AN ENQUIRY INTO THE. FlNANCIAL STATUS OF THE SCHOOLS RON COUNTY. MICHIGAN Thai: for Lha Degree cf M. A. MiCHiGAN STATE COLLEGE. E. Burr Sherwood 39% THESIS This is to certify that the thesis entitled "AI? II‘IQUIRY IBLO THE FIITAIICIAI. STATUS CF THE SCHOOLS OF IRCI'? CCUI‘ITY, MICHIGAK." presented by E . Burr Sherwoo d has been accepted towards fulfillment of the requirements for _3'L-_Aio.____degree in_1r3 1; 5121011 W. . go ltlajor professor Dampecernb e r j , 1 9hr; M-795 AN INQUIRY INTO THE FINANCIAL STATUS OF THE SCHOOLS IRON COUNTY, MICHIGAN by E. Burr Sherwood A THESIS Submitted to the Graduate School of Michigan State College of Agriculture and Applied Science in partial fulfilment of the requirements for the degree of OMASTER OF ARTS Department of Education 1946 TABLE OF CONTENTS CHAPTER I. INTRODUCTION . . . . . . . . . . . . . . . . Background of Problem Pertinent Questions Purpose of Thesis - Statement of Problem Sources and Treatment of Data How Study May Be Used II. FACTORS AFFECTING THE FINANCIAL STATUS IN IRON COUNTY, MICHIGAN . Population Statistics . . School Revenues . . . . . Budget Expenditures . . . III. FINANCIAL ASPECTS OF A COUNTY UNIT OF SCHOOLS SYSTEM OF ORGANIZATION FOR IRON COUNTY, MICHIGAN . . Potential Income . . . . . . . . . . . . Budget Expenditures IV. SUMMARY, CONCLUSIONS, AND RECONNENDATIONS Summary Population . . . . . .l. School Revenues . . . . Budget Expenditures . . Budget for County Unit . Conclusions and Recommendations . O '1 87.5855 0 O O O O O O O O O O O O O 0 SCHOOL PAGE c» \n ¢~ 35 65 119 119 126 136 136 136 137 138 140 141 ...... TABLE II. III. IV. VI. VII. VIII. IX. LIST OF TABLES PAGE Population of School Districts of Iron County, Michigan By Decades from 1910 to 1945 . . . . . . . 9 School Census by Districts, Iron County, Michigan from 1920 to 1946 . . . . . . . . . . . . ... . . . 16 Year-End Membership by Grades of All Iron County, Michigan School Districts from 1920 to 1946 . . . . 19 Ratio of Year-End School Membership to School Census in Iron County, Michigan School Districts from 1920 to 1946 . . . . . . . . . . . . . . . . . . . . . . Ratio of Elementary to Secondary Enrollments at Five- Year Intervals in All Iron County School Districts from 1920 to 1946 . . . . . . . . . . . . . . . . . Census of Children Under 5 Years of Age in Iron County, Michigan from 1944 to 1946 . . . . . . . . Number of Buildings Operated by All Iron County, Michigan School Districts from 1926 to 1946 . . .-. Instructional Personnel and Teacher-Pupil-Ratio, Iron County, Michigan Schools from 1933 to 1946 . . . . Summary of Sources of Revenue of All Iron County, Michigan School Districts from 1927 to 1946 . . . . Percentage of Local, State, and Miscellaneous School Revenues Supporting County School District: from 1927 to 1946 21 24 26 28 30 37 38 TABLE XI. XII. XIII. XIV. XVI. XVII. XVIII. XIX. iv PAGE Assessed Valuation of All Iron County School Districts from 1925 to 1946 . . . . . . . . . . . . . . . . . . 41 Percentage Changes in Property Valuations in All Iron County School Districts from 1925 to 1946 . . . . . . 42 Percentage of Taxes Paid by Mining Companies and All Other Sources to All Iron County School Districts from 1928 to 1945 . . . . . . . . . . . . . . . . . . 45 Assessed Valuation Per Capita for All Iron County Schools from 1926 to 1946 . . . . . . . . . . . . . . 48 Tax Rates Levied for Operation of All Iron County School Districts from 1926 to 1946 . . . . . . . . . . . . . 50 Amounts of Local Tax Levies for Operation of All Iron County Schools from 1926 to 1946 . . . . . . . . . . 53 Amounts Paid from Local Tax Levies for Servicing Debt Acquired Prior to 1933 by All Iron County School Districts from 1926 to 1946 . . . . . . . . . . . . . 55 County Equalized Valuations versus State Equalized Valuations for Schools in Iron County from 1938 to 1944 . . . . . . . . . . . . . . . . . . 59 Amount of Primary Interest Fund Money Paid to All Iron County School Districts from 1926 to 1946 . . . . . . 61 State Aid Other than Primary Money Received by All Iron County School Districts from 1926 to 1946 . . . . . . 62 TABLE XXI. XXII. XXIII. XXIV. XXV. XXVI. XXVII. XXVIII. XXIX. XXX. XXXI. Expenditures for General Control Purposes by All Iron County schools from 1933 to 1946 . . . . . . . . . . Per Capita Expenditures for General Control by All Iron County Schools from 1933 to 1946 . . . . . . . . . . Expenditures for Teachers' Salaries All Iron County Schools from 1926 to 1946 . . . . . . . . . . . . . Average Expenditure for Salaries per Teaching Position in All Iron County Schools from 1926 to 1946 . . . . Distribution and Average Salaries of Teachers by Train- ing and Experience in Iron County Schools, February, 1946 . . . . . . . . . . . . . . . . . . . Per Capita Expenditures for Teachers' Salaries in All Iron County Schools from 1926 to 1946 . . . . . . . Expenditures for Supervision in All Iron County Schools from 1933 to 1946 . . . . . . . . . . . . . . . . . Per Capita Expenditures for Supervision in All Iron County Schools from 1933 to 1946 . . . . . . . . . . Miscellaneous Expenditures for Instruction in All Iron County Schools from 1933 to 1946 . . . . . . . . . . Per Capita Miscellaneous Expenditures for Instruction in All Iron County Schools from 1933 to 1946 . . . . Total Expenditures for Instruction in All Iron County Schools from 1933 to 1946 PAGE 67 69 73 75 78 81 82 84 85 87 vi TABLE ' PAGE XXXII. Per Capita Expenditures for Instruction in All Iron County Schools from 1933 to 1946 . . . . . . . . . . 88 XXXIII. Total Expended for Auxiliary and Coordinate Affairs in All Iron County Schools from 1933 to 1946 . . . . . 91 XXXIV. Per Capita Expenditures for Auxiliary and Coordinate Affairs in All Iron County Schools from 1933 to 1946. 94 XXXV. Total Expended for Operation of School Plant in All Iron County Schools from 1933 to 1946 . . . . . . . . . . 96 XXXVI. Per Capita Expenditures for Operation of School Plant in All Iron County Schools from 1933 to 1946 . . . . . 99 XXXVII. Total Expenditures for Fixed Charges in All Iron County Schools from 1933 to 1946 . . . . . . . . . . . . . 102 XXXVIII. Per Capita Expenditures for Fixed Charges in All Iron County Schools from 1933 to 1946 . . . . . . . . . . 103 XXXIX. Total Expenditures for Maintenance in All Iron County Schools from 1933 to 1946 . . . . . . . . . . . . . 105 XL. Per Capita Expenditures for Maintenance in All Iron County Schools from 1933 to 1946 . . . . . . . . . . 106 XLI. Total Operating Expenditures in All Iron County Schools from 1926 to 1946 , . . . . . . . . . . . . . . . . 108 XLII. Per Capita Operating Expenditures in All Iron County Schools from 1926 to 1946 . . . ... . . . . . . . . 109 XLIII. Total Expenditures for Capital Outlay in All Iron County Schools from 1926 to 1946 . . . . . . . . . . . . . 111 \I ll I'll! ll ill TABLE XLIV. XLV. XLVI. XLVII. XLVIII. XLIX. vii PAGE Per Capita Expenditures for Capital Outlay in All Iron County Schools from 1926 to 1946 . . . . . . . . . . 112 Per Capita Expenditures for Debt Service in All Iron County Schools from 1926 to 1946 . . . . . . . . . . 114 Total Revenue Expenditures for All Purposes in All Iron County Schools from 1926 to 1946 . . . . . . . . . . 116 Per Capita Revenue Expenditures for All Purposes in All Iron County Schools from 1926 to 1946 . . . . . . . 117 Estimate of State Aid for Proposed Iron County School District Compared with Actual Income of All Iron County School Districts for 1945-46 . . . . . . . . 121 Proposed Budget for County Unit School District for Iron County, Michigan, Compared with Actual Expenditures for All Iron County School Districts for Year 1945-46 128 CHAPTER I INTRODUCTION am at 212219:- Visiting educators from lower lichigan and from out of the state almost unanimously praise the schools of Iron County and those of other communities on the Iron Ranges of Michigan's great Upper Peninsula. Possibly a certain amount of this praise can be discounted as the idle prattle of speakers seeking to make a friend- ly impression. Possibly, it is sincere admiration of the generally fine physical plants so common in the area. Perhaps, because con- ditions in other areas they visit are so bad by contrast, the schools of Iron County and the Upper Peninsula stand out relative- ly, if not absolutely, at least in the area of school plant facile ities. unfortunately, fine school plants and satisfactory programs of education fer boys and girls cannot be sustained by praise, bomb ever sincere. Buildings must he maintained, teachers must be paid, and educational supplies must be purchased with hard cash. The se- curing of funds for the satisfactory operation of the schools of the Peninsula has become increasingly difficult in recent years. Perhaps the most common topic for discussion amongst school ad- ministrators and school board members, sherever and shenever they gather, is school finance, or more accurately, the lack of it. Administrators are generally agreed that it is indeed for- ll‘.‘l|'||.lll [I'll-114'! ll“ tunate that our physical plant mas built prior to 1930, since it would be utterly impossible to duplicate that plant today in the face of the financial crisis that so many schools face today. Iron County school administrators, at least, feel an almost nostalgic longing for a return to the ”good old days‘ when school finance mas merely a simple problem in elementary arithmetic involving only the totaling of budgetary needs and a division of that total by the as- sessed valuation of the district. Iith school finance a relatively minor problem, administrators might be expected to spend the greater portion of their time and energy upon the development and super- vision of the educational program. In recent years the situation has been reversed. Very little time or energy is left for educa- tion because the alert administrator must spend so much time on the financial problems of his school. WW. lhat has happened to cause such a reversal of emphasis as suggested? lhat has happened to the tax base supporting the schools of Iron County? Ihat has been the effect of the highly restrictive Fifteen Iill Tax Limitation Amendment voted by the tax-conscious realtors and poverty-stricken farmers in 1932? lhat was the effect of the Great Depression.upon the value of mining properties in Iron County? Have constantly increasing state grants-inpaid solved the income problem for Iron County schools? Obviously not, but shy? Did the var contribute to the schools' financial difficulties? 3 lil‘l‘lltllll‘ll'llfllllll'll‘llrl lhat is the effect of the present inflationary trend on local school finances, both from an income and from an expenditure point of view? lhat has happened to the population of the county and es- pecially to the school population? lhat has been the effect of population change on school finances? lhat is the status of teach! ers' salaries and shat are the prospects for holding superior teach- ers or of attracting new talent? Are salaries widely at variance amongst the seven school districts of Iron County? How do districts compare in local ability to support their schools? Can says he found to increase school income from local, state, and federal sources? Can existing revenues be more effi- ,ciently expended? Are there areas of unnecessary duplication of school services in transportation, administration, et cetera? lhat of teacherupupil ratio and its relation to finance? 3 These and many related questions arise in the mind of an ad- ministrator mhose past tmentybone years have been Joined, for good or for ill, to the schools of Iron County - fourteen years as a classroom teacher and seven years as County School Commissioner. It is because that administrator is constantly called upon to ex» plain the financial crisis facing the schools under his Jurisdic- tion, and because he is often unable to do so, except in a broad and general say, that this study is undertaken. 23:22:: 2f.Ihasis -.§iaissssi.s£.£rshlssc A thorough and completely exhaustive inquiry into the prob- lems raised in the preceding paragraphs is much too great a task to be adequately performed in a limited study. This investigation will merely attempt to throw the light of statistical fact upon only the more important phases of the problem. Some questions which may appear to pose serious problems at the outset, may prove less im- pcrtant than anticipated when exposed to the light of inquiry. Others may be discovered whose existence is not suspected at the beginning of the study. In this investigation it is proposed, therefore, to inquire into the reasons for the present crisis in the finances of Iron County's seven school districts. Ihat are the facts about total and school population? ‘lhat have been and what are now the sources of school revenues and how have local and statedwide conditions af- fected these revenues? Ihat are the facts concerning the manner in which school revenues have been raised and expended? light school revenues and expenditures be affected by reducing the exist- ing seven township districts to one ccuntyamide administrative unit? lhat conclusions can be drawn from the facts presented and what I definite and practicable recommendations can be made from the conclusions? mamatnntflm- Fortunately, the complete annual reports of all seven Iron County school districts for the past twenty years are available for examination. From these records, tables will be prepared and ana- lysed to show sources of income, distribution of expenses, and school population status and trends. Some information concerning teacher- pupil ratios will be taken from special inquiries made in co- operation with individual districts. Information concerning salaries for the year ending June, 1946, will be taken from a study completed in January, 1946, by the school administrators of Iron County under the joint direction of'K.'I. Schulse, Superintendent of Schools, Crystal Falls, Michigan, and E. Burr Sherwood, Commissioner of Schools of Iron County; The factors which have affected school revenues and expend- itures in Iron County during the period 1926 through 1946 will be examined in Chapter II. General and school population statistics will be analysed. A survey of school revenues and their sources will be presented and analysed. Revenue expenditures for all Iron County school districts will be studied carefully and critically. In Chapter III the financial aspects of an hypothetical county unit school district will be explored to determine whether savings can be made in school expenses and whether income can be increased. Chapter IV will include a general review of the findings of the study together with conclusions and recommendations for action. [[[l l.'l|[ l'll'lllll‘l'lll rummage. There are several waya in which the coupleted study say be used, namely, (1) it will be a quick source of reference for the personnel of the County School Commissioner's office; (2) it may be used as the basis of further studies at either the county level or the school district level where such studies require broad statistical background; (3) it may provide the basic statistical data fer any subsequent program of school-district reorganisation; (A) it may be used by boards of education in determining fiscal policies by providing an historical background of financial data and trends; (5) it nay provide boards of education and administra- tors with data for analysis of the efficiency of their educational programs; and (6) it may furnish basic information to the public in connection with appeals for adequate financial support for schools. Possibly other practicable uses will occur to school of- ficials upon examination of the study. It is hoped that it will be a contribution in assisting the public to reach.a decision in favor of better schools for the money they provide. Finally, the value to the investigator has been great, affording him a deeper insight , into the problems of public school finance and operation. No such inquiry has been nade on a countyuside basis in Iron County so far as can be determined. The lichigan.Public Education il'llll'lllllllllll‘lllal.‘ Study Commission has done the Job for the state as a whole1 and individual school superintendents have done piece-meal bits of re- search within their own districts. There is, therefore, little light to guide the inquirer through the mase of statistics necessary to secure significant results. l “The Report of the Conission', 1h; 22mm 2: mm mm fishing (Lansing, lichigan: Published by the Author- ity of the llichigan Education Study Conission, July, 1944) 301 pp. CHAPTER II FACTORS AFFECTING THE FINANCIAL STATUS OF SCHOOLS IN IRON COUNTY, MICHIGAN A. POPULATION STATISTICS Like many counties in the northern part of lichigan, Iron County's general population has diminished from its 1920 peak of 22,107 persons. In 1930 the federal census showed a decline of 1302 persons, or 5.9 per cent. A further loss of 562 persons, or 2.7 per cent, was experienced during the succeeding decade. By 1940, the last official census date, the total decline from the 1920 high point was 1864.persons, or 8.6 per cent. Accurate population statistics are not available for the present time, but an estimate of general population is included in Table I on page 9. This estimate is based partially upon an exam- ination of the figures for the last general rationing registration in February, 1943, at which time 16,435 ration books were issued. More than two thousand men and women were in service at that time, according to the records of the Iron County Selective Service 'Board. By the summer of 1946 all but about 400 of them had re- turned fron service and many families had returned from the cities where they had gone earlier to accept jobs in war industries. The estimate is also based upon the relationship between school census figures of 1930 and 1940 to the general population statistics for the same dates. After allowance was made for the possible con- TABLE I POPULATION OF SCHOOL DISTRICTS OF IRON COUNTY, IICHIGAN BI DECADES FROI 1910 TO 1945 BATES 573 1,181 1,263 1,278 1,210 CRISTAL FALLS 5.1.13 5.369 4,801 4.433 3,602 mum 1,115 ' 1,075 985 889 786 men 1mm 5,535 6,731 6,498 6,293 5,691 IANSFIELD 355 215 195 216 171 1113101101: 385 1,492 1,041. 1,013 1,062 STAIBAUGH 5.2é9 6,955 Q,Q12_____§1121_____§a123_. COUNTY TOTAE§ iz'lzé 33.19: '39n§9§ 32.352 SHIZI: * U. 8. Federal Census. ...Estimate of 1945 arrived at according to explanation on pre- ceeding page. NOTE: This table should be read as follows: In 1910 the population of Bates Township School District, as shown by the Federal Census, was 573 persons. By 1940 the population of Bates Township School District had increased to 1278 persons. The es- timated population of the same district for 1945 is 1210 persons. The remainder of the table should be read in like manner. (\ lO tinuing decline in the proportion of school-census children to the general population, the estimated ratio was compared with the school census figures of 1945. It is not unreasonable to assume, therefore, that there are only approximately 18,500 people in Iron County at the present time. Assuming this to be true, there has been a decline from the 1920 peak of between three and four thousand persons, or betmeen l4 and 18 per cent of the 1920 total. Table I shows clearly that the decline in population during the past quarter century has not been uniform among the seven school districts of Iron County. Two sets of figures will be especially noted; namely, the else of Bates and Mastodon Township Districts in 1910 and 1920. The former increased in size more than 100 per cent during the decade, while the latter increased approximately 387 per cent. lorld War I created a tremendous demand for iron ore. This led to the expansion of mining operations in Bates and Mastodon on a relatively larger scale than in the other districts. A factor in considering the population of Bates is that in recent years it has developed as a subsistence residential suburb of the city of Iron River which it adjoins. The sharpest losses in population occurred in Crystal Falls and Mansfield districts. The former declined 33 per cent and the latter 50 per cent from their 1910 peak population. In both of these districts the loss can be explained by the closing of mines and the consequent migration of people to other communities within Iron County, or to other districts. lr|l|lll|rllli 11 The estimates of general population in 1945 for Iron River and Stambaugh present an interesting situation. Table I shows that Iron River has maintained a general population slightly higher than that of Stambaugh. The estimate for 1945, on the other hand, shows a slight increase for the general population of Stambaugh and a rather sharp loss for Iron River. The school census figures for Stambaugh, however, have been consistently higher than for Iron River. In 1930, when the general population of Iron River was 6,498, its school census was 2282, or 35.1 per cent of the general popula- tion. In 1930 the population of Stambaugh was 6,019, but its school census of 2537 was 42.1 per cent of the general population. Ten years later Iron River's general population dropped to 6,293 and its school census to 1829, or 29.1 per cent. During the same decade the general population of Stambaugh increased to 6,121 and its school census dropped to 1903, or 31.1 per cent of the general population. In 1945 the school census of Iron River had declined further to 1463, as com- pared to 1592 for Stambaugh. It is because of the higher school census of the Stambaugh district in 1945 that the estimate for the general population is so much higher than the estimate for Iron River. There is, therefore, a question concerning the accuracy of the 1945 estimates for Iron River, which may be too low, and for Stambaugh, which may be too high. One possible explanation for the higher ratio of school census to general population for Stambaugh may lie in the fact that [l'{‘.|.