By Neil Wall, secretary, Montana Implement and Hardware Dealers Association "Education can best be administered by local authorities. The Federal Government should aid in the education of the boys they took out of school in the Selective Service System. Who is asking for Federal aid for schools in Montana? We will get along. Montana will feed its school children and no Federal aid is needed."

By Missoula Chamber of Commerce policy committee

"Individual States should entirely finance and administer their public-school programs."

Under date of May 6, 1944, Lew L. Callaway, former chief justice of the Montana Supreme Court, now one of the highest officials in the Scottish Rite, published a circular entitled: "We Must Maintain Local Control of our Public Schools! Let There Be No Federal Interference!" In that circular Judge Callaway quotes a resolution from the Scottish Rite Educational Welfare Association of Nebraska, Prof. Malcom McDermott of Duke University, and others opposing Federal aid and control of education, and then states:

"Montana is safe from Federal control in its public schools now, and it must remain safe. Montana is well able to pay its teachers liberally; it believes in adequate compensation; let there be no pinch-money policies in our public schools."

MONTANA'S ABILITY TO FINANCE PUBLIC SCHOOLS

Mr. Sam D. Goza, chairman of the State board of equalization, in a letter written October 13, 1943 (see copy attached), points out the excellent financial condition of the State, counties, and school districts; the fact that the State aid for public schools amounts to between $2,100,000 and $2,500,000 a year; that no school district in 45 counties has any warrant indebtedness; and that the amount of money spent for schools is entirely a local matter determined by the trustees and the taxpayers. In 1942-43, he states that out of 1,934 districts, 392 made no levy: 358 made levies 5 mills or less; and 871 made levies more than 5 but not in excess of 10 mills. Although counties may levy up to 8 mills for a general school levy only 7 out of 56 levied the maximum.

Mr. Goza concluded by saying: "In our opinion Montana schools do not require any Federal aid. Under our system of financing public schools there is no limit on the amount of salaries that may be paid elementary school teachers if the local people wish to provide the money.'

Miss Elizabeth Ireland, State superintendent of public instruction, on the same date (see attached copy of letter) wrote: "The schools of Montana are rather well off at this time and have more money than they have had for years, due to the fact that so many delinquent taxes were paid. It was not necessary for some schools to make levies in order to maintain school for the coming year. The schools are now on a cash basis, etc."

FURTHER IMPROVEMENT IN SCHOOL FINANCES

According to county superintendents' annual reports filed with the State superintendent of public instruction, the cash balances at the end of each school year for all districts in the State has steadily increased from $2,821,000 on June 30, 1941, to approximately $5,250,000 on the same date in 1943 and 1944. Bonded indebtedness has continued to drop and although wartime increases in salaries and plant costs have been substantial, school taxes since 1941 have been less than for any prewar 3-year period.

State aid for public schools in 1944 totaled $3,030,012 or an increase of 113 percent over 1934. Although the legislature has appropriated $100,000 a year for needy districts, only about half the amount has been applied for during the past 3 years.

FAVORABLE 1945 LEGISLATION

The 1945 legislature not only answered the question as to Montana's ability to finance her own public schools but also her willingness to provide adequate support. The appropriation for State aid for the next 2 years was increased 28 percent; high-school budget limitations were increased about 20 percent over current

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limitations; high-school tax-levy limits were removed; and special levies for teachers' retirement provided for.

The Montana legislature passed a joint memorial to Congress asking that the amendment to the United States Constitution proposed by Senator Tydings relating to a balanced Federal Budget be submitted to the people for ratification. Only by a postwar balanced Budget can the solvency of America be preserved. Yet the Federal Budget cannot be balanced if through a gigantic program of Federal aids and subsidies, the Federal Government continues to assume obligations that properly belong to individuals and to the States.

AMENDMENT OFFERED BY CHARLES E. GREENE, SUPERINTENDENT OF SCHOOLS OF DENVER, DENVER, COLO.

Amend the printed bill (S. 181) page 8, line 6. as follows:

After the word "received" insert the words "and in so doing shall provide that the amount apportioned to each State under the authorization of section ? (A) and section 3 (A) shall be distributed within each State to those school districts qualifying under the provisions of this act in amounts which bear the same ratio to the total amount made available under said sections for the State as the average daily attendance of pupils attending all types of public elementary schools (including kindergartens and nursery schools) and public secondary schools (through the fourteenth grade) in each qualifying district bears to the total of such average daily attendance for all qualifying districts of the State."

(Whereupon, at 11:30 a. m., the committee recessed, subject to the call of the chairman.)

HEARINGS

BEFORE THE

COMMITTEE ON EDUCATION AND LABOR

UNITED STATES SENATE

SEVENTY-NINTH CONGRESS

FIRST SESSION

ON

S. 717

A BILL TO AUTHORIZE THE APPROPRIATION OF FUNDS TO ASSIST THE STATES IN MORE ADEQUATELY FINANCING EDUCATION AND IN REMOVING SUBSTANDARD CONDITIONS IN EDUCATION; TO AID IN ESTABLISHING AND MAINTAINING EDUCATION SERVICES; TO ERADICATE ILLITERACY; TO PRESERVE AND PROMOTE THE NATIONAL SECURITY IN PEACE AND IN WAR; TO RAISE THE EDUCATIONAL LEVEL OF THE NATION; AND TO PROMOTE THE GENERAL WELFARE

AND

S. 181

A BILL TO AUTHORIZE THE APPROPRIATION OF FUNDS TO ASSIST THE STATES AND TERRITORIES IN MORE ADEQUATELY FINANCING THEIR SYSTEMS OF PUBLIC EDUCATION DURING EMERGENCY, AND IN REDUCING THE INEQUALITIES OF EDUCATIONAL OPPORTUNITIES THROUGH PUBLIC ELEMENTARY AND SECONDARY SCHOOLS

PART 2

APRIL 11, 12, 19, 20, 21, 23, 24, 25, 26, MAY 3 AND 4, 1945

Printed for the use of the Committee on Education and Labor