162 Ga. 58 | Ga. | 1926
Lead Opinion
The Board of Education of Monroe Coiinty in past years borrowed money from the Citizens Bank of Eorsyth, for the purpose of paying teachers and operating the public schools in the county. In this manner debts were accumulated. At the beginning of September, 1924, the schools were opened while the accumulated debts were outstanding, and in November the bank loaned an additional sum of $25,200, a part of which was applied to payment of interest on the accumulated debt and the balance to payment of the teachers. The sum thus applied to the payment of teachers was insufficient to pay them to the end of the year; and $3000, derived from discount in another bank of warrants issued to the board of education from the State public school fund, was used to finish paying what was due the teachers in the year 1924. Other sums derived from the discount of the above-mentioned State warrants were used to pay the teachers and operate the schools in January and February, 1925. The board of education in obtaining loans from the Citizens Bank of Forsyth did so on agreement to turn over all revenues derivable from local taxation and from the State for payment on the existing indebtedness and such future advances as should be made by the bank for payment of teachers and operating the schools. In 1925' the bank became dissatisfied with the attitude of the county school superintendent in failing to turn over - warrants received from the State, and in March refused to make any other advances or loans for the purposes above mentioned. In these circumstances the board of education on March 13, 1925, after the term of school commencing in September had been conducted for more than six months, passed a resolution closing the schools for the
The defendants filed separate answers, which, among other things, alleged the right of the board of education to apply the revenues of the board to payment of the accumulated indebtedness to the bank which arose prior to the year 1925; also that it was necessary to apply such revenues to reduction of the accumulated
The petition in this case does not allege that any of the money borrowed from the bank was illegally borrowed, and the court did not decide that any of the money was illegally borrowed. In these circumstances, for all purposes of this case, the unpaid balance of the money borrowed from the bank will be deemed to be a valid debt of the board of education. A fundamental contention made by the petitioners is that the board of education could not apply the funds in the hands of the tax-collector, collected and to be collected under the levy of the local tax in the fall of 1924, to payment of the accumulated indebtedness to the bank for moneys previously loaned that did not go to pay the teachers and operate the schools during the calendar year 1925.. The Code of School Laws (Acts 1919, p. 288) contains the following:
“Sec. 95. . . The county boards of education of the several counties of this State shall have the power and authority, whenever they deem it necessary, to borrow sufficient amounts of money, and no more, to pay for the operation of the public schools of their counties,; provided, that no board of education shall have authority under this law to borrow a sum of money greater in the aggregate than the sum to which the county may be entitled from the public-school fund.
“Sec. 96. . . In order for any board of education to borrow money for the purposes hereinbefore stated, there shall be passed by said board a resolution authorizing said money to be borrowed, in which resolution it shall be stated the amount of money to be borrowed, the length of time the same is to be used, the rate of interest to be paid, and for what purpose borrowed and from whom the same is to be borrowed, which resolution shall be by the county school superintendent recorded on the minutes of the meetings of said board of education.
“Sec. 97. . . -No money shall be borrowed for any longer time than is necessary, and the same shall be paid back out of any funds coming into the hands of the county school superintendent that can be legally applied to the payment of the same.
“See. 98. . . Said board of education so borrowing money shall borrow the same at as low a rate of interest as possible, and*63 they are authorized to pay the interest on said money out of the public-school fund for said county.
“See. 99. . . At the opening term of the superior court of each county in this State where money has been borrowed by the board of education under the provisions of this law, the county school superintendent shall include in'his report to the grand jury the amount of money so borrowed during the preceding year, from whom borrowed, the rate of interest paid, the date or dates the same was borrowed, and when paid back.
“Sec. 100. . . After the resolution aforesaid has been passed by any board of education, the president of the board of education, together with the county school superintendent, shall have the right to execute a note or notes in the name of the board of education of said county, for any money that is authorized to be borrowed under the resolution passed by said board of education.
“See. 101. When any money shall be borrowed under the provisions of this law, the same shall be paid over to the county school superintendent and become a part of the public-school fund of said county, and the same shall be by the county school superintendent paid out to the teachers of said county; and the county school superintendent shall be responsible for any money borrowed under the authority of this law and paid into his hands, in the samé way and to the same extent that he is responsible for any other public-school funds coming into his hands.
