1. The few which permit transportation with administration solely in the hands of the several local boards of education. 2. Those which permit transportation in consolidated districts only. 3. Those in which transportation is mandatory for some types of districts and permissive for others. 4. Those in which transportation is mandatory for some districts but with no provision for others. 5. Those in which transportation is permitted in all districts only when it is more economical to transport pupils than to maintain schools near their homes. The transportation statute of Wyoming is a good example of the last type of provision. Section 99-317 of the compiled statutes of Wyoming, as amended by a session law of 1933, reads as follows: ... whenever it shall be more economical to provide transportation or maintenance not to exceed ten dollars per month per pupil for elementary or high school pupils within the district or in adjoining districts, in lieu of establishing and maintaining schools in such district, . . . The convenience of the pupils is not a consideration in this statute. Regardless of how difficult it may be for students to reach school, transportation is prohibited unless it is cheaper to furnish it than to maintain schools in the districts nearer their homes. This statute has not been construed by the Wyoming Supreme Court, but since the courts throughout the country interpret such laws strictly, it is fairly certain that this provision will be no exception. Use of Federal Funds for Transportation The question arises as to the possibility of using Federal aid funds for transportation purposes. If the funds are appropriated under a broad Federal grant which leaves the moneys apportioned to the several States under control of State law, the limitations discussed in this chapter will inevitably apply. There seem to be only two devices by which this result could be avoided. One, suggested in a previous section, is that the Federal grant specifically provide for those desirable educational purposes which can properly be financed by Federal grant, but which cannot be financed under present State laws in some States. Another alternative, considerably more laborious and involving a degree of Federal control that may be undesirable, would be to require the various States to revise their laws to make appropriate provision for the transportation of public school pupils as a condition for participating in the Federal aid. It should be emphasized that transportation is only one of the problems that may arise in the use of Federal funds. It is practically certain that a number of other difficulties will appear. For example, if State statutes render consolidation difficult or impossible, the use of Federal funds for the equalization of educational opportunity will be greatly circumscribed. These possibilities should be thoroughly investigated. Conclusion From the foregoing discussion and analysis of statutes and decisions relative to transportation of public school pupils, the following conclusions may be drawn: 1. Transportation is fairly uniformly held not to be a part of school administration. 2. The statutes of the various States are so diverse as to permit of only very broad classification. 3. The statutes are very strictly construed in those States that have transportation laws. 4. To assure the availability of Federal funds for transportation purposes the Federal act should either (a) expressly provide for such use or (b) require that the States bring their transportation statutes into accord with the purposes of the Federal grant. 5. Some agency, such as the United States Office of Education, should sponsor a thorough survey of the educational laws of the several States to determine to what extent the educational objectives of a Federal grant may be delayed or defeated under present State laws. A D 7614 APPENDIX OPINION OF THE COMPTROLLER GENERAL COMPTROLLER GENERAL OF THE UNITED STATES, Chairman, Federal Board for Vocational Education. SIR: I have a letter of the Director of the Federal Board for Vocational Education of April 17, 1923, presumably by your authority, as follows: "I attach copies of two letters, one from the director of the State Board for Vocational Education of Kansas, and one from the auditor of the State of Kansas. The occasion for writing these letters is a suit brought by the State of Kansas against its State treasurer and its auditor in re the handling of Federal money paid over to the State under the Vocational Education Act of February 23, 1917. In this suit the State contends that Federal money paid over to the State under this act becomes State money as soon as it comes into the State, and further, that being State money it should be deposited in the State's general revenue account and handled as other State funds are handled. "For your convenience I may note that the Vocational Education Act of 1917 in section 13 provides that the State 'shall, through the legislative authority thereof, appoint as custodian for said appropriations its State treasurer, who shall receive and provide for the proper custody and disbursements of all money paid to the State from said appropriations.' Section 14 of the act provides further that 'moneys so received by the custodian for vocational education for any State shall be paid out on the requisition of the State board as reimbursement for expenditures already incurred to such schools as are approved by said State board and are entitled to receive such moneys under the provisions of this act.' "In answer to the suit brought by the Governor, the Kansas State auditor and the State treasurer, defendants in the suit, contend that Federal money paid over to the State under the Vocational Educational Act is a custodial fund and that it remains Federal money so long as it is in the custody of the State treasurer. "As you know, unexpended balances of Federal money paid over to a State on each year's