. '^ Bienn. Repl. Minn. Stale Auditor, 1907-08 p. 65. ^ Rept. U. S. Commissioner of Educ. 1907 2:557. °' Bienn. Repl. Minn. State Auditor, 1907-08 p. 72. ^- Kept. U. S. Commissioner of Educ, 1908 2:398. *^ Bienn. Repl. Minn. Stale Auditor, 1909-10 p. 68. *'' Repl. V. S. Commissioner of Educ., 1909 2:613. ** Bienn. Repl. Minn. Stale Auditor. 1909-10 p. 74. ^^ Repl. V. S. Commissioner of Educ, 1910 2:678. " Bienn. Repl. Minn. Stale Auditor, 1911-12 p. 69. "' Rept. U. S. Commissioner of Educ, 1911 2:701. '*" Bienn. Rept. Minn. Slate Auditor, 1911-12 p. 76. '" Repl. Minn. Dept. of Educ, 1913-14 p. 9. " Bienn. Rept. Minn. Stale Auditor, 1913-14 p. 71. »2 Rept. Minn. Dept. of Educ, 1913-14 p. 9. ""Bienn. Repl. Minn. State Auditor, 1913-14 p. 78. '■' Rept. Minn. Slate Dept. of Educ, 1913-14 p. 9. ^ Bienn. Rept. Minn. Slate Auditor, 1915-16 p. 75.' " Rept. Minn. Dept. of Educ, 1915-16 p. 9. " Bienn. Rept. Minn. State Auditor, 1915-16 p. 83. '* Rept. Minn. Dept. of Educ, 1915-16 p. 9. "° Cen. Laws of Minn., 1862 chap. 2 sec. 43 p. 30. 1°" Ibid., 1887 chap. 41 sec. 1 p. 94. ■"' Ihid., 1861 chap. 11 sec. 41 p. 66. ' Computed from data given in this table. J Data from 1864 to 1880 taken from Rept. Minn. Dept. of Educ, 1915-16 p. 12 Table 3. After 1880 the amounts given in that table include the state 1-mill tax. . ^ Percentages in this column are computed on the basis of total revenues exclusive of balances on hand and income from the sale of bonds. The numbered footnotes give the sources of the total revenue for that year. ' Since the report of the state superintendent shows no decrease in the Current School Fund for 1909, there is reason to suppose that the amount given here may be in error. How- ever, since the state superintendent does not report these funds separately, it is not possible to check the report of the auditor. 48 FRANCES ELIZABETH KELLER Requirements for Participation The requirements for participation in a fund show the direction in which it influences the schools to develop. If the requirements are up to or slightly above the average conditions found in the schools, the fund may serve as an incentive for improvement of the poorer schools. There seems to have been no time when the requirements for participation in the Endow- ment Fund were much in advance of the average educational conditions. It has, however, been made a means for securing reports from local officials and for maintaining closer relations between the schools and the state department. The require- ments for participation are of three kinds: (1) length of school term, (2) qualification of the teacher, (3) reports from teachers and officials. For participation in the Endowment Fund, the act of 1861 required a school term of three months taught by a properly licensed teacher.'"^ In 1887 the requirement was increased to five months. ^°^ In 1915 the required term was made six months.^"* This still stands, although the average length of term for the state in 1914 was eight months. The Statutes of 1861 provided that the number of scholars should be determined from an annual local report, thus making reports to state officials an implied condition of participation. '"^ It is to be observed, however, that in 18621"^ and again in 1863"^ the legislature passed acts extending the time for filing reports of district clerks for participation in the apportionment. In 1862 more specific requirements for reports were added. These pro- vide for a report of school population and apportionment of funds to be made by the county auditor to the superintendent of pubhc instruction.!"** A fine of $50 for failure to report is also provided.!"'' The county superintendent was required to report to the superintendent of public instruction:"" (1) number '°^ Gen. Laws of Minn., 1861 chap. 1 1 sec. 41 p. 66. "^ Ibid., 1SS7 chap. 41 sec. 1 p. 94. ™ Ibid., 1915 chap. 296 sec. 3 p. 416. ™ School Laws of Minn., 1861 p. 51. "* Gen. Laws of Minn., Extra Session of 1862 chap. 14 p. 59. "' Ibid., 1863 chap. 10 p. 44. "'/6< 1912 1914 1916 32 80 139 555 745 Table XVI summarizes the number of each class of schools receiving special aid from 1882 to 1916. The history of appropriations for special state aid is one of increasing amounts appropriated for the benefit of an ever- growing ntmiber of objects. From 1878 to 1896 state aid was ap- portioned only to high schools. In 1896 graded schools received aid also; in 1899, rural schools; in 1900, semi-graded schools; in 1906, rural schools of the second class; and in 1912, consolidated schools and rural schools of Class C. In 1882, the first year for which there are returns, 38 high schools received state aid; '5 Gen. Laws of Minn., IVIS chap. 296 sec. 2 p. 416. " See p. 25. ■i Classification changed to high and graded and semi-graded and rural in 1910. PUBLIC SCHOOL SUPPORT IN MINNESOTA 55 in 1916, 230 high schools, 241 graded schools, 139 consolidated schools, 507 semi-graded schools, 3,992 Class A rural schools, and 2,018 Class C rural schools, a total of 7,127 schools." Many of these schools, it should be noted also, received aid on several bases, so that these figures only partly show the increase in aid granted. The objects benefited by appropriations for state aid are divided into seven types: (1) high schools, (2) graded schools, (3) consolidated schools, (4) semi-graded and rural schools, (5) special departments in the various types of schools, (6) districts levying a special school tax of more than twenty mills, and (7) school libraries. In the discussion of the aid given to each of these classes of objects, it should be remembered that in every case the requirements for participation have always been subject to interpretation and additions by the State High School Board." State Aid to High Schools Special aid to high schools has always consisted of flat sums awarded to districts supporting high schools meeting the require- ments of the State High School Board. No particular restric- tions have ever been put upon the use of the money. Since 1909 it has been provided that no district shall receive more high- school aid than the amount expended for the current support of the high school. i'' The first state aid to high schools was granted in 1878. Four hundred dollars was to be paid to each school complying with the following requirements: First, that there shall be regular and orderly courses of study, embracing all the branches prescribed as. prerequisite for admission to the collegiate department of the University of Minnesota, not lower than the third, or sub-freshman class. Second, that the said school receiving pecuniary aid under this act, shall at all times permit the said board of commissioners, or any of them, to visit and e.'camine the classes pursuing the same preparatory courses.'' In 1899, the amount of aid to each high school was increased from $400 to $800, and the following requirements were made: '" Nineteenth Bienn. Kept. Minn. Deft, of Educ, 1915-16 p. 13. " Gen. Laws of Minn., 1909 chap. 334 sec. 1 p. 381. " Ibid., 1878 chap. 92 sec. 5 p. 155. • See p. 25. 56 FRANCES ELIZABETH KELLEY (1) a term of nine months, (2) free tuition for residents of the state of school age, (3) a regular and orderly course of study embracing all branches prescribed by the State High School Board as prerequisite for admission to the collegiate department of the state viniversity, (4) meeting the regulations of the State High School Board, and being open to inspection by them at any time.^' Aid to high schools was increased to SI, 000 in 1901,^" and to $1,500 in 1903." In 1909 it was increased to $1,750 with the provision that no high school should receive more than the amount actually expended exclusive of buildings and repairs.^ In 1913 aid was made $2,200,^' the most that has ever been paid. In 1915, important changes in .state aid were introduced. Besides flat sums to high schools, aid for special departments within the high schools was provided. This made it possible for a high school to receive aid on more than one basis and for more than one purpose. At the same time, the aid for high-school work alone was reduced to SI, 800. ^^ In 1881, the number of schools which could be aided ia axiy one coimty was limited to three.^' The minimum period of aid to a school which continued to comply with requirements was fixed at three years. ^° In 1883, permission was given to grant aid to not rnore than five schools within any one county.^' In 1901 the number of schools to be aided in any one county was increased to seven, and the minimum time for such aid to a school which continued to comply with regulations was decreased from three to two years.^* The maximtun number of state high schools in any one county was increased to nine in 1909.' "G«H. Laws of Minn., 1899 chap. 352 art. 3 sec. 12 p. 471. 2" Ihid., 1901 chap. 189 sec. 1 p. 265. ^ Ibid., 1903 chap. 184 sec. 1 p. 274. 22 Ibid., 1909 chap. 334 sec. 1 p. 381. ^ Ibid.. 1913 chap. 298 p. 427. t 2* Ibid., 1915 chap. 296 sec. 6 p. 417. ^ Ibid., Extra Session, 1881 chap. 61 p. 62. ^ Ibid. " lUd., 1883 chap. 40 sec. 1 p. 41. 2« Ibid., 1901 chap. 19 sec. 1 p. 20. ' "According to the general statutes of both 1905 and 1913, the limit as to number of high schools to receive aid in any one county is seven, although the general laws of 1909 give it as nine, The place where the maximum number was changed from seven to nine cannot be found. The general statutes are supposed to be final by court practice." R. K. Kent, Stale Aid to Public Schools p. 29. PUBLIC SCHOOL SUPPORT IN MINNESOTA 57 No limit upon the number of schools to be aided in any county is to be found in the school laws of 1915. The number of high schools receiving aid under this plan has increased steadily and consistently from the beginning, as will be seen by consulting Table XVII. At present, these flat sums granted to high schools are not, it must be remembered, the only types of aid which high schools may be eligible to receive. High schools, graded, and consolidated schools all receive aid for association^ and for industrial departments."^ For that reason those types of aid are discussed separately. The number of high schools receiving aid and the amount of aid provided by law for each appear in the following table. TABLE XVII Number of High Schools Receiving Aid and the Amount of Aid Provided by Law — 1882-1916 Year Number of high schools^® Amount of aid 1882 38 53 58 57 62 69 85 86 100 115 141 162 192 206 206 211 215 230 $ 400" 1884 400»o 1886 400=° 1888 400" 1890 4003" 1892. 