“Sec. 102. . .'It shall be unlawful for any board of education to make any contract involving the expenditure of funds in excess of the total appropriation for the current fiscal year. Any indebtedness created, contract made, or order or draft issued in violation thereof shall be void.
“Sec. 112. . . As soon as the county board shall communicate satisfactory evidence to the State school superintendent that arrangements have been made, by taxation or otherwise, for continuing the common schools, free to all, for at least six months in the year, throughout the entire county, said county shall be deemed and held entitled to draw her proportionate part of the State funds.
“Sec. 113. . . Whenever a board of education shall fail in any year to make arrangements to put schools in operation, it shall forfeit all rights to participation in the school funds of that*64 year, unless the failure to arrange for such schools was from providential cause, or other good and sufficient reason to be judged of by the State board of education.”
These laws contemplate necessity to anticipate' revenues provided by law for operating the public schools before such funds come into the hands of the boards of education, and authorize boards of education to borrow money for the purpose of paying teachers and operating public schools. Ordinarily the power to borrow money necessarily implies power to repay the debt. The above-quoted laws, while authorizing the borrowing of money for the purposes above indicated and the manner in which contracts for the borrowing of money shall be made, do not limit the power of the board of education in the matter of repayment. On the contrary, under section 97 the money should not be borrowed “for any longer time than is necessary,” and it should be “paid back out of any funds coming into the hands of the county school superintendent that can be legally applied to the payment of the same.” Assuming that a debt had been lawfully created for the loan of money for purposes as above indicated, the board of education is bound to pay it back out of any funds that can be legally applied to such payments. Funds that can be legally applied to such payments are such as come into the hands of the board of education for the purpose of paying teachers and operating the public schools. Repayment of money borrowed for the purposes should be made out of the revenues appropriated to the schools for the year in which the borrowed money is to be used, but the statute does not limit repayment to the funds so appropriated. It recognizes the dirty of the board of education to repay the money out of any funds which may be lawfully applied to such purposes. Money appropriated for the public schools of the county is lawfully applied when applied to repayment of money borrowed to pay teachers and operate the schools. The proper construction of the statute is that it authorized repayment out of any funds that should be appropriated to the board of education at any time for the payment of teachers and operating the schools. The legislative intent was not to create a device, but to make a wise provision whereby the schools could attain the advantages of borrowed money, and to impose upon the schools the duty of repaying money out of funds that might be appropriated to the purposes for which the
Another question is, did the board of education on March 13, 1925, have power to close the term which commenced September 1, 1924? In section 84 of the act of 1919 (Acts 1919, p. 288) it is provided: “The county boards of education shall have the power to define and regulate the length of the public-school terms of their respective counties. . . They shall, as far as practicable, provide the same facilities for both races in respect to attainments and abilities of teachers and for a minimum six months length of term time.” This law confers upon the boards of education plenary power to provide for the duration of the terms of the public schools for periods of not less than six months. The board of education having the power to specify the terms of school as above indicated, such power will authorize them, after having specified a term exceeding six months, by subsequent resolution to close the term before the time specified in the first instance, provided the said time shall not make the term less than six months. Whether or not they will exercise such power is a matter of discretion to be governed by the facts of the particular case. In this case it appears that the schools were operated more than six months in the term which commenced in September, 1924. It was therefore within the power of the board of education to close the term at the time the resolution was passed for that purpose.
It was urged further by the plaintiffs that the board of education could not apply proceeds of the local tax levy for 1924 to payment of accumulated debts as referred to in the first division, or close the term of schools on March 13, 1925, as referred to in the second division, on account of an alleged contract between the board of education and the board of county commissioners, whose duty it was to levy the local tax, to the effect that if the board of county commissioners would levy a tax of three mills additional to the tax of five mills that had been levied in previous years, the board of education would conduct the schools for a full term of
Having seen that the board of education acted within its power, it remains to be decided whether the board of education acted arbitrarily, and committed an abuse of discretion in seeking to apply the funds derived from the local tax levy of 1924 to the payment of the previously accumulated indebtedness to the Citizens Bank, and in closing the schools on March 13, 1925, being more than six months but less than nine months from the beginning of the term commencing in September, 1924. It indisputably appeared from all the evidence that a large indebtedness to the Citizens Bank of Forsyth had accumulated, that there was a large interest account, and that the bank would not continue advancing to the board of education without reduction of the debt. The board of education deemed it necessary to reduce the debts, and, in order to do so, it was necessary to close the schools at the time above indicated and employ the money that would be required to operate the schools for a longer time towards payment of the debt. There does not
The foregoing rulings deal with the controlling questions in the case; and it follows that the judge erred in making the mandamus absolute.