account are charged up to the State by the United States Treasurer, and figured as part of the succeeding year's allotment to the State. These balances are thus not actually paid back into the United States Treasury, but are counted as Federal money in the hands of the State treasurer, who is under the act custodian of the Federal money. Further, it may be noted that interest on the Federal money in the hands of the State treasurer, where such interest is earned on deposit in banks, is paid annually into the Federal Treasury. "The contentions of the Governor of the State of Kansas and of the State treasurer and auditor raise the following questions, which are hereby submitted for your determination: "1. Does Federal money paid over to a State under the Vocational Education Act become State money as soon as it comes into the State? Or does it remain Federal money? "2. May such money paid over to the State be deposited as general revenue of the State to be drawn upon by the State in the same manner as is provided for drawing upon any other State money? "3. Assuming that a State has designated its State treasurer to be custodian of the Federal money, has the treasurer, acting as custodian, authority to segregate the Federal money by setting up a custodial fund which is not open to appropriations by the State legislature? "4. Under the Vocational Education Act accepted by a State, is the State treasurer, as custodian of the Federal money, bound to segregate the Federal money in a custodial fund? “5. As custodian, is the State treasurer bound to protect the Federal money in his custody against appropriations by the State legislature, and against all requisitions except such as are made upon him by the State Board for Vocational Education? "6. Has the Federal Government any control over the handling of Federal money paid over to the State? "7. If the State treasurer, acting as custodian of the Federal money, pays out this money under appropriations of the State legislature and not on requisitions by the State Board, can the Federal Government recover this money? "8. If the State treasurer, acting as custodian, does not segregate the Federal money in a custodial fund, can the Federal Government withhold payments to the State under the Vocational Education Act?" Sections 2, 3, and 4 of the act of February 23, 1917, 39 Stat., 930, 931, appropriate, respectively, certain specified sums for the purpose of cooperating with the States in paying salaries of teachers, supervisors, or directors of agricultural subjects and salaries of teachers of trade, home economics, and industrial subjects, and in preparing such teachers, supervisors, and directors. Each of these appropriations is made in the following terms: ** * * "that for the purpose of cooperating with the States in (paying salaries, etc.) there is hereby appropriated for the use of the States, subject to the provisions of this act (Naming the several amounts appropriated for each succeeding fiscal year up to and including the fiscal year 1925.) Each of the sections provides for allotment to the States of the amounts appropriated on the basis of population shown by the last preceding census. Section 5 of the said act provides that in order to secure the benefits of the appropriations aforesaid any State shall through the legislative authority thereof, accept the provisions of the act and designate or create a State board having all necessary powers to cooperate as provided in the act with the Federal Board for Vocational Education in the administration of the provisions of the act. Section 6 of the act created the Federal Board for Vocational Education with power in the said board to cooperate with the State boards in carrying out the provisions of the act. Section 8 of the act provides that the State boards shall prepare plans showing the proposed use of the appropriations, and submit the same to the Federal Board for Vocational Education for approval, and shall make annual reports to the Federal Board on the work done in the State, and the receipt and expenditure of money under the provisions of the act. Sections 13, 14, 15, 16, and 17, of the act provide: "SEC. 13. That in order to secure the benefits of the appropriations for the salaries of teachers, supervisors, or directors of agricultural subjects, or for the salaries of teachers of trade, home economics, and industrial subjects, or for the training of teachers as herein provided, any State shall, through the legislative authority thereof, appoint as custodian for said appropriations its State treasurer, who shall receive and provide for the proper custody and disbursements of all money paid to the State from said appropriations. "SEC. 14. That the Federal Board for Vocational Education shall annually ascertain whether the several States are using, or are prepared to use, the money received by them in accordance with the provisions of this act. On or before the first day of January of each year the Federal Board for Vocational Education shall certify to the Secretary of the Treasury each State which has accepted the provisions of this act and complied therewith, certifying the amounts which each State is entitled to receive under the provisions of this act. Upon such certification the Secretary of the Treasury shall pay quarterly to the custodian for vocational education of each State the moneys to which it is entitled under the provisions of this act. The moneys so received by the custodian for vocational education for any State shall be paid out on the requisition of the State board as reimbursement for expenditures already incurred to such schools as are approved by said State board and are entitled to receive such moneys under the provisions of this act. "SEC. 15. That whenever any portion of the fund annually allotted to any State has not been expended for the purpose provided for in this act, a sum equal to such portion shall be deducted by the Fed |