40030 1894 1896 400" 400" 1898 40030 1900 800" 1902 1,00032 1904 1,50033 1906 1,50033 1908 1,50033 1910 1,7S03« (Not to exceed the amount expended) 1912 1,7503* (Not to exceed the amount expended) 1914 2,20033 (Not to exceed the amount expended) 1916 1,80033 (Plus aid to special departments) 2' Nineteenth Bienn. Repl. Minn. Dept. of Educ. 191S-16 p. 13. *• Gen. Laws of Minn., 187S chap. 92 sec. 5 p. 155. " Ibid., 1899 chap. 352 art. 3 sec. 12 p. 471. ^Ibid., 1901 chap. 189 sec. 1 p. 265. ^ Ibid., 1903 chap. 184 sec. 1 p. 274. ** Ibid.. 1909 chap. 334 sec. 1 p. 381. ^ Ibid., 1913 chap. 298 p. 427. ^ Ibid., 1915 chap. 296 sec. 6 p. 417. 8 See p. 60. b See p. 63. 58 FRANCES ELIZABETH KELLEY Aid to Graded Schools Aid to graded schools was first granted in 1895. This appHed only to graded schools outside towns and cities having state- aided high schools. The requirements for participation in this aid were left entirely to the judgment Of the State High School Board. The amount payable to each school was S200.^^ In 1899, the legislature prescribed the following conditions for aid to graded schools: (1) a school session of nine months; (2) at least four departments of instruction in charge of teachers and a principal having the qualifications required by the State High School Board; (3) suitable buildings, library, and other appa- ratus; (4) regular and orderly cotirses of study including all branches required by the State High School Board. ^* In 1901 the amount of aid for each school was increased to $400,33 in 1903 to S550", and in 1909 to $600.« In 1909, S500 further special aid to graded schools ofifering two years of high- school work was authorized.^ In 1913, aid was increased to a maximum of S700, or not more than one half the amount raised by the special local school tax for current expenses.^' In 1915 a new basis for distribution of aid to graded schools was established. A graded school in session nine months might receive: (1) S600, (2) $100 for each grade teacher employed in excess of four, (3) $250 for each high-school teacher employed (total not to exceed $1,300 under this provision).** The first year that aid was extended to graded schools the number of graded schools receiving aid was greater by one than the number of high schools so aided. Since that time, neither group has been consistently larger than the other, nor has there been any great difference between them, as will be seen by referring to Table XVI above. Graded schools are eligible under certain circumstances to receive aid as central schools for association with rural schools.' " Gen. Laws of Minn.. 1895 chap. 183 p. 451. ^ Ibid., 1899 chap. 352 art. 3 sec. 12 p. 468. ^^ Ibid., 1901 chap. 189 sec. 2 p. 265. " Ibid., 1903 chap. 184 sec. 2 p. 275. ■" Ibid., 1909 chap. 334 sec. 1 p. 381. *2 Ibid., 1909 chap. 444 p. 540. *^ Ibid., 1913 chap. 298 p. 427. ■" Ibid., 1915 chap. 296 sec. 5 p. 416. i Sec p. 60. PUBLIC SCHOOL SUPPORT IN MINNESOTA 59 They may also receive special aid for the support of industrial departments.' Aid to Rural and Semi-Graded Schools Special aid to rural schools in Minnesota differs from all other special aid apportioned in that there have never been enough rural-school inspectors to visit each school every year, as is done in the case of high and graded schools receiving state aid. The funds are in the hands of the State High School Board, but the report of local officials approved by the county superin- tendent replaces state inspection. ^^ From 1899 to 1911 state aid was given to two classes of rural schools , semi-graded and rural. Semi-graded schools received $100 per year and were required to meet the following conditions: 1. An eight months session. 2. Two departments under teachers holding prescribed certifi- cates. (One teacher was required to hold a first-grade or a professional certificate or to be a graduate of the advanced course of a normal school. The other teachers were required to hold second-grade certificates.) 3. Suitable buildings, a Ubrary, necessary apparatus. 4. A "regular and orderly" course of study. 5. Compliance with the rules of the superintendent of public instruction.^' The amount of aid was increased to $200 in 1901,^' to $250 in 1903,^^ and to $300 in 1909.« Aid to the so-called rural schools, or one-teacher rural scliools, began with $50 in 1897.*" In 1899 the amount of aid was in- creased to $75, and the conditions were made the same as for semi-graded schools except that one-teacher schools were not required to employ a teacher holding a first-grade or a profes- sional certificate.*' In 1901 this aid was increased to $100,-"'2 in 1903 to S125,53 in 1909 to $150.*^ *^ Nineleenlh Bienn. Repl. Minn. Dept. of Pduc., 1915-16 p. 70. * Gen. Laws of Minn., 1899 chap. 334 sec. 1 p. 381. " Ibid., 1901 chap. 189 sec. 3 p. 265. '* Ibid., 1903 chap. 366 sec. 2 p. 665. ■'» Ibid., 1909 chap. 334 p. 381. ^ Ibid., 1897 chap. 259 p. 483. *' Ibid., 1899 chap. 352 art. 5 sec. 25 p. 469. ^ Ibid., 1901 chap. 189 sec. 4 p. 265. ^ Ibid., 1903 chap. 366 sec. 3 p. 665. '>* Ibid., 1909 chap. 334 sec. 1 p. 381. > See p. 63. 60 FRANCES ELIZABETH KELLEY In 1909 aid was given to schools meeting aU of these require- ments except the one relating to certification of teachers. Such schools employing a teacher holding a second-grade certificate were granted lllOO.** In 1911 rural schools were reclassified and granted aid as follows -.^^ Class A Not more than $150 1. Eight-months sessions 2. Teachers holding first-grade certificates Class B Not more than $100 1. Eight-months sessions 2. Teachers holding second-grade certificates Class C Not more than $75 1. Seven-months sessions 2. Teachers holding second-grade certificates The same year $150 aid was granted to any district discontinuing its own schools and providing for the transportation and in- struction of its pupils in an adjoining district.*^ The control of the State High School Board in the appor- tionment of this special aid was limited by a requirement that "aggregate-days-attendance" should not be used as "a rule [i.e. as a basis] for granting such aid."^* In 1915, the 1911 classification of rural schools into classes A, B, and C was dropped, and the number of teachers employed was used as a basis for apportionment as follows: 1. Each rural school in session eight months receives SI 50 for each teacher holding a first-grade certificate; 2. Each rural school in session seven months receives $100 for each teacher holding a second-grade certificate.^' A special type of aid to rural schools is that called Association Aid. In 1911, for the purpose of securing better supervision in rural schools and encouraging the teaching of agriculture, it was provided that rural schools might become "associated" with state high or graded schools having courses in agriculture. The "associated" rural school was required to defray part of the expense of the industrial education and was to be under the supervision of the principal or superintendent of the central ^Gen. Laws oi Minn., 1909 chap. 334 sec. 1 p. 381. * Ihid., 1911 chap. 60 sec. 1 p. 79. "/iud. chap. 167 p. 212. ^ Ibid. chap. 60 sec. 1 p. 79. *' Ibid., 1915 chap. 296 sec. 4 p. 416. PUBLIC SCHOOL SUPPORT IN MINNESOTA 61 school. The central school was granted $150 for each rural school so associated with it, and the rural school, $50.'^'' In 1915, the amount granted the central school was increased to $200, but no increase was made in the amount due the associated rural school. ^^ / From the first year that aid was granted to rural schools, the number of such schools receiving aid has been greater than that of all other schools combined. Aid to Consolidated Schools Aid for consolidated schools was first awarded in 1901, when it was provided that districts might consolidate and qualify for special state aid in the same manner as any other independent district.*^ Nine years later, in 1910, the state superintendent wrote : Comparatively little progress in rural school consolidation has been made, and it seems certain that little will be, through the mere argument that better schools will follow. The state must hold out a financial inducement before the small district will merge into the larger iinit.^' In 1911, such "finandal inducement" was offered in the form of special state aid. Consolidated schools were required (1) to have an eight months' session and (2) to employ a principal especially prepared to direct the teaching of agriculture and other industrial subjects. ^^ In addition to these general requirements, the following classi- fication and apportionment were made. TABLE XVIII State Aid to Consolidated Schools in 1911«'^ Class Requirements Amount of aid Class A /l District area of not less than 18 sections'' .. \ ^S1.S00 \2. Building of four rooms / Class B /l. District area of not less than 18 sections. . .\ $1,000 \l. Building of three rooms J Class C fl. District area of not less than 12 sections. . .\ $750 \2. Building of two rooms ™ Ibid., 1911 chap. 82 p. 97. "' Ihid., mis chap. 296 sec. 12 p. 41S. "2 Ibid., 190t chap. 262 p. 432. '^ Bienn. Repl. Minn. Supl. of Public Inslr., 1909-10 p. 12. "^ Gen. Laws of Minn., 1911 chap. 207 p. 268. 65 Ibid. ** A section contains 640 acres. 62 FRANCES ELIZABETH KELLEY Special building aid not to exceed 25 per cent of the cost of the building nor more than $1,500 was provided for consolidated schools of all of the three classes. Under these provisions, 32 consolidated districts received aid in 1912,8'' and 80 in 1914." In 1915 the classification and apportionment for consolidated schpols were changed. General requirements for consolidated schools adopted in 1913 included :8' (1) suitable schoolhouses with necessary rooms and equipment; (2) transportation or room and board for pupils living more than two miles away; (3) library and necessary apparatus; (4) course of study as prescribed by ,the superintendent of public instruction; (5) a principal and other, teachers having such qualifications as may be fixed hy the superintendent of education; (6) an area of not less than twelve sections or of ten sections containing an incorporated village and having a valuation between $200,000 and $1,000,000. Two classes of consolidated schools receive aid as follows i^^ Class A $ 500 1. Session of. 8 months 2. 