| li'lllll'l'lrll I'll lull llr 12 Iron River is the business center of a community embracing the school districts of Iron River, Stambaugh, and Bates. There may be a disproportionate number of business and professional workers' families, with fewer children, on the average, than in the other districts which are mostly residential in character. This explana- tion should not be accepted without reservation, however, since on lay 31, 1946, Iron River had 558 children under 5 years of age as compared to 427 such children in Stambaugh. This would indicate, other things being equal, that the present population, contrary to the figures shown in Table I, may be higher in Iron River than in Stambaugh. It may also indicate that the method used in estimating 1945 populations may be incorrect, at least as it applies to the statistics for Iron River and for Stambaugh. The 1940 Census classifies Iron County as being more than 50 per cent rural. This is misleading because of the nature of mining communities. The county has two municipalities which are urban by Census standards. These are the city of Iron River, on the west side of the county, and the city of Crystal Falls, sixteen miles to the east of Iron River. Grouped around Iron River city, whose 1940 population mas 4,416, are the city of Stambaugh (population 2081), the village of Caspian (population 1801), the village of Gaastra (population 703), and the village of lineral Hills (Population 344). lineral Hills is a part of the Iron River Township School District and adjoins the city of Iron River on the North. The city of Alll'll'llllll' 13 Stambaugh is immediately to the South of Iron River city. Adjoin- ing Stambaugh on the South is Caspian, and adjoining Caspian on the East is the village of Gaastra. Sociologically, there is one com- munity whose logical center is the city of Iron River. Adjoining Crystal Falls city are a group of mining ”locations" which are a part of the township of Crystal Falls, politically, but are in reality as urban as the city of Crystal Falls. Possibly 70 per cent of the population of Iron County, therefore, lies within.urban limits. This fact must be considered in school reorganisation. All of the cities and villages are part of Township or Township-Rural- Agricultural school districts, and except for pointing out the con- centration of population into two general areas, their separate population statistics have little significance for this study. It is always dangerous to attempt any kind of a prognosis, but it is unlikely that Iron County can expect much population in- crease in the near future. The chief industry in the county is iron.miming. Local mines have been affected by technological ad- vances in mining methods which require less men to produce a gives quantity of iron ore. Since technological improvements follow earlier improvements, it is reasonable to expect that local em- ployment trends in the mines will be downward as time goes on. In 1941 a landdnse survey was made in Iron County by a local committee in co-operation with Iichigan State College and the United States Department of Agriculture. This investigator see an active member 14 of that committee which published a report of its findings.2 The re- port suggests that agriculture of certain types is capable of some expansion, but limited amounts of good tillable soil preclude the development of the county as a first-rate agricultural area. The report suggests that dairying be encouraged. Since the publication of the report a large cheese factory has located in Crystal Falls which employs from thirty to forty workers besides doing much to en- courage the development of dairying. Since Pearl Harbor large scale potato farming has developed. In 1945, according to records in the office of the Iron County Agricultural Agent, five growers harvested more than 100 acres each of quality potatoes. Success in this type of farming, however, appears to require much heavy equipment and relatively large acreages of level to rolling soil. Physical handi- caps of soil topography probably will prevent any significant exb pension in this area. One of the most promising possibilities appears to be in the expansion of the tourist business. Local tourist information cen- ters report a record number of tourists and decry the lack of ade- quate facilities to properly service those who come to seek rest and recreation in the Upper Peninsula. Several tourist entertain- ment projects are under construction currently, however, and more 2 Iron County Land-Use Committee, 'A Progress Report on Land Use for Iron County", (mimeographed Report of the Committee, Crystal Falls, Iichigan, 1941). 97 pp. H 15 Idll probably get underway as demand dictates and materials for con- struction of buildings becomes available. lhether expansion of the recreation business can offset the number of persons displaced by new machinery within the mines is problematical. At the present time the remaining stands of timber and merchantable pulp wood are being cut at an alarming rate. The Federal Forest Ranger in charge of the Ottawa National Forest, which is located partially in Iron County, has repeatedly stated that the timber resources of the area are being depleted much more rapidly than either man or nature can replace them. Of greater significance to this investigation than general population statistics are those concerning school population. Table II portrays the changes in the number of persons on the school census between the years 1920 and 1946. The school census figures for the year 1920 are placed in Table II in order that they may be compared with the general pepulation statistics for the same year shown in Table I, page 9. Table II shows a sharp decline in the number of children of school age in Iron County. From a high figure of 8,069 in the year 1928 it has dropped to 4,710 in 1946, a loss of 41.6 per cent. Losses sustained by individual districts ranged from 36.7 per cent for Iron River to 59.8 per cent for Crystal Falls. lhile both school census and school membership increased more rapidly than general population during the decade 1920 to 1930, l6 .nonnsm oMHH ma eases one no sounds-on one poem .omnnoo Hoonoo one so «an ones omen» coma .hm: nH .mom ens vofinnoanwawnenmoa eoaem on» ma ome .hsm ma ensues Hoomoe one no nonoadmo no mousse sea .msoHHou as ease» on» coom .eHoomom no Hosea-edemoo hannoo on» no cognac one ad ooadu ephonou Housed .muunmmr . . . a .4 .1 - . 33 2.3 new 3 3: «cm cum fin 3mg mmom anon 9mm no coon mmH mmm man coma 88 we: now 3 $5 . a mmm «an 3mm «wan omen can an mnma «on mafia ”mm «wma wmmm «mad man mm mama «mu «vaa omm mea Row 83 man mm mesa Se mama m5 coma ammo woou Rm 3 83 new 3.3 m3 mmma «Hoe ooaw coo so mama mom ONMH one mama 2.5 RN .5 no 38 SN .32 mm... Ron soon room «3 we 2.8 can $3 34 RS mmam Hmmu ”we mm «mom mum mama mam mnma Hmnm mama mow mm moaw «on whoa awn mama «mam m3~ m3 mm 3.8 mom mama nun mama norm omen coo or maum mom awed mam mama «m2. menu one no «So «mm 33 can ~an 32. Raw «3 .m. «can rmm more 2.... came mamm «mom Haw mm mnww 0H4 mama mac muma meow omqu mmo _ mm pawn «H4 mama mno muma «now 83 n3 , on menu o3 *8 9} sum.” «m2. Sou m3 S 2.5 «No Rom a. @an 32. coma woo mm «mam o3 RH .24 mums «omm nnam «do we meow cow mom“ men oumH . __ .Alfio. a an an mHBZDoo udbdmadam KOQCBMdI nanhmZda zomH HHHadlmm Adamwmo uflHdm mdflw g 82 2. 83 SE 538:. .388 ES Scams em guano noomom E 5.3 a! .rnl . ‘1" 17 this trend was reversed during the decade 1930 to 1940. Between 1920 and 1930 the general p0pu1ation of Iron County decreased 5.9 per cent from 22,107 to 20,805. During the same decade, however, the school census increased 2.1 per cent from 7,764 to 7,915, and actual school membership increased 2.4 per cent from 6,345 to 6,499. By 1940, the general p0pu1ation had declined still further to 20,243, a loss of 2.7 per cent. The school census declined from 7,915 to 6,037, a.lggl,21,gfigé,pgr,ggg§, and year-end membership declined from 6,499 to 4,802, a 12;; g; 26 m m. Stated in another way, the ratio of school census to general population de- clined from 35.1 per cent in 1920 to 29.8 per cent in 1940, after rising to 38 per cent in 1930. If the school census and the general population were similarly proportionate in 1945, after making allowance for con- tinued decline in that ratio, the total population of Iron County in 1945 would approximate 18,700 persons as shown in Table I, page 9. This estimate is computed in the following manner: Dur- ing the 1930 to 1940 decade the average rate of decline of the ratio of school census to general population per year was .82 per ‘oent. ,At the same rate of decline the ratio of school census to general population in 1945 would have been 25.7 per cent. The 1945 school census was 4,810. If 4,810 is divided by .257, the quotient, 18,715, would be the approximate population of the County in 1945. Attention has been called to the rapidly declining school 18 population._ Table II showed this decline in the school potential. School administration is more concerned, however, with the actual number of boys and girls attending school at any given time, the distribution of pupils throughout the grades, and the retentive power of the schools. Table III portrays the year-end membership by grades for all schools within the county from 1920 through 1946. The figures for 1920 are used in order to make comparisons with general p0pu1ation and school census statistics for the same years. The abbreviation Kgn~6 (kindergarten through sixth grade) and the abbreviation 7-12 (seventh grade through twelfth grade) are used by the Michigan Department of Public Instruction in most references to elementary and secondary membership. They will be used in the same manner in Table III and in other tables of similar nature. Attention is called to the fact that in 1920 there were 4,939 elementary children (kindergarten through 6th grade) and only 1,406 secondary pupils (grades 7 through 12). The number of elementary children has declined steadily until 1946 at which time an increase of 98 children, or 5 per cent, is recorded. Secondary enrollment continued to increase until 1932 when the enrollment in grades 7 through 12 reached 2,846 including post-graduates, more than done bling the 1920 secondary membership. Since 1932, however, secondary enrollments have likewise decreased sharply to 1,659 in June, 1946, ' or a loss of 42 per cent from the 1932 peak enrollment. Further study of Table III will reveal figures which suggest that the de— .nosnon used no coon on canons canoe on» no nounaoson ooh .eoveooonmlweom Has handed one hoop oneness oooHHonno hnoosoooe no oonoowonoo one eflaann cheapo. .oooonm Mao homes on» no oo<.H one noose» hnovnosono on» do ooddouno madame mmm.< enos onona .onoanoe mo ones enema use hammoo coma no onoauow Iaoonax one no and no ooHHonno nonofldoo «mo eno- euoap .owma .onsh nH «esoHHou no oHosp one noon 9 1 .aHoonom no nonofioefianoo hvnsoo on» no coauuo on» so ooaan ovnomon Housed «mummmwr . 0 m-.N N . N .4. .u- .uN on . a. w . . ..n omoH ommH H 04w «5w oww oom wmw mom now wow mww mmw own man wow momfl mama mmow mm www «aw won mmw awn man man mow mmw «on mmw own wmw coma wcmn mwow we mmw omw mow non omm mom mwn nan omw mow con own now mom“ mwow mmflw ww «on own men «mm oom 0mm oom own man omw «on won omw wwmn mmww moww no «on «ma own mow own omm mmm «mm mom mum mmw oon mew vafi nwmw mflqw ow man man omm wfiw mmq coo own own 4mm own man man now coma wwmw meow mm man non mom omn one who wflq mow mmm mmm “on man wow mama «mmw momw on mmw own . mom nae oav Hwo Mme maq «mm mmm flaw omm How wnmn «nmw ommw om Ham «on oon «we on» ww< now won wdq mmn mmm www omw mmmn meow Hwom MM «an «on com ww< moo «ow one own omw coo woo new {in onma «now «can mmn omm mmm Hon How qu mmv owe oHn oov wmm «do «mm mama mmmw oowm no mwm Hmm mow Ono “Ho own “mo own woo owm Hmo one awn «mmd «mow comm «OH wan oom qu mam nmo moo moo «no own wmw can Hmi mom mama owmw «man mm nmw mmn «H1 com woo Hum omq oom mmm own own omm How wnma «mmw wmmn ow can mmw mnw Ham mom wmo own awn mom do“ no“ moo mow damn .oqow noon «a New onm mom «on awn omo mwo man now «on non wwo mac omma mmow node «A cow wow mmm moo mmm omm moo mmo mwo mom mom omo own mama mnmw made mm Hmfl ooH man one mom Odo «Ho moo moo moo mwm mom mam wwmd «Saw name an no." Hm." _ Now 3% mom mom owo ono nmo So «on mom on“ mama mwaw mmoo 0H oon NHN www qu mmo ono mmo mom nmo com moo omo mmw ome aooqa mmmo ow mm now own wmw mum Nov oom Hvo mwm owm mam omw «mo ome .mwiuuu o u.m.nuammmnuma an on m a an o n no m Hnmnunnuwuuommmnjmqwmu come on came some encore» aqumoH- .wazpoo zomH on. so manque em memmmmmxm: canteen» HHH mnmda 20 cline in secondary enrollment will continue for several years. Notice should also be taken of the apparent improvement in the retentive power of the schools of Iron County as revealed by Table III. In 1920, 876 children completed the 1st grade. This class graduated in 1931 with a neabcrship of 310, or 35 per cent of the 1st grade enroll-ant. The graduating class of 1946, while hav- ing a aenbership of only 257, did hold 62 per cent of its membership of 414 1st graders who were enrolled in 1945. Employ-ant opportun- ities in the Iron Industry do not attract high school boys as they did a generation ago. Other outside enployaent opportunities for youth have not been plentiful and have not, therefbre, attracted many high school boys and girls. The armed services did attract several older boys, aany of when arranged to graduate in absentia, or who have returned to high school upon separation from service. Table IV shows the ratio of year-end school membership to the current census of children between the ages of 5 and 19 inclu- sive. In general, the ratio of children of school age attending school to the total nuaber of such children appears to have de- clined since 1920. Eighty-one and seven-tenths per cent of all children.between the ages of 5 and 19, inclusive, were actually in school at the end of the school year 1920, whereas only T8.7 per cent of the 5 to 19 year old youth were in school in June, 1946. This fact see-s inconsistent with the findings on Table III, page 19, which appeared to show that the retentive power or the TABLE IV RATIO OF YEAR-END SCHOOL IEIBERSHIP TO SCHOOL CENSUS IN IRON COUNTY, IICHIGAR SCHOOLS FROM 1920 TO 1946 COURT!“ TOT STAIBIDGR IINSFIELD IISTODOR IRON gun Bum cmmn Hflflfi! new YEAR 86.0 77.9 69.7 89.9 81.5 81.7 84o]. 76.3** 1920 1926 1927 'esssnessnt: Renn°tn§nn vegan $$m8$ $$$8R§ §3§R°F wawmaamdmmawmwnflaeamm QMQM'filtortrd’I‘I-IMHO‘OO‘K‘OONTN $3$§$88m8§§fi§§8§°§§ fig 0§MWNH mundh ‘il'lllllllll‘l 31 faculty members as rapidly as conditions have permitted. In some cases staffs have been decreased even more drastically than the de- cline in total enrollments seemed to justify. Crystal Falls, Iron River, Iansfield, and Stambaugh had higher pupil-teacher ratios in 1946 than in 1933, although in no instance is the increase very pro- nounced. Bates, Hematite, and Mastodon have not decreased staffs as sharply as enrollments have dropped, but this fact can probably be accounted for by the size of their enrollments. The figures in the Table seem to indicate that the larger schools can make staff ad- Justments to declining enrollments more easily than can the smaller schools. Table VIII, while attempting to show what has happened to the number of teachers employed as enrollments have declined, and what has, therefore, happened to pupil-teacher ratios, does not in any may attempt to depict the comparative teacher-loads from either an individual qualitative, or oven quantitative, point of view. A quick survey of a questionnaire circulated through the schools of Iron County by the office of the County Commissioner of Schools in Hay, 1946 shows great variance between individual loads even within the same system.3 A comparison of the loads of an English teacher and a Com- mercial teacher within the same system reveals that the English 3 . E. Burr Sherwood, “The Teacher Load Problem in Iron County, Iichigsn Schools,” (unpublished report of study made by the office of County School Commissioner, Crystal Falls, lichigan, lay, 1946) 32 teacher is required to teach two English 1 classes of 39 pupils each, one English I class of 30 pupils, and one Speech class of 12 pupils, for a total academic load of 120 pupils. In addition, she was responsible for a Study Hall with 40 students and a Home Room with 35 students. The Commercial teacher's load was two Shorthand I classes of 12 and 11, respectively, a Shorthand II class of 7, and two Typing I classes of 21 and 22, respectively, or a total teaching load of 73 pupils. The Commercial teacher had no Home Room or Study Hall duties. The English teacher also sponsored a Thespian Club which produced several programs during the school year. The Com- . mercial teacher, however, is an extremely conscientious worker and spends many hours on detailed corrective and remedial work with her students. Perhaps her load is the ideal one for good teaching and one which all schools should work toward. To achieve such a load factor, however, will require financial support much greater than that existing at present. Similar differences in teacher load appear in many other in- stances within the county. It is not the task of this investigation to explore the teacher-load problem thoroughly. There are so many factors to be considered in such an analysis that no attempt will be made to consider them. An excellent study of the whole problem of teacher load is found in Langfitt's study on the Daily Schedule and High School Organisation.‘ 4 R. hereon Lanai“. The Rail: 329m: and .iLH h fishes}. Qgggniggtigg (New York: The lacmillan Company, 1938), Chapter V, 33 Since the per capita cost of instruction is the major item in school accounting, the school administrator is concerned very gravely with the pupil-teacher ratio, perhaps to an even greater extent than with the teacher-load. It must be observed, however, that careful analysis of teacher loads may make possible the slim- ination of one or more teachers, hence tending to increase the pupil- teacher ratio and thus reduce the per capita instructional costs within the system. Examination of the statistics for Crystal Falls in Table VIII, page 30, reveals that in 1945 there were 35 teaching positions in the system and that in 1946 there were only 30.5 teach- ing positions. Reorganisation within the Crystal Falls schools raised the teacher-pupil ratio from 21.8 in 1945 to 25.0 in 1946. In 1943 Mr. George Gilbert, Upper Peninsula Regional Super- visor for the Department of Public Instruction, surveyed the ele- mentary grades of 52 schools and the secondary grades of 47 schools in the Upper Peninsula, including those of Iron County.5 He dis- covered that the median pupil-teacher ratio for elementary grades was 30.5 and for secondary grades 22.4. Four elementary schools reported pupil-teacher ratios of less than 22 and five reported ratios in excess of 35. Six secondary schools reported more than 27 pupils and five reported less than 16. Per capita costs for high school pupils are higher under such conditions, even if there 5 George Gilbert, "Pupil-Teacher Ratio and Gross Allowance Per Teacher from State Aid,“ (Himeograph Pamphlet, Department of Public Instruction, Lansing, lichigan, 191.3) 34 is no difference in salary schedules. The facts brought out by Tables I through VIII clearly in- dicate that Iron County faces serious problems in adjusting its schools to its school p0pu1ation. In summary these facts are: (1) total population has di- minished in Iron County during the past twenty years, (2) school census has diminished much more rapidly than general p0pu1ation, thus reducing the school population potential, (3) school member- ship has diminished more rapidly than school census because of changing age distribution within the census rolls, (4) the ratio of elementary children to total membership is presently increas- ing after twenty or more years of decline, (5) meagre statistics show a diminishing number of pro-school children, giving no prom- ise of increasing enrollment in the years ahead, and (6) school buildings and instructional personnel have been reduced in line with lost enrollment. How these facts affect the financial con- dition of the schools will be more thoroughly investigated in the following chapter. 0 35 B. SCHOOL REVENUES The quality of the educational program offered by any com- munity to its Youth is closely, if not directly, related to the amount of revenue available and collected by that community for the support of its schools. The following pages will be devoted to an analysis of the sources and amounts of revenue raised for the support of schools in Iron County, Michigan, during the past twenty.years. Records on file in the office of the County Commissioner of Schools form the basis for most of the statistical data recorded in the treatment. The methods of making reports to the Depart- ment of Public Instruction for the State of Michigan have improved greatly in the past few years. Certain statistics on school rev- enues for the years prior to 1933, however, are not as reliable as might be desired, not because of the inaccuracy of totals, but because of the lack of adequate breakdown in the reporting re- quired. A careful attempt has been made, however, to interpret the statistics for the earlier years so that a true and comparative picture of the history of school revenues can be compiled. For the purposes of this study school revenues will be di- vided into three classifications, namely, (1) taxes on local prop- _ erty, (2) major state aid, and (3) miscellaneous revenues. State aid will include Primary-Interest-Fund payments, Turner-Fund paye meats, StateéPaid Tuition payments, and Rural-Agricultural payments. ’\ 36 Smith-Hughes aid, Swamp Tax, Land Sales, National Forest Sales, Commercial Forest taxes, Gasoline Tax refunds, etc., will be in- cluded under miscellaneous revenues. Some of the miscellaneous revenues are subventions from state or national government agencies and are often made in lieu of revenues lost by local government units because of state or national governmental legislation. One might expect to find that each of the three classifica- tions of school revenues has changed in relative importance with the Passing years. Several of the tables immediately following will portray these changes. Revenue from taxes on local property have always been a major source of school income and is directly dependent upon two factors, namely, the local assessed valuation of the real and personal property of the district, and the rate of taxation levied against that property. A further factor, of course, is the rate of tax delinquency, which may affect the income of any given year to a considerable extent, although losses from delinquen- cy are partially offset by subsequent delinquent tax collections, interest, and ultimate returns from Reverted Land Sales held period- ically by the Auditor General's Department of the state government. Tables I! and I show respectively a summary of the sources of revenue and the preportion from each source used by Iron County school districts. 37 .Hossom oMHH sH same» one no noosHemon on» used .oooasoo msoomoadoooas mosh omoo .mb.mem.b~w .oosedon on» use .momHmoHa no opoum one some omeo oo.Hwo.boao .hpnomonn Hooon so some» seem omoo oq.bbo.ovow .Aoowbnoo poop Hon covoofi taco aonoa msfivsflosfiv ongaooon essence Home» m~.NN<.Hmba one no NmIOHHOH no canoe emu poem .HeHHoc pseudo: op counsomae .oHoonom no Hoseaoowsmoo menace one no ooHHHo on» ma coHHH nanomon Hammad .mmmmmmr NNiedNN 8.NNo.HN 8.NN.H.NN.N . NN.NNN..NNN NNNH Ho.a.NN.NNN NN.2.H.NN 8.HHN.NNN NN.NNN.NNN NNNH No.NNo.NNN NN.NNN.NN 8.NON.NNN 8.3N.NHN NNNH NN.NNN.NH.N NN.NNN.NN 8.NNN.NNN EHHNHHoN NNNH NN.NNN.NoN NH.NNo.NN 8.3.65 2.68.2: NNNH $.N8.NNN 8.HHH.NH 8.0NN.NNN $.NNN.NNH HNmH NN.NNN.HNN HH.NNH.oN 8.HNN.NN.N R.HNH.NNH oNoH NN.NNN.N.NN NENNNNN 8.N8.HNN 8.$N.NNH H.NNH HN.NNN.NNN 3.036 8.NNN.NNN NN.SN.HH.H NNNH NN.NNN..8N NN.RN.oH 8.NNN.oNN 8.5868 eNNH om.