Judgment reversed.
Dissenting Opinion
dissenting. 1. Tlie decision of this case involves the power of county boards of education to borrow money, and to apply the public-school fund's of the counties to the payment of debts contracted by such boards. For a number of years the Board of Education of Monroe County contracted each year, with the Citizens Bank of Forsyth, debts in excess of the annual school revenues of the county. They ran behind for a period of from twelve to-eighteen months, and would each year borrow money with which to operate the schools. After applying all annual school funds of this county to the payment of these debts, the balances were carried forward to the succeeding years. As the years rolled by the balances increased. On April 8, 1924, this deficit
In these circumstances, was the said indebtedness a valid and enforceable debt against the school funds of the county for the years 1924 and 1925, and was said assignment to the bank by the board of the school funds coming to the county, both from the State and local taxation, valid? I do not think so. The boards of education of the several counties of this State are empowered and authorized, whenever they deem it necessary, to borrow sufficient amounts of money, and no more, to pay for the operation of the public schools of their county; but no board of education has authority to borrow sums of money greater in the aggregate than the sum to which the county may be entitled from the public-school fund. Code of School Laws, § 95, Acts 1919, p. 328. When any money is borrowed under the above section of the Code of School Laws, the same shall be paid over to the county school superintendent, and become a part of the public-school fund of said county, and shall be by said officer paid out to the teachers of the county schools. Code of School Laws, § 101, Acts 1919, p. 329. By the above provision of our law the amount which can be borrowed by a county board of education is fixed and limited. The amounts which can be borrowed can not be greater in the aggregate than the sum which the county is entitled" to receive from the public-school fund for a given year. This provision of the statute imposes a limitation upon the power of county boards of education to borrow money. The aggregate sum which can be borrowed is stated and fixed. The county board of education can
Now what is the consequence if a county board of education exceeds this limit and borrows money in excess thereof? If a debt is contracted in excess of this limit, is it collectible ? Section 102 of the Code of School Laws is as follows: “It shall be unlawful for any board of education to make any contract involving the expenditure of funds in excess of the total appropriation for the current fiscal year. Any indebtedness created, contract made, or order or draft issued in violation thereof [hereof?] shall be void.” Here the statute plainly and distinctly declares the result which must follow if a county board of education borrows money in excess of
The powers of public officers in this State are defined by law. Persons dealing with them must take notice thereof. The public can not bo estopped by the acts of officers done in the exercise of a power not conferred on them by law. Civil Code (1910), § 303. Public officers have only such powers as are granted them. They take nothing by implication. The law granting these powers must be strictly construed. Persons dealing with them must at their peril ascertain the extent of their powers. Decatur County v. Roberts, 159 Ga. 528 (126 S. E. 460); Baggerly v. Bainbridge State Bank, 160 Ga. 556, 561 (128 S. E. 766). Besides, in this case, the bank had full knowledge of all the facts. Knowing these facts, it will be presumed that it knew the law applicable thereto.
