Section VII-9, Educational funds; trust funds; use of.
The following funds shall be exclusively used for the support and maintenance of the common schools in each school district in the state as the Legislature shall provide:
a. Income arising from the perpetual funds;
b. The income from the unsold school lands, except that costs of administration shall be deducted from the income before it is so applied;
c. All other grants, gifts and devises that have been or may hereafter be made to the state which are not otherwise appropriated by the terms of the grant, gift or devise; and
d. Such other support as the Legislature may provide.
No distribution or appropriation shall be made to any school district for the year in which school is not maintained for the minimum term required by law.
Neb. Const. art. VIII, sec. 9 (1875);
Amended 1908, Laws 1907, c. 201, sec. 1, p. 580;
Transferred by Constitutional Convention, 1919-1920, art. VII, sec. 9;
Amended 1966, Laws 1965, c. 302, sec. 2(1), p. 852;
Amended 1970, Laws 1969, c. 423, sec. 1, p. 1439;
Amended 1972, Laws 1972, LB 1023, sec. 1.
Primary purpose of trust is production of income for the support and maintenance of common schools. State ex rel. Ebke v. Board of Educational Lands &Funds, 154 Neb. 244, 47 N.W.2d 520 (1951).
Profit on sale of securities becomes a part of permanent school fund. State ex rel. Bottcher v. Bartling, 149 Neb. 491, 31 N.W.2d 422 (1948).
Since state, and not the board or its individual members, is trustee of school fund, suit may not be brought against the board and its individual members for an accounting by a taxpayer, since the suit is essentially one against the state. State ex rel. Walker v. Board of Commissioners for Educational Lands &Funds, 141 Neb. 172, 3 N.W.2d 196 (1942).
Act providing for payment out of state school funds of tuition of children whose parent is in military service of United States, stationed in Nebraska, was void. Taylor v. School Dist. of City of Lincoln, 128 Neb. 437, 259 N.W. 168 (1935).
State school fund is a trust fund and can be used only for purposes specified. Taylor v. School Dist. of City of Lincoln, 128 Neb. 437, 259 N.W. 168 (1935).
Saline lands granted to state by United States are not included in educational lands. Chicago, B. &Q. R. R. Co. v. Neville, 102 Neb. 817, 170 N.W. 176 (1918).
Funds derived from certain grants for specified purposes cannot be converted to General Fund of the state. Olive v. School District No. 1, 86 Neb. 135, 125 N.W. 141 (1910); State ex rel. Ledwith v. Brian, 84 Neb. 30, 120 N.W. 916 (1909); State ex rel. McKenzie v. McBride, 5 Neb. 102 (1876); McMurtry v. Engelhardt, 5 Neb. Unof. 271, 98 N.W. 40 (1904).
All lands, money or other property bequeathed, or in any manner conveyed to state for educational purposes, shall be used and expended in accord with terms of grant and cannot be diverted to general fund or other uses. State ex rel. Ledwith v. Brian, 84 Neb. 30, 120 N.W. 916 (1909).
Constitutionality of a retroactive statute generally depends upon reasonableness. Relevant factors to consider are the nature and strength of the public interest, the extent of modification of the asserted pre-enactment right, and the nature of the right altered by the statute. Hiddleston v. Nebraska Jewish Education Soc., 186 Neb. 786, 186 N.W.2d 904 (1971).
Law having for its object diversion of any funds raised by taxation for school purposes to different purpose is unconstitutional and void. State ex rel. Ahern v. Walsh, 31 Neb. 469, 48 N.W. 263 (1891).
In proceedings by United States to condemn state school lands, measure of compensation is the fair market value of the property in fee, irrespective of number and kind of interests existing therein. State of Nebraska v. United States, 164 F.2d 866 (8th Cir. 1947).
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