Independent Consol. School Dist. No. 7 v. Bowen

1947 OK 214, 183 P.2d 251, 199 Okla. 92, 1947 Okla. LEXIS 572
CourtSupreme Court of Oklahoma
DecidedJuly 1, 1947
DocketNo. 32762
StatusPublished
Cited by3 cases

This text of 1947 OK 214 (Independent Consol. School Dist. No. 7 v. Bowen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Independent Consol. School Dist. No. 7 v. Bowen, 1947 OK 214, 183 P.2d 251, 199 Okla. 92, 1947 Okla. LEXIS 572 (Okla. 1947).

Opinion

WELCH, J.

This is an action by independent consolidated school district No. 7 of Harrah, Okla., and its official board, against Dora Bowen, county superintendent of public instruction, Lincoln county, Okla., to restrain and enjoin defendant from issuing an order annexing Center school district No. 116 to plaintiff school district.

There is no dispute in the evidence. It was stipulated that there were 40 qualified electors in district No. 116; that an election' was called and held in district No. 116 for the purpose of voting on the question of annexation; that [93]*9323 votes were cast, 19 for annexation and four against annexation; that defendant posted notice of the results of the election as provided by statute.

• Evidence was introduced relative to the valuation of the taxable property and number of pupils in district No. 116 and the probable cost of hiring an additional school bus and employing an additional teacher in plaintiff district, all tending to show a probable increase in the tax rate in plaintiff district in the event of annexation of district No. 116.

Judgment was in favor of defendant, and plaintiffs appeal.

All assignments of error are argued under four propositions of law.

Plaintiff first asserts that:

“The power of the Legislature to establish and maintain a public school system, vested in it by Section 1, Article XIII, of the Constitution, must be construed with, and is restricted by, the constitutional limitations respecting the indebtedness of school districts and taxation upon property located therein.”

This proposition is submitted as a preliminary matter in order to lay a predicate for the argument presented on the other propositions.

It is next proposed that:

“Section 7(a), Ch. 24, Session Laws 1943 (70 O.S.A. §891.7(a), is unconstitutional and void in that it places upon annexing school districts an indebtedness in excess of the income and revenue provided for the fiscal year, without the consent of three-fifths of the voters of the annexing district, in violation of Section 26, Article X, of the Constitution.”

The said section 7(a) in part provides:

“The district to which the annexation is made shall become the owner of all the property and other assets of the annexed district (except so much of the sinking fund as may be necessary to pay any bonded indebtedness existing in the annexed district at the time of annexation) and shall be liable for the current debts and other obligations of the annexed district. ...”

Section 26, art. 10 of the Constitution provides, in part, as follows:

“No county, city, town, township, school district, . . . shall be allowed to become indebted, in any manner, or for any purpose, to an amount exceeding, in any year, the income and revenue provided for such year, without the assent of three-fifths of the voters thereof, voting' at an election, to be held for that purpose. ...”

No proof is offered to show that an indebtedness or obligation in excess of its current income and revenue is imposed upon plaintiff by the annexation.

It is urged that the 1943 Act of the Legislature by its terms creates a debt against the annexing district without the assent of the voters of that district; that the current debts and other obligations of the annexed district become the obligation and must be paid by the annexing district; that the funds set up under existing laws to finance and operate a school district provide nothing for such a contingency; that regardless of how great the assets transferred a debt is created in excess of the income and revenue provided for the annexing district in violation of section 26, art. 10 of the Constitution; that the annexing district is not authorized by law to deal in the assets of another district and could not use assets transferred in payment of obligations of the annexed district, but would be forced to pay such obligation from the funds of the annexing district.

The 1943 Act provides specifically that the annexing district does not assume any part of the bonded indebtedness of the annexed district. This is a form of indebtedness which would ordinarily require levies of taxes reaching into ensuing fiscal years. The constitutional inhibition is against the assumption of indebtedness in any year in excess of the income and revenue for such year without the assent of three-fifths of the voters.

The statutes do not authorize the in[94]*94curring of any debt or obligation in any school district in any year in excess of the income and revenue provided for that year except bonded indebtedness.

Section 7(a) of the Act makes no reference to obligations assumed by the annexing district other than the current debts and other obligations of the annexed district. The current debts and other obligations of the school district in the light of the exception noted (bonded indebtedness) clearly means the obligations already incurred, and the obligations expected to arise, in meeting current expenses which are the ordinary, regular and continuing expenditures for the maintenance of the school property and the carrying on of the school work during each fiscal year’s operation. By statute no valid obligation for the current expenses of a particular fiscal year can be created except within the limits of the income and revenue provided for that fiscal year. The statutes compel a balance between current obligations assumed and current appropriations.

It is true that a mere possibility exists that through malfeasance, failure of tax collection, or for other reasons, the current debts and other obligations of a particular fiscal year might not be discharged by the income and revenue provided for that year resulting in an indebtedness for which revenues must be provided in ensuing years, but the statutes by their terms provide that no obligations can be assumed in any year except in an amount equal to the income and revenue provided for that year (excepting bonded indebtedness) and it cannot be said that the assumption of an annual budget is the assumption of an indebtedness in that year in excess of the income and revenue provided for that year.

Section 7(a) provides that at the time of annexation the annexing district becomes the owner of all the property and other assets of the annexed district except certain sinking funds. Section 8 of the Act provides that any school district annexed to another district becomes a part of the district to which annexed and shall be governed by all laws relating to such district, except as to bonded indebtedness.

Sections 7(a) and 8 clearly authorize and impose upon the annexing district the responsibility of administering the affairs and budget of the annexed district during the balance of the fiscal year within which annexation is made and they authorize the use of the income and revenue received from the annexed district in the discharge of the current debts and other obligations of the annexed district.

It seems rather clear that said section 7(a), though it provides that “the district to which the annexation is made shall ... be liable for the current debts and other obligations of the annexed district” (except bonded indebtedness), does not by its terms place an indebtedness upon the annexing district in excess of the income and revenue provided for a particular year in violation of section 26, art.

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Bluebook (online)
1947 OK 214, 183 P.2d 251, 199 Okla. 92, 1947 Okla. LEXIS 572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/independent-consol-school-dist-no-7-v-bowen-okla-1947.