4 departments Class B 250 1. 2 departments Both classes Reasonable expense for transportation of pupils — not to exceed 2,000 Both' classes }4, the cost of buildings — not to exceed 2,000 Under these provisions the number of consolidated schools receiving aid increased from 80 in 1914 to 139 in 1916.^° The superintendent's report for that year gives the total number of consolidated districts in the state as 210, and the total enrollment in consolidated schools as 35,716 pupils.'"- ' Consolidated schools are eligible for aid through their special departments as well,' and for "association" aid.™ '^ tiineleenlh Bientt. Repl. Minn. Depl. of Educ, 1915-16 p. 13. "' Ihid. "' Cen. Laws of Minn., 1915 chap. 296 sec. 9 p. 417. '" Eienn. Repl. Minn. Depl. of Educ. 1915-16 p. 35. '" Ibid. p. 36. " Ibid. I See p. 63. "> See p. 60. PUBLIC SCHOOL SUPPORT IN MINNESOTA 63 Aid to Special Departments Aid to special industrial departments began in 1909, and has been extended at some time to all of the following departments: (1) teacher training; (2) agriculture; (3) manual training; (4) home training; (5) commercial training. Any of these depart- ments except the teacher training may be in connection with a state high, graded, or consolidated school. Teacher-training departments must be in four-year high schools. TEACHER-TRAINING DEPARTMENTS Teacher-training departments were the first special depart- ments to receive aid in Minnesota. Provision was first made for them in 1895,'^ and their growth has been steady since that time. The deficits in the apportionment of state aid to other departments has never affected them. It has been the policy of the state to regard them as a part of the state system for training teachers rather than as a feature of local school advantages, and the state has borne the largest part of their expense. In 1895, $500 aid was provided for teacher-training depart- ments meeting the following requirements: (1) connected with a state high school; (2) offering a review of common branches and a course in methods in the senior year; . (3) admitting only students who had completed three years of high-school work; (4) employing a special teacher with special training; (5) having not fewer than eight pupils.^-' In 1897, another act provided for the payment of the 1895 aid to schools which had compUed with all of the requirements except that relating to the number of pupils.'* An act of 1903 increased the amount of annual aid to $750.''* In 1913, aid was increased to $1,000.'^^ The designation of the schools to receive such aid was left to the State High School Board." In 1915, the amount of aid was increased and was based on the size of the department as follows :'* '2 Gen. Laws of Minn., 1S93 chap. 186 p. 453. " Ibid. ''* Ibid.. 1897 chap. 276 p. 504. ™ Ibid., 1903 chap. 359 p. 649. ™ Ibid., 1913 chap. 267 sec. 1 p. 369. " Ibid. '* Ibid., 191S chap. 296 sec. 8 p. 417. 64 FRANCES ELIZABETH KELLEY Departments employing 1 teacher $1,200 Departments employing more than 1 teacher — not to exceed 2,000 Departments employing more than 2 teachers and enrolling not less than 50 plipils — not to exceed 2,800 The nvunber of these departments has steadily increased until the last biennium. The present policy of the board is to provide enough of them to serve as convenient local centers for the training of rural teachers rather than to make them a part of every high school. The difficulty of securing much school data is well illustrated by the teacher-training departments. Although we know they existed from 1896 on, a search of the state superintendents' reports page by page gives no data for the years from 1896 to 1906. All data found concerning them appears in the following table : TABLE XIX Number of Normal-Training Departments in Minnesota — 1896-1917 ™ Bienn. Refl. Minn. Supl. of Public Inslr., 1895-96 p. 56. '" Ibid.. 1911-12 p. 49. ^^ Ibid., 190T-8 p. 172. ^ Ibid., p. 197. ^ Ibid., 1909-10 p. 2 74. '^Ibid., 1912-13 p. 61. ^ Ibid., 1913-14 p. 34. ^' Ibid.. 1915-16 p. 116. ^^ Annual Repl. Minn. Inspector of Stale High Schools, 1917 p. 6. ^ Not given in reports available. PUBLIC SCHOOL SUPPORT IN MINNESOTA 65 This table gives ijs an instance where another element than that of state aid has exercised great influence. From 1906 to 1909 there is a decrease of 38 per cent. From 1909 to 1910, without any increase of state aid, the number of departments increases more than 200 per cent, and by 1911 there are seven times as many as in 1909. This increase is due to the fact that the State High School Board ruled to accept the marks earned in such a course in lieu of an examination for a teacher's cer- tificate.*' State aid in itself is not .sufficient to determine the development of schools in every case. The work of these departments has been useful and generally satisfactory. With regard to their work, the state superin- tendent of education wrote in 1916: There has been a marked betterment in the training of teachers and the quality of teaching in the country. Through the services of our high- school teacher-training department, schools can now be provided with teachers who have had three or four years of high-school training and one year of professional work.'' AGRICULTURAL DEPARTMENTS Aid to schools teaching agriculture has been appropriated and apportioned under three acts, namely: the Putnam Act, the Benson-Lee Act, and the special aid appropriations for 1915 and 1917. The Putnam Act was passed in 1909, and provided $2,500 annual aid for high, graded, or consolidated schools fulfilling the following requirements:^" 1. Instruction in a. agriculture b. manual training c. home training 2. Demonstration tract of not less than five acres 3. Free tuition to residents of the state 4. Detailed courses in agriculture 5. A winter short course if there was demand for it. Aid was to be given to not more than ten schools the first year; not more than ten were to be added each following biennium ; and only one school in any county could be added in any two years. '^ ** Bienn. Kept. Minn. Supl. of Public Inslr., 1909-10 p. 224. '» Ibid., 1915-16 p. 34. '" Gen. Laws of Minn., 1909 chap. 247 p. 291. "i Ibid. 66 FRANCES ELIZABETH KELLEY The provisions of this law have been carried out. The report for 1915 names thirty-eight schools receiving aid under this act.'^ It is evident that this is within two of the maximum number possible at this time under the provision for the addition of new schools to the list. This act was repealed by the Statutes of 1915. The Benson-Lee Act was passed in 1911.^' As pas.sed, it gave SI, 000 to any high or graded school offering instruction in agriculture and either home economics or manual training. ''' In 1913, the amount of aid offered was increased to sSl,800 per year.'^ This act was superseded bj'' the provisions of 1915. In 1915 the present act was passed concerning aid for the teaching of agriculture. This pro^dded that "high, graded, or consolidated schools maintaining courses in agriculture .... shall receive $1 ,000 for the agricultural course. The amount of aid shall not exceed the salaries paid in the department."'^ The state reports make no mention of instruction in agriculture previous to 1909-10, although a statement of the number of students studying each high-school subject is given. The increase in the total number of schools offering instruction in agriculture follows. TABLE XX Depart.mexts of Agriculture, Enrollment and Aid Year Departments Enrollment Amount of state aid Previous to 1910 1909-10 48" 1,331" S 833- 1911-12 116" 2,961" 833- or 500n 1913-U • 136" 4,053" 833- or 900i 1915-16 152»« 9,656''« 1,000' 1916-17 156'" 10,322»8 1,000' ^Annual Repl. Minn. Inspector of State High Schools, 1914-15 p. 56. ''GcM. Laws of Minn., 1911 chap. 91 p. 108. « Ibid. * Ibid., 1913 chap. ,96 p. 98. ^ Ibid., ihs chap. 296 sec. 7 p. 417. ^ Ann. Repl. Minn. Inspector of Stale High Schools, 1914 p. 32. '^ Ibid., 1917 p. 6. o Not all of these departments received aid. Only ten received state funds. See p. 65. p Aid offered under the Putnam Act for agriculture and home economics and manual training. q Aid offered under Benson-Lee Act for agriculture and either home economics or man - ual training. ' Aid offered for departments of agriculture alone. PUBLIC SCHOOL SUPPORT IN MINNESOTA 67 In 1'916-17 there were only forty high schools in the state which did not ofifer instruction in agriculture.'^ MANUAL-TRAINING AND HOME-ECONOMICS DEPARTMENTS Departments of manual training and home economics first received special aid in 1909 under the Putnam Act," which provides aid for schools offering agriculture, manual training, and home economics. In 1911, they were provided for in the Benson-Lee Act,* which gives aid to schools offering agriculture and either manual training or home economics. In 1915, the law provided $600 in aid to each high or graded school for each department of either manual training or home economics."" In 1917, this portion of the act of 1915 was re- pealed,"' and manual training and home economics no longer receive state aid. TABLE XXI Departments and Enrollment in Manual Training and Home Economics in Minnesota — 1894-1917 M.\NUAL TRAINING Home economics Year Number of depart- MENTS Enroll- ment Amount OF STATE AID Number of departments Enroll- ment Amount of state AID 1894 1895 6102U 9103 7104 17104 122101 168'" I8O10' 185'" 131»' 178™ 325102U 678'oa 745'" 2,1891" 4,770'" 6,892'" 7,064'" 7,350'" 12,770»S 14,865'" 0" $833v S833V or 500 " $833» or 500" $833' or 900 " S600i«o $600>oo 1905 Cooking 32'" Scwmg 61 Cooking 1001" Sewing 146 Cooking 130'" Sewing 154 Cooking 165'" Sewing 179 185'* 201» 1,267'" 1,616 3,6621" 4,587 4,7951" 5,637 5, 799"" 6,680 17,251'* 18,039'* 1912 1913 1914 1916..:.... 1917 $833' $833' or 500" $833' or 500" S833' or 900" $600100" $600100" "^ Ann. Repl. Minn. Inspector of Slate High Schools, 1917 p. 6. " Ihid. p. 12. ™ Gen. Laws of Minn., 1915 chap. 296 sec. 7 p. 417. '»' Ibid., 1917 chap. 437 sec. 8 p. 667. l'" Kept, of Minn. High School Board, 1894 p. 8. ™ Ibid., 1905 V- 13. ^'^ Ann. Rept. Minn. Inspector of State High Schools, 1914 p. 32. B See p. 65. ' See p. 66. 