Leonard v. Franklin

• Court: Florida Supreme Court
• Writing for the Court: WHITFIELD, J.
• Citation: Leonard v. Franklin, 84 Fla. 402, 93 So. 688 (Fla. 1922)
• Decision Date: 19 August 1922
• Parties: LEONARD et al. v. FRANKLIN et al.

93 So. 688

84 Fla. 402

LEONARD et al. v. FRANKLIN et al.

Florida Supreme Court

August 19, 1922

Rehearing Denied Oct. 31, 1922.

Suit by H. C. Leonard and others against C. L. Franklin and others constituting the Board of Public Instruction of Calhoun County. The bill was dismissed, and plaintiffs appeal.

Reversed.

Syllabus by the Court

SYLLABUS

Law providing for long-term interest-bearing coupon warrants for high school buildings, to be paid from general school tax levy, unconstitutional. Under the provisions of sections 10, 11, and 14 of article 12 of the state Constitution, chapter 8639, Acts 1921, providing for the issuance by the county board of public instruction of long-term interest-bearing coupon warrants for the purpose of providing funds to acquire, build, and equip modern public high school buildings in stated special tax school districts in the county, the principal and interest of said warrants to be paid from the general school tax levy in the county, to be made annually is invalid and inoperative.

Appeal from Circuit Court, Calhoun County; C. L Wilson, judge.

COUNSEL

Paul Carter, of Marianna, for appellants.

Carter, Campbell & Carter, of Marianna, for appellees.

OPINION

WHITFIELD, J.

A bill in equity, brought by taxpayers to enjoin the issuance of 30-year interest-bearing time warrants by the county board of public instruction of Calhoun county, the proceeds to be used to aid in building and equipping modern public high school buildings in certain special tax school districts in the county, was dismissed on demurrer, and complainants appealed. The act designed to authorize such warrants to be issued is set out in the opinion prepared by Mr. Justice WEST.

Sections of article 12 of the Constitution, as amended to date, define the sources and uses of 'the county school fund,' and the limitations, express and implied, upon the power of the Legislature in the premises, do not contemplate legislative authority to 'the county board of public instruction' to issue long-term interest-bearing warrants, to be ultimately paid from the annual county tax levy, that is expressly authorized and limited by the Constitution, 'for the support of public free schools' in the county, the money derived from the sale of such warrants to be used to aid school districts in constructing schoolhouses in special tax school districts of the county.

The annual tax levy specified by section 8 as amended is 'for the support of public free schools therein,' and the Constitution expressly commands that the county school fund, consisting of the one-mill state tax levy under section 6, the county tax levy under section 9 as amended, and the 'capitation taxes collected within the county,' 'shall be disbursed by the county board of public instruction solely for the maintenance and support of public free schools.'

Section 10 authorizes the Legislature to provide for the division of counties into convenient school districts and for the levy of a district school tax for the exclusive use of public free schools within the district, upon a majority vote of the taxpaying electors of the district; and section 11 specifies the particular school purposes for which the school district tax fund shall be used in the district.

Added section 17 authorizes the Legislature to provide that special tax school districts may 'issue bonds for the exclusive use of public free schools within any such special tax school district, whenever a majority of the qualified electors thereof, who are freeholders, shall vote in favor of the issuance of such bonds,' and provides for a tax levy in the district 'for the payment of the interest and redemption of such bonds.'

The organic provisions expressly command that the annual county school tax levy 'shall be disbursed * * * solely for the maintenance and support of public free schools' within the county, and clearly do not contemplate that a large portion of such annual tax shall be pledged or used to liquidate long-term interest-bearing warrants to be sold and the proceeds used to aid in the building and equipment of high school buildings in particular special tax school districts in the county, when section 10 authorizes a special district tax to be used under section 11 'for building or repairing schoolhouses,' etc., in the district, and when added section 17 expressly provides that upon a vote of the freeholder electors therein special school tax districts may 'issue bonds for the exclusive use of public free schools within' such districts. While the county school fund should be properly disbursed for school purposes throughout the county, the Constitution does not contemplate the pledge or use of such fund in the manner provided in the act here considered.