$N.oNN H.Nsooa 8.HE.NNN HNéfiHKH NNeH 8.NNN.NN.N ON.NNN.N 8.NNN.NNH oN.N.NN.NHN NNNH HN.NNN.NR No.N.NN.oN 8.N_NH.nNH NH.NNN.NoN NNNH 3.35.5.3 No.oNN.oH 8.NNH.NNH oN.ONo.NNN NNNH NH..N8.NH> Nn.NNN.NH 8.N$.NNH 22.3.3 NNNH NN.NNN.HNN N NRNNNNN o :8.HNo.SH . NN.§.NNN o RNH ..ng 3.2.. 885.589 04 mean . emu: H38 meme Qfiwfl 09 bumd 30mm mBonamHa geomom MBZDOQ szH Add ho szmbmm ho mmumpom and mHZDOS< kc Hmdzfibm NH Sande 38 TABLE I PERCENTAGE OF LOCAL, STATE, AND MISCELLANEOUS SCHOOL REVENUES SUPPORTING IRON COUNTY SCHOOL DISTRICTS FROM 1927 TO 1946 IEAR LOCAL STATE MISCELLANEOUS TOTAL CONTRIBUTION CONTRIBUTION CONTRIBUTION BEIE!E§§* 1927 82.8 13.7 3.5 100.0 1932 75.8 21.9 2.3 100.0 1933 71.5 26.3 2.2 100.0 1934 55.4 30.4 5.2 100.0 1935 51.0 46.6 2.4 100.0 1936 40.9 57.7 1.4 100.0 1937 , 43.4 54.3 2.3 100.0 1938 39.5 58.8 1.7 100.0 1939 41.9 52.5 5.6 100.0 1940 37.7 56.2 6.1 100.0 1941 39.4 56.7 3.9 100.0 1942 39.3 54.4 6.3 100.0 1943 40.8 51.3 7.9 100.0 1944 40.3 51.2 8.5 100.0 1945 46.5 47.3 6.2 100.0 1946 43.8 48.8 7.4 100.0 *Sougcg: Annual Reports filed in the office of the County Commis- sioner of Schools. Read the table as followsa In 1927 the taxes on local property provided 82.8 per cent of the revenues for the operation of Iron County schools. The State of’lichigan provided 13.7 per cent and miscellaneous sources provided the remainder of 3.5 per cent of the needed funds. The remainder of the table is read in like manner. _ 39 At one time, 1941, the revenue from local taxes received by Iron County schools had declined 71.5 per cent from the 1927 high figure. By 1946, local taxes increased about $61,000 from the low point, for a recovery of 33.2 per cent. The $245,786 received from local taxes in 1946, however, still represented a loss of over $400,000 from 1927, or a decline of 62 per cent. Drastic losses in local revenue have been partially offset by increases in state aid and miscellaneous revenues. The 1941 state aid of $265,560 was two and one-half times the 1927 income from the state, which amounted to $107,081. Miscellaneous rev- enues for 1941, however, more a third less than in 1927. By 1946, state aid had increased only slightly to $274,174, and miscellan- eous income had increased rather sharply to $41,039. Total revenues reached the lowest point in 1934, at which time they had declined $405,134 from 1927 for a percentage loss of 51.8 per cent. Total revenues had increased markedly by 1946 to $560,999, but they were still $220,423, or 28.2 per cent, under 1927. -In summary, Table 11 indicates that local taxes, while in- creasing in recent years, are greatly below the lush days prior to the Great Depression. It also shows plainly that state aid has not made up the difference, in spite of having increased nearly three times. The table shows, also, that miscellaneous income varies sharply from year to year, but in general is becoming increasingly important as a source of revenue. 40 Table I translates the absolute statistics of Table II into relative terms. It is clear that local contributions constitute a much smaller proportion of total income than in 1927, or than in 1933, the last year prior to the adoption of the Fifteen Mill Tax Limitation Act. The table also makes clear that local effort has not declined as state aid has increased. Further reference to local effort will be made in later tables in connection with an examin- ation of comparative tax rates. For purposes of comparison it should be pointed out that total state aid for all Michigan schools increased from $16,422,553 in 19276 to $60,000,000 in 1946, or 265 per cent. For the same period, state aid distributed to Iron County schools increased from $107,081 to $274,174 (see Table II, page 37), or only 147 per cent. This discrepancy is due to the drastic decline in school population within Iron County. State aid is based upon actual school member- ship. As pointed out, local tax revenues are directly dependent upon the assessed valuation of the property of a governmental unit. The assessed valuation of real and personal property and the per- centage changes in property valuations in Iron County school dis- tricts from 1925 to 1946 are shown in Tables XI and III. 6 _s_1_(isi_Nint-S hmmmm ntn 21122122212912: gtrugtigp, 1243 Published by Eugene B. Elliott, Superintendent of Public Instruction, Lansing, Iichigan,) Table 27, page 86. .opoanoNc Hoonoo nonpo one How nonmam enHH ma sans» one no novnaomou one 36m .86.NNN.HN ss- NNNH fl 8223 been 65 no 66381» an. .3282: as. 1.2.3.43 H638 nanonsoa oopom Ho noHpomHon voaHHoswe menace one coo-ones one .mmwd an NomOHHoH no oHnop one coon .oHoonom Mo nonOHnnammoo Nansen on» no oowumo on» me uoHHu opnomou demand Nummmmmr N$.NNN6N nNN.oNN.N NNH.0No.N ENNNN NNN.NNH.N NNN.NNN NR.NHo.N §.NNN.H NNNH NNo.8N.HN NHN.NoN.N NNN..N.NN.H EN.NNN NeH.NHN.N oNN.Na.N NHm.oNo.N N$.NNN.H mNeH NHN.N2..HN oNn.N8.N Rois; oNN.NNN 8H.HHN.N 8N.$N NNNaNQN RN.NNN.H NNNH 0No.NNN.HN 8H.NNo.N 08.32.; oNN.eNN ooNKHNN 2.6.NNN NNN.NNN.N NNN.NnN.H NNNH 0No.NNN.HN oNN.NHN.N oNe.NNN.H nHNHeN Regan oHH.NNN oNN.NNN.N NR.0NN.H NNNH NNN..HNN.0N oNN.NNN.N N868; oNN.NNN 8N.NNN.2. mNN.NoN oNN.NNN.N NNN.NNN..H H.NNH NHN.NHN.oN NNN.NNN.N 8H.8H.H oNN.NoN 25.2.3. NNN.NNN NHH.NNN..N NNN.NNN.H ONNH oNN.NNN.HN oNN.NNn.N HHN.NNN.H 2N.8N NNHNNNN. mHNNR NNo.Na.N.N NNN.N8.N NNNH oeN.HNN.HN NHN.NNN.N NNN.8N.H NNN.HHN $263; NNN.HNN 8N.NHN.N NNH.NoN.N NNNH HNN.NNN.HN oNH.oF.N HNN.NHN.H HRHNoN NNN.HNN.N mNH.NHN mHN.NoH.N RNNSN N.NNH NNn.ome.HN NOH.NNo.e NNN.0NN.H HNo.NoN 62.83. NHN.NNN oNe.HHN.N 88.NNoN NNNH H6N.NNN.NN 8.1mm c. HNN.NNN.H H868 N.NN..NNo.N 328$ oNa..NNN.N NNN.HNH.N NNNH NNN.NNH.NN 83.8.2. NNH.NNN.H NoN.NHN oNN.NNN.N NNN.NHo.H NNH.NNN.N oNN.NNN.N NNNH NNN.NNH..NN oNHNNS. H8.NNN.H oNNNHN NNN.NNN.N NNH.NNo.H NNN.NNN.N oNN.oNN.N NNNH NNN.NNH.oN 20886 82.88; 8N.NHN 35.2.6.2 oHH.N8.H NNN.oNH.N 8N.oNN.N NNNH NNN.NHH.NN NNN.N8.HH NNN.NNH.N N0N.NNN oNN.N£..HH 8N.NNN.H NNN.N.NN.N NNHKNNN HNNH N.NN.HNN..NN oNN.NNN.HH NNNKHHN NoN.NNN NNN..NNN.HH 6No.NNN.H HNN.NNN.N NNN.NN.N.N oNeH NNNNNONN NNN.NHN.HH NNNNHHN STEN ooo.NNH.NH NNN.NN.N.H NNN.NNN.N NNN.NNN.N H.NNH NNo.NNN.NN N8.NNN.HH NNN.oNN..H NHN.NNN NNN.oNo.NH NN¢.NNN.H 8N.NNN..N NNN.NNN.N NNNH NNN.NNN.ON N0H.H6N.NH ONN.ONN.H NHN.NNN 8N.NN.H.NH NNONNNJ HNNNNNK oNNKNNN H.NNH NSNNQNN SEHHNNH oNN.NS.N oNnNNN oNN.NNN.NH mNN.NoN.H N8.NNN.N. NoN.oNN.N NNNH 6338.9 NFNNHNH NNN.H8.N oNNKNN ONN.NNN.NH N8.NNN.H 86.NNN.N 30633 NNNH since nemesis 2882: 30.53. E zomH 3:381 H.586 Hanna omwa OB mNoH 30mm mHOHmBmHQ Hoomom MBZDOU zomH Add kc onadDAQP ammmHMMd HH Ema Ill-Illill TABLE III PERCENTAGE CHANGES IN PROPERTY VALUATIONS IN ALL IRON COUNTY SCHOOL DISTRICTS FROM 1925 To 1946 DISTRICT HIGHEST ASSESSED 1946 ASSESSED PER CENT DECLIRE VALUATION“ VALUATION BATES 3 4,190,5951 3 1,522,900 63.7 CRYSTAL FALLS 8,463,0091 3,016,795 64.4 RENATITE 1,603,345‘2 369,455 76.9 IRON RIVER 13,245,260? 8,156,585 38.4 MANSFIELD 426,5183 268,370 37.1 IASTODOH 2,155,8254 2,040,155 5.3 STAMBAUGH 13.159.7751 5.560.645 57.7 COUNTY TOTAL 43,004,6591 20,934,895 51.3 1Highest valuation in 1925 2Highest valuation in 1926 ighest valuation in 1927 ‘Highggt ggluation in 12;; Qfigugggk Annual reports filed in the office of the County Commis- sioner of Schools and records of the Iron County Tax Allocation Board. Read the table as follows: The valuation of Bates Township District as assessed by the Township Supervisor, and as equalised by the County Board of Supervisors, declined from a high point of $4,190,595 in 1925 to $1,522,900 in 1946, representing a decline of 63.7 per cent. The remainder of the table should be read in like manner. 43 An examination of Table XI provides at least a partial ex- planation of the drastic decline in school revenues from local taxes already shown. It is seen that a severe decline in property valuations had set in even prior to the Depression and prior to the adoption of the Fifteen Hill Tax Limitation Act voted by a tax — weary public in 1932. Even then valuations had declined over 817,250,000, or £2.5 per cent, from 1925. The decline continued until 1940 at which time the tax base was only 47.7 per cent of the 1925 figure. A slight increase was experienced for five years, followed by losses for the years 1945 and 1946. Until 1933 losses in valuation could be recovered by an up- ward revision Of the tax.rate aerely upon resolution of the Board of Education. The Tax Limitation Act, however, placed a ceiling on taxes and removed the right to determine tax rates from local governmental units, thus tying their hands almost conpletely. The majority of the assessed valuation of Iron County is represented by the value of the iron mines. The valuation given to the mines is recommended to the local assessor by the State Tax Commission on the basis of an extremely complicated formula which makes allowance for depreciated mineral reserves and for the profit factor. lining. companies have insisted that industrial conditions have reduced the profit factor to a very low point and the heavy demand for iron ore caused by the War has depleted re- serves drastically. A committee of legislators headed by Mr. Carl Lindquist, representative from the Iron-Baraga District, 44 held a public hearing on June 27, 1946 to consider the problem of devising legislation-that would encourage mining companies to exp plore for are without penalising them too severely for any new re- serves uncovered. The problem is outside the province of this study but tfio manner in which it is ultimately solved .111, in all probability, have lasting effects upon the tax base supporting the schools and other governmental functions. It will be noted from further examination of Table II and Table III that some of the districts show decided differences in the amounts and in the rate of decline in valuation of taxable property. Hematite has lost 76.9 per cent, or more than three- fourths, of its tax baa. within the twenty-year period covered by this study; whereas Mastodon Township, which had lost nearly 50 per cent of its valuation by 1941, has experienced a splendid re- covery to within 5.3 per cent of its peak valuation. This re- versal of trend is only partly due to mining conditions. One new mine has been developed in the Township of Mastodon during the past five years, but the most of the increased valuation is due to the development of hydro-electric power facilities. There is promise of further increase in valuation in Mastodon from this source. The lack of uniformity in valuation losses has led to great inequalities in the tax base supporting each school child among the seven school districts of the county. This factor will be examined more thoroughly in later pages. The policies practiced in the assessment of non-mining prop- 45 TABLE XIII PERCENTAGE OF TAXES PAID BY MINING COMPANIES AND ALL OTHER SOURCES TO ALL IRON COUNTY SCHOOL DISTRICTS FROM 1928 TO 1945 ==================================================================== YEAR PER CENT PAID BY PER CENT PAID BY MINING COMPANIES ALL 0THERS* 1928 63.20 36.80 1929 63.71 36.29 1930 68.01 31.99 1931 67.66 33.34 1932 59.57 40.43 1933 67.14 32.86 1934 68.73 31.27 1935 67.62 32.38 1936 67.77 32.23 1937 68.15 31.85 1938 67.32 32.68 1939 66.16 33.84 1940 67.40 32.60 1941 72.77 27.23 1942 73.69 26.31 1943 72.75 27.25 1944 71.96 28.04 1945 71.67 28.33 f§g§g§gz Special statistics supplied by the Iron County Taxpayers' Association. Read the table as follows: In 1928 the actual taxes paid by the mining companies holding property within the county were 63.20 per cent of the total while all other property holders paid 36.80 per cent of the total. Read the remainder of the table in like man- ner for other years. 46 erties affect governmental income. Table XIII presents interesting statistics concerning these policies. It is clear that the taxes paid by the mining companies are the most important single source of local income in Spite of the drastic decline in the valuations placed upon the mines. It should be pointed out that the percentage figures in Table XIII are not ex- actly the same as the ratio that exists between mining and non- mining valuations because a larger proportion of the delinquent tax each year is found in the non-corporate area. This fact tends to raise the percentage figures in column one and lowers them in column two. The heaviest losses in assessed valuations occurred between the years 1930 and 1936 (see Table II, page 41) , during which time approximately fifteen millions of dollars in valuation was lost as a tax base. The proportion of taxes paid by mining companies do- clined only .24 of one per cent during that period, however. Thus it would appear that the assessment of none-ining property declined .in value at almost the same rate as the decline of mining values. Local Boards of Review made it a practice arbitrarily to cut non- corporate valuations in about the same proportion as mining value ations were lowered. The purpose of this practice was to maintain the same relative tax burden between corporate and non-corporate taxpayers. It is questionable whether schoOl men were aware of this practice, but even so, there was probably little that they could 47 do to prevent it. As a result of the policy pursued by Boards of Review, an attitude has developed towards the valuation of in- dividually-owned property that makes it very difficult to assess such property at any amount near its real value. In one school district there is no privately owned real estate assessed for more than 3150, according to a quick survey made by the writer. In this particular district there are farms with all modern equipment that produce fine crops and are easily worth many thousands of dollars each. Another known instance in another district shows a resort property recently sold for over $13,000 which is carried on the tax rolls for $1,500. Most privately owned property is undoubted- ly more valuable today than it was ten or fifteen years ago, yet no attempt has been made to evaluate it for tax purposes in line with increased values. Perhaps any attempt by tax assessors to raise values materially would lead to political repercussions that elected officials do not care to face. Absolute valuations have declined drastically in Iron County as proved by the preceding analysis. It has also been shown that school population has declined sharply during the period under study. Table XIV shows the relationship existing between the losses in both property valuation and school member- ship by tabulating the per capita assessed valuation for each child in membership at the close of the year indicated on the table for each district. .uosssa emaa ca caneu on» no successes on» doom .msauoao puma mw much use mousse seaweeds» sump no cepoeHHoo use weapon seen one mouev use 000.NH0 ee- nfinenmoa eovom ma nanoeonsos ea cadno nose he mean seaweeds» on» omen .onsh sH semOHHou no canoe new poem .3033 Ho nosoamefigoo .5580 one no ooCuo 23 5" “Veda anyone." H.383 30.309. «Rum macs 3.}. «8.3 8%. m3.“ 61¢ «$8 33 mmo.“ coma on} 68.8 3mg wmm.~ «SK comm SS owoa SH.“ 33. R3: 68.1. 83 «Rd «36 .33 men.“ 08.“ as.“ «2.3 366 83 8.} 83. 23 was com; part «3.3 we.“ «3.... 52m $3. 33 com .e moo; 633 HR .1. 8m.“ «.3; QBJ new; GS «33 03$ 83. 81o Rm.“ Sim Human ~34. SS ogre «2:2 8H3 «an .1. Ros «8.... Human 8...; once was «33 mean 3%.» “$3 «$.m 83 .36 RS cows ens mama 83. $3 35“ Reg :86 Sea 822 .33 £88 83. .53 «SJ Rim mood RS 32¢ fins .53. 80... ~83 main as} 5...» RS no} :32 Gm; 3.3. new... 33 coma Rm.» .5; 8w..\ 8c; «86 2.3. New.“ mm~.m ~23 in .1. Rod 8.} $3 5..“ ES: new.“ .25.... mm...» 3&6 «MS 26.“ «3.... macs RS: a...“ new; «$3 3“ .m :3 1.85 an} on...“ 892 Rod «8... MR... cows 82 «SK $8..» 806 026 Bed Bun sum; 32. $3 an .... mom .o and.“ mum .m 8m .2. coca e23 coin 82 08..» 3a.... $2 331 «a.» 3m... 33. «no.2 53 «8.3 54.8 93...; Rhea “13.3 30.2 «our; 8.32 0an age. mm»? was LESS mupcmfiem 2882.. 922: 29: 32% domes was. a mama 9H. cum...“ 50% ”common M9550 zomH 4A4 mom mHmmmmmSmfi .80QO «H.Hmdo mam zofiwdpndb ammmmmd En Ema 49 In four of the seven school districts of Iron County, namely, Bates, Crystal Falls, Hematite, and Stambaugh, valuations have de- clined more rapidly than has their school population. The most ser- ious discrepancy appears in Bates Township which declined from a per capita tax base of $12,660 in 1926 to $7,873 in 1946, a loss of 37.8 per cent. Iansfield Township experienced the sharpest gain, 106 per cent, but enrollment is so small in this district that a slight change in membership causes a considerable variation in per capita wealth. Mastodon nearly doubled its per capita wealth, gain- ing 92.3 per cent. Iron River suffered per capita losses for sev- eral years during the Depression but the losses have been regained. Stambaugh, the system most closely parallel to Iron River in all respects, ended the period under study with a per capita loss of 25.8 per cent, a fact not generally appreciated by persons making comparisons between the finances of the two neighboring school districts. . In general, much sharper variations appear in the tax base supporting each child among the various districts than appears for the county as a whole. This has caused some districts to be rela- tively rich and others to be relatively poor. Generally, valua- tions have declined more rapidly than has school population. With declining tax rates due to the Fifteen Mill Tax Limitation Amend- ment revenues back of each child have varied sharply, usually downward. Table XIV will reveal more significant facts if studied with .upofinaeao peeve one same» scene new houses exda nu canes one no nocsaeaom one poem .Mb.HHw ween nwmeeaeom use «n.0mw ween epdeemem .:0Hueons> commence Mo emsHHoc essence» one nose hon “scavehono no nomv mouse Hoomoe ea 00.00 vase nanenmoa «ovum no eaohcmxep Quad eH «embanou as canon one poem 5 .oapsawebs no: uoapnaasue onensoodre .eHoonom Ho nomoaaefissoo one no oofimuo one a“ oeafim manages Hesqq< ammmmmma >N mqmdu Aonadqub mammmmmd ho mmdquon nadmpomh mam mmHm zomH uaHadsmm Adammmo mmadm mam» 51 Table IV which shows the tax rate in dollars per thousand dollars of assessed valuation for each school district for corresponding years. Attention is called to several facts necessary to properly understand Table IV. NO figures are given for Crystal Falls until 1933 because reports were not filed in the office of the County Commissioner Of Schools prior to that date since the district was until then organised as a special charter district and was not re- quired to file annual reports with the Commissioner. In 1942 the County Tax Allocation Board refused to grant anymillage to Hana- field because the balance in the school treasury who greater than the amount of the budget for the ensuing year as submitted to the Allocation Board. Under the Tax Limitation Act no millage in ex- cess of budgetary needs can be allocated by the Board. For the following two years the Mansfield budget required only the status tory minimum of 4 mills. Bates Township Schools have voted millage outside the limitation continually since 1937. Crystal Falls did likewise from 1941 onward. lansfield, Mastodon, and Stambaugh electors authorised additional millage in 1936, 1937, and 1943, respectively. Only Hematite and Iron River have failed to remove the tax limitation. It will be noted that tax rates up to 1933 are given in irregular figures. This reflects the condition prior to that date when raising funds for school operation involved merely the divid- ing of the budget total by the assessed valuation and certifying 52 that figure to the township, city, and/Or village treasurers who spread that rate upon the roll. Usually a flat ten per cent was added to the regular budget to care for contingencies. Beginning with the school year ending June, 1934, however, districts were re- quired to submit their budgets to the County Tax Allocation Board which examined them together with the budgets of all other governp mental units affected by the Tax Limitation Act and then allocated to them as large a share of the fifteen mills under their Jurisdic- tion as the facts seemed to merit, or as the pressure seemed to re- quire. To protect against undue pressure the law provides that a minimum of 4 mills be allocated to the schools against 3 mills for county government and 1 mill for township government. Each year a struggle takes place between county interests and school interests over the division of the millage to be allocated. In 1944 the schools were successful in their plea to have the share allocated to them under the limitation increased from 5.50 mills to 6.50 mills for the year ending June, 1945. The same millage allocation was made for the following two years, although the current alloca- tion is not reflected in Table XV. The plain facts are that enough dollars, or mills, are not available to satisfy the legitimate needs of all units. To show the effect of the Tax Limitation Act operating upon declining property valuations amongst the various school districts of Iron County Table XVI is introduced at this point. 53 £85.. 3.3 a .300. on» «o 8001-8 .5 08.0 .0013 as. so.» one. one. .80 033.80 8.3300 .80 $8838 005 coerce as"! 03.8. are 63.03 as. 033.60 .330 ace $3838 080 0333 con: 33 a: 32 0H .2528 or on...» one. 008 621:!- ooo 83.33. 3833.... .2803. «o ozone-«Eco a: «o .0an 3.. 5 0.3 Shoat 285 .3. a-.. .. ... a .e- ... . . J. - a. . .4 . . . $3.8 088m «3.3 RS. no.3 «0m.« «00.8 00.0.3 33 «8.02 «can 808 2.0; “3.3 «0.3 50.3 nag 33 «2.03 3.0a «8.3 80; .333. efl.« and $0.3 33 03.03 8...: ««c.«« 0800 000.3 $a.« «no.3 08.3 «in «.302 000.3 «3.3” an.“ «8.3 Sm.« mR.0« 0.3.5 30H 80.02 «2.8 5.3 «8.4 05.3 003 000.3 «00.3 30H 0:62 «anon «2.3 80.“ 02.3 Rim «8.3 $0.8 RE Re . d: 08.2 «40.2 0.3 .m «00.3 no} he .5 $0.2 «RH 0.3;: H84... 3:: .E...‘ «0......» «2% 03.2 «3.3 .33 «2.02 30.3 08.2. $0.« 804.. coma 8.15 «8.3 Rea «8.02 30% «8.» «03” Sum an.“ $08 ”5.2 RS «363 ocean “S... «84 80.3 an} .55 «3.2 .32 «2.03 cone: «3.8 000.1. 00ers 30:} «8.8 «QR Rea «2.03 «Si 08.1. «862 $0.9m .. «3.5 «mm 03.“? $00.” 80.0 2.3.3 03.3 .... «3.9 RS «363 3.3 03.3 03.3 «3.3 s. 03.3 once .30.an 2.0.3 000.2 30.1.3 30.3 .. 000.0... 82 08.9; 03.8 000.3 30.9: 0Q. .. «neon 23 02.1.3 50.2 000.: 000.03 02.80 ... 81.4.. 52 0 «2:5. 08.03 000.2. 