PROBLEM 95 THE CONSOLIDATION OF DISTRICTS AND THE DISTRIBUTION OF THE BONDED DEBT Problem: When additions are made to a consolidated district which has bonded itself for recent building construction, what should be the effect upon the future distribution of the burden of the bonded indebtedness already incurred? The Belmont School is a consolidated school located in a rural district of a western state. The district is bounded by the heavy line shown in the accompanying diagram. It includes approximately thirty (30) sections. The consolidated school building is a new brick structure and is well equipped. Payment for the building and equipment was made possible through the issuance of bonds. Transportation is provided for farm boys and girls. The transportation system is now carrying its maximum load, but the school is amply equipped for caring for an added school population. Twelve grades are taught. Schools 44 and 17 are district schools, each the result of the combination of two rural one-teacher schools. Each one now has a building in a good state of repair and composed of two rooms, in charge of two teachers teaching ten grades. No transportation is provided. Farms A, B, C, and D did not originally belong to the consolidated district but have been recently transferred to the consolidated district. The school taxes of these farms are for maintenance only, a state law prohibiting burdening such property for bonded indebtedness of the district to which transfer has been made. 1. Presuming that the building and equipment of the Belmont school are adequate to care for the school enrollments of Schools 44 and 17, is the consolidation of the three schools to be recommended? 2. If consolidation is to be recommended what share of the bonded indebtedness shall be assigned to Schools 17 and 44? On what basis shall it be applied? 3. What disposal should be recommended for Schools 17 and 44? 4. What procedure is to be followed in effecting this consolidation? BIBLIOGRAPHY ANDERSON, H. W. School Bonds. American School Board Journal, 59:37, 95, July, 1919. FOWLKES, J. G. School Bonds. Bruce Publishing Co., Milwaukee, 1924. TRUSLER, H. R. Issuance of School Bonds. American School Board Journal, 58:58-59, June, 1919. |