1 All in Duluth, St. Paul, and Minneapolis. ' State aid provided under Putnam Act. See p. 65. " State aid provided under Benson-Lee Act. See p. 66. 68 FRANCES ELIZABETH KELLEY In 1916-17 there was not a single high school in the state which did not offer either manual training or domestic science.'"* It is to be observed that the number of schools offering manual training shows three distinct periods of marked increase. These are 1910, when aid was granted by the Putnam Act; in 1912, when further aid was granted by the Benson-Lee Act; and 1916 when aid was granted separately to such departments. The same periods of marked growth maj' be noted in the progress of home economics. TABLE XXII Commercial Training Departments and Enrollment xx Minne- sota — 1903-17 Year Number of classes I.V STATE Enrollment in STATE Amount of state aid 1903-4 . 1907-8 , 1909-11 1911-12 1913-14 1915-16 1916-17 1106 Shorthand 20i»' Typewriting 27 Shorthand 28i»« Typewriting 39 Shorthand 431™ Typewriting 53 Shorthand $6^"' Typewriting 67 56"' 82109 Bookkeeping 2.644i»s Shorthand 1,414 Typewriting 1,627 Bookkeeping 2,640i»8 Shorthand 1,562 Typewriting 2.026 8,285'"' 15,718'" None None $833y S833y or 500» S833r or 900^ 600"" 600"° COMMERCIAL DEPARTMENTS Commercial departments first received special aid in 1915; $600 was the amount set for each department. This provision ^'^ Ann. Rept. Minn. Insfector of Stale High Schools, 1917 p. 12. ^"^Repl. Minn. High School Board, 1905 p. 12. ^"^ Ann. Rept. Minn. Inspector of State High Schools, IDOS p. 19. ™ Ibid., 1914 p. 32. ' "■■' Ibid., 1917 p. 6. "» Gen. Laws of Minn., 1915 chap. 296 sec. 7 p. 417. * Not given in reports. y State aid provided only by the Putnam Act. See p. 65. ■ State aid provided by the Benson-Lee Act. See p. 66. PUBLIC SCHOOL SUPPORT IN MINNESOTA 69 is still in force. It is very difficult to secure complete data concerning commercial work offered before state aid was given it. The table on page 68 will give some idea of the increase in the number of departments. Aid to School Libraries In 1887, provision was made for state aid to school libraries. Any district purchasing books from the list of books recom- mended by the department was entitled to a refund of one half the money expended. The total aid the first year, however, was not to exceed $20, the second year, $10, and $5 thereafter."^ In 1895 this was amended to give $20 aid the first year and $10 for subsequent years. "^ In 1915 additional annual aid for libraries was provided. This amounts to $10 for each teacher employed, with a maximum of $25 per building. In order to receive this, the district must appropriate a like amount for the same purpose."^ Summary The purposes for which the Annual Fund is appropriated and its lawful uses in general are evident from the preceding discussion of its disbursement. The laws, however, specifically forbid its use for the purchase of sites or for the erection of schoolhouses."^ In considering these appropriations for state aid, it should be remembered that districts may receive state aid under several provisions at the same time. For example, a district supporting a state high school might receive (1) high-school aid, $1,800; (2) aid for agricultural department, $1,000; (3) for commercial department, $600; (4) for association with rural schools, $150 for each associated school; (5) for library, $25 per building; and (6) for tax levy above 20 mills, one third the amount raised by levy above 20 mills. As a matter of fact, the PubUc Education Commission reported in 1914 that one fifth of the rural schools in fourteen counties were receiving more from the state than they raised by local taxation. '^^ 1" Gen. Laws of Minn., 1887 chap. 121 p. 205. "2 Ibid., 1895 chap. 85 p. 207. '" Ihid., 1915 chap. 296 sec. 10 p. 417. •" Ibid., 1911 chap. 341 sec. 3. "^ Public Educ. Commission, Reft, to the Governor p. 30. 70 FRANCES ELIZABETH KELLEY The following table shows the amount of school revenues furnished each year by the Annual Fund. TABLE XXIII Amount of School Revenue Derived from the Annual Fund — 1878-1916 Year Amount of the annual fund Per cent of total school revenue furnished by the annual fund"" 1878 1880 1885. . . . $ 9,000ii» 20,00011' 23,00011* 25,0001" 38,000"" 85,0001" 450,813.00122 870,084.00123 1,777,599.50132 1,950,909.00132 .3+1" 1 + 12= .8+'" 1890 .5+12' 1895 . . 1900. .7+128 1 + 129 1905 . 4_|_130 1910 6+131 1915 11 + 133 1916 11+133 Probably the most surprising fact revealed by this table is that the form of school support most talked of at present fur- nishes only a little more than one tenth of the total school revenues of' this state. It also shows the growing importance of the Annual Fund, which furnished only three tenths of 1 per cent 11^ Gen. Laws of Minn., 1878 sec. 5. 11' Ibid.. 1879 chap. 27 sec. 2. 118 md., 1883 chap. 40 sec. 1. 11' Ihid., 1887 chap. 256 sec. 1. 12" Rept. Minn. Supt. of Public Insir., 1895-96 p. 7. 121 Ibid., 1899-1900 p. 4. 122 Ibid., 1905-6 p. 347. 123 Ibid., 1909-10 p. 256. 12* Ibid., 1878 p. 309. 125 Bienn. Repl. Minn. State Auditor, 1881-82 p. 21. ^ Rept. U. S. Commissioner of Educ, 1885-86 p. 20. ""Ibid., 1890-91 1:20 ^ IbU., 1895-96 l:lxx. 12" Rept. Minn. Supt. Public Instr., 1901-2. ^^ Repl. U. S. Commissioner of Educ, 1905 1:410. 131 /did., 1910 2:678. ^^ Rept. Minn. Dept. of Educ, 1915-16 p. 115. 133 Ibid. p. 9. a » Percentages in this column are computed on the basis of total revenues exclusive of balances on hand and income from the sale of bonds. The numbered footnotes give the sources for the total revenue for that year. PUBLIC SCHOOL SUPPORT IN MINNESOTA 71 or one three-hundredth of the total school revenues in 1878, and now furnishes 1 1 per cent, or more than a tenth of them. Other Types of Special Aid Two other forms of state aid are closely parallel to those administered from the Annual Fund. These are the special aid to classes for defective pupils and to poor districts. The moneys, however, for these forms of aid are derived from the proceeds of the state school tax or Current School Fund. For that reason, discussion of them is reserved for Chapter VI. CHAPTER VI HISTORY OF STATE SCHOOL TAXATION If education is a function of the state, it is evident that the support of schools can not be left entirely to the individual districts with their mdely varying degrees of wealth and intel- ligence. The levying of a state school tax is a recognition of the right and duty of the state to provide public schools. Such a tax serves to insure certain moneys for every district. It is also a means for encouraging local reports to the state depart- ment. Properly disbursed, it should help to equalize the burdens of school support. In any discussion of school taxation, it is necessary to dis- tinguish clearly between a true state school tax and a local tax levied at the direction of the state. A true state school tax is levied upon all of the property of the state and disbursed for the good of the state school system as a whole. On the other hand, state law may provide for compulsory local tax which is levied upon all of the property in the state, but the proceeds of which are returned to the local unit raising them. With this distinction in mind, we may say that Minnesota has had three types of school taxation which were required by state law. 1. From 1858 to 1877, the so-called state school tax was a com- pulsory county tax; 2. Since 1877, the so-called county l-rmll tax has been a compulsory district tax; 3. Since 1887, there has been a true state school tax. The first two are properly local taxes and will be considered as such in Chapter VII. From its earliest state history, Minnesota had been accustomed to local school taxes required by law. In 1887 a law provided for the levying of a 1-mill state tax. The proceeds of this tax were to be added to the income from the Permanent School Fund and apportioned on the same basis. This whole amount was known as the Current School Fund.^ Such a tax was in harmony with suggestions made by the state superintendents as early as 1867.^ It was the first form of state school support other than that drawn from federal land grants. From state reports of ' Gen. Laws of Minn., 1SS7 chap. 41 sec. 84 p. 97. ^ Annual Refit. Minn. Supt. of Public Inslr., 1867 p. 52. PUBLIC SCHOpIf, SUPPORT, IN MINNESOTA 73 the time it does not appear that there was any particular oppo- sition to the passage of the law providing for this tax. No change has ever been made in it. At present the state tax of .23 of a mill for the support of the state universit}' is levied with the state school tax.^ No change, however, has ever been made with regard to the rate of the school tax proper. From 1888 to 1915, the proceeds of the state tax were added to the income from the Permanent School Fund and apportioned with it.* In 1915, however, it was pro^dded that $150,000 should be set aside from the state school tax to be used for the following purposes: (1) to aid poor districts; (2) to make up deficits in special aid appropriations; (3) to pay the tuition of non-resident pupils in special departments in state high, graded, or consoli- dated schools.* The same j'^ear a further provision directed that money for the aid of classes for defectives should be taken fron^ the Current School Fund.^'' These uses are discussed in Chapter II. Conditions of participation in the proceeds of the state school tax and its lawful and forbidden uses have all been discussed under the history of the Endowment Fund with which it has always been apportioned with the exception noted above. The growth of classes for defectives has been described in Chapter II. The following table shows the amounts derived each year from the state 1-mill school tax. The gradual but steady in- crease in the proceeds from $409,072 in 1888 to $1,423,480 in 1916, an increase of more than 200 per cent in twenty-eight years, is an example of how the growing wealth of the state increases the moneys raised on a constant tax levy. An annual levy of a certain number of mills instead of the appropriation of a fixed sum of money would make the Annual Fund a far more satisfactory means of school support. ' Laws of Minn. Relating to Schools, 1915 chap. 7 sec. 176 p. 59. ^Gen. Statutes of Minn., 1913 sec. 2915 p. 648. " Gen. Laws of Minn., 1915 chap. 296 sec. 13 p. 418. 