08.58 02.34 .... a 02.0.; 83 Adhmnmo cvwd 09 onH 30mm mqoomom Hazpoo zomH Add ho HOHHdmmmo mom mmemA NdH Adoon ho mambold H>H Hands 54 Accurate totals for the county as a whole are not given be- cause accurate statistics for Crystal Falls are not available. An examination of the original records reveals that no breakdown be- tween debt service and general Operation income was kept by Crystal Falls prior to 1933. As already noted, Mansfield was not permitted to levy any taxes for year 1942 because of an excessive cash balance. The most drastic decline in tax levies on local property occurred in Hematite Township which raised only $2,434 in 1946, or a mere 5.6 per cent of the $43,330 raised twenty years earlier. A review of Table II, page 41 and Table‘XV, page 50 provides the basic data ex- plaining the astounding loss of local revenue suffered by Hematite. Clearly, local property has not been burdened by the support of schools since the adopting of the Fifteen Hill Tax Limitation Act. A final phase of the local tax problem is the debt status of the schools of the county. It is indeed fertunate, as pointed out in the introduction, that the physical plant for the schools of the county was built largely prior to 1925 when valuations were high and no state limitation Ias placed upon tax rates. The construction of I. $300,000 high school in Iron River in 1928-29 was the 1.5+. major building operation in Iron County. At the close of school in June, 1946 only two school districts, namely, Hematite and Iron River, still carried any bonded indebtedness. Iron River still owed two annual installments of $15,000 each and Hematite still had outstand- ing bonds amounting to $15,000. In Table XVII may be seen the amounts raised to pay interest and bonds from 1926 through 1946. 55 .0occos 0x00 :0 cane» one no 0evnfioso0 one 000m .0000000 noon 000: 00:00 00:0 0000000 1:0 ocean xaeam .moaonhun use. one 000 000.00 haovamwuouane 0000 eHHem Hovmhho and pnec voodoo no 00000000 can Hda0oQ00a 000 000.000 00 oopem 0«00 n0 “aboaaou 00 canon 0:0 000m oouafixouand .uHoonom Mo hOGOHnnHfiEOU 003. HO OOfiMNO on». a.“ UOHHM OPHaOH Hun-find «Noun-om” 000u00 000H00 000. . .0000 «00.«0 . 000.00 00« «N 000 « 0000 000.0« 000 0 000.00 0«0H0 0000 www.wm 000.0 WMM.MM MW0.«0 0«0. mwm0 000.00 000.0 000.0« 0«w.w « 000% 000.0« 000.0 000.0« 000.0 03.0 0000 ««0.00 000.0 0«0.«« 000.0 000 0000 000H00 000.0 000.«« 000.0 000.0 0000 000.«0 00«.0 000.0« 000.0 0«0.0 0000 000.00 . 0«0.0 00«”0« 000H0 «00”00 0000 .00....“ 00... 00.. 0.0.0.. 00.... 00.0 0.0 00«.00 000.0 000.0 000.0 000.00 000.0 0000 000.00 000.0 000.0 000.0« 000.00 000.0 0 . 00 a a 0 a a I... a gun. N H 000.00 000.W0 «00.0 0«0.0« 000.00 ..000.0 000.0 0000 0.0.0.0 0.0.0 0.0.0. .000 00.0 $0. 0....“ 0.... a a a a 0 u I... a H. H 000.00 000.0« 000.0 000 «0 000.00 ..000.00 000.0 0«00 “0.0. 000. 000. 0.... 000. 0. .. 000 000 000 0«00 eqdaoe wmmflh 002000 000000000 0000000: 00000000: 00000 0000 00000000 0000000 00000 0000 I' 0" 0"‘Il‘!“‘lv.l‘ll cvod ca omofl Iomh maonamHn doomom Hazaoo zomH 4A4 Hm Mm¢d 09 monm nmmeood ammn czHoH>mmm mom mHHbmq N49 Adooq :th anm mHZDoad HH>H mumda 56 During the twenty years covered by this study all bonded debt for Iron County schools has been retired with the exceptions noted for Iron River and Hematite. Iron River has practically paid for its beautiful new high school during this period. Mansfield has had no bonded debt during the period. During 1933 and 1934 large amounts of school money were frozen in closed banks. Some districts found it necessary to default on the payment of principal for a time. Iron River used general fund money to resume payments in 1934 and 1935, thus producing a deficit in their debt service funds which they are replacing currently from excess debt service collections each year. Hematite refinanced its bonded debt in 1941 at a lower rate of interest. For the past three years Hematite has levied 35 mills for debt service and now has sufficient funds to meet all bond obligations as they become due. They have purchased at a slight premium, but at a considerable total savings in interest, many bonds being dated as due in the decade 1950 to 1960. It is clear that bonded indebtedness is not a burden upon local taxpayers in Iron County. This factor should make it more easy to vote additional millage for operation. All districts ex- cept Iron River and Hematite now do so, and both of them plan to do so as soon as their debt has been retired, or before, if neces- sary. The absence of debt might also be a factor in smoothing the way for ultimate reorganisation of school districts within the county. 57 Beginning as early as the passage of the Turner Bill for state aid to poorer school districts the idea of the need for some method of equalising the financial burden of free public education has been gaining strength. Following the adoption of the Fifteen Mill Tax Limitation Amendment state aid to local school districts has steadily increased. Since 1933 there has been a struggle be- tween those wealthy and populous districts who desired to have state aid distributed according to the number of children on the school census, and the sometimes labelled 'equalization' group who desired distribution of state aid funds according to the nump ber of children actually in school. Iron County districts, having no parochial schools and with a high ratio of school attendance to school census, have supported the I'equalisation" group. The equal- ization idea finally won out and all state aid now, practically speaking, is used to provide an equalization fund. To determine the amount of school aid a district will re- ceive under existing legislation the number of children in the el- ementary grades is multiplied by the gross allowance for each child and the product is added to the amount obtained by multiplying the number of secondary children by the gross allowance for each child. To this total is added transportation allowances, state Paid tuition, and sometimes assistance grants of $500 each for outlying schools. The total of all these items is called the Gross Allowance due a district. From the Gross Allowance will be subtracted the Primary 58 Interest Fund money which is distributed annually in September and December and an amount equal (under the present law) to not less than 2.25 mills on each dollar of State Equalized valuation. Be- cause State Equalized valuation is so used in determining not re- ceipts under state aid allowances, it is important to determine the relationship existing between State Equalized valuations and County Equalized valuations. Local taxes are levied on the County Equalized valuations, but if the County Equalization figure is less than the State Equalization figure, the schools are penalized. Table XVIII shows the relationship existing between State and County Equalized valuations from 1938 through 1945. 59 TABLE XVIII COUNTY EQUALIZED VALUATIONS VERSUS STATE EQUALIZED VALUATIONS FOR SCHOOLS IN IRON COUNTY FROH 1938 TO 1944 YEAR COUNTY EQUALIZED STATE EQUALIZED RATIO OF VALUATION ELLUATION COUNTY TO STATE“ 1938 $21,321,670 $20,856,000 102.2 per cent 1939 21,425,830 20,656,000 103.7 per cent 191.0 20,512,615 20,156,000 101.8 per cent 1941 20,521,745 20,500,000 100.1 per cent 1942 21,328,020 21,600,000 98.8 per cent 1943 21,448,020 23,000,000 93.3 per cent 1944. 21,703,415 26,000,000 85.8 per cent 1945 21,397.055 24,300,000 88.1 per cent {figggggz Annual reports of the lichigan State Tax Commission. Read the table as follows: In 1938 the County Equalized valua- tion of all the real and personal property within the county was declared to be $21,321,670, which was 102.2 per cent of the valua- tion determined by the State Board of Equalization or $20,856,000. Read the remainder of the table in like manner. 60 It will be observed that until 1941 the State Board of Equal- ization accepted rather generously the equalized values set by the Iron County Board of Supervisors. After that date, however, the Tax Commission recommended to the State Board of Equalization that the State Equalized values be raised in relation to the County Equalized values. The writer personally objected to the $26,000,000 figure set by the State Board of Equalization fer 1944 on the grounds that proper consideration was not given to the proportion of Iron County property held by corporations upon which the State Tax Commission had set the assessed values. The error was discovered during the following year and is reflected in the decline to $24,300,000 set for the year 1945. If school people could induce the County Board of Supervisors to re-examine assessment rolls with a view to bringing County Equal- ized valuations more closely in line with State Equalized valuations, much additional income could be derived from local taxation. luch more could be written concerning the ramifications of the problem of property equalization, but it is not necessary to an understanding of the relationship between such values and state assistance to schools. It has been repeatedly pointed out that local revenue re- ceived by school districts in Iron County declined drastically fol- lowing 1933 due to the sharp decline in assessed valuations and lowered rates imposed by the Fifteen Mill Amendment. To what ex- tent these losses have been recovered through increased state aid 61 .nuuoh one auonnpefio ponpo you noose: oMHH ma caps» on» Ho havousaon can poem .nooh one. 2.3 warns SE» 3:32 3386: £3.03 3538 :2 Babe .5” 333m 69. 81? :93 «3633338 an 8.3338 e2 posse: Hoonom emu-Em on... .3 93:. a: s. 333: «a 326 one not $5.3 8:82 38%.." finesse .33 £3 3 .233: 3 638. .5 68m .eaoogom no noncaaeaaloo one no eouuuo on» ad ceaau «phonon Hoonqd .ummmmwr 36.8 Small. man a? madildqmqllljflflllflflli w «3.8 «8.3 3.3 13 48.8 $«.« $«.3 «36 33 «m1? 80$ 68$ .36 8.13 g..« «3.3 So.“ 3E 62.6. 68.8 ««H..\ 6:. $6.5 o«m.« 3:: «$3 32 08.2. Sara H33. E. “83 n.««.n «3.3 new.“ «in «2.2. «mesa «.33 ««m mm«.«« 8.3 $0.: «8K 33 80.2. 86.8 63..» E. Red cam.« 36:: Sum 33 3&3 $8.9 36.6 «8; 68% Sm... 85.3 memo. RS Rafi. 8&3 68.... E. $.22 «38 «3.3 «$.n Rea .Bm .3. 665 H33 «8 03.? Rafi 68.3 86.“ RE Rog $«.e« £63 Rm 328 6«w.m 63.3 62k 83 803. R13 «33 ««w m5.«« o«m.m «2.5 .36 33 «5.8 e24.” 2.6..» one omega 863 R5: 36 .33 $663 92.8 ”$6 688 8%.: m8.“ m««.m« 33. «mod «3:3 36.3 ««mg. 8...; 308 Rog «mark Sim «MS 365.: «$.13 ««5. won; $18 $3. $35 $1» RS 08.93 «8.3 £3. «3; 8.1.x 8.16 23.8 «86 RS cabana RQR 56;. «S; 63.8 3a..» “183m ««3. $3 31:: 86.8 otk an; «8.5 3.} 93.8 Sax $2 «$33 «3.8 «86 $0; $«.w« «$6 m««.m« 83 $3 $0.62 «2.9. «S. . m8. $o.w« a; «8.8 one.“ nNS .Esoo 339.4% 2889:. . .. amas- EE flag a 1.3 .52. BE SENS I v’||uli. V‘I'L‘l'lt llll' iili': I'llllllllull NHN Handy 62 denou- eofid 3 033 on» no accede-8A 05 doom .hoooa huesanm op nouvficve nu omb.oaw webfioooa ea Q<0H no one .omm.oa cepaoooh pa «man on .532. .9375 no.3 peeve 38 one: on 005000." eopem Quad QH 2.39:0.“ a: 0.33 on» poem sag—Jag. o8 833.3. 3383.... .aHoozom no noooaeeaafioo .3560 83 no ooauo on... ad coda anyone." H354 “at animam ,8vo o w w 2” m H $33 80.3 3.02 E. «61$ oo«.o $03. «S.» 33 “«o.oo« oo«.oo ooo»? ooo oooom $3. Sufi 30$ 33 Sign o«o.fi 893 ooo «no.2 R0: «3.3. Rio «.5 31.x: Room HQ: ooo «8.3 313 «««i «3.3 «oo« 8.33 ««mom omifi Sm Soon Sn .2 «8.2 $02 33 “3&8 30.3 «2.2 «o«.« «8.8 312 oo«.d‘ 3.3 83 «Sand oflon oo«.fl ooo; Rod 93. «8:3 zoo RE ooo..~o« «SS «#2.: ooo o««.om “8.3 Roch ooo.«H RS oo«.«ofi Ewan m««.«H 3o; 30% no.3 3.3m «8.: RS Sauna oo«.om Roz: m5 §«.$ 803 «8:; RS. 83 $081” Hanan 8.13 o«n «8.8 «$6 «8.8 on...» 32 «3.8 «no.2 ooo 2. «3.5 «S.« «««3 936 «RH oo«.ofl oH«.« mao.« ooo oo«.a «mo.« ooH.H ooo «oo« «min 8«.« oo« oom.« 31m .. ooo «MS «33 3o.« oo« «oo« «oo« .. ooo RS ooo; ooo «m 8«.« ooo .. ooo omoa ooo; oo« ooo ooo ooo .. ooo $3 . ooo; oo« ooo ooo oo« .. oo« 33 oo«; oo« oo« ooo oo« .. ooo ...«S Siam oo« m ooo bl! ooo ooo .. ooo 83 .238 533$ 2883.: Bozo; g 53:51 as «SE SE «:58 zofi .3996 39H Om. 0N9” 20mm maonemHm Aoomom goo zomH Add Mm EHmomm go: wan—”mm 2.4mm. E0 9: madam an End 63 is shown in Tables III and II. In 1933 Mansfield Township received no Primary Interest Fund pay-ants, probably because of excessive balance or because of failure to file proper records. The rather wide variation in Prinary Inter- est Fund payments shown in Table III would seen to indicate that districts cannot depend upon that source of income for even a rela- tively certain amount. Since 1940, however, this has been a less serious problen since at that time a full equalization state aid bill was passed and the Primary Interest loney became a part of the total picture. It is also interesting to point out that Primary Interest payments likewise felt the effect of the Depression and the Fifteen Hill Tax.Linitation Amendment. 1 large part of the Prinary In- terest Fund is derived from taxes upon Public Utilities collected by the state at the average tax rate collected on property through- out the state. The Fifteen.flill Aaendnent lowered the average tax rate drastically, and valuations placed by the State Tax Con-is- sion dropped‘in line with the decline in valuation of other prop- erty. Statistics for aiscellaneous state aid for Crystal Falls were unavailable for the years 1926 through 1932 for reasons already given. Such miscellaneous income was, it will be observed, relative- ly unimportant until 1934. Mansfield was not granted any state aid other than Primary Interest Fund payments from 1942 to 1944, in- 64 elusive, because of her otherwise favorable financial condition. It is clear that state aid has not replaced the losses in local revenue occasioned by lowered valuations and constitutional tax limitation. A re-examination of the statistics for school mel- bership easily explains why this is true. Each session of the legis- lature has increased the funds distributed to schools until, during the year ending 1946, $60,000,000, including Primary Interest Fund money, was distributed. While state aid increased as a whole from just under $22,000,000 in 1930 to $60,000,000 in 1946, or 173 per cent, the grants to Iron County increased from Just over $107,000 to approximately $270,000, making allowance for miscellaneous state aid. This represents an increase of $163,000, or about 152 per cent. Had school population not declined so sharply, the state aid for the county would have been many thousands more than it has been-in fact, roughly $112,000 more. Since it is clear that fixed costs do not decline as enrollments decline, the financial picture for the schools of Iron County would be much brighter had enrollments held to their 1930 level. The effect of declining enrollments will be further examined in a subsequent section of this study in connection with per capita costs of operation. 65 0. BUDGET EXPENDITURES 1933 TO 191.6 Just as the amount of revenue available to the schools is closely related to the quality of the education program offered, so is the manner in which that revenue is allocated to the var- ious areas of the school budget likewise important. It is clear that the way in which money is used is fully as important as how it is acquired. The following pages will be devoted to a review of the manner in which the school administrators of Iron County have expended their incomes fer school purposes, especially since 1933. “It will be impossible to provide a clear picture of school expenditures prior to 1933 because the methods of accounting for school funds prior to that date did not break expenditures into categories now generally accepted as good school accounting. To apply present classifications of budget expenditures to the years prior to 1933 would require a complete revision of the original school accounts, a task beyond the scope of this study and would not provide sufficient pertinent information to Justify the effort involved. Enough evidence is available, however, to make necessary and desirable comparisons with more recent conditions. The several tables on the following pages show expenditures for the classifications now’used by the Michigan Department of Public Instruction in its uniform accounting system. These classi- fications have been rather uniform since 1933, but in a few in- 66 stances changes have been made which may require brief supplementary explanation. - The first area of expenditures herein reviewed is that of General Control. This includes such items as school board salaries, supplies, election expense, salaries of superintendents and assist- ants, business administrators, and all general items dealing strictly with general administration. All districts, regardless of size, have certain General Con- trol expenses that are largely duplication, and sometimes apparently unnecessary, although required by law. For example, in Iron County the three school districts of Iron River, Bates, and Stambaugh are required to publish notices of elections a prescribed number of times in the same newspaper, the Iron River Reporter. The four districts on the east side of the county, Crystal Falls, Hematite, Hansfield, and Mastodon likewise publish the same kind of notices in the same issues of the Crystal Falls Diamond Drill. The only difference in the notices is the signature of the school officers and the descrip- tion of the place where voting will be conducted. Similar duplica- tion exists in certain other General Control items. These duplica- tions will be considered in detail when construction of a unified budget will be considered. In Table 111 the total General Control expenditures for the seven school districts of Iron County are listed. All figures given in this table and in most following tables are correct to the nearest dollar. 67 .aonnoa exHH n3 canoe one no newsflasou one deem .Hthsoo Hdhoseo you mam.mma condemns hpnsoo nOHH no eHoonon one Ho Had was .Aeeh Hoonom case on» wheeze saucepan ease one you bwb.ca pecan poflapewa eafleh Hepehao eaflnl .aoeoahmn donpsoo Heaosoo you mom.aa ceceeaxe poanpefin Hoonom nanensoe nopem mmma sH «eIeHHom as sand» one usem .eHoonom no nesoaeefiamoo on» no oo«uuo one a“ muddy manages Hammad ”mmmmmwr «R .3 «3.3 «.33 3m; $3. .853 «86 o3..« 33 33.3 $5. $3 ooo; $«.o «33 «3;. $33 33 $3.3 onus. 3o.« mmo.” 33. Ro.m memo .33 33 33% $3. 33$ 3. Sim Sma ««mo $o..« 33 «3.3 $3. 3o; «2. mom}. oem.« $«.o «8.« «33 835 «.3.» «$4 as m3; m3.« .3.“ ««o.« 33 33a ooo.o mom; Sn «3;. o3.« “3...» .««w.« 83 .33 none moan oo« :«3 m3.« $5. o$.« $3 «3.3 3.} Hana won 3.5. o3.« 33. 3o.« 33 3.6.3 «$6 «33 Re “3;. «Q..« 5.6 $.« $3 803 Rio Rim he 33... .36 3.3 $e.« 33 .35 oo«.“ 35.3 33 $56 3o.« on} «mm.« 33 3&3 33. s$.« as $36 3«.« oo«.o o3.« 33 «mag omoxa 8.12 .3 a Box» on}. $33 93.3 $3 3:33 mooemiam 2833: 33m; EB 33an 34: 33m 33 ~58 . as: .535 Ill. HNN mqmda Qfiofi ca nmmH 30mm onomom HBZDOO zomH Add Hm mmmommum Acmezoo Admmzmw mom mamaaHmzmmHM 68 With the exception of one district, Mastodon, the expendi- tures for general administration have increased sharply since 1933. If comparative figures were available for two or three years pre- vious to 1933, they might reveal that districts had economised in administrative expense by 1933, as they have economized in other areas. June, 1933 was perhaps the low point of the Depression. 0n the other hand, the Fifteen Mill Limitation Act was not effect- ive until the school year ending June, 1934, and it is evident from a study of Table III that general administrative expense did not decline in the years immediately following tax linitation. Bates, Mansfield, and Stambaugh more than doubled their ex- penditures for General Control in the fourteen years covered in Table III, while the county as a whole increased expenditures by 47.1 per cent. Administrative and clerical salaries have increased considerably in the fourteen years studied, and there have been some changes in allocation of the percentage of the superintendent's salary to General Control which may have affected the totals shown, but irrespective of all allowances made, it is clear that admini- strative costs have risen. inch of General Control expense can be considered almost in the nature of a fixed expense regardless of school enrollment. The sane school board is needed, the same, or nearly the sane, superintendence is required, and nearly the same legal processes must be followed regardless of enrollment. Table XIII portrays the effect of declining enrollment upon the per capita costs of 69 .noanda axed a“ canoe one no hooadsieu on» poem .bo. o~.m Hm.Hv m>.m ms. om.>3 om.m 00.03 mm.“ q~.HH qufl ms.m 0m.< om.o ow.<~ ww.q Hm.o n<.e Hm.oa oqofi 36 86 $23 $.3 2.4 8.3 $6 8.0 $3 86 84 3.: $63 86 3.3 d3. 84. $3 bm.m m~.< mw.OH om.6a ~m.< «n.33 ~<.e «6.5 emma m<.n ms.m mo.oH ~m.<~ Hm.< «3.03 mm.6 ~o.o «mod qo.q «o.m mm.m 66.33 mm.m «w.o om.m mm.o mama ~<.v «b.~ «H.w mo.<~ om.m ws.b mH.m no.6 «mod so.< o so.~ a um.m o as.wa a em.m « Ho.> « mm.m w mm.m a name 3.2.2. 533496 288mg a 2.6.2.? mam 331% m3: $3.3 g 32:8 203 .536 Hi] 83 2. $3 .83 385m E58 $3 .34 E geese 3.3mm mom £33sz «33o mum an mafia 70 General Control for Iron County Schools. As shown in Table XXII, per capita expenditures for General Control in all Iron County school districts increased sharply during the period under consideration. The range in percentage is from 49 per cent for Mastodon Township to 367 per cent for Mansfield Town- ship. The percentage for the county as a whole is 149 Per cent. Bates, Iron River, and Stambaugh show an almost unbroken climb in per capita expenditures for General Control during each successive year. As might be expected, a definite relationship was found be- tween the size of the school and the per capita expenditure for General Control. The only apparent exception to this observation is the case of Bates Township for 1933, which shows a smaller per capita cost than the much larger Crystal Falls system. Upon examination of the records it was found that the low per capita cost is due to the percentage of the superintendent's salary allocated to General Con- trol. lost of the smaller schools have properly adopted the practice of allocating part of the superintendent's salary to supervision or to teaching. The two larger schools, Iron River and Stambaugh, have not followed this practice. In spite of that fact, however, their per capita costs have remained much lower than the figures for the other schools. The very large per capita cost figure for Mansfield is principally due to the very low enrollment found there. The largest item of expense in any school budget is for in- structional salaries. Table XXIII lists the expenditures for fl .0058... 333.3 333 030.0 033 no 0033333393 0330 33333 $3.3m» 3332.30 0393 a 00 30.33350 on» on: 3.0.03 0.33an 03.3033 393.30 .3093 00:00 05 333 .soupganaflave .3o 3390030303338 9333035233 .0003 £03.33”: .unonodop .30ng .30 0330.03 3003033093 033336 3330333300. nopsm mama nH 23330.3 no 033 3.0 30qu .nHoonom mo 3033300303050 0330. no 33.3.30 0300. 333 0033.3 5.32393 13333334 3g: ..3mqammmnnuu3qunm.....33mqqmnnuullammq3 003.00. 000.33 303.00 030.03 0333.. 000.333 033.30 000.03 033.3 033.30 030.0 333.30 030.03 0303 000.033 000.30 030.03 303.3 033.30 300.0 030.03 300.03 .3303 000.033 303.00 300.03 000.3 003.00 003.0 030.03 030.03 3303 030.033 303.30 333.33 000 003.00 330.33 030.03 300.03 3303 030.033 000.00 330.03 000 300.00 300.33 033.03 000.03 3303 033.333 033.30 000.03 000 000.00 303.33 330.03 333.03 0303 330.033 033.00 033.03 003.3 300.00 000.33 300.33 033.03 0303 033.033 303.00 000.33 003.3 000.00 033.33 303.30 300.03 0303 000.03 300.00 300.33 003.3 000.00 300 .33 003.03 003.03 0303 000.003 303.30 000.33 300.3 330.30 003.33 000.33 003.33 0303 033.303 000.33 330.0 000 333.30 030.03 000.03 333.33 0303 333.003 300.03 333.33 300.3 003.30 330.03 000.03 003.03 3303 033.303 300.03 033.03 030.3 003.30 303.03 330.30 303.33 3303 300.003 330.033 000.33 303.3 033.033 000.03 030.30 300.33 3303 330 . 