Inman School Dist. No. 26 v. Law

164 S.E. 839, 166 S.C. 304, 1932 S.C. LEXIS 143
CourtSupreme Court of South Carolina
DecidedJune 25, 1932
Docket13435
StatusPublished

This text of 164 S.E. 839 (Inman School Dist. No. 26 v. Law) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inman School Dist. No. 26 v. Law, 164 S.E. 839, 166 S.C. 304, 1932 S.C. LEXIS 143 (S.C. 1932).

Opinion

The opinion of the Court was delivered by

Mr. Justice Blease.

The facts of this controversy, agreed upon by the parties, are as follows:

The government of Spartanburg County is vested in the county board of Spartanburg County (Act No. 196 of 1925 [34 St. at Large, p. 296], Sections 4755, 4756, 1932 Code), composed at present of the defendants John A. Law, A. B. Taylor, and R. F. Bagwell. Under the provisions of the laws referred to, the county board has complete executive control of the financial and business affairs of the county, and no claim or account, except salaries fixed by law, may be paid without the approval of this board.

*305 Subject to' the directions as to financial matters on the part of the county board, the educational affairs of the county are under the supervision of the county board of education, as provided for in the General School Baw of the State, and that board is now composed of the defendants J. F. Brooks, as county superintendent of education, Dr. F. G. Morgan, and Dr. B. J. Workman.

Prior to the year 1929, certain school districts in Spartan-burg County expended more money in the operation of their schools and for the payment of teachers’ salaries than was received by those districts from all sources. This practice continued for several years, and resulted finally in the building up of considerable overdrafts or deficits in the accounts of those districts, until, on June 30, 1928, the aggregate of the deficits of such school districts amounted to $97,250.27. By Act No. 553 of 1929 (36 St. at Barge, p. 989), the General Assembly, with the view of curbing the practice of overexpenditures and to ultimately eliminate the then existing deficits, authorized the county board and required it to investigate the deficits, advise with the county superintendent of education and the county board of education, and devise a plan for retiring such deficits. The county board was given the authority to promulgate rules and regulations having the effect of law, whereby the practice of creating deficits would be discontinued, and the Act declared that no school claims could be paid or disbursed except under the supervision of the county board in pursuance of the rules and regulations promulgated by it. It was even made a misdemeanor for any officer to approve any school claim or disburse any school money in violation of the rules and regulations promulgated by the county board. Since the going into effect of this Act, deficits have been reduced to approximately the sum of $86,000.00.

The plaintiff, Inman School District No. 26, and a few other school districts of Spartanburg County, pursuant to law, have levied special taxes for school purposes; and have *306 continuously conducted their educational affairs well within the limits of the income received; and for many years they have had to their respective credits on the books of the county superintendent of education considerable cash balances. Many other school districts of the county, on account of their deficits, have brought about the total deficits of the school system of the county, hereinbefore mentioned.

For some years the county board, acting under the authority of certain provisions of the General School Law (particularly the provisions now contained in Section 5427, 1932 Code), has borrowed on notes of the county, pledging taxes to be collected for school purposes, sums of money necessary to pay the school claims of the county; the sum so borrowed was placed in the hands of the county treasurer in the general school fund, and was paid out on claims approved by the county board of education,’ which claims were paid without reference to1 the financial condition of the districts presenting them, so that districts overdrawn or showing a deficit, nevertheless, had their claims approved and paid out of money thus borrowed. It was the plan of the county board, the superintendent of education, and the county board of education to prevent the increase of deficits and to retire those existing, and to permit the continued full time operation of all schools, whether the districts had funds or not, by paying the claims out of money borrowed and applying 10 per cent, of the respective district allotments to the curtailment of the respective deficits. On account of prevailing financial conditions, the county board has been unable to borrow in the present year. Upon the maturing of outstanding school notes, conceiving that all school taxes were pledged for their payment, the county board paid them, and used for that purpose all the cash balances to the credit of the plaintiff, school district, as well as all cash balances to the credit of other school districts. By carrying out the plan permitted under the Act of 1929, the county board has kept the payment of all claims paid out of funds *307 on behalf of any school district conservatively within the anticipated revenue for the respective fiscal years, and thereby they have prevented any increase in the existing deficits of school districts.

After applying the cash balances, the county board declared its plan and purpose to restore the cash balances out of the first school funds coming into its hands or into the treasury of the county.

Section 18-A of the General Appropriation Act of 1932 (37 St. at Large, p. 1586) authorized the State Department of Education and State Treasurer to issue notes for salaries of public school teachers, and to distribute them to the county superintendents upon their request in suitable denominations in amounts totaling the shares of public teachers’ salaries due or owing by the State under the “6-0-1” law (Code 1932, § 5478 etseq.). Subdivision (c) prohibited the county superintendents from delivering notes to other than teachers or their assignees, though Section d-1 commanded that, where any county or district had paid any or all the aid therein appropriated, then the notes should be delivered to such county or district in refund of the sums so paid.

In intended compliance with the provisions of Section 18-A of the Appropriation Act, the State Department of Education and State Treasurer issued the notes contemplated therein and allocated them to the respective county superintendents, but, on account of more satisfactory arrangements negotiated by the fiscal agencies of the State, the same were all recalled and not used, sold, or discounted for any purpose. Instead of carrying out the plan and purpose of Section 18-A, the State authorities negotiated a loan under other provisions of law for general purposes. From the money so borrowed the respective counties have been paid 85 per cent, of the amounts due to them by the State under the “6-0-1” law, and this money is now in the hands *308 of the treasurer for Spartanburg County, and amounts to approximately $195,000.00.

Plaintiff contends in this action that it and the other school districts, whose cash balances have been applied to the payment of the operating expenses and teachers’ salaries of the school districts which have spent more than their income, are entitled to have their respective cash balances restored and paid before such overdrawing districts participate to any extent in the moneys received from the State authorities for school purposes by Spartanburg County.

Free access — add to your briefcase to read the full text and ask questions with AI

Cite This Page — Counsel Stack

Bluebook (online)
164 S.E. 839, 166 S.C. 304, 1932 S.C. LEXIS 143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inman-school-dist-no-26-v-law-sc-1932.