6 Ibid. chap. 194 p. 258. » Current School Fund is the title provided by the Laws of Minnesota, 1913, for the proceeds to the state 1-mill tax. 74 FRANCES ELIZABETH KELLEY TABLE XXIV Proceeds of the St.\te 1-Mill Tax- -1888-1916 Year Amol'nt of the state 1-mill school tax Per cent of total school revenues derived from THE state 1-MILL SCHOOL TAXb 1888 $409,072.58' 514,390.69* 647,015.39' 600,190.05" 814,051.45" 1, 093,192. 99'2 1,377,184.30" 1,423,480.45'° .11-J-13 1890 U-f" 13-1- '5 12-i-" 1895 1900 1905 084-1' 1910 07-|-'« 1915 . ... 08'i 1916 - 0822 The .state school tax in Minnesota has never been treated as partictdarly important. It furnishes a decreasing percentage of the school revenues. The fact that it is disbursed with the Endowment Fund has made it less conspicuous than it might otherwise have been. State aid by special appropriations is nine years older than the true state school tax, and the immediate benefits of special appropriations have been so much more evident than those from the state school tax that discussion has centered around special aid, while little or no mention has ' Bienn. Reft. Minn. Stale Auditor, 18S7-8S p. 23. ' Ibid., 1889-90 p. 31. ' Ibid., 1895-96 p. 77. ^'' Ibid., 1899-1900 p. 41. " Ibid., 1903-6 p. 65. 12 Ibid., 1909-10 p. 74. " Repl. U. S. Commissioner of Ediic, 1888-89 2;686. ^^Ibid., 1890-91 1:20 '^ Ibid.. 1893-96 l:lxx. 1' Repl. Minn. Supt. of Public Instr.. 1901-2. 1' Rept. U. S. Commissioner of Edtic, 1905 1:410. 1* Ibid., 1910 2:678. 1' Bienn. Repl. Minn. Stale Auditor, 1915-16 p. 75. 2» Ibid. p. 83. 21 Repl. Minn. Depl. of Educ., 1915-16 p. 9. - Ibid. ' Percentages in this column are computed on the basis o£ total revenues exclusive of balances on hand and income from the sale of bonds. The numbered footnotes give the sources for the total revenue for that year. PUBLIC SCHOOL SUPPORT IN MINNESOTA 75 been made of the state school tax. It should be borne in mind that the proceeds of the state school tax do not arise from the same sources as does the income from the Permanent Fund, and that the constitution does not determine the apportionment of the revenues arising from the tax. For that reason, the proceeds of the tax certainly should be disbursed upon some more scientific basis than that now used. CHAPTER VII HISTORY OF LOCAL SCHOOL SUPPORT IN MINNESOTA In a study of the schools of a state, local school support is of interest as an index to one of the effects of the system of state school support. The present chapter does not purport to give a complete study of local school support in Minnesota, but merely to present some of the important facts which are most closely related to the welfare of the state school system as a whole. Detailed information concerning local moneys is not available from state reports. No attempt wiU be made to trace special tax legislation which affects only the few large cities and special districts. The sale of bonds is not treated, since the money for their payment comes from the sources discussed here. Local school support in Minnesota is derived from two. sources, namely: taxation and fines. Taxes for local school support are divided into two kinds, compulsory and voluntary or special taxes designated as district taxes. The only compulsory local tax is the county school tax of l-miU required by state law. Its proceeds are returned to the school district in which the property taxed is situated. The law provides that "the tax levied by school districts shall be known as the district school tax."^ These are the terms provided in the statutes. "Local" and "special" are titles which are sometimes used more loosely. Minnesota has had two kinds of compulsory local taxes, namely: county and district. That is, from 1858 to 1877 the proceeds of the compulsory school tax were returned to the coimties in which they were collected. Since 1877 the proceeds of that tax have been returned to the district in which they have been collected. This is a matter of greater importance than may at first appear. If the moneys are returned to the county, the county may apportion them on a basis of school population or attendance or on some other basis better suited to equalize educational needs. The district, however, is so small a unit that a tax which is returned to the district raising it loses all chance of helping to equalize school burdens. ' Gen. Statutes of Minn., 1913 sec. 2916. PUBLIC SCHOOL SUPPORT IN MINNESOTA 77 TABLE XXV Income from the County School Tax — 1858-74 Year Rate in mills 1858 iy^ 2>^ 2K 2K 2 2 ' 2 2 2 2 2 2 2 2 2 2 2 1859 1860 1861 1862 1863 1864 1865 1866 1867 1868 1869 1870 1871 1872 1873 1874 Amount received FROM TAX $83,693.55= 71,152.58' 73,303.63= 79,963.02= 59,665.43= 63,321.53= 82,444.52= 90,254.63= 115,948.70= 144,935.88= 151,527.00= 156,656.00' 164,638.00' 159,535.00' 203,046.00' 224,190.00' 443,193.00' Per cent of total SCHOOL revenues RECEIVED FROM THE COUNTY SCHOOL TAX* 26+* 19+' 18+= 19+' 21+» lS+» 20+'» 23+" 35+'= When Minnesota became a state in 1858 it retained its territorial law providing for a compulsory, school tax levy of 2 J^ mills." Up to the time of the admission of the state no moneys 2 RepL Minn. Supl. of Public Instr., 1867 p. 52. ^ Ibid., 1879 p. 29. * Rett. U. S. Commissioner of Educ, 1886-87 p. 76. ' Ibid., 1887-88 p. 78. ^ Ibid., 1888-89 2:686. ''Ibid., 1890-91 1:20. '^ Ibid., 1891-92 1:66. " Ihid., 1892-93 1:34. ^'> Ibid., 1893-94 1:19. ^^ Ibid., 1894-95 l:Hi. '^ Ibid., 1895-96 l:lxx. "GcK. Slatules of Minn., 1861 chap. 11 sec. 58 p. 71. n Percentages in this column are computed on the basis of total revenues as stated in the numbered footnotes. b No statement of total expenditures found in any report available. 78 FRANCES ELIZABETH KELLEY had been available from the federal land grants. Upon the admission of the state, these lands became available for use. Therefore, in 1862 the rate of the county school tax was reduced to 2 miUs.'* The proceeds of this tax were returned to the county and apportioned by it to the districts upon the same basis as were the state funds; that is, upon school population until 1887, and upon school enrollment thereafter. In 1873 a new system of assessing the value of taxable property was adopted. It was supposed that this method would increase the property valuation of the state sufficiently so that a 1-mill tax levy would produce practically as much revenue as the 2-mill tax levy had formerly produced.'^ According^, the county school tax was reduced to 1 mill.i« The proceeds, however, fell from $443,193 in 1874 to $216,071 in 1875." The rate, nevertheless, remained 1 mill. In 1873 this tax was changed to a district tax.'* Table XXV shows the amounts received from the mill tax during the time it was returned to counties. In 1873 this county school tax was changed to a district tax of 1 miU, that is, the proceeds were returned to the districts in which they were collected. Of the evil restilts of this change from a county to a district tax, the state superintendent wrote in 1880: We have no method for equalizing to any extent upon the property of the state any part of the cost of our common schools. We began in 1858 with such a, plan applied to counties as units of taxation. At first Minnesota has accomplished results highly commendable. It has caused high schools to increase in number rapidly. It has made it possible for the state to be extraordinarily well provided with secondary educational advantages in its small cities and villages. Requirements raised from time to time by a state board, with close inspection by an impartial, unattached professional agent of the board have given the state's system of high schools enviable rank."' State aid to graded schools is generally regarded with favor. Kent writes: Graded school aid has without doubt lengthened the school year, raised teaching efficiency, and bettered the physical conditions under which instruction is given in these schools." The total result of state aid to semi-graded and rural schools is of more doubtful value. On the one hand, it is true that the state moneys disbursed have been spent in most cases for the betterment of these schools. No one familiar with neglected ' Session Laws of Minn., 1915 chap. 194 p. 259. 1° Bienn. Kept. Minn. Depl. of Educ, 1915-16 p. 45. " Ibid. ii> R. A. Kent, State Aid, p. 54. ^ Ibid. p. 61. 86 FRANCES ELIZABETH KELLEY rural schools can fail to be impressed bj- the fact that every Minnesota rural school receiving state aid has complied in some measure at least with the State High School Board require- ments, which include, among other things, a bubbling drinking fountain and a ventilating system. On the other hand there is reason to believe that the money for these improvements has come too easily to these districts. State moneys have been regarded as a substitute for, instead of a supplement to, the local revenue. Although the rural schools have improved in comparison -ndth their own past condition, they have not im- proved in proportion to the amount of state aid given them. Of their improvement, the state superintendent wrote in 1900: In the rural and semi-graded schools progress and improvement in conditions and environment are equally noticeable. The average duration of the term of school in these schools is rapidly being lengthened. The average length of the term in country schools was lengthened by eight days last year.''' In 1916, the state superintendent wrote: Rural schools have made notable progress. Of 7,409 schools, 6,517 [more than 87 per cent] are rendering a service that entitles them to special state aid. . Our rural schools, especially the 6,517 state- aided, are well equipped with heating and ventilating systems, good maps, globes, and slate blackboards, good desks, (many are single and adjustable), bubbling drinking fountains, good text-books and library books.i» On the other hand, some of the facts which tend to discredit state aid to rural schools are that: (1) it is distributed without sufficient state inspection or supervision ;i^ (2) an increasing number of these districts are being enabled to maintain schools for so small a number of pupils that the expense is unreasonably great in comparison with other types of instruction;^' (3) these districts furnish the poorest type of education offered in the state and make the smallest tax levies. The objection that state aid to rural schools is administered without proper inspection or supervision has been made re- peatedl}' by state reports.