333 000 .033 030 .33. 003.3 000 .033 000 .03 003.00 000. 33 3303 330.003 033.033 000.33 033.3 003.033 330.03 300.00 000.33 0303 000.003 303.033 330.33 000.3 000.333 000.33 033.00 030.33 0303 000.003 000.333 000.33 030.3 000.003 000.03 030.00 003.33 0303 330.003 000.003 033.33 003.3 300.003 030.03 330.00 003.03 0303 030.3033 003.3330 000.33 000.3 033.003 003.03 000.00 030.03 0303 333000 000300300 2000003: 03030003: 00030 00303000 03330 00030 0300 002000 0003 3300330 . 2" iii. '1 I’ll I] I- .vl am; On. 0N2“ lomm 3300QO M5500 zomH Add mag»... .mmfimoa mom man—”Gama HHHNN $.3de 72 regular teachers' salaries from 1926 through 1946 for all school districts in Iron County. The table shows the startling effects of the Great Depression and the adoption of the Fifteen Mill Tax Limi— tation Amendment. The greatest expenditure for teachers' salaries in the county as a whole was in the year ending June, 1931. Some recession was evident for the following school year, but teachers were under contract and Boards of Education had still a year to wait before disregarding contracts in wholesale fashion, as happened in the summer of 1932, and as evidenced by the terrific decline over the preceeding year of nearly fifty per cent. The decline in total salaries reached the lowest point in 1934, the first year in which the effect of the Tax Limitation Act was felt. Part of the drop in total salaries is due to a decline in the number of teaching positions. A review of school membership statis- tics (Table III, page 19) shows that enrollments had been declining very little until 1934. The decline in salary payments cannot, there- fore, be explained by declining enrollaent until after 1933. A study of teacher lists, however, indicates that it was during this period that special departments were abandoned or greatly reduced. [any regular and relatively high paid out—of—town teachers were re- placed by local talent at much lower salaries. Table XXIV pictures the average salary situation based on the number of teaching positions reported by the various districts from 1926 through 1946. 73 .Hanqda oxHH ad econ on canon: canny any no Hounfiufion one .«ow.aa an! Hoonou can: 0:9 ma nadpwaom weanedop nose you wash acacia owuno>i an» .QQoH aH .HbH.Ho an! wmoa .oquh quvno Ado» any wnauuv Hoonom manna-ca nouum o:¢ aw nOHpHmom madnoamp noun you uaun pesos: awake». one .uboaaou nu candv on» comm .uHoonom mo noaoauuHaaoo 0:9 ho mafimuo on» QH coafiu nauonon Huannd ”cannon: lummoH omaflN Hman 0N4 $14.43 «8; Re; oNH..H Rm; N.NN. H omN. H H8. H 3H: 2m; 35; NHo.H RN; «8. H 21H mmeH R... H 33 RH; No...H N3; o8.H 8.3 8N; RN; mom; 30H Nam; no.3 3N; 08 «3; SN; 3N.H n3; SNH NmN.H 93H RN; 8m 53; 89H HNH.H No.3 32 “MNWH mNmnH HoHHH «Wm ommuH EoHH RHHH fimnH 32 N H HNN H 8H H m H. 8m H NmH H HHN H RN H omoH 8N H NOAH NM; NH. ommHH 8H. H.NN; «NHHH wnoH HoH. H S H H. N N H o? 08 mo H . >an ooo. H 5. 3o ooo m8; NNH. N8 80; RS mum .5 now 02. new mm. «8 «no; mmmH «Nw Hap mph mmo wa 5H5 Now amp «mmH 0% ms. N8; 2... $5 oNH.H $0; 89H RS 03; H3; HS. H NS.H mam. H Rm; 034 N94 NmoH New; «Hm; m3. H mNH.H 9.“. H HUSH «31H HHH.H HRH owiH NR; .3. H OHN. H 23.. H 3.} RiH «S. H 03H «3; m3; .3; RN. H N3; HR; 3.} «Hm. H H.NNH m3; N8.H mam; 3m. H HG; NE; on} «Na. H wNmH EQH «on; HR; 81H omm.H NN<.H 31H EN; H.NoH mom; 8m; . mNm.H oR.H mom; Rm; HpH.H 82 .358 532$ 208$: BmHmmzqa E2 ESE? m 54m 55 558 3.: H335 I! 'H # @vmfi OB @de 20mm maoomom HHZDOO zomH A44 2H ZOHHHmom cszodme mam mmHMdgdm mom mmDHanmmNM maammpd >HNN quda 74 In spite of large school budgets in the years prior to the Depression, salaries were not large. There was a steady increase in average salaries paid until 1931, a relatively light loss occurred for the year ending June, 1932, and an amazing decline in 1933. The low point was reached in 1934,'the first year in which tax limitation affected school income. Recovery was slow but steady until 1945, and a sharp increase is shown for the year ending June, 1946. It will be noted that average salaries range from just under thirteen hun- dred dollars to just under twenty-one hundred dollars within Iron County, a difference of eight hundred dollars per teaching position. Living costs do not vary to that extent, although there is probably some difference present. Average salaries are important for the administrator, but mean little to the teacher, since the high-salaried teacher brings up the average of the poorly paid one, and vice versa. Recognising this problem, the administrators of Iron County completed a study in January, 1945, under the joint direction of K. I. Schulse, Superintendent of Schools, Crystal Falls, and E. Burr Sherwood, Iron County Commissioner of Schools, covering the salary situation in the schools of the Upper Peninsula of Michigan.7 The study _reported average salaries according to training and experience. Table 11" summarizes the findings for the schools of Iron County. 7 K. I. Schulze and E. Burr Sherwood, "Upper Peninsula Salary Survey”, (mimeographed report of Committee On Salaries to Annual Conference Upper Peninsula School Board Members and Superintendents, Crystal Falls, Michigan, February, 1945), 42 pp. . .nossds exHH ad cane» one we novnfiusou one csom .nmmua cobHoo Mu Ion ooaoauomuo muse» ma ow Ha one seamen need we moved: a apab.nesoeop ooo use .owmmo cobHeoou oooounonuo munch need no m use common a saw-.noaooea oso .oomau homage». aoahsflsa ones! some lunomxe ones» used so m neat oneness» N one! open» nfinmssoa oopsm nH “msoflaou as sand» one comm .Aqs swag opospoou ooav shophsm.hhsdsm easesfisem hogan. «ammmmmaa .poxosnn madden sH oneness» no seams: a Amv mo ‘HHV oNNN HHV oNNN Hav sHNN Ame «NHN ANV maoH m ca a mmsHm zomH E N$H 8 .HNON 5 ....HsH 3?»qu be 8.: E 8.: ”1mm 0 mmpo HHV mme HHV oNoH HHV oowH A mom MHW WWMH w ca a maHaaaum H H H H H H as o Maw «wmm “HM mqu HHWIMNNM:, AH“ HaoN w mmpo H V new,» A v o HNV quN Mme NmoN MNW meoN w as a woman HaemHmo o H H 83 a. 85 . N 3H 8 o HHwnwwwmw nlmmww HHV ommN HHV oooN HHV omNN w on a mmaam as 0 «man» «mam» amass madam mean» mmHmH ozH mN muse m as o unHHma ..aonamHn oqu .Hmapmmmm .mHoomom Hszpoo szH 2H mozmHmumum n24 ququma Hm mammoama so mmHmagHm meqmmsq n24 onaemHmamHn >NN mumdh 76 Crystal Falls, Iron River and Stambaugh have definite salary schedules. Crystal Falls and Stambaugh make no differentiation be- tween men and women. Iron River pays men $100 more than women. None of the schools makes grade placement a factor in their salary policies. . Iron River paid all temporary teachers without degrees a flat salary, $1408 in 1945-46, regardless of years of experience. Stambaugh and Crystal Falls fit them into their schedules. There are some dis- crepancies in the figures shown by the Table as some teachers were hired outside the schedule. .In preparing Table XXV all special teachers, part-time teachers, and teaching principals are excluded. The table shows, therefore, the salary situation for only regular classroom teachers. This accounts for some of the differences which may appear in the statis- tics in Table XXV as compared with those of Table XXIV, pages 73 and 75. Another factor in the apparent discrepancy of the two tables is that Table XXV shows contractual salaries and does not include the distribution of supplemental state aid distributed to school employee in June, 1946, while Table XXIV includes this distribution. More- over, several changes in teaching personnel were made during the year; some servicemen returned during the second semester and their part- 'year salaries tend to lower the averages in Table XXIV. It is easily seen that the age and training background of a system's teachers definitely affects its average salaries. Careful analysis reveals that a school with a young, well-trained faculty might have a lower average salary situation than another system with 77 an older faculty, in spite of having a more liberal salary schedule. Examination of teacher lists for many years indicates a general trend to longevity of service in Iron County schools. This fact, together with constantly increasing educational training, is plac— ing a larger percentage of teachers in the upper salary brackets and is, consequently, raising the average salary and the per capita costs of instruction. This study does not attempt in any way to measure whether this condition is returning proportionate educa— tional dividends to the community. It has been pointed out repeatedly that enrollment declines have had a serious effect upon per capita costs. It is obvious that the degree of effect is closely related to the relative fixity of the expenditure item under consideration. As enrollments de- cline, teaching personnel can be reduced, but not always at the same rate. In the smaller schools it is more difficult to reduce staff in the same proportion as enrollment declines. An algebra class requires a teacher whether there are fifteen or thirty-five en- rolled. If, however, an algebra enrollment of forty-five declines to thirty-five, one teacher may be eliminated and a considerable per capita savings recorded. It was shown in Table VIII, page 30, that pupil-teacher ratios remained almost constant since 1933 in the larger schools, but declined sharply in the smaller schools. Other things being equal, per capita costs for instruction should vary more sharply in the smaller schools. Table XXVI shows per capita costs for teachers' salaries from 1926 through 1946. ..Hemqam 3H2” 5” mean on. Bugs. 033 so» no newsflash one .0883 use earned: you once 333 .Hon on... HRH .oHHE. wane Ads» one 3" one 3&3 :3 8288 as... on» you :8 3.38 son as 88H 3 .368 as. 8283 Hoonom aEqua ocean on». 5 aeHAeHea .3283» .3.“ once 3E3 you on... puma ma Heroine.“ as 033 on» omen .4 ‘ .4 .4. ”N ..00 w 4‘- . o. £338 8 8883-80 so .8 838 2: 5 8a 3...an H85: 38.88 . . . . - 8.8 8.8 8.8 Nana: 8.8 8.8 8.8 8.8 SHUH Ho.oo Ho.em «0.88 m¢.mw «0.08 80.88 «0.88 Hm.mm «aoH 8.8 8.3. 8.8 3.8 8.8 8.8 8.5 31:. 38H 8.8 3:»... 8.8 «N8 8.8 8.8 3.8 8.8 88H 88.58 so.~e su.oo mm.mm 8N.Hm oe.mm mo.o< 00.88 quH 58.8< mw.mm HH.mm pH.sm mm.Hm Ho.mn om.H< mm.mm oeoH HH.8< ~<.nm aH.Nm Ho.mm Nu.Nm . om.N8 mw.q« oN.em omoH mo.m< m~.o< «N.Ne mm.>< mm.bm 8H.mn m<.Hm «o.om wnaH mm.He sm.8m wo.bm Ho.mm No.m< mH.Nm nm.>m «oeqq smmH 8.8 8.8 8.8 8.2.. 8.8 8.3 8.3 8.8 88H no.0m ~<.mN $8.0m oo.mm as.Hm oH.H< n¢.mm a~.¢n mmoH 8.8 8.8 8.8 8.8 3.8 8.8 8.8 3.8 «RH 8 .8 8.8 3.3 2.8 8.8 . H88 H33 HNSM RS NN.oe m¢.mm om.e8 «N.qo ms.mm 5H.<> meqeo «m.mm «noH 8.8 8.8 8.8 8.8 8.8 8.8 8.8 8.8 H8H 8.8 8.8 8.8 3.8 Ho.8 HH.8 Hi8 8.8. 08H 8.8 8.8 8.8 3.? 8.8 2.8 3.8 8.8 mNoH 8.8 8.8 8.8 8.8 8 .8 8.8 8 .8 8.8. 83 8.8 8.8 8.8 8.8 8 .8 8.8 8.8 8.8 59H 8.8» 8.8» 3.0 S .892. 88848 888:. 3885: mass Sag 3H8 8.8m SE 288 :9: H388 30." OH. ONE” 30mm @400QO H5500 zomH 6.: 3H “NH; .mflmfioa mom gang 482.40 E HE mama... 79 Per capita costs for teachers' salaries climbed slowly in Iron County from 1926 until 1931 in about the same proportion as total salaries paid to teachers, since enrollments did not change materially during those years. The year 1932 witnessed a slight de- cline in anticipation of Depression difficulties, but the sharpest losses occurred in 1933, when per capita costs decreased from 20 per cent in Hematite to 60 per cent in Stambaugh. The decline continued into the next year, as might be expected, since the effects of the Tax Limitation Act operated for the first time in 1934. Had not enrollment declined approximately 800 children between 1932 and 1934, the per capita losses would have appeared even more drastic. Following the introduction of additional state aid as a factor in school finance, the per capita costs again climbed steadily, with the exception of the year 1939. Much of the rise is due to declining enrollments and the inability to cut staffs proportionately, especially in the smaller schools. Part of the rise is due, however, to higher teacher salaries. One thing is very clear from a study of Table XXVI. There is a definite relationship between the school enrollment and the per capita costs for teachers' salaries. The smallest school district, Mansfield, had by far the highest per capita cost in 1946, while the largest school district, Iron River, had the lowest-only slightly more than half of the Mansfield cost. It is significant to note also, that the average salaries were almost identical in Mansfield and in Iron River. 80 Teachers' salaries, while properly the largest single item in the instructional costs of schools, and inadequate as they are, by no means constitute the only Justifiable instructional costs. Supervision, materials, supplies, text-books, library expense, visual and auditory aids, and so on add to the cost of properly instructing boys and girls. It is considerably more difficult to secure comparative statistics for pure supervision than for direct instruction since there is no uniform practice in accounting for supervision within the schools of Iron County. School districts do not allocate the same proportion of administrators' salaries to supervision. In at least one school, Stambaugh, special teachers were for several years reported as supervisors, a policy growing out of instruction- al practices followed in the 'lush' years when special teachers did actually go from school to school supervising grade teachers in their specialized fields. To a limited extent, this practice is currently followed in the Stambaugh and Iron River systems, but special teachers are now reported as_regular teachers, and only supervisors and supervising principals are reported in the area of supervision. Table XIVII and Table XXVIII, immediately following, are introduced and should be studied together to depict the absolute and the per capita costs of instructional supervision in so far as school districts report expenditures in this area. 81 .aoncsa oxaa :« canoe one no nounfisaoe 0:» seem .musoh smog» madn3© :oflufipthSu op .oonomue nonpo no .uofiasfisu -.Hsafionfinn no u.¢nopnopsfinomsn one no has ovsooHHs was man Hoonou on» no oo«pouun muwpqsoood on» page opeoaonw noouna Madam .umb.flm0 as: squeaks nofieabhomso you uHoozoa Had hp copsooflas Hogan one was .noaufi>homsu op «mm.maw oopsooafls nmsonadvm .GOfinfi>uoasn op bod.0Hw copuoofldd uHHsm Housman .ncwnwphogsu on ouaoaxo HosOfiposhpmnfi gems» mo ode» copsooafls ufioonom macaques nopsm mama aH aquHHou as caps» one doom .nHoosom mo hoGOfiuofiaaoo on» no oo«muo one a“ paddy upuoaoa Hduqnd ammmmmmr mmfl.~m emw.oa emH.H «mo.m sfle.e mum.H «sod om<.mm mam.efi mH<.H «Ha.m mmfi.e omo.a mama «mm.oq mee.mfl mmo oop.e o~<.efl omo.a «can 89mm 3?: as. 83. «3.3 034 SS 853 31.: o§ 8nd $3. one; 33 8%.; «3.3 810 «36 one; 33 eem.em Hwo.mH ooa.o mme.w ooe.a oeoa mfle.mm ooe.mfl ooH.o mom.o omerfi omma mmo.NN mqmda 82 mo hoonaosoh osa .Aoqnoa oxaa :« coon on vasono canon on» .aofiowphomso you opowhaofio ufionp hp consonxo ones awash nonpogs no oooavaomoh nouonano Has ovsaosfi each. o oo houses on» you nonspficcomxo opfiaoo pom .mea a“ noaofienomso you psoam 5o.wa span coaonaoo mmoa a“ nowofi>hom=o you ooooomxo our passe hon oo.ma .oaogs o oo hpnsoo one you .GOwoabhoano cocaomuo pofiepofiv oaoo vafino masoaopaoa cnolhooh you oo.Hw cocoonuo manonloa oouom mmoH nH one ovaa .noaofi>th5o you «okoflaom no canoe o3» coom .oHoosom no nosedoofiasoo on» Ho ooauho cap ad vodfiu ophomon Hdsnnd «awesome 5w.w mm.mmmDm mom mMDHanmmNM deHmdo mmm HHH>NN mamda 83 Tables IXVII and XXVIII clearly indicate that there is no uniform policy regarding accounting practices in the field of su- pervision within Iron County. Mansfield, operating only a one-room school, had no direct supervision expense. Supervision is given this district by the Commissioner of Schools. Examination of records reveals that the sharp decline reported for Stambaugh in 1934 is due to a change in accounting practice and the abolition of special de- partments of instruction, namely, music, physical education, manual arts, and perhaps some other so-called “frills“. This was likewise true in the Crystal Falls district for the same year. Between 1936 and 1938, inclusive, Iron River considered its expense for princi- pals' salaries as a teacher expense. This district has never count- ed its special teachers as supervisors. Per capita expense for supervision has varied even more wide- ly than has total expenditures for supervision. In Bates Township, for instance, the per capita expenditure in 1945 was more than six - times as great as in 1933, while actual expenditures were only two and one-half times as great. This is, of course, due to the decline in school membership. Because of the difference in accounting policies it is wise not to place too much importance on the relative costs of super- vision, but rather to consider such costs together with other in- structional costs. Table xnx and Table In complete the breakdown of instructional costs and should be considered together with the same degree of caution suggested regarding supervision statistics. 84 .nouuoa onaa ma oanop onp mo uounaosoh one doom .oEopa asoonoHHoooal was .oonomuo one onoon hush Inna .opxov oonm .oaovoon muonuoaoflamsa .onoon .ooaflmmso mnfinooop «one canoe on» n« mousaona oaopH .oooonhnn oaoo one you NmN.Hw anoao ooeom ova nH .oonomxo scaou>nomso was .ooaaofloo .oHoaaonqu one .ouooubhomso .ooaaofloo .oaonooop non» nonpo oonogxo Houoaposhpona you 05¢.ma vopnomxo oHoonom manonloe oopom .mmmH .omsh mnauno hook on» aH «osonaom oo oHnoa on» moon .aHoonom no nomenooassoo one no ooamuo onu an oofiau oauonou fisan< .mmmmmmr Hom.aa oa<.a aaa.H «ma aao.a qm~.a mam.a ~m~.H seas oo«.oa oom.a owa.a aaa aH~.a cam.” omo.e an» mama ooa.afl oaa.c «wo.H «ma aao.a ass was.“ amo.a «can eao.oa mflo.a Has.” om oaa.< mas ~ao.a aw~.~ aqaa soa.on wow.a amm.a “an oaa.< How amo.~ ama.a «eon am<.3 was“ ode «2: 3a 84.. an ..x 8.: .34. n3 2....“ 3.0 33 mm.m om.H Hm.< oo.m oo.~ nw.< ow. m~.m coma wH.m o5.m wo.m mm.m oo.~ mm.~ NH.m mm.o mama 83 Ra 8% .23 ww.~ $3. «ma ~93” mama mw.m m5.m mH.o wo.m om.~ mm.“ <<.m oa.m 5mmH mm.m om.m 5m.m mm.< Hw.~ wo.o on.m 55.< mama mo.a on; $.N ao.~ aim an...“ aim No.3 aaS ~m.m m<.H m5.~ om.m mm.H mm. mm.~ mo.aH mama No.m » mn.m w om.m a Hm.wmw om.m o o~.~ o mm.m « mm.HH« mama .1289 lasagna 288mm. Saunas 32:8 . zofi I samba ofimfi QB mmmH 50mm mqoomom MBZDOU zomH Han 2H onHobmemzH mom mmmDHanmmNm macaznqqmomHfi daHmdo mam NNN Ham‘s 85 .aouuoa oxaH ca moon on casono oHnop on» no novnaosoa one .ooooahsn Honoaeoshpona uoaasao you hook osoo on» wnunso cflano non mm.ma connoauo madam Hopohho .oHoonom manonsoe oopom one ad oonoauo uoaaoshvona osoonoHHoooas use .hnohnad .onoon .ooadmgno mna Inooop you cflano manononaoa vnoluooh mom vovnonwo on! mm.Haw .mmmu uH “oBOHHou no oHnov one voom .oaoonom mo aouoaooasioo onp no ooamuo one an moaam nanomou Hosnnd .mmmmmmr ~w.q a¢.~ Ha.a so.m~ oH.a no.< No.5 ma.o oema w<.< mm.m om.w w5.aeoo one. one you wme.oa enoma eoaaeoan aoonom manonsoe oaaoh aoeomao .nooh osoo .one mnahsnn .ooaeapaeoo oeonapnooo mmo hhoaaaxuo honeo mmo anonma aoonoo .noaeoeaomonoae hoe mao.mm no asses a mamas aoasemam aoonom manucnoa noeum one .aama sa annoaaoa as maps» one comm .oaoonom mo nonoaooassoo one no ooaumo one ma coaau oeaoaoa aosnn< mumazmws mma.m.a amoraa mmmJ Sm; «8.3 mom.a «man. moms mama aaa.me omm.«a osm.m asm.a mmo.«a aom.a «ma.m «ma.m mama aao.mm mmm.aa oaa.e a«a.« mam.aa mam.a mea.m aaa.e mama mom.ae mea.aa o««.< ma«.a ««m.aa mm<.a mm«.m mmm.< mama 8mg... mma.«a «mm.a mmm.a «$.ma mam; «8m a««..~ «ema mma.mm aaa.aa mma.a «aa.a amq.ea cma.a «am.e mem.m aqma m«a.am a«m.«a moa.a ~mm.a aoa.aa aem.a aam.m ace.“ mama am«.om moa.«a mmo.m oe«.a am«.ma mmm.a mmm.m mmm.m mama omm.am moo.«a m«m.e mmo.a mam.ma ama.« emu.m aam.m mama amm.me «mm.m mam.a m~a.a «mo.ma o«m.« ma«.m mam.< mama mam.0a aea.HNNN mamds 95 Attention is called to the figures for Hematite Township Schools for 1933 and 1946. Enrollment declines occurred in such a manner that one bus is able to provide transportation for all the children of the township. This has caused a decline in expenditures at about the same ratio as enrollment declines. The distance to be covered by busses in Hematite is less than in some other districts and the relatively low transportation costs of this district as com- pared with the other smaller schools is partially explained thereby. Bates Township is almost entirely rural, a factor which partly ac- counts for the high per capita costs shown for Bates in Table XXXIV. The statistics for Mansfield Township likewise need interpre- tation. Costs are very high for this district for two reasons, name- ly, small population in proportion to the area of the district, and very small enrollment in the one-room school maintained in the dis- trict. Children are transported to Crystal Falls after the sixth grade. This makes for high transportation costs and a small member- ship within the district to which costs may be apportioned on a per capita basis. Other auxiliary and coordinate costs are dispropor-l tionately high for similar reasons, notably school lunch deficits. The next item of school operating expense to be examined is operation of school plant. This includes wages of janitors and other maintenance employee, fuel, utilities, janitor supplies and miscellaneous items. Table XXXV summarizes operating expenses fer all Iron County school districts from 1933 through 1946. 96 .nonmoa onaa ma oanoe one He Mommaoth one coon .hoaaoe eooaoon one oe ooaswam aad .aww.pmo coaaseoe oaons o oo menace one you ooaseacnomxo one was ooooahmm aoaaaaa now 5mm.oaa enomo oaaom aoeohao .aooh aoonoa oaoo one wmansn .enoaa aoonoo aaone oeoaoao oe 00m.mw enono oaoonom manonsoa ooeom .mmma ma ”wasoaaou as oanoe one coon .aaoonom mo honoaooaaaoo one Ho ooammo one ma moaam oeaomoh aosnn< anagrams 03.3 Earn“ an} m3 m3.a« m««..a aam.aa peas 3ma mane. o8.a« mama 3m «am.ma aamé maa.aa «3a mama amm.«m 3mm“ Em.“ mam a«a.ma $33 ammsa aka Sma 31$ maima 3mm aam m«m.o« aam.a mam.«a m«m.a amma amm.mm 2.0.3 a8.m «ma 3a.: aaa.a can}: mam .3 3ma Emcee ama.ma mamé 3a omm.a« oma.a omm.«a Sm.a amma 0mm .ma o«a.ma 38.... emu «amga o«m.a amiaa omia 3ma a3.am momma Sara maa a3.ma ass «$.«a m«m.a mama 39mm amm.o« a3..a «.3 m3.ma 3....3 mam.«a ma«..a mama omaxm 8m.ma amm.a a3 oo«.ma «mama. «m«.«a macs mama oma.om amm.ma mmaé 3a 8a.: mama as“ .m 3m.a mama «om.«m ama .ma 3mm.a mma 33.3 333 mafiaa «Pia mama «3.3 >35 aaaé mam amaxa $0.3 amoraa maa.a mama amm.mam Scream maa .3 man. oaa.aau m«m.