The provisions of the Constitution in definitely fixing the sources of the county school fund and in expressly providing that it shall be used 'solely for the maintenance and support of public free schools,' clearly do not contemplate that such fund shall be used for a bonded indebtedness of the county to aid school districts of the county to erect high school buildings in such districts. Added section 17 provides for bonds for school purposes to be issued by special tax school districts, and the various limitations contained in article 12 clearly imply that the county school fund is not to be issued to pay the principal and interest on a long-time indebtedness incurred for school district purposes. See State ex rel. Bours v. L'Engle, 40 Fla. 392, 24 So. 539. Thirty-year interest-bearing warrants, as contemplated by Acts 1921, c. 8639, are in effect bonds. Special tax school districts, and not the counties, are by the Constitution authorized to issue bonds for proper school purposes. See Brown v. City of Lakeland, 61 Fla. 508, 54 So. 716; Munroe v. Reeves, 71 Fla. 612, 71 So. 922; McKinnon v. State, 70 Fla. 561, 70 So. 557, L. R. A. 1916D, 90.

Reversed.

BROWNE, C.J., and TAYLOR, J., concur.

CONCURRING

WEST, J. (concurring).

This is a suit brought by resident taxpayers to test the constitutional validity of chapter 8639, Acts of 1921, Laws of Florida. This statute is as follows:

'Chapter 8639--(No. 244).

'An act authorizing the board of public instruction for the county of Calhoun, state of Florida, to issue time warrants to the amount of one hundred fourteen thousand dollars ($114,000.00), the proceeds to be used for the purpose of aiding in the building and equipment of modern public high school buildings in special tax school districts, No. 1 (Wewahitchka), No. 3 (Blountstown), No. 4 (Altha), and No. 16 (Port St. Joe) of said county, and providing for the distribution of the fund, the levying of an annual tax for interest and sinking fund, and fixing a time limit for contesting the validity of said warrants.

'Be it enacted by the Legislature of the state of Florida:

'Section 1. That the board of public instruction for the county of Calhoun, state of Florida, be and is hereby authorized to issue and sell time warrants to the amount of one hundred fourteen thousand dollars ($114,000.00) or as much thereof as they shall find necessary, for the purpose of providing funds to acquire, build and equip modern public high school buildings in said county in special tax school district No. 1 (Wewahitchka), No. 3 (Blountstown), No. 4 (Altha), and No. 16 (Port St. Joe), in aid of said districts in said work, as said board shall find their respective necessities require, not exceeding the following amounts to the district: Twenty-five thousand dollars ($25,000.00) for district No. 1 (Wewahitchka), thirty-seven thousand five hundred [dollars] ($37,500.00) for district No. 3 (Blountstown), thirty-seven thousand five hundred dollars ($37,500.00) for district No. 4 (Altha), and fourteen thousand dollars ($14,000.00) for district No. 16 (Port St. Joe).

'Sec. 2. Said warrants shall be dated August 1, 1921, and be payable thirty years from their date, and bear interest at the rate of six per cent. per annum, payable semiannually, principal and interest to be payable at the office of the county superintendent of public instruction of said county. The said board may in its discretion provide for a sinking fund for the liquidation of said warrants in whole or in part, to be set aside annually, beginning from the date of said warrants, or may provide for such fund to begin at any time after ten years from the date of the warrants, and in either case may fix the amount to be created annually.

'Sec. 3. Said warrants shall be incontestable after thirty days from date of issuance; provided that notice of such issuance be given by said board of public instruction, by publication in a newspaper published in the county and by posting at the county courthouse door, for at least three weeks during said period of thirty days, giving a substantial description of the warrants, their denominations, rate of interest, when and where payable and the purpose for which issued: Provided further, that at any time before the expiration of said thirty days any person, firm, corporation, or taxpayer of the county, or the board of county commissioners may file proceedings to contest the legality and validity of said warrants in the circuit court of said county, and in case no such proceedings are filed within said thirty (30) days, the entire issue shall be deemed regular and valid and no contest or impeachment of their validity shall thereafter be allowed in any court whatsoever.

'Sec. 4. In case any proceedings shall be filed to contest the regularity or validity of said warrants within the time limited in the foregoing section, and the court adjudges the warrants to be regular and valid, such judgment or decree, unless appealed from within ten days,...