^* " Repl. Minn. Supt. of Public Instr., 1899-1900 p. 16. '» Rept. Minn. Dept. of Educ, 1915-16 p. 33. '" Public Educ. Comm. Repl. to Governor. 1914 p. 19. " R. A. Kent, Stale Aid, p. 90. '^ Repl. Minn. Supl. of Public Instr., 1905-06 p. 9. PUBLIC SCHOOL SUPPORT IN MINNESOTA 87 The accusation that state aid is permitting, if not encourag- ing, the continuance of schools which are too small to insure the best results is a serious one. Kent points out that the "20 to 30" pupil school is the typical Minnesota rural school, and that the less-than-10-pupil school costs about two and one-half times per pupU what the typical school costs.''-' During the last ten 3'ears the number of schools enrolling fewer than 10 pupils has increased from 252 to 432,2" a gain of almost 100 per cent. The state superintendent of education writes concerning these schools: It seems none too soon that these districts were automatically dissolved by law.^' And Kent writes : By encouraging the maintenance of the dwarf rural school, by having attached to its bestowal no conditions regarding enrollment, local taxation, local assessed valuation and with extremely imperfect possibilities of checking whether the conditions presumed to be met, have been met, state aid as it is at present distributed to the rural schools of Minnesota acts positively as a barrier to the advancement of the best interests of these schools and their patrons.^^ The third objection to the present mode of aiding rural schools is that special state aid as now distributed permits the rural districts at once to furnish the poorest educational oppor- tunities and to make the smallest school-tax levy of any class of districts in the state. The fact that the quality of the school is poor would seem at first glance to be ample reason for state aid. The fact that the average tax levy in rural and semi-graded districts is uniformly less than in graded and high-school dis- tricts is evident from Table III. And Kent says of rural schools in Minnesota: The influence of state aid is negative. Lower local school taxes accompany increases in state aid. So far as a special tax for school maintenance is a measure of local effort, state aid to rural schools has not been an incentive to such effort.^' All of these data point to the conclusion that the money from state aid has improved the equipment in rural schools. But the system has actually harmed the schools by making it " R. A. Kent, state Aid, p. 90. 20 Rett. Minn. Depl. of Educ, 1915-16 p. 35. » Ibid. 22 R. A. Kent, State Aid, p. 91. 23 Ibid. 88 FRANCES ELIZABETH KELLEY possible to maintain "dwarf" schools, and by encouraging the growth of local indifference to the schools and their support. There is no question whatever as to the failure of aid to rural schools for association. The state high-school inspector wrote in 1917: As a state wide policy, association of rural schools with a central school as a means of improving the rural schools is not satisfactory. . Withdraw state aid for association and the entire fabric which has been building for eight years would fall to pieces. In few places has it brought lasting good to either party to the contract.^* In the growth of new types of education, the effects of the Annual Fund are evident. The six new types enumerated on page 85 have grown very rapidly since the granting of state aid. This encouragement of the introduction of new departments of instruction is one of the most important functions for state aid. Whether state support for such departments should continue after the subjects have become a recognized part of the school system is under debate at the present time. The action of the 1917 session of the legislature in ceasing to offer aid to districts on account of departments of domestic economy and manual training appears to indicate that aid is to be withdrawn from well-established departments. Certainly manual training and domestic economy are no longer new public-school subjects. In 1916-17 there was no high school in the state which did not offer one or the other. The most serious objection to withdraw- ing aid from them arises from the fact that no warning was given beforehand. Teacher-training departments in Minnesota came into exis- tence with the granting of state aid to them. The policy of the department in regard to them appears to be settled, and there is no reason to think that it will be changed soon. Tables given in Chapter V show the growth in the number of agi-icultural and commercial departments which has resulted from each additional grant to districts offering these subjects in their schools. Consolidated schools show unmistakable evidence of the result of state aid. After nine years of permission to districts to consolidate, the state superintendent wrote in 1910: ** Ann. Repl. Minn. Inspector of Slate High Schools. 1017 p. 12. PUBLIC SCHOOL SUPPORT IN MINNESOTA 89 Comparatively little progress in rural school consolidation has been made, and it seems certain that little will be, through the mere argument that better schools will follow.^' In 1911 aid was first granted to consolidated schools. Thirty- two schools received aid in 1912; this number was more than doubled in 1914, and more than quadrupled in 1916." State aid had accomplished what agitation and encouragement could not do. Of the success of consolidation in a typical district, the state high-school inspector writes : Attention is called to the fact that one of this year's additions to the high school list, Villard, is a typical consolidated school. ■ Organized only three years ago by the combination of seven rural districts with a two-room village school, Villard is today a well equipped, well ad- ministered, well taught graded school with a high school enrollment of forty-seven and a graduating class of four. Seven out of every nine pupils in this school are brought to the doors from country homes in transportation vans and, best of all, are taken back to these same country homes at the close of each day, to live the home life, to share the home cares with parents and to keep, through the four high school years, an abiding interest in the home which has nurtured them. To me this event is epochal. It tells plainly of the solution of the gravest problem of rural life. It is worthy of note that seven other consolidated schools, also organized by the combination of rural districts and supported almost entirely by farming constituency, are nearing the high school rank and will soon be seeking admission to the list.'''' A further purpose in the disbursement of special aid is the stimulation of local school support. For this purpose, the state grants to any district one third of the amount, raised in that .dis- trict by voluntary school tax above 20 mills. This appears to have had the greatest influence in districts supporting graded or high schools. Of the 224 districts supporting high schools, 102 levied a school tax of more than 20 mills for. maintenance, for 1916-17.'* Three levied 50 mills or more; Fosston levied 51.3 mills for maintenance on a valuation of $233,943.'* It can not be said, however, that this state grant has entirely equalized edu- cational burdens. In the same year that Fosston levied 51,3 ^ Repl. Minn: Sttpl. of Public Inslr., 1909-10 p. 12. * Repf. Minn. Inspector of State High- Schools, 1915 p. i. .:■ c;See T»bW XVI. '.■ . ■ ' ■1 See Table III. 90 FRANCES ELIZABETH KELLEY mills on a valuation of $233,943, Hibbing levied 1 . 1 mills on $128,835,183. Clearly this provision is inadequate to equalize school opportunities or school burdens. Needed Reforms in School Support A history of school support is a history of attempted reforms in the method of supporting the public schools. This study opened with a survey of the present system of school support. It seems fitting that it should close with a brief statement of reforms now being urged by those connected with or interested in the public schools of Minnesota. The writing of a new school code for Minnesota is not a simple matter. The present unsatisfactory one bears witness to the difficulty of the task. In 1912 the Minnesota Educational Association requested the legislature to appoint a commission to report a revised school code. The next year the legislature appointed such a commission, which reported in 1914.^' The work of this commission was carried out in a thorough and scientific manner. Their report was brief and their recommen- dations sound. Succeeding sessions of the legislature, however, have entirely ignored their work. In 1917 Governor Bumquist appointed another commission to make recommendations in the same matter. No report from this comjmission is available at this time. The multiplying of commissions will do no good unless the state legislature at least weighs their suggestions. It is to be hoped that the present commission's report will be as excellent as that of the 1914 commission, and that it will have more influence upon legislation. Three changes in the administration of the school system are so closely associated with the matter of school support as to deserve mention here. One of the most conspicuous reforms urged at the present time is the restoration of the county as the unit of taxation. As early as 1880 the state superintendent wrote : In 1874 oup legislature, not understanding the results of its action, dropped counties as the unit of taxation and distribution, and substi- tuted petty school districts of which we have about 4,000, differing in size from six miles square to not over two sections. In these districts, .... a rate of one mill is laid by the county commissioners, but the tax is returned not as formerly upon scholars, but to each district in the ^' Public Educ. Commission, Report to the Governor, 1914 p. 7, PUBLIC SCHOOL SUPPORT IN MINNESOTA 91 exact amount which its property yields. . . . Thus with 4,000 different bases of taxation, ranging in valuation of property from poverty to abundant wealth, we have schools so diverse in nurn-bers of scholars, length of terms and quality of teaching, that it seems ridiculous to call them a system.