§ Sm .ma» 83am aama . ...lamaoa. mommleamam zomoamms mamammzs. mmsam 323mm 3.5 32m mafia Iwaazmoo zoma .538 owma OH mmma 30mm maoomom MHZDOO zoma and zH BZdam aoomom ho onadmmmo Mom nmnzmmNm A4809 >NNN Human 97 It will be recalled that, with the exception of general ad- 'ministrative expense (Table XXI, page 67), all items in the school budget experienced a sharp decline between 1933 and 1934. There was no such decline in the expense of operating the school plant in Iron County schools. Depression or no depression, buildings must be heated and cleaned. Salaries and wages for Janitors and cleaners declined somewhat, but not as drastically as salaries of instructors. Examination of Table XXXV reveals some rather sharp changes from year to year for some schools. Inquiry concerning the ex- planation of these changes reveals that supplies are often pur- chased advantageously in quantities larger than are needed for a single year. Also, variations in time of payment of invoices occasionally have caused preceeding years' expenses to show up in the following years' financial reports. It is interesting to note that the largest schools, Iron River and Stambaugh, show the greatest increase in school plant operation expense, each increasing almost 76 per cent between 1933 and 1946. Analysis reveals that most of the increase is in Jan- itorial salaries, which increased in Stambaugh from $6,447.25 in 1933 to $14,481.84 in 1946, thus emphasising the inflationary trend of recent years. Another factor to be considered in inter- preting Table XXXV is the decline in the number of buildings operated. Table VII, page 28 listed 36 buildings in operation 98 throughout the county in 1933 conpared with only 16 buildings in 1946. Most buildings closed, however, were small outlying schools. Table XXXVI shows school plant operation costs on a per capita basis and should be studied together with Table XXXV. .aonnos oneH ne oHnoe one no nonneosoa one coon .bo.ow no: omoaopo hennoo HHoIaobo one oaenw .aooh oaoo one ne ooomnsm osoo one new a«.maw enono oHHom Hoeohao .enon Hoonoo one no noeeoaomo new cfieno menoaonaoslnnolaooh non oo.@w enema oHoonom menonwoa ooeom .mnoa nH .oIoHHoh as oHnoe one noon .oHoonom no honoeooeaaoo one Mo ooemmo one ne voflau oeaonoa flosnnd «moummms mo.o~ mm.o~ aa.aa aa.aa ma.ma aa.aa mo.aa am.a~ aama ma.ma aa.aa aa.aa aa.aa aa.aa am.m~ am.ma o~.aa aama ma.ma mm.o~ ma.mm aa.aa am.aa ma.a~ aa.aa aa.aa aama aa.aa am.NNN mum‘s 100 Declining enrollments have had similar effects upon per capita costs of school plant operation as they have had upon other items of the school budget. The highest rate of per capita in- crease was in Stambaugh and the lowest in Crystal Falls, 183 and 34 per cent respectively. The relationship between the size of the school and the per capita cost of school operation is not as pronounced as in some areas of school expense, although it is present to a limited ex- tent. The costs for Mansfield, for instance, do not vary as wide- ly as in instruction, administration, and auxiliary affairs. In- creasing prices of janitorial supplies and fuel are reflected in the per capita costs shown for most districts since 1944. The effect of enrollment changes upon per capita costs is strikingly evident from an analysis of the figures for Hematite from 1938 to 1941, inclusive. In 1938, the year-end enrollment was 230 and the per capita cost for operation was $18.89. In 1939, enrollment was 206, total operation costs declined nearly $300, and per capita costs increased to $19.77. The year 1940 showed a further decline of about $300 in total cost, an enrollment 1g- gggggg to 236, but a decline in per capita cost to $15.90. Total costs declined another $300 in 1941, enrollment increased to 236, and per capita costs declined to $14.32. Another item of expense which must be considered in a study of a county's school finances is fixed costs. Fixed costs 101 in Iron County schools are almost completely limited to insurance on buildings. Tables XXXVII and XXXVIII picture the absolute and the per capita costs for this item of the budget. 102 .nonnos oxaa ne oHnoe one no nonnedsoa one noon .oomaono women noneo was ooneasone ace «ow.mw enono oHonh o no henuoo one one .omww enono oHHom Hoeohho .oonoasona heaonoan hoe owH.Nw enono oHoonom nanmnI08 ooeom .mmod .onsh mnanno pooh Hoonoo one nH «oIoHHoh no oHnoe one doom .oHoonmm mo Homoeomassoo one Ho ooehmo one ne caddy meaonoa Hosnnd «unknown $3. amfia 8a.a mam «G aam maa.a mam aama 8a. .m 0% ... aaa , 8N am. a 8.. «mo .a mob aama mao .m ama .N am oma aom . a mom mma. a maa aama aa~.a maa.a aao.~ ooa ama.a oam amm.a mam a«ma nma.m aa.aa 3a maa ma.m 8m qua; 3m mama «aa.aa aama an“ maa ama.a oaw meo.a aoa aama 306 m3; aaa mma amo.~ awe aa~.a «ma. Sma «ma.m aama mea mam omm.a a8 bow; mam mama baa.~a maa.a 2.9a oma aam.a oma mafia on. aama aam.a mma.~ mmm aa maa.~ mam amm mam mama eao.aa w8.a N3 .3 «aura Rm; 0% amia oama moioa «ma.m a3 am amia an .a ans «3 aama ama.a an aaa 3a ama mmo; amm awe aama <85 m aha « men « «aa.aa maasa 8a a 8m m 03.3 aama 2:8 mopaasaem zones; Earns; EB ESE 3a: mafia mama aazsoo zoma flamamo [I onmd O8 mmmd :omh mqoomom 882500 zomH Add zH mmcmdmo QHNHW mom mmMD8anmmNH A4808 aaaooa mama. 103 .aonnon oneH ne oHnoe one no aounaosoa one coon .bo.aa oaol cdano non moaseennonxo one mqma nH .oonoasone haeooa .ooaseennomxo noxee you caano menu Inonaos nnolaooh non mo.mw enono eoaaeneo manmnko8 ooeom one .mmma nH aoIoHHom no canoe one doom .oHoonom no nonoeoueasoo one go ooaumo one He voHeu oeaomoa Honnnd ««mmmmmr 8.~ 8a 3.0 aaéa aa. moé aa.a Ba aama am.m .ama oo.a ma.mm om.a $3 .aa.a «ma aama ma.m .aa.m an... .32 aa.a ao.a aa.a ma.m «aama oo.~ ao.a «m.m ma.m aa.a ma.< am.m ma.m aema ma.m am.m aa.a am.m om.a mm.a aa.a ma.m mema ma.m ma.m am. aa.< mm. aa.a mo.a wo.m aama aa.a am. aa.a aoa aa.a am.m aa.a ma.m Sma $.a ma.m o~.a aa.m aa.a m~.a aa.a ma.m mama a«.m ao.~ am.m aa.o aa.a aa.a ma.m ma.m mama aa.a aa.a .am. aa.a 8a mm. om. $.a mama ma.m mm.a aa.a ma.m am.m am.< ma. m~.< mama ma.m me.< a«.a aa.a aa.a om.m NNN mqmd8 104 It will be noted that expenditures for fixed charges vary sharply from year to year for the several school districts of Iron County. This is due to the varying dates on which property insur- ance premiums fall due. Totals for this item, as well as per capita figures, have little meaning in any one year and must be considered over the entire period of years covered in the table. As might be expected, larger school districts also enjoy an advantage in per capita costs for fixed items. Total expenditures for fixed charges decreased $2,142, or 29 per cent, for the county as a whole, while per capita expenditures, because of declining enrollment, increased fifty cents per child, or 32 per cent. in examination of insurance records for all of the schools reveals that practically no damages have been received by school dis— tricts during the period under study because no compensable fires have occurred. A few dollars has been paid on windstorm insurance, but only a tiny fraction of the amount paid in premiums. Informal con- versation with officials of the State Department of Public Instruc- tion suggests that claims paid by insurance companies to Michigan school districts generally are a very minor percentage of premiums paid. The final item of expenditures in the operating budget of the school districts of Iron County, exclusive of debt service and cap- ital outlay, is maintenance. Tables XXIII and IL present the sta- ' tistics on maintenance expense for all Iron County schools for the years 1933 through 1946. These two tables, likewise, should be studied and interpreted together. 105 .aonnoa onHA ne oAnoe one no nonneosoa one doom .Amm.mw onos oHonk o no menace one you moaneennonxo one was .005.Nw enono oAHoh Hoeohao .heaoaoam Hoonoo mo oononoenaos hoe 00A.He enomo ofioonom denonso8 ooeom .mmma nH ”osoaaom no oHnoe one noon .nfloonom Ho hOGOHmaHEEOO 0:... Ho OOHHMO one an.“ GOHHH IQHOQOH H.053 “mogomt 3a .mm amu .m me. .~ mam aa.a. «ma mam .a. mmm .N mmma amméa mam... mmo.a am mao.a amo.a «2...». aom amma maa.aa 5m.m 8m ama.a maim mmm amm.a aa.a.a mama am~.oa «aa.a aa.a maa mmm.~ mma aam aom.a aama aa.a..oa ma.m.a ama.a mam Rosa mum mao.a aa.a mama «mama 3a.~ Em mum.a mao.m cam Nam mam.a aama mmm.aa omm.a 3N; aoa «ma.m mam mam amm.a omma mmm .Na mam .m Re aaa aam .m was aam «mm .a mama m2}: mam.~ aam asa aa.a 8m ma.m «aa.a mama mma . aa mmo .a 0mm mma 8m. N mmm.a «mm .a mma .a mama maa.aa aom.m mm~.a oaa mam.~ mom omm mmm mama oao.oa mamm mum mmu manna «am new mom mama 5m.m aa.a oaa om ma.m maa mafia aam mama Eh. m mma.am aam a mom a mum a mam a manna mma.am aama ...asaoa. 532m 288m; gamma: ,aaesaal mag @sz zoma aaamamo edmfl 08 mmmfl somh MAoomum 882000 zomH AAd ZH mozdzm82845 mom mums8HazmmNW A4808 NHNNN MAm<8 106 .aonnos oneA ne oAnoe one mo nonnaosoh one noon .QN.Aw out vonI o oo menace one now oaseannonxo omoaopo one oHens .moooaasn osoo one you hook osoo one nA naano nanoaonsoa unolaoom non mm.~a enono ofiaom Aoemhao menosousvo was .ocnsoam .omnanaenn no oononoeneoa you maeno menoaonsos nnolaooh non 00.mw mo omoaobo no enono uHoonom nenonBO8 ooeom .mm0A nH unwoAHoh no oAnoe one noon .oaoonom no nonoamoaasoo one Mo oo«eeo one na cere oeaonoa Aonsnd “mommows um.m mma mm.ua am.aa uo.m mu.a om.m miua mmma aa.m ma.m am.m mw.m ma.m oa.m ma.m oo.a mmma ao.m aa.u ua.a mm.am ma.m ma.m mm.u ma.m mmma mm.u am.u am.m ma.mu aa.u Ba Ba ua.m amma am.u mmu mm.m am.ma aa.a mu.a aa.a 3m «mma om.a mm.a om.a am.mma ma.m mm.a mm. mo.m amma am.u mo.a am.m ma.m om.a mo.u mm. ma.m omma am.u om.a aa.a maua 8a am.a am. mm.oa mama am.u om.a mm.u oa.ua aa.a mm.a om.u mu.m mama am.u om.a am.u am.ua am.a am.m aia aam mama mm.u ma.m mm.a mm.m um.a ma.m um. mm.a mama aa.a mo.a um.u ou.m um.a mm. am. ua.a aama mu.a uo.a mm. aa.u mm.a am. aa.a mm.u mama mu.aa um. a ou.ue ma.m « om. a mm.ue mutum mo.ao aama 32.2. 539.2% 2889:; Swansea: mamas Banana? was; ommam mama SE50 zoma dynamo ovofl 08 mmmd 50mm onomom 882000 zOmH AAA 2H moznzM8szs mom mum08802mmxm 48Hm40 mam AN HAm<8 107 Amounts spent by the various school districts for maintenance have varied greatly from year to year. On the whole, however, there has been a decided increase during the years listed. The increase occurs in spite of many less school buildings now maintained. The figures for Mansfield in 1941 and 1944 invite special question. Examination of original records indicates that items prop- erly belonging to capital outlay were improperly reported under main- tenance in those years. Similar analysis of original records of other districts reveals similar conditions within those districts. Per capita expenditures for maintenance vary even more sharp- ly than the total amounts spent in dollars. The increase for the county as a whole has been over 400 per cent per capita since 1933, while the total dollar increase has been only slightly over 200 per cent. This, again, is due to declining enrollment and the inabili- ty of school districts to cut maintenance costs proportionately. The relatively low costs for maintenance during the early years of the Depression may possibly be explained by two factors, namely, buildings were in good condition when the Depression oc- curred, and much maintenance was financed by the federal govern- ment as a part of its work-relief program. Higher costs of materi- al and labor are factors in the sharp increases recorded since 1944. All items of expenditure in the operating budget have been examined.. Before considering the figures for capital outlay a sum- mary of operating expenditures should be presented. This is done for all Iron County schools in Tables XLI and XLII which should be studied together. .aonnoa onAH ne oAnoe one mo novneos Ion one noon .aooh eone ne 00m.amow noaoeoe oaonu o no oaoonoo one no oeooo mneesaono one one .aoom osoo one wnaanv oooonasn osoo one now 0mH.mmA# esomo oHAom Hoenmno .Now.qaa on! nHoonom menonko8 moeom one no moaneacnonxo mnaeoaono Hoeoe one .0N0H nH «oIoAAom no oAnoe one noom 108 .oHoonom mo nonoaomasaoo one mo ooemeo one ne modem neaonoe Hosnnd .mmmmmmr mmaqaum maa.ama amm.am;‘ ama+m maa. u m a u m a mom.mma amo.maa maa.ma mmu.m maa.aaa aam.uu mmm.mm aam.aa aama oou.mma mam.maa mua.aa aam.m maa.aaa ama.au aum.mm amm.aa aama aam.aaa maa.aua aua.ma amo.a aam.mua uma.ou mmm.am aua.aa aama ooo.maa aua.aaa ama.aa aau.a omm.mua maa.uu ama.au aam.aa uama ama.aua ama.aua omm.mu maa.a maa.uaa amm.au mam.mm maa.aa aama amm.mua ama.uua oau.oa oaa.a uam.maa amu.uu aam.mm mma.aa oama uaa.aaa mau.uua aam.mu aam.a aaa.aaa ama.au uma.mm ama.aa mama amu.mma aam.maa mum.0a uou.a aua.aaa aau.au aam.ooa mom.aa mama mam.mua cam.aua mam.au mmo.a mma.oaa mam.mu maa.um mum.ua mama maa.maa mmm.mua mmu.mu maa.a amm.aua aao.mu aam.mm maa.mu mama ama.ama oom.aoa aao.uu oma.a oma.uoa oam.au maa.um oom.aa aama ama.aua uuu.am aam.uu amm.a aam.am muu.au ama.am omu.mu aama maa.mma aam.am ama.oa mmm.a maa.mm ama.aa amm.aoa mmm.aa aama amm.aum mmm.mua aaa.aa amm.a aou.ama aua.aa ama.maa ama.ma uama amm.mmm aam.mma uam.ma amu.m mam.aaa ooa.ma mam.maa mau.ma aama aaa.oom aam.mou uaa.ma uau.aa mom.oma omu.ma oma.maa maa.aa oama aam.mum aam.mma amm.aa aam.aa maa.aau oaa.ua aam.mma oom.aa muma aoa.umm maa.mma ama.ma aam.aa maa.aou aam.aa mmo.maa maa.ua muma mam.amm uau.mma aaa.aa aum.m maa.mma maa.aa mmm.maa mmm.mm muma oma.aumm aam.amam mmm.oae mmo.m a uNMMWaam mmm.aam caa.aaam umm.aam mmmm .amaom mummmaamm zoaommas maaammzas mmmam mmamasmm maaam mmmam mama amzsoo zoma aammmmo ofiofl 08 @de $022 onomom 882200 20mH AA< 28 mmmD8HazmmNH 02H8Hm 08H8¢nmm 0AA42 008nm mnmw 882000 zomH Ad8wmmw 0VOH 08 0NOH 2022 onomom 882200 202H AAd 28 mmmD8anmmNH 028842220 <8Hm<0 mam HHAN MAde 110 Total ordinary operating costs of Iron County schools have declined markedly during the twenty years depicted in Tables XLI and XLII. The percentage declines from the year of highest expenditure to the year of lowest cost range from 53 per cent in Crystal Falls to 76 per cent in Mansfield, with all other districts declining between 54 per cent and 59 per cent. In all districts, except Mansfield, the year of lowest cost was 1934, the first effective year of the Tax Limitation Act. A11 districts have experienced decided increases in operating costs since 1934, but total costs for all schools were still 27 per cent below the highest year, 1929. Because of declining enrollment, the per capita costs of cur- rent operation have not changed in the same proportion as absolute costs. In spite of 27 per cent less total operating expense in 1946 as compared with 1929, per capita costs in all districts, except Mans- field, were higher in 1946 than in any previous year. Mansfield's peak per capita cost occurred in 1945 when $695.56 per enrolled child was spent for operation. It must be remembered, however, that this figure is somewhat misleading because some of the expense was incurred in sending upper grade children to Crystal Falls and these children were not included when figuring per capita costs. Tables XLI and XLII clearly indicate a picture of rapidly increasing school costs. Administrators constantly complain of inadequate capital investment because of the pressure of current operating expense. Tables XLIII and XLIV portray capital outlay statistics from 1926 to 1946. They should likewise be studied together. 111 .nonnos onefl ma oHnoe one no aounaoaoa one noon .nooh eone weaken ooaseennonxo Hoeeaoo on oeooenna ooonoao Madam .880.0N0 enoao oaonl o oo hensoo one one .mmaw enoao oaaoh Hoeohho .oenoso>oaase Aoeaaoo no 000.80 enono voonom aoeom 0N0H n8 .oIoAHom no oAnoe one noon .oHoonom Mo nonoaooeaaoo one no ooeueo one ne noaee oeaonoa Hammad mmwhnoms omaqma maaquIIams man amm ma.m ma.m.u mmm.a Jamaal maa.a mom mam aoa.a ma aum.a aama ama.a mm maa.a ma aou m aama umo.u maa .mau ama.a aaa aama. ama .m mmm.a maa.a mum mao .u auo.a maa.u amm uama amm.aa mua.u maa.a ama aau.a ooo.a auu.a aama mmu.oa ama maa.a oma ama.u aau.a mmm.a oama mmm.u om mmu.a oma mau umm mama maa.m aa ama.u maa.a muu aum umm uma.a mama maa.aa ‘ maa.aa uaa aom mmm mmm.a amm.a mama aou.m maa mau.u amu mma.a a ama mama mum.a omo.a m mmm ama.u mmm mu mama mmm .u maa umm m mam amm aama omm.m a omu.a aom.a mum.a ama.u mam aama uaa.aa aum.a ama aam.a uama aaa.m aoa mam mmm.a. amm aama mam. mm amm. am amm mum. amm .a mm .a oama uaa.aa amu mmm.m mam.a ama muma mau.mou maa .a mmm.mma oua.a mom muma mum.aaa ama.u uum.uaa aam muma aao.mu aua.au mam.a 8a.a muma Samoa. momamaaam 288mg mamammzas mamam 5245.: 3a: mama mmm.a amzmoo zoma aa.amamm 0va 08 0N®H 2022 onomom 882200 2028 AAd 28 8dA800 Ad88200 202 022088022282 A4808 888AN MAmn8 112 .aonnoa oneH na oanoe one mo noonaosoa one noom .oenosoboansa Hoeenoo aoHeaeo pom mm.#w enono ononh o oo hensoo one use .wm.080 nmnonsoem .mm.Nw novnonxo ao>a2 noAH .enosnmsvo someoeaononoae mnennfione .oenoso>oanaa Hoeenoo hoe naeno nanoaonsol nnolaooh non mm.aa mo owvobo no enono odoonom ooeom .0N0A nH mohoaaoe no oAnse one noo2 .MHOOSOW MO Lama—080983500 083. .HO OOfiHMO 08:. a UOHfiH 09.80908 H35 “00.850”! mm.m.w ua.ma muqma mmqaa mm. laa.a awqa......aa.au.....ammauu uu.a aa. . ua.a ma.aaa ac. ma.u aama ma. mo. am.am ao. au. ao. aama ua. mu. mo.a um. ma.a aama au.u au.a aa.a am.ma aa.a aa.a oa.u am.u uama om.u am.a mm.m aa.ma aa.u au.a ma.ua aama aa.u ma. me.a mu. mm.m ma.a ma.m mama om. ao. aa.a oa. ma.a ma.a mama 0N.A N0. 80.0 08.00 08. #8.0 00. 00.0 0008 mm.m mm.aa ma.a ma. am.a um.a mm.aa mama aa.a mo. am.m aa. ma.ma ao. ma. mama mm. ma.a ou. ma. ma.m am. mo. aama ma. aa. ma. ao. om. am.a aama au.a ao. ma.a aa.a mm.a um.a aa.a aama um.a ua.u aa.aa am.aa uama aa.a aa. mm.ma mm.ma am.a aama aa.aa mu.aaa ma.ua um.aa ma.ua oama aa.u ua. amea am.ua aa. muma mm.aa um.mm ma.moa am.m mm.a muma mm.mu mm.ma mm.am am.a muma .mmHN a ma.ma m am.a m m aaww m 2 ca. 2 au.a m muma aA<808 202222280 20008022 0A2820242 22>82 28884222 mAAdh 02842 2428 882200 2028 A¢8m820 0008 08 0N08 2022 0A002om 882200 2028 AAd 28 84A820 A2882<0 202 022288222222 488240 222 >8AN 2Am¢8 113 The abnormal expenditures for 1927 through 1930 for Iron River represent the cost of building and equipping their new high school. In 1930, Mastodon built an addition to their school at an approximate cost of $50,000. In 1937, Stambaugh built a new bus garage with salvaged brick and WPA labor, obtaining for $19,000 a building worth much more. The marked increase in capital outlay shown for 1946 is caused by major alterations to heating plants in Stambaugh and in Mastodon, projects long planned but postponed dur- ing war years because of material and labor shortages. The purchase of new buses accounts for most of the capital outlay otherwise recorded. Very, very little has been spent for new instructional equipment. Two factors partially explain the very low capital outlay for the three years prior to 1946, namely, inability to secure materials, and pressure to spend every dollar possible in higher wages and salaries for employee. Per capita costs for capital outlay were affected by declin- ing enrollments in a similar degree to the effect on other items of expenditure, rising more rapidly than absolute costs and diminishing less rapidly when total costs declined from the proceeding year. The final item of revenue expenditures to consider is the payment of principal and interest on school debt. Table XVII, page 55, lists the amounts paid from local tax levies for debt service from 1926 to 1946. Table XLV shows the per capita expenditures for debt service for the same period. 114 spam umaaaa. sou maama assuage ea mouaamos as: au.mm unolaoom n8 08ano name now 00.8m0 nonesvoa ooemaoo enon .0N08 n8 .aonnos one8 n8 o8noe one no aocneosoa one noo2 .00.880 ooh o8ons o no hensoo one na noac88no 88o hoe ooebAoo enoc omonoes one one .ooe>aoo zomommms mmWammzas ..waqa, mm.aa 00.8 80.0 00.48 mm.m am.m aa.ua 08.0 00.n8 80.8 0N.08 am.m mm.au uu.m ma.aa au.m am.ua mu.aa am.u ma.u . aa.aa ma.a aa.aa mm.m am.a mu.aa 80.08 No.4 00.08 am.aa am.m am.ma 00.88 08.0 80.8 ua.aa ma.m aa.aa N8.88 Nm.08 00.48 88.08 N0.08 40.08 mm.aa» ma.amm ao.mam *A4808 202422480 882200 .o8oonom ndnonho8 ooeom n8 nenononaoa ..uoaaoo as cases one mace .o8oonom eo nonoeooessoo one no ooeeeo one :8 no88u neaoaon 8osnn4 a«mmmmms mqqq8lllnjwaqqr mm.aa aa.aaa um.u aa.aa mm.au aa.aa mm.am mm.aa mm.aa mm.u mm.aa aa.au mm.aa mm.ma 0~.8 um.aa ma.aa ua. ua.aa ma.ma om.a mm.aa mm.ma um.a am.aa am.aa ma.aa ma.au mm.am mm.m mu.ma am.ma ma.u aa.a mu.ua am.m am.aa ma.ma ma.a mm.ua mm.aa ma.a ma.aa aa.aa aa.aa ma.aa ao.aa ma.m 80.0 mm.aa 0a.m N0. No.04 04.0 mmnm.m am.uam au.m 22282 28884222 0AA42 2028 A48m820 1' ma.ou ma.uu am.au aa.au mm.au ao.uu om.aa 02842 mamalu mama aama aama mama aama oama mama mama mama mama aama aama aama uama aama oama muma muma muma muma mama 0408 08 0N08 2022 0A00200 882200 2028 AA4 28 2082220 8222 202 022288222222 488240 222 2AM 2A248 115 It is clear from Table XLV that the burden of debt is almost removed from Iron County schools, in fact, is completely removed from five of the seven school districts.- Declining enrollments have kept per capita costs higher than they would otherwise have been. A complete discussion of the debt situated has been given earlier in this study, (page 56) and will not be repeated here. Table XLV merely rounds out the Picture of per capita expense and is included for this reason. A final summation of revenue expenditures-operating, capital outlay, and debt service-is provided in Tables XLVI and XLVII. These tables depict the total cost of schools and the per capita cost for the years 1926 through 1946. 116 .nonnss oxa8 n8 o8noe one no nomneosoa one ooo2 .oooonan2 osoo one new 8m0.4M80 eno2o o8onk o no 8ensoo one moo m8w. 0080 enono o88o2 8oeo8a0 hook osoo one :8 .8N8. 000 on: .8o8eno 8oe82oo and ooephoo enoc 0n80n8on8 .o8oonom nenonI68 ooeom one no noeeoao2o mo eooo 8oeoe one .0N08 n8 .o3088ou no o8noe one voo2 .o8oon00 mo nonoeomeaaoo one no ooemmo one n8 no888 oeuoaoa 8onnq4 mmmmmmmr mma.mma m. .m .- a. . as. ..a m .. a. - .