2. The trial judge held that the public-school funds of the County of Monroe for the years 1924 and 1925, arising from that portion of the State public-school fund allotted to that county for the year 1924, and to arise from that portion of said fund to be allotted to the county for 1925, and from levies of local taxes in that county in 1924 for its public schools, could not be used, under the facts of this case, to discharge accumulated debts contracted by the county board of education prior to 1924, and that the assignment of said funds by the board to the Citizens Bank to secure the payment of such past-due indebtedness was null and void. .It is upon this ruling that the judgment of the court below is mainly' based. Is that ruling correct? We will deal first with the State
We come next to consider the question whether the school funds of this county, arising from local taxation in 1924, could be legally applied to the payment of this accumulated indebtedness of the county board of education. On September 16, 1924, the county commissioners, upon the recommendation of the board of education, levied a special tax of five mills “for educational purposes, and the support of the public schools of Monroe County,” and upon the further recommendation of the county board of education levied an additional three mills “for educational purposes, to insure payment of teachers’ salaries for a full nine-months term throughout the county.” Before the passage by the county commissioners of the resolution levying said tax, the county board of education requested the commissioners to levy a tax of three mills for the purpose of paying past-accumulated debts of the county board of education. This the county commissioners declined to do; but agreed to levy an additional tax of three mills for school purposes, if the county board would continue for the regular nine-months term the public schools of the county which had been, and were still being, conducted. Thereupon the county board of education unanimously passed a resolution agreeing that the money arising from this levy of three mills should be used to continue the public schools of the county for the regular term of nine months, which had previously been fixed by the board and was then in existence. Upon this resolution of the county board the county commissioners made said tax levy of three mills. Thereupon the county board of education notified the State school superintendent that arrangements had been made for continuing the common schools of Monroe County for at least six months in the year 1925. Under these facts, could the county board of education divert the funds arising from these local tax levies, and especially the funds arising from the special levy of three mills, from the payment of the expenses of operating the public schools of the county for the school year of 1924-1925 ?
By the constitution of this State, “Authority is granted to the
In Baggerly v. Bainbridge State, Bank, supra, we held that the judge of the superior court was without authority to authorize the treasurer of a school district to expend the funds of such district, “which arose during the year 1924, to the payment of the expenses of this school for the year 1925,” but that the revenues of the first-named year should go to discharge the expenses of operating the school of the district for that year. It seems to be clear that under the constitution and laws of this State the public-school fund of a county for a given year shall first be used for the payment of the expenses of operating the schools during such year. It follows that the trial judge properly held that the public-school fund of the County of Monroe, coming from the State and arising from the local school tax levies for the support of the public schools of that county for the school year 1924-1925, could not, under the law and under the resolution of the county commissioners making such levies, be diverted from the payment of the expenses of operating the schools in that county for that year, and applied to the payment of past-due debts contracted by the county board of education and remaining unpaid.
3. Did the county board of education abuse its discretion in closing the public schools of this county on March 13, 1925, under the facts disclosed in the record? The board had previously fixed the school term for 1924-1925 for a period of nine months. It had represented, and the representation was true, that it had made arrangements for the operation of the public schools in the county for at least six months during the year 1925; and on the faith of this representation the State school superintendent had allotted to that county its portion of the State public-school fund for the year 1925. Furthermore, this board had recommended to the county commissioners the levy of a tax of eight mills for the
á. But it is insisted by the plaintiffs in error that the Board of Commissioners of Monroe County, and the board of education of that county, could not enter into an agreement to operate the schools for any particular time, and that the board of education is not bound by any such agreement or any promise to the board of county commissioners with reference to the length of time the county board of education would operate the public schools. It may be conceded that these bodies were without authority to enter into any such agreement, and that the board of education would not be legally bound to observe such agreement or to comply with any promise which it made to the board of commissioners with respect to the length of the term for the operation of the schools of the county. But, independently of any such agreement or any such promise, the county board of education having recommended the levy of a tax for the purpose of conducting the public schools for a given term, and in pursuance of such recommendation the tax having been levied for this purpose, which produced sufficient funds to effect it, the board of education was in legal duty bound to operate the schools for that term. It would not be relieved from the discharge of this duty by reason of the fact that the tax for such purpose was levied by reason of the existence of such agreement and of such promise. The duty to operate these schools did not arise from such agreement and promise. It arose from the duty imposed by law upon the county board of education to operate these schools, under the facts in this case.
5. For the above reasons, I think the judgment of the court below should be affirmed; and I feel compelled to dissent from the opinion of the majority. I am authorized to say that Chief Justice Russell concurs in this dissent.
Concurrence Opinion
concurring. Assuming that the debt was lawfully incurred, which assumption is authorized by the pleadings, and having in mind that we must take the case as made in the trial court, and that this is a court solely for the correction of errors, I concur in the judgment of reversal, for the reason stated by Justice Atkinson.