^' And the present superintendent of education, writing in 1916, says: We have in Minnesota 7,980 school districts varying in size from two sections to several townships and with valuations ranging from 20,000 to several million dollars. Some districts are too poor to provide a good school under any conditions while others are so rich that a fraction of a mill pays the cost. These two districts may be in the same county, yes, lie adjacent to one another. There is neither hope nor justice in such a system. No scheme of state aid will ameliorate this condition. The only just system is the county as a unit for school support as well as for administration and supervision.^' It is generally agreed that the number of rural schools with fewer than ten pupils should be decreased: The state superin- tendent writes: A growing cause for concern is the increasing number of schools with an enrollment too small for good work. ... It seems none too soon that these districts were automatically dissolved by law.'" Where great difficulties of transportation or a growing popula- tion in a sparsely settled part of the state makes consolidation unwise, special provisions should be made. In Indiana, the township trustees may 'discontinue and temporarily abandon all schools at which the average daily attendance during the last preceding year has been fifteen pupils or fewer;' they 'shall dis- continue and temporarily abandon' schools whose daily average atten- dance has been twelve or less, though a majority of the patrons of the district may by petition reopen either.'' The third reform, which has long been urged, is that provision should be made for adequate supervision of rural schools.^^ This could be done by having the county superintendent ap- pointed by the state on the basis of professional and educational qualifications and by providing for adequate assistance. 28 Repl. Minn. Stt-pU of Public Inslr., 1S79--80 p. 212. '^ Re-pl. Minn. Dept. of Educ, 1915-16 p. 35. 3» Ibid. 31 Rev. Statutes of Indiana. 1914 sec. 6422. (Quoted here from Kent, Stale Aid, p. 81.) ■■^ Repl. Minn. Dept. of Educ, 1915-16 p. 35. 92 FRANCES ELIZABETH KELLEY In the disbursement of the moneys of the Current School Fund, refonn is very much needed. The requirements for par- ticipation in this ftind should be sufficiently increased to exercise an influence upon the standards of the schools. Both the length of school term and days of attendance should be increased. Under the present system, the proceeds of the state l-rmll tax belong in part to the Current School Fund and in part to the special state aid. Therefore any change in the administration of those moneys would include the proceeds of the tax. The most pressing need in the administration of state aid at the present time is that the whole matter be put upon a scientific basis and freed from the uncertainties of politics and biennial appropria- tions. The money for state aid should be raised by increasing the state school tax.'' A general levy of four mills for the state's share in support of public schools would meet all requirement which the ' present law provides for on the part of the state.^^ The first requirement for participation in special aid should be a minimum local tax levy. The state superintendent of education recommends 6 mills.'^ Probably this requirement should be made for participation in any form of state support, but it would be necessary to amend the constitution in order to make it apply to the Endowment Fund. In conclusion it may be added that no mere patching of the system of school support will be adequate. The appointing of a commission on education is useless if its work is to be ignored. A clear knowledge of present conditions and a knowledge of scientific methods of school support are necessary for the for- mulation of salutary legislation. The generosity of Minnesota's school revenues and the importance of her educational system make the problem of school support one which deserves adequate study and a worthy solution. ^ Rept. Minn. Deft, of Educ. 1915-16 p. 33. «* Ibid. p. 24. ^ Ibid. p. 33. BIBLIOGRAPHY BIBLIOGRAPHY Sources BuRNQUiST, Governor J. A. A., Statement by governor relative to state aid to schools and a veto of a portion thereof. General laws of Minnesota, as cited. General statutes of Minnesota, as cited. High School Board rules relating to high and graded schools, Bulletin No. 45. Published by Superintendent of Education, May, 1916. Reports of the Minnesota Department of Education, as cited. Reports of the Minnesota inspector' of state high schools, as cited. Reports of the Minnesota state auditor, as cited. Reports of the Minnesota superintendent of public instruction, as cited. Reports of the Pine Land Investigating Committee to the governor of Minnesota. Filed with the governor, December 21, 1894. Report of the Public Education Commission to the governor of Minne- sota. Filed with the governor, December 1, 1914. School laws of Minnesota, as cited. Statistical atlas of the United States. Washington: Government Printing Of&ce. 1914. Thirteenth census of the United States, 1910. Washington: Government Printing Office. 1913. Secondary Authorities CuBBERLEY, Ellwood P. School funds and their apportionment. New York: Teachers College, Columbia University. 1905. Kent, Raymond A. A study of state aid to public schools in Minnesota. Minneapolis: The University of Minnesota. 1918. Orfield, Matthias Nordberg. Federal land grants to the states with special reference to Minnesota. Minneapolis: The University of Minnesota. 1918. Swift, Fletcher Harper. A history of public permanent corrtmon school funds in the United States, 1875-1905. New York: Henry Holt and Company. 1911. INDEX INDEX Page Agricultural departments enrollment and, aid (table) 66 state aid 24. 27, 65-67, 85, 88 Aid, See State aid Annual Fund. See School funds, annual Appraisal of school lands 39 Appropriations by state legislature 19-20, 50-71 Association aid 60-61, 62, 88 Attorney-general mem^ber of Board of Investment 8, 17, 42 member of State Land Commission. 41 Auditor, county report of apportionment 22 Auditor, state ex officio state land commissioner 38-39 member of Board of Investment 8. 17, 42 member of State Land Commission 41 report 16, 18 references to school funds,. . .44-45 supervision of state lands 8 Benson-Lee Act 65, 66, 67, 68 Bibliography 95 Board of Regents. See Regents, Board of Bonds, local school 31-32 Bookkeeping. See Commercial training departments Census, annual school 26 Certification teacher-training course 65 Commercial training departments enrollment in Minnesota 1903-1917 (table) 68 state aid 24, 68-69, 85, 88 Commissioner of Education, report. 16-17 Commissioners of Public Lands, Board of 38 Commissioners of School Lands, Board of 38, 42 Common schools, defined 1 1 See also School districts, common Consolidated schools 8,9 association aid 62 change in regulations recommended. 91 classes of 61, 62 number in state 62 state aid 24, 27, 54. 55, 85, 88-89 basis of distribution 61-62 success of 89 total enrollment 62 Page Constitutional provisions regarding apportionment of school funds, 45 investment of permanent school funds 41 investment of state trust funds in local school bonds 32 school fund 13, 17-18 school land grants 35 Swamp Land Fund 35-36 County school fund. See School support, local County superintendent. See Superin- tendent of schools, county Courses of study, rules established by State High School Board 53, 56, 58, 59 Cubberly, E. P., referred to 51 Current School Fund. See School fund, current Defective children, separate instruc- tion 23 state aid for 27, 69, 73. 8i-8 5 Deficits in Annual Fund 23, 27-28, 51 Deficits in special aid appropriations. .73 Demonstration tract 65 Distribution of population and wealth. 2-7 District schools, classification 10 Districts, school. See School districts Domestic science. See Home economics Drinking fountain, bubbling,, required for state aid 86 Education, County Board of 8 Education, department of report IS Education, State Board of 23 functions 53 Educational opportunities equalizing 83 inequality 21-22 Enabling Act, provisions regarding school lands 35 Endowment fund. See School funds, endowment Examinations rules established by State High School Board S3 teachers', appropriations for 20 Expenditure for common schools in United States I Expenditure for education in Minnesota. 2 per capita for each pupil 4-7 rank of Minnesota 2 100 INDEX Page Fine for failure to report school popu- lation 48 Fines and forfeitures as source of state aid 20 payable to local school fund. ... 30, 82 Frauds connected with supervision of state land 39-40 Governor member of Board of Investment 8, 17. 42 member of State Land Commission. 41 Graded schools defined 10 state aid 24, 27, 51, 55, 58-59, 85 basis of distribution 58 maximum to one school 58 High School Board, State 8,25 administration of state aid 52 control of high schools 10 control of qualification of teachers. .58 designation of teacher-training de- partments to receive state aid 63 disbursement of annual fund 51 functions 52 inspection of high schools 56 membership 8,52 published rulings 25 rules regarding tuition of non- resident pupils 84 state aid to high schools 55-57 High schools receiving state aid, 1882-19)6 (table) 57 requirements for rating 10 state aid 24, 27, 55-57, 85 basis of distribution 55-56 maximum to one school 56 Home economics departments 65, 66, 67, 68 enrollment, 1910-1917 67 state aid 85 discontinuance 67, 88 Indian reservations, schools on, appropriations for 20 state aid 27 Industrial departments association aid 60-61 state aid 57 Inspectors, state school 26 Interest rate on investments. ... 13, 17-18 Investment of permanent school fund. . 13 constitutional provisions 41 Investment, State Board of 8, 17, 42 secretary 17 Iron ore, royalty on source of permanent school funds.. .36 source of swamp land fund 37 Page Justice of supreme court member of Board of Investment.. . . 