- mua.mam amm.maa uma.ma mma.m maa.u a mmm.aa amm.aoa aam.aa aama aam.ama aum.maa mmu.ma mmm.m mao.uma ama.au aum.mm mmm.ma aama mum.mma ama.uua amm.ma amo.a aam.maa aau.aa mmm.am mam.aa aama mou.oma umo.aaa amo.ma mam.a mmm.maa mmm.mu moa.mm aua.aa uama mum.mma aam.mua mam.aa mam.a aaa.mma mmm.mu mom.mm uam.ma aama aam.mma auo.aua maa.aa maa.a mma.ama aam.mu aaa.um mma.ma oama umu.uma moa.uua mmm.aa mam.a mmm.ama maa.ua mmm.mm aua.ma mama amm.oaa mam.maa oao.aa aua.a mma.mma uum.aa mma.moa mmm.ma mama mum.aOa mua.aaa amm.oa mmo.a aam.ama mma.ma amm.am mmm.ma mama aua.mua mma.mua oam.ua maa.a ooa.maa mmm.ua oum.om aam.mu mama mam.uaa mam.maa aam.au mma.a amm.maa aam.aa mua.mm mum.aa aama ama.uma amm.am mam.aa amm.a mmu.aua omu.au mam.mm amm.mu aama mma.maa mma.aoa amu.ma mmm.a mam.aoa mmm.ma aau.aaa mmu.ua aama mma.mom amm.mma mum.ma uaa.m maa.oma ama.am mma.maa aaa.ma uama umm.umm mum.aau ama.ma aom.m amm.uau amm.mm mam.uaa amm.mm aama mmm.uom mom.ouu amm.uoa mam.aa amm.aau aam.mm oma.mma amm.mm oama aam.mum aao.ouu mmm.am mam.aa mma.aau ama.um aaa.mma amo.aa muma maa.amm mao.mou amm.aa mua.aa ama.aaa amm.mm mmm.ama mmm.ma muma aau.amm mmm.mma mum.ma mmu.ua mmm.aaa uom.ma mmo.uma aam.am muma aam.aam mm . mmu.ma mmo.m . mmm.a mmu.mma aum.mm muma *A4808 882200 20208042 0AA42 A480820 2428 0408 08 0N08 2022 0A00200 882200 2028 AA4 28 02002222 AA4 202 022288222222 2222222 A4808 82AM 2A248 117 .nonnos ona8.na oanoe one no aocnaosoa one coo2 .m0.8080 oaonl o oo 8ennoo one you end 04.800 no: pooh osom one :8 o88o2 8oem8a0 pom emoo oanoaonsoo on8 .0m.8880 not .menoa Iaoa ooa>noo enoc use menoso>oanaa 8oeanoo mnavnaona one nanoaonan coolaoo8 no women .oaoonom 2anonk08 moeom na naano o mnaeooneo no eooo o0oao>o one .0008 :8 «o308802 no oanoe one noo2 .o8oon00 mo honoaooaesoo one no ooaheo one :8 0o8ah meaoqoa 8onnn4 «ooanoma .nquama mm.aaa .mamoam, aa.ama am.aaa am.ama amaamail ma.uau mama mm.aaa mo.aua am.uma ua.uam am.mua am.amu am.aaa ma.maa aama mm.aaa mm.maa aa.ama ma.umm ma.mua om.mma am.uua aa.ama aama om.maa mm.am aa.ama mu.omu mm.maa mo.mma ma.aoa aa.maa aama mo.aaa ma.ooa aa.maa am.amu mu.aaa mo.mma aa.aoa ma.maa uama mm.uoa ma.mm mm.mua aa.maa mu.aaa aa.uaa ma.am mm.aaa aama ma.mm ou.om mu.aua oo.oma am.moa am.maa mm.am mm.aaa oama mm.mm ma.mm ua.oua ma.mma. am.mma mm.aaa mo.mm am.aua mama mm.aoa mu.am mm.mua am.ama mu.aaa am.aaa ma.moa aa.aaa mama ao.mm uu.mm aa.uaa mu.aaa am.am mm.aaa mo.mm au.moa mama mm.mm mo.am ma.mm aa.mma ma.mm mm.maa om.am ma.um mama mm.am am.um mu.mm aa.aoa mm.mm ma.ama aa.um mm.am aama mm.mm mm.aa mo.maa ma.maa um.om am.am mu.am ua.um aama au.mm mm.am ma.aoa ma.uou mu.ma ma.maa aa.am aa.am aama aa.maa mm.mm ma.mua ma.mmu uu.mm aa.ama aa.uaa om.aaa uama um.maa am.aoa mm.maa mu.amu au.aoa am.uma mo.aaa aa.maa aama mo.maa am.moa am.amu am.mma um.aua am.mma ua.maa mm.aaa oama mm.aua mu.uoa mm.maa ma.auu mm.uaa am.ama om.maa ao.aaa muma am.maa am.aaa am.aaa ma.mua aa.muu ma.mma mm.moa aa.ama muma mm.aaa ma.mm ou.uua ma.aau aa.ama am.mma ma.aoa mm.ama muma mm.moam aa.moam uu.aamm uo.ama ma.am ma.mm e ma.amam muma .aamom momamaamm zonommms mamammzas mmmam mmamaamm maaam mmeam mama amzmoo zoma adamamo 0408 08 0N08 2022 0A00200 882200 2028 AA4 28 02002222 AA4 202 022288222282 2222222 488240 222 88>AN 2A248 118 With the single exception of Iron River, per capita costs of educating the children of Iron County's seven school districts were higher in 1946 than in any previous year covered by the study. If allowance is made for the fact that the abnormally high cost figures shown for Iron River in 1927 and 1928 are due to the in- clusion of the cost of building and equipping a new high school, no exception would exist. Total dollar costs of schooling were still far below pro-depression levels, however, although these costs show sharp increases since 1943. It is clear that some items of expense are duplicated over the years listed in Tables XLVI and XLVII. Iron River and Mastodon floated bond issues for their building projects. Large costs are shown for the years when these projects were under construction. Since the bonds have been practically retired, and since the totals included payments of principal on bonds, duplication does occur. All capital improvements in other districts, and all improvements other than those mentioned for Iron River and Mastodon, have been paid for out of current revenues. The preceeding section has reviewed in detail the costs of Operating Iron County schools under the present system of organ- ization. Chapter III will explore the financial aspects of an hypothetical County Unit system with one board of education re- placing the existing seven boards of education. No attempt will be made to discuss aspects of such a proposed reorganisation other than from the financial point of view. CHAPTER III FINANCIAL ASPECTS OF A COUNTY UNIT SYSTEM OF SCHOOL ORGANIZATION FOR IRON COUNTY, MICHIGAN A. POTENTIAL INCOME Chapter 11 presented a survey of school finances in Iron County for a twenty-one year period ending in June, 1946. A picture of declining income due to lower property valuations and diminishing school population was painted. Increasing costs in recent years due to inflationary factors and sincere determin- ation of boards of education to raise teachers' salaries toward a more equitable level were also shown. It was observed that increased income from state aid has not completely and adequately offset losses in revenue, although real improvement has been evident in recent years. These are the essential existing facts. It will be the purpose of Chapter III to explore the possibilities of increas- ing school revenues'and reducing school expense where unnecessary duplication exists, so that present, as well as any increased income, can be directed into the channels of instruction. It is generally agreed that as large a part of school revenues as possible should be devoted to instruction. It is, of course, ax- iomatic that instruction is the chief, if not the only purpose and justification of any school organization. All other phases of the work are simply facilitating factors. Administration must 120 provide the most and the best instruction possible with the avail- able resources. The existing organization of Iron County into only seven school districts places the county in a favorable position in many respects in the field of school district organization. There is, however, nothing sacred about seven school districts. If com- bining the existing seven districts into one centrally administered county unit will provide better educational opportunities for boys and girls, it is the responsibility of administration to work to- ward such a re-organization. If the existing scheme provides su- perior educational opportunities, it should remain. It is beyond the scope of this study to examine all the pros and cons of the problem of district re-organization. This investigation is concerned largely with the financial aspects of the problem. This chapter will attempt, therefore, to determine what the income and expenditures would be under existing con- ditions if a county unit were to replace the present organization of school districts in Iron County. By its very nature the problem presents more difficulties than a review of what has taken place. The judgment of the in- vestigator is a big factor in the reliability of the figures pre- sented. This is more especially true in the field of expenditures than in the field of income, since income can be ascertained rather accurately by applying statutory rules. Table XLVIII presents an estimate of income for a county unit under existing state laws and is limited to state aid. 121 TABLE XLVIII ESTIMATE OF STATE AID FOR PROPOSED IRON COUNTY SCHOOL DISTRICT COMPARED WITH ACTUAL INCOME OF ALL IRON COUNTY- SCHOOL DISTRICTS FOR 1945-46 W ITEM SEVEN DISTRICT COUNTY UNIT ORGANIZATION ORGANIZATION EQUALIZED PROPERTY VALUATION, 1944 SCHOOL CENSUS, 1944 AVERAGE MEMBERSHIP, 1945 a; Elementary b Secondary GROSS ALLOWANCE a) Elementary b) Secondary c) Transportation Total LOCAL CONTRIBUTION NET STATE AID (including Primary money) HIGH SCHOOL TUITION TOTAL STATE AID SUPPLEMENTAL DISTRIBUTION (Act 8 Public Acts 1946) GRAND TOTAL STATE AID BALANCE IN FAVOR OF 3 26,000,000 5,073 1,967 1,684 $ 134,159.50 147,505.50 __2§.QéQ.2§ $ 306,725.96 58,499.99 $ 248,225.97 5,561,59 s 253,787.47 12,585.49 $ 266,370.87 $ 26,000,000 5,073 1,967 1,684 $ 138,673.50 152,402.00 __2£.QéQ.2§ $ 316,136.46 58,499.99 $ 257,636.47 ...41424129 $ 262,070.97 12,585.49 $ 274,654.37 COUNTY UNIT 3 3,233.50 *§QE£2§2 Annual reports filed in Office of Commissioner of Schools. 122 The analysis of actual and potential school income for the year 1945-46 shows that under existing laws the State of Michigan would have provided $8,283.50 more state aid under the existing formula than was provided. An explanation of the manner in which this figure is arrived at will make the figure easily understand- able. The year 1945-46 was used for comparison because that is the year under which the last state aid has been received. Changes in total state aid for the year ending June, 1947 will alter the County Unit potential proportionately. The equalized valuation figure of $26,000,000 is the 1944 state equalized valuation. The state aid act requires that each district must first provide 2.25 mills on its state equalized valuation before it is eligible to receive state aid. This figure is known professionally as "deductible millage", and around it has stormed a great deal of controversy in the legislature. Wealthy districts want the rate low and poor districts want it high. It has varied from 2.25 mills to 3.24 mills in recent years. The school census figure is provided in order to determine the amount of primary school money due a district. Primary money has been included in the gross allowance, and this perhaps makes unnecessary the inclusion of the census figure in the table. Average membership is broken down into elementary and sec- ondary levels since the state allowance differs by $20.00 per child as between the two types of school membership. The same 123 number of children will presumably be in school under a county unit organization as under the existing multi-district scheme. The elementary gross allowance figure is taken directly from the state aid summary sheet provided by the Department of Public Instruction to each Commissioner of Schools. The secondary allow- ance and transportation figures are likewise taken from the sum- mary sheet. In general, they represent the number of elementary children multiplied by $68.50 plus the number of secondary pupils multiplied by $88.50. In very small districts, however, namely Bates, Hematite, and Mansfield, the enrollment is too low to qualify for the maximum allowance. The gross allowance figures in the county unit organization column are obtained by multiplying the number of elementary children by $70.50 and the number of secondary children by $90.50. The $2.00 differential is due to a clause in the law providing for additional gross allowance for school districts whose average membership exceeds 3,000 pupils. The transportation figure is the actual transportation allowance granted to all schools for the school year 1945-46. This might be lower under a county unit plan, but only if the costs of trans- portation were lower. There is no way that an accurate estimate of transportation costs under a county unit plan could be determ- ined without exhaustive research, which is beyond the scope of this study. The local contribution figure of $58,499.99 represents the product of 2.25 mills times the state equalized valuation of 124 $26,000,000. The Net State Aid is the difference between the total gross allowance for all children and the local contribution. Some 49 high school people continue their schooling beyond the grades operated in their own districts. Mansfield secondary pupils are transported to Crystal Falls and Bates secondary people are transported to Iron River. The state pays tuition costs up to $113.50 for these people. Under a county unit system they would no longer be non-residents and no tuition would be paid. They would be counted in average membership then, however, which ex- plains the $4,434.50 in the second column (49 times $90.50). In the first special session of the legislature in 1946, legislation was enacted appropriating $3,200,000 for each of the years 1945-£6 and 1946-47 to the public schools, supplementing the regular appropriation. This money was ear-marked for salaries of personnel. It was distributed on the basis of $3.40 per average membership child, hence the total amount received by all the seven school districts of Iron County, $12,583.40) would have been the same under a county unit. It is clear that a county unit plan has financial advantages to offer from a strictly state aid point of view. Miscellaneous revenues would, judging from an examination of the records, remain approximately the same in the opinion of the investigator, but the problem of income from local taxation needs some investigation and interpretation. In 1946, a total of $239,556 was levied against the real and 125 personal property of Iron County for operation of schools and for debt service. No two school districts levied the same rate of tax- ation since all but Iron River and Hematite have voted millage be- yond the Fifteen Mill Tax Limitation Act. Unless gains in state aid occasioned by a county unit organization be wiped out by de- crease in local taxation, an over-all tax rate of 9.8 mills must be levied on the county valuation of $20,934,895. In addition to this rate, property in Iron River and Hematite will be required to retire the existing debt. The debt problem is not serious, however, as both districts will be completely debt free before any re-organ- ization is likely to come about. A review of Table XV, page 50, will make clear that it should not be too difficult to get people to vote at least 3.5 mills outside the limitation. Four districts, namely, Bates, Crystal Falls, Mansfield, and Mastodon now raise higher millage than 9.8 mills. Stambaugh raised 9.5 mills in 1945-46, and on September 30, 1946 the district voted an additional five mills for a five-year period effective on the 1946 tax roll. Iron River raises 6.5 mills for operation and 2.8 mills for debt service for a total levy of 9.3 mills. It appears that income under a county unit plan will at least be as high as under the existing system, and possibly higher. Again, however, the manner in which income is expended is as important, if not more so, than the amount of income. The next section will explore expenditures under an hypothetical county unit. 126 B. BUDGET EXPENDITURES This section can survey only roughly the potential savings in operation expenses possible under a county unit plan of school organization as compared with the operation expenses under the present multi—district system. To prepare a completely adequate survey would require a minute analysis of every expenditure incur- red by all school districts for at least the last fiscal year. Such an analysis is beyond the scope of this study, but it would be an immediately required task for the administrative staff of a county unit when and if that county unit is set up. Granting the inadequacy of the following study, however, enough information can possibly be presented to provide at least a sketchy outline of a proper budget for such a new unit of organ- ization as is proposed. Naturally, there will be room for differ- ence of opinion concerning the estimates presented. The investi- gator's own experience may be too limited to avoid serious error. For that reason, therefore, no claim is made that the work pre- sented is perfect, or even nearly so. It will represent, however, the considered judgment of this writer. The figures have been presented to other Iron County school administrators for critical comment and no serious differences of opinion developed. All estimates are predicated upon first year conditions under a reorganization in which conditions remain as nearly com- parable with present conditions as is considered possible. J,‘ '. '01 1|!" 1‘1. [5 127 Estimates are made conservatively, and unless definite savings can be established, the expenditure totals for a particular item as reported in the 1946 annual reports are repeated. A simple budget has been constructed which will show the total expenditures for the particular item during the year 1945-‘6 for all schools, followed by the investigator's estimate of a rea— sonable figure for that item under a county unit plan. The same account headings as are used in the official annual report filed with the Commissioner of Schools are used herewith. The budget is presented as Table XLIX. 128 .honnoa oxfia nfi canon onn mo hovafioaoh on» coon .Aooh hon oo.ooow ow was: handoo o you nonpoaom whoop you oazpfioooaxo uoaoafipoo one .om.ofia.hoasn no moansadm .m ww.Hmw mm.amw whoowphonso no oucoaxm .N am.mmm.oa aa.mwm.oa .nccssncasc e6 ccfiscacm .H onaopmawzH .m oo.oom.ma a om.ame.sm a Hopscoo Hcacqco Hence .oa 0.043qu cm amm H ouncaxo Honpnoo Hononow nonpo .m 00.00b mm.me oncomxo oonousoppo hhoufismaoo one unonoo .m oo.OOm.< ~w.ooo.m canons was lessons .ccsnmc c.pscencpqa anomsw mo oonoaxo one hhoaow .m oo.ooo.o~ mo.csH.mm csccncsccu ecu unopnopnfihomfim no hhoamm .w oo.oom oo.wmm onon u.noasmoonp no asasonm .m oo.ooo.a <0.wm0.m soapoosoo mo whoon ho omaomxo was oofiaagsm .N oo.OO® a om.oaa.< o unonsoa soapoosco Inclchoon mo oo«hdem .H AomBzoo Admmzmo .4 qum _z¢qm BHZD M62200 oumdrwmmn mqoomom wBZDOO tsmeH emonbm mmmDBHmzmmNm amequamm zomH A44 2H mmmDaHszmxm Qilmfimd Mdmw mom meonemHQ Aoomom M52500 zomH and Mom mmmDBanmmNm Adbaod mBHB mmmdmsoo .240HmoHs .Meznoo zomH mom BQHmBmHQ Aoomom BHZD MBZDOO mom Hmonbm nmmomomm NHAN qude 129 mm.moc.sm me.6~s.cmme mm.aom.o~ mo.mwd.mq mm.mmm.a:n «N.OHo mm.meH.H mo.msm cm.mmm.H904 madszmooo azn wmhoo hops: .mcapsadv Icon .mndpnmdd .wmdpoom .N ms.odo.cd cm.onm.sa coupons sac messedssm .H mofizmefiss ...H am.mma.» oo.~ee.s ccmucso woman Hence .e wmconw undo." EHO». vhonm no PuamflcH .m am.mom.s a au.mom.s « coccnsccH .m scum .H mmumamo mmxHe .m e<.e~H.ms a mm.mde.ec a success Hence .q mdqomm « SH.omm » ccucaxm scape .m Avozndvuoov azaam aoomom so onesmmmo .n __.. aama .zaam adzp weapoo camauwama maoomom sezaoo cameH emompm mmmpaHazmmxm manssHemm zomH and 2H mmmeesmzmmxm ofilm<@fi Mdmw mom maonBmHQ doomom NBZDOQ zomH ddd mom mmmDaHmzmmNm ddbeod mBHB mmmdmfioo .zmuHmoHfi .MHZDOO zomH mom aonemHQ doomom BHZD MEZDOO mom Hmombm ammomomm Auoaudpnoov NHdN Mdmda 131 It will be observed that the greatest financial savings ef- fected by a county unit plan over the existing system appears to be in the area of general control and administrative expense. The following paragraphs will interpret the major divisions of the budget presented in Table XLIX. A. mm. The sum of $900.00 is allocated to salaries for board of ed- ucation members under the county unit plan. This estimate is based upon the assumption that any subsequent reorganization would probably be effected under the existing Rural Agricultural Act which provides for a school board of five members. The proposed fees represent a maximum payment of $6.00 per meeting for 15 meetings during the fiscal year, plus additional salaries of $150 each for the board's president, secretary, and treasurer, respectively. Members of the county boards of supervisors are now paid $6.00 per meeting. It is quite possible that board members would be reluctant to serve with- out compensation in Iron County since members of all other public boards are paid on a fee basis. The estimate for salaries of superintendent and assistant provides for a $6,000 salary for a general superintendent and a $4,000 salary for an assistant who might be the business manager. Reductions shown for the other general control items are estimates of savings made possible by eliminating duplication of personnel and supplies. A full time private secretary and a stenographer are contemplated in the budget. 132 B. INSTRUCTION. In 1946, Iron County schools reported expenditures of $10,385.54 for salaries of supervisors. The exact derivation of 'this item in all districts is not clear; hence, the same amount is placed in the county unit budget. It should provide for three well paid supervisors of instruction. Salaries of supervising principals, item B-3, page 128, have been raised because part of the salary of the superintendent in Hematite, Bates, and Mastodon which is now allocated to general control would require re-alloca- tion. The logical place for that re—allocation is under instruc- tional supervision, or supervising principals' salaries. Item B-A has been increased to allow for a full time clerk in each principal's office. A part of their salaries are now allocated to general control. Teachers' salaries, item B-S, have been left unchanged since a fair estimate cannot be made without a thorough analysis of pupil-teacher ratio, attendance areas, class duplication, et cetera. ' Item B-6, tuition expense, is eliminated in the county unit budget since all children would be residents of the new district. Item B-8 has been increased to allow for the fact that pub- lic libraries, now operated by the schools in some districts, would be replaced by school libraries. 133 Q. AUXILIARY AND COORDINATE ACTIVITIES. An arbitrary savings of 10 per cent has been estimated for transportation of pupils. This is based upon the investigator's carefully considered opinion, based upon the facts of bus operation for several years, that economies in operation, maintenance, and supplies for school buses could be effected if all buses were owned and operated by a single district. Some economies could probably .be effected by the immediate re-routing of bus routes, but full efficiency in this area would possibly require several years of experience. Item C—2 records $6,455.94 spent in the year 1945-46 for public library expense. A county unit system would have to provide this service in every community or abolish it completely. If other units of government should fail to maintain public libraries in their respective municipalities, and if the people demanded the service from the schools, a county library system could be estab- lished with substantial state subsidy. For this reason the item has been deleted from the county unit budget. Other auxiliary and coordinate activity items are left unchanged because definite sav- ings cannot now be predicted. No change is proposed in the amount paid in wages to jan- itors and other employee, item D-l, since, presumably, all present buildings would be operated for the first year, at least. 134 Mansfield might be closed and a janitorial wage savings of nearly $300 might be effected, but it is not necessarily suggested here. This area would require a careful study by the administrative staff of the new county unit in order to arrive at maximum efficiency of janitorial and other custodial service. A five per cent savings is conservatively estimated for item D-2, fuel, janitor supplies, electricity, and water. Purchase of coal and janitorial supplies in larger quantities could effect con- siderable savings. E. EIXEQ CHARGES. No change is suggested for item E—2, insurance on buildings. The same insurance coverage would be required, at least for the first year. Item E-3 is eliminated from the county unit budget be- cause it is a non-recurring item, representing interest on a short term loan by Mansfield and repaid by that district during 1945-46. E. MAINTENANCE. A five per cent savings is estimated for iten.F-l, mainten- ance of buildings and grounds because probable savings could be effected in the purchase of supplies and more efficient allocation of labor. Some savings might conceivably be possible in other maintenance items, but they are not suggested. This investigator is convinced that the total economies shown, amounting to over $26,000, is a conservative estimate of the savings possible under a county unit during the first year of 135 operation. It is based upon an assumption of at least equal educa- tional service in all areas. Added to the some $8,000 in addition- al income established in Table XLVIII, page 121, an amount equal to more than one and one-half mills on the assessed valuation of the property could be available for increasing the educational program offered to Iron County's children. Conclusions and recommendations based upon the statistical evidence presented in preceeding chapters will be presented in the concluding chapter of this study. CHAPTER IV SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS Certain very definite facts stand out from the statistical data presented in the foregoing chapters. From these facts cer- tain logical conclusions can be drawn and some definite recommend- ations can be made. In brief summary the chief findings of the study are as follows: I. SUMMARY 5. Population. The following statements summarize the findings of this study: 1. The population of Iron County declined markedly from 1920 to 1940 and is apparently continuing the decline during the present decade. 2. School census and school membership declined more rapid- ly than the general population during the same period. 3. The retentive powers of the schools increased, especi- ally at secondary levels. 4. The proportionate decline in the number of elementary children was greater than for secondary pupils. 5. The census of pre-school children promises no pro- nounced change in school enrollment during the next few years, although the facts indicate that some districts stand to change 137 more than others in this respect. 6. Consolidation of school plant facilities has kept pace with declining enrollments. 7. Teaching staffs in the larger schools have diminished in number at least as rapidly as the decline in school population, but less rapidly in the smaller schools. 8. Great differences exist in teacher loads throughout Iron County schools, irrespective of over-all pupil-teacher ratios. Q. School Revenues. The most important facts concerning school revenues found by the foregoing investigation are as follows: 1. Total dollar support for Iron County schools from local tax sources has declined more than 60 per cent from 1927 due to a) decline in assessed valuation of property, b) lower average tax rate, and c) liquidation of bonded indebtedness. 2. Financial support from the state and from miscellaneous sources has more than doubled since pre-depression days, but still has failed to restore losses in local revenues. 3. Non-mining property valuations have declined generally at least as rapidly as the decline in mining valuations. 4. The effect of the passage of the Tax Limitation Amend- ment was to reduce local school revenues by approximately two- thirds during the first year of its operation. A 5. The debt burden of Iron County schools has been complete- ly removed from all except two districts and will be removed from 138 them by 1948. 6. All school districts except two have voted millage be- yond that which they are allowed under the Tax Limitation Act. 7. County equalized valuation of property is presently only 88 per cent of the state equalized valuation. 8. Tax rates in all districts are much lower than pre- depression levels when valuations were also much higher. 9. In general, the schools of Iron County were forced to operate on much lower total revenues in 1946 than in 1926, al- though the income picture in total dollars available has brightened greatly since 1934. 9. Budget Expenditurgg. The most important facts concern- ing school expenditures are summarized briefly as follows: 1. Administrative costs of Iron County schools have in- creased sharply since 1933 in spite of declining enrollments. 2. Total payments made to teachers declined over $100,000 between 1926 and l946, although average payment per teaching pos- ition increased from $1,335 to $1,949 during the same period for the county as a whole. 3. Teacher salaries generally follow a well established schedule in most school districts of Iron County, but glaring in- equalities still exist. 4. Per capita costs for teachers' salaries have increased at about the same rate as increases in payments per teaching position. 139 5. There are wide differences in the methods of allocat- ing payments to supervisors within Iron County school districts, as well as wide differences in interpretation of specific classi- fication of some other expenditures. 6. Expenditures for miscellaneous instruction items have declined in total but increased slightly on a per capita basis. 7. Total cost for all instruction items has increased from pre-depression levels by more than 60 per cent, and per capita costs have more than doubled. 8. The total expended for auxiliary and coordinate affairs and activities has increased sharply from 1934, but 1946 expend- itures are less than the amount spent in the years 1936, 1938, and 1939. Per capita costs for the county as a whole, however, are the highest on record. 9. School plant operation costs have continued to increase since 1933, both in total and in per capita. 10. Insurance costs have not increased in total dollar volume, but fewer buildings are insured and per capita insurance costs have advanced sharply. 11. Maintenance of school property has become increasing- ly expensive since 1933 in spite of very restricted maintenance programs. Per capita maintenance costs in 1946 were five times as great as in 1933. 12. Total costs of ordinary operation of schools in Iron County were nearly $200,000 less in 1946 than in 1929, but per 140 capita costs were about 30 per cent higher. 13. Expenditures for capital outlay have varied widely from year to year, with a sharp upturn being shown for 1946. 14. Total revenue expenditures have declined from a peak of $964,547 in 1928 to $578,109 in 1946, about 40 per cent. Per capita costs increased from $148.94 to $155.94, about 5 per cent, in the same period. Q. Eggget for County Unit. The principle findings in re- gard to income and expenditures for a county unit system appear to be as follows: 1. The operation of the present state aid act would provide approximately $8,200 additional income to a county unit than to all of the existing seven school districts in Iron County. This is based on 1946 statistics. 2. The major economies of a county unit system would prob- ably occur in the areas of general control, auxiliary and coord- inate activities, operation of school plant, and maintenance. In- structional costs might be somewhat higher for the first year under a county unit plan. A total savings over present costs of $26,000 appears, hiwever, to be a conservative estimate. 141 II. CONCLUSIONS The facts developed in this study, and summarized briefly immediately above, appear to justify the following conclusions: 9. P69u1at16 . l. The population of Iron County will probably not increase in the near future to an appreciable extent. The 80h001 problems of the county are not, therefore, those of a rapidly growing com- munity. Hence, emergency measures are not necessary to provide school housing for children. In fact, the school facilities of the county could comfortably absorb a large increase in school population. 2. High school enrollments generally have declined over the period for 1932 to 1946 indicating that there will be little need for expansion in the secondary school program. Since large enroll- ments facilitate flexibility in the school program it is concluded that the quality of the educational program will be affected, if it has not already been so affected, by diminished membership. It is also reasonable to conclude that the remedy for the difficul- ty may be further consolidation of districts. 3. LA further conclusion may be drawn that many of the present teachers in the secondary grades may be forced to move from the community or qualify themselves for a wider variety of teaching fields. 4. The problem of teacher load, as well as pupil-teacher 142 ratio, deserves a great deal of careful analysis with a view to- ward improving instruction, improving teacher morale, and provid- ing for in-service growth. This is admittedly made more difficult by diminishing enrollment, yet it appears that much can and should be done in this area. 5. The facts appear to indicate that school boards have followed a wise policy with regard to closing school buildings as enrollments have declined. 6. The census of pre-school children for Mansfield Township School District leads to the conclusion that a potential member- ship of 18 to 25 pupils is probable for the next several years. A good one-room school can probably be maintained with this number of children. The costs will continue to be much higher than in any other district, however, and the people of Mansfield should measure those costs against the educational opportunities present in a one-room school and those offered in Crystal Falls. In view of the small population of the district, there is no justification for a continuance of district organization in the township if the school should close, and the people should vote to annex the dis- trict to Crystal Falls until such a time as a county unit is established. 3. School Revenues. l. The facts revealed by the study concerning financial support of the schools of Iron County from 1926 through 1946 lead 143 to the positive conclusion that mining companies and other local taxpayers have little cause for bewailing the tax burden imposed upon them by the cost of operating the county's schools. The facts also lead to the conclusion that Iron County faces a serious threat to the continuance of adequate local support for the schools and other governmental agencies, and that other sources of school income must be sought. 2. State financial aid, while increasing greatly for the state as a whole, has not kept pace with declining school revenues, largely because of declining school membership upon which state aid is based. It seems logical to conclude, therefore, that unless state aid increases sharply in the near future, local property must be taxed at even higher rates, or the educational program must be curtailed. 3. The facts indicate that local school districts cannot use debt service burdens as an excuse for failure to raise tax rates for operation. The facts also indicate thft they have not done so in view of the fact that all distriJEEEAaigntoted them- selves outside the limitations imposed by the Fifteen Mill Amend- ment. I 4. The wide disparity between county-equalized and state- equalized valuation of property in Iron County leads to the con- clusion that taxing officials have not assessed non-corporate property fairly and that schools, as well as other governmental units, have suffered loss of revenue thereby. The Iron County 144 Board of Supervisors has been informed of the inequity of the tax assessment practices, but appears reluctant to correct them through the process of county equalization. If this continues, it will be detrimental to the schools because of the abnormal decline in the tax base and because the lowered county revenues will lead to greater pressure by the county to secure a larger share of the fifteen mills distributed each year by the County Tax Allocation Board. Larger county allocations can lead only to lower school allocations. 9. Budget Expenditureg. 1. Judging from the study of receipts and disbursements of school revenues, one may conclude that available school funds have generally been wisely and efficiently expended in Iron County dur- ing the period covered by this study. Boards of education and administrators are to be commended for their efficient devotion to duty. 2. The facts indicate that a clear relationship exists between per capita costs and fixity of expenditures. The greater the fixity, the higher the per capita costs of districts whose enrollments are declining. Very little can be done about this situation except to enlarge the administrative area so that fixed costs can be divided among a larger number of children. 3. There appears to be little chance of reducing admin- istrative and general control expenditures under the existing seven-district organization. 145 4. Teacher salaries, though markedly improved during the past five years, are still below a figure which will attract the right kind of young people and hold the superior teachers now working. It is concluded, therefore, that boards of education must take this problem openly and frankly to the public and seek whatever additional funds are necessary to pay professional people a professional wage. The conclusion can also be drawn that the public will become more and more critical of the quality of teach- ling as those wages rise toward a professional level. The presence of definite salary schedules in five of the seven school districts of Iron County leads to the conclusion that boards of education desire to deal justly with their teachers within the limits of their financial capacities. 5. This investigator is convinced that insurance costs of Iron County schools are excessive and that money could be saved for other purposes if a satisfactory solution to this problem can be found. 6. The relatively low expenditures for repair and mainten- ance of school plant indicate that this area has been neglected, not willingly, yet necessarily, because of lack of funds. The point of diminishing returns has probably been reached wherein more than proportionate losses accompany ecOnomies in this area. Some way must be found to protect adequately the generally fine physical plant of Iron County schools. 7. The facts reveal that very little capital improvement 146 has been made in the school plants of Iron County in the past fifteen years, with the exception of the new high school at Iron River, the new gymnasium at Mastodon, and the new bus garage at Stambaugh. Transportation equipment has been purchased when needed and when available, but the facts show that many of the School buses are antiquated and obsolete. Purchase of instructional equipment has been especially neglected. Almost all of the school furniture is antiquated and obsolete. Very little equipment for visual edu- cation is owned, and no provisions exist for caring for handicapped children. All this leads to the conclusion that the educational program of the schools of Iron County is suffering greatly from lack of proper equipment, and the fundamental right of all children to reasonable equality of educational opportunity is impaired, to say the least. Q. Budggt for County Ugit. l. The facts brought out by the investigation of the possi- ble economies of a county unit system seem to indicate that a sav— ings of at least $26,000 might be added to potentially larger in- come of approximately $8,000 to provide some $34,000 to improve the educational program of the county. This amounts to nearly $10 for each child enrolled in all the county schools as of June, 1946. It is also equivalent to a tax levy of 1.7 mills on the assessed valuation of the property of Iron County. 2. The facts also seem to show that the establishment of 147 a county unit of school administration would in no way impair the efficiency of the instructional program, but would, on the contrary, lead to greater flexibility in curriculum offerings. III. RECOMMENDATIONS Certain recommendations appear to be logical outcomes of the conclusions drawn in the preceeding section. Some of the recom- mendations can apply without a change in the administrative organ- ization of the schools while others point toward the establishment of a county unit of organization. A. Population. It is recommended that school officials study together the significance of declining school population and continue to seek means of fitting school programs to it. Continuous readjustment of school district boundaries and the administrative system is possibly the best action that could be taken to meet a changing population condition. 2. Administration should inform the present members of school faculties of the trends in school population and should encourage some high school teachers to qualify for elementary and intermediate certification in order that adjustments can be made in work assignments without requiring them to seek employment in other systems, sometimes to their disadvantage. An adequate in- service training program is recommended. 148 3. Administration should make a careful analysis of the teacher load problem with a view to improving the quality of teach- ing by lessening the burden of some over—worked teachers. Reassign- ments of loads should follow discovery of obvious inequities. 4. Boards of education should continue the policy of clos- ing schools as rapidly as conditions allow. It is recommended, however, that the public be consulted, informed, and thoroughly educated to the need before any major consolidation is decided upon. The effect of the proposed consolidation upon the educational wel- fare of the children should be the final criterion. 5. It is recommended that the Mansfield District study its situation carefully to determine whether the educational returns they are receiving justify the much greater per capita costs that exist for that district. Again, the welfare of the children should determine the action taken. 2. §QAQQA Revenue. 1. In view of the greatly lessened taxes paid by mining corporations and others as compared to those paid prior to the adoption of the Tax Limitation Amendment, it is recommended that information be disseminated showing comparative amounts raised by direct taxation in 1946 and 1926, or other pre-depression years. 2. School officials in Iron County should exert every in- fluence possible to obtain larger grants from the state legis- lature, and they should support co-operative groups such as the 149 Michigan Education Association and the Michigan Association of Equalization Schools in their efforts to secure increased state aid. As this investigation is concluded, the people of Michigan are pre- sented with a proposal to amend the state constitution to provide for the return of one-sixth of the sales tax plus a fixed ratio of the preceeding year's sales tax to local districts. The approval of this proposal will increase state aid to the schools to a very large extent. Administration, boards of education, teachers, non- teaching employes, and school patrons should study this proposal thoroughly. 3. It is recommended that a study be made of the methods of tax assessment of local property in all Iron County taxing units. It is especially recommended that the Iron County Board of Super- visors consider the problem of equalizing the many inequitable situations presently existing with regard to assessment practices in the various townships and municipalities. 4. It is recommended that Iron River take steps to call a special election for the purpose of raising additional tax millage beyond the limitations of the Fifteen Mill Amendment. Such action should come not later than 1948, at which time its debt will be retired. The same action is recommended for Hematite not later than 1947. All Iron County schools will then receive millage outside statutory limitations. 150 Q. Aggggi Egpenditures. l. The study has demonstrated that per capita costs of education are higher in smaller school districts than in larger districts because of the relation between fixity of expense and low enrollments. It is recommended, therefore, that every effort be made to induce the legislature to remove the discrimination against smaller school districts now present in the state-aid act which provides for granting $2.00 more per child in gross allowance to those school districts with an average membership exceeding 3,000 persons. 2. It is recommended that boards of education continue their policies of increasing teachers' salaries. It is further recommended that a countyawide teacher salary schedule be adopted by common consent to remove obvious inequities. This countyawide schedule should be a single salary schedule in all respects. If funds are unavailable, the public should be petitioned to vote the necessary additional tax levies. 3. It is recommended that a study be made of insurance costs in Iron County with a view toward establishing a self-insur- ing system, perhaps by the creation of a co-operative revolving fund, if such a fund should prove legally possible and financially practicable.' In any event, the Department of Public Instruction should sponsor legislation enabling such a revolving fund to be established on a state wide basis similar to the system by which other state property is protected. It is fully recognized that 151 vested interests would be affected by such a system. 4. An expanded program of building maintenance and repair should be undertaken immediately in most school districts of Iron County in order that the capital investment in buildings might be protected and preserved. If necessary, additional local tax levies should be levied for this purpose. 5. An immediate expansion of capital outlay should be under- taken, especially in the area of new instructional equipment. It is recommended that Building and Site Funds be established by a vote of the people at the annual school meetings in order that funds for capital outlay can be accumulated. P.- magnum. The financial advantages which have been established for a county unit system of administration are so great that it is re- commended that steps be taken to set in motion the legal machinery necessary to present the prOposition directly to the people of Iron County. A thorough program of public information should be instituted, however, and the facts should be presented fairly and objectively. Once again, the educational interests of boys and girls should be the guiding criterion. E. General Recommgnggtion. The investigator has gained such a wide knowledge of the financial condition of the schools under his jurisdiction that he strongly recommends that the County Commissioner of Schools 152 continue to keep the data presented in the foregoing pages up to‘ date following the receipt of annual statistical and financial reports in July of each year. He further recommends that copies of most of the tables presented in this study be provided for the separate school districts, and that all data be made available to boards of education and citizens of the county as they desire. . ’1» A ‘l ('5' B IBLIOGBAPHY Elliott. Eugene. ”Ninety-Sixth Report of the Superintendent of Public Instruction", Lansing, Michigan, [Table 27, p. 86. Langfitt, R. Emerson. The Daily Schedule an; High School Orfli- zation. New York: The Macmillan Company. 1938. Chapter V. pp- 99-119. Gilbert, George, fl.P.‘u;c_>i].—'J?eacher Ratio and Gross Allowance Per Teacher from State Aid," Mimeographed Pamphlet, Depart- ment of’Public Instruction, Lansing, Michigan, 19h}. Schulze, K. W. and Sherwood, E. Burr. ”Upper Peninsula. Salary Survey”, Mimeographed report of Committee on Salaries to Annual Conference Upper Peninsula School Board Members and Superintendents, Crystal Falls. Michigan, February, Sherwood, E. Burr, "The Teacher Load Problem in Iron County. Michigan Schools“, Unpublished report of study made by ' the Office of County School Commissioner, Crystal Falls, Michigan, May. 191+6. Ir'on County Land-Use Committee. "A Progress Report on Land-Use for Iron County", Mimeographed Report of the Committee, Crystal r3115, Michigan, 19h1. 97 pp. "The Report of the Commission", The Improvement ggPublic Edugg— tion A}; Michigan, Lansing, Michigan: Published by the Authority of the Michigan Education Study Commission. July, 191M. 301 pp. at? v. p . . we outfittim... .. MICHIGAN STATE UNIVERSITY LIBR Illl IIIIIIIIIII 3 1293 53 03 8973 ARIES