42 Kent, R. A., referred to 85, 87 Land Commission. See State Land Commission Land Commissioner, See State Land Commissioner Land grants, federal 16, 78 Lands, public supervision of, separate department for 38 Libraries, school state aid 24, 55, 69 supervisor 8 Limitation of tax rate for local school support 31,79-81 Literacy, rank of Minnesota 2 Local school support 12, 76-82 sources 76 stimulation 89 See also School funds and School support, local Losses in school lands 39-40 Manual training departments enrollment 1894-1917 67 state aid 65, 66, 67-68, 85 discontinuance 67, 88 Mineral permits and leases source of Permanent School Fund.. .36 source of Swamp Land Fund 37 Minnesota Educational Association. . . .90 Minnesota, educational rank 2 Misuse of school funds, penalties attached 22, 49 Non-resident pupils, tuition. . . .23, 73, 84 Normal School Directors, Board of president , member of State H igh School Board 8, 52, 53 Normal- training. See Teacher-training Poor districts special aid for 69, 73, 84 Population of Minnesota, distribution 2-7 per square mile, by counties. . . .3, 4-7 Property, valuation of 3 by counties 4-7 rank of Minnesota 2 Public School Commission recommendations 51 Public Schools classified and defined 9-11 Pupils, non-resident tuition 23, 73. 84 Putnam Act 65-66, 67, 68 Reclamation of swamp lands funds diverted from 41 Reforms in school support recom- mended 90, 92 INDEX 101 Page Regents, Board oi president, member oE Board of Investments 8, 17, 42 Report from teacher to county super- intendent required 49 Reports from teachers and officials requirements for participation in school funds 48 Revenues for public schools in Minne- sota .12-13 See also School funds and State aid Rural school commissioner 8 Rural school problem 2-3. 81. 82, 86. 87 Rural schools adequate supervision 91 association aid 60-61 inspection 26 less-than-10-pupil 87. 91 state aid. .24, 27. 54. 55. 59-61, 85-86 basis for distribution 59-60 disadvantages 86-87 revision of system suggested. ... 51 See also School districts, common "Scholar," definition .21 importance of . 45 School attendance law- fine for violation of 30 School code, proposed revision . 90 School districts common 8,9. 11 limitation of tax rate for school support 3 1 , 80 low tax rate 81-82 voting of tax levy 30-31 See also Rural schools consolidated 8,9 See also Consolidated schools independent. , 8, 9 limitation of tax rate for school support 31, 80, 81 special 8,9 limitation of tax rate for school support 31 School enrollment basis of apportionment of endowment fund 45, 47 School funds annual 14, 15. 19-20, 23, 50-51, 73 amount of school revenue de- rived therefrom, 1878-1916 (table)..,,.., 70 deficit in apportionjnent. .27-28, 51 deficit made up from state school tax ,...." 23 disbursement 25-26 objects aided by 24 Page School funds (continued) percentage of total school rev- enue 71 prohibited expenditure 26 reasons for growth 50-51 uses 50 common 14 current 14, 15, 20, 44, 72 apportionment 21-23, 83 classes for defectives ;. .27, 69, 73, 84-85 disbursement 23 needed reforms 92 lawful objects 49 purpose for which used 22 requirements for participation 22. 83 See also Tax, state school endowment 15, 23, 44, 74, 92 apportionment 45, 47 requirements for participation 48-49 general 15, 45 management of 38-39 misuse of 22. 49 permanent; 13. 14, 15, 72, 75 growth of 36-38 history 33-49 income. 1864-1917 (table) 46 income from , . 16, 44 apportionment 21 investment of principal 13. 18-19, 41, 42-44 management 17 origin 34-36 state tax 73 valuation of lands 16-17 See also Revenues for public schools; State aid; Swamp Land Fund School houses erection and equipment bonds issued for 31-32 School lands 13 appraisal 39 Board of Commissioners of. See Commissioners of School Lands, Board of losses 39-40 minimum price 39 total acreage sold 39 value 33-34 School laws committee to recommend changes . . 52 School meeting, annual voting of tax levy 30-3 1 School support, local 29-32 disbursement 32 102 INDEX Page School support, local (continued) sources 29-32 See also Taxes, local school School term, length of rank of Minnesota 2 requirements for participation in state aid 48, 56. 58. 59. 83 proposed increase 92 School units 8-9 Schools, public classified and defined 9-11 Schoolhouses erection and equipment, taxes for 31-32 Sectarian schools 13, 22 Semi-graded schools defined 11 state aid 27, 54. 55, 59-61, 85-86 Shorthand. See Commercial training departments Sites for school buildings bonds issued for purchase of . - . .31-32 taxes for purchase of 31 State aid administered by State High School Board 52, 53 association aid 60-61, 62. 88 bulletins stating regulations govern- ing 53-54 disbursement 20-28 importance 20 first appropriations .... 26 industrial departments 57 number of high schools receiving, 1882-1916 (table) 57 number of schools receiving 54-55 sovirces 15-20 special, for 1915 and 1916 (table).. .27 to consolidated schools 24, 27, 54, 61-62, 85, 88-89 in 1911 (table) 61 to graded schools 24, 27, 54, 55, 58-59, 85 to high schools 24, 27, 55-57, 85 to public schools. 1882-1916 (table) 54 to rural schools 24, 27, 54. 55, 59-61, 85-86 disadvantages 86-87 to semi-graded schools 27, 54, 55, 59-61, 85-86 to special departments 63-69, 88 to teacher-training departments 24. 27. 52, 63-65, 85, 88 See also Revenues for public schools, and School funds State appropriations. See Appropriations. State High School Board. See High School Board. State State Land Commission 41 State Land Commissioner 38-39 Minnesota 39 Page State lands adm inistration desirability of one officer 41 supervision 8, 38-39 frauds connected with 39-40 State school tax. See Tax, state school Subnormal children. See Defective children Superintendent of public instruction member of State High School Board 8. 52. 53 report on change in tax system 78-79, 90, 91 report on rural schools 86, 87 Superintendent of schools, county duties and term 8 proposed appointment 91 reports t 22. 48-49 Swamp Land Fund 13, 14, 15, 33 condition in 1916 34 constitutional provisions 35-36 growth of 37-38 income from 16 investment of principal 18-19 misuse of 40-41 origin 35-36 sale of lands 19 sources 37 valuation of lands 16-17, 19 Swamp land grant of 1860 35 Swamp land grant of 1880 34 Swift. F. H.. quoted, 35 Taxes comparison of voluntary school tax rate le\'ied in common and independent and special dis- tricts (table) 81 county school 78 income. 1858-74 (table) 77 one-mill 72 delinquent, paid to school district . . 30 district school 78, 79 local school 22. 29-30. 76-82 amount raised for each dollar received from the state 4-7 compulsory 76-79. limitation of rate 31 one-mill 29, 79 proposed minimum lev^' 92 special or voluntary 79-82 maximum rate 79-81^ voted for 1915-16, rate 4-7 state school 20. 72-75 differentiated from local school tax 72 disbursement 23 one-mill 44. 72 proceeds 73-74 relative importance 74-75 three-mill 29-30 See also School fund, current supporting state university. .. 20, 73 INDEX 103 Page Teacher-training departments. .-. . . .63-65 increase in enrollment 65 number in Minnesota. 1896-1917 (table) 64 state aid 24. 27. 52. 63-65. 85. 88 Teachers' examinations. See Examina- tions, teachers' Teachers qualifications required for state aid 48. 58. 59 wages current school fund used for. . . .49 Timber, sale of frauds in connection with 39-40 source of permanent school fund. ... 36 source of swamp land fund 37 Training schools appropriations for 20 Transportation aid 27 Page Treasurer, state member of Board of Investment 8. 17. 42 Tuition of non-resident pupils 23. 73, 84 Tuition, free required in high schools receiving state aid 55 Typewriting. See Commercial training departments University president, member of State High School Board 8. 52, 53 taxation supporting 20, 73 Unorganized territory, pupils in 8 Ventilating system, required for state aid 86 Wages. See Teachers^ wages Wealth of Minnesota, distribution. .. 2-7 1. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII. XIII. XIV. XV. XVI. XVII. XVIII. XIX. XX. XXI. XXII. XXIII. XXIV. XXV. XXVI. TABLES Page Educational rank of Minnesota 2 Expenditure lor education in Minnesota. 1905-15 2 (1) Population (2) Total, valuation of taxable property {3) Average rate of special school tax for 1915-16 (4) Per capita expenditure for each pupil enrolled (5) Amount raised by local taxation for each dollar of state aid. for counties of the state of Minnesota 4-7 Minnesota school revenues for 1915-16 12 Investment of the money principal of the Permanent School Fund 18 Investment of the money principal of the Sv/amp Land Fund 19 Objects aided by Annual Fund 24 Deficit in apportionment of Annual Fund. 1915-16 27 Special state aid for 1915 and 1916 : 27 Permanent school funds in Minnesota, 1916 34 Sources of the principal of the Permanent School Fund. 1916 36 Growth of the Permanent School Fund. 1862-1916 37 Sources of Swamp Land Fund. 1916 37 Growth of Swamp Land Fund 38 Income from the Permanent School Fund. 1864-1917 46 State aid to public schools. 1882-1916 54 Number of high schools receiving aid and the amount of aid provided by law, 1882-1916 57 State aid to consolidated schools in 1911 61 Number of normal-training departments in Minnesota. 1896-1917 64 Departments of agriculture, enrollment and aid 66 Departments and enrollment in manual training and home economics in Minne- sota. 1894-1917 67 Commercial training departments and enrollment in Minnesota. 1903-17 68 Amount of school revenue derived from the Annual Ftmd. 1878-1916 70 Proceeds of the state, 1-mill tax, 1888-1916 74 Income from county school tax 1858-74 77 Comparison of voluntary school tax rate levied in common and independent and special districts 81 STUDIES IN THE BIOLOGICAL SCIENCES 1. Herbert G. Lahpson, A Study on the Spread of Tuberculosis in Families. 1913. $0.50. 2. Julius V. Hofmann, The Importance of Seed Characteristics in the Natural Reproduction of Coniferous Forests. 1918. $0.25. 3. William Moore and A. D. Hirschfelder, An Investigation of the Louse Problem. 1919. $0.50. STUDIES IN LANGUAGE AND LITERATURE 1. Esther L. Swenson, An Inquiry into the Composition and Structure of Ludus Coventriae: Hardin Craig, Note on the Home of Ludus Coventriae. 1914. $0.50. 2. Bluer Edgar Stoll, 0/ft«»o.^>i4n Historical and Comparative Study. 1915. $0.50. ^^ 3. Colbert Searles, Les Sentiments de VAcad&mie Frangaise sur le Cid: Edition of the Text, with an Introduction. 1916. $1.00. 4. Paul Edward Kretzmann, The Liturgical Element in the Earliest Forms of the Medieval Drama. 4916. $1.00. 5. Arthur Jerrold Tieje, The Theory of Characterisation in Prose Fiction Prior to 1740. 1916. $0.75. 6. Marie C. Lvle, The Original Identity of the York and Towneley Cycles, 1919. $0.75. 7. 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