When the public school fund shall be received and receipted for, it shall be the duty of the officers authorized by law to receive such fund and keep it separate and distinct from other funds. The school funds shall be used for educational purposes and may be used to pay the salaries of personnel and to pay for the utilization of school facilities, including school buses, for extracurricular and interscholastic activities, including literary events, music and athletic programs within individual schools and between schools in the same or in different school systems when such activities are sponsored by local boards of education as an integral part of the total school program, and for no other purpose. When taxes are paid into the state treasury, the comptroller general shall in no case receipt a tax collector for them until that part of the tax so paid in which was raised for school purposes is separated in amount from the gross amount paid in. It shall be lawful to invest school funds in securities of the states, United States, or municipalities of this state or in certificates of deposit.
(Ga. L. 1919, p. 288, § 115; Code 1933, § 32-942; Ga. L. 1969, p. 721, § 1; Ga. L. 1975, p. 94, § 1; Ga. L. 1985, p. 149, § 20; Ga. L. 2013, p. 141, § 20/HB 79.)
Cross references.- Expenditures for uniforms for maintenance, food service, or custodial personnel, § 20-2-980.
OPINIONS OF THE ATTORNEY GENERALANALYSIS
General Consideration
Surplus funds from tax levy paid to board.
- Any surplus funds from a tax levy, to meet payments on a board of education bonded indebtedness, must be paid to the board of education and cannot be retained by the county. 1954-56 Op. Att'y Gen. p. 250.
Use of school buses by community groups.- Local board of education may not allow community organizations or private recreational organizations to use a school bus for purposes other than transporting pupils to and from schools or activities which are an integral part of the educational program, even if the group pays all expenses associated with the use of the bus, except that local boards may allow community organizations or private recreational organizations to use school buses to provide transportation for the elderly and the handicapped if the costs of such transportation is reimbursed in full from funds other than school funds. 1985 Op. Att'y Gen. No. 85-34.
Sharing of services between boards of education unauthorized.- Georgia boards of education are not empowered to share services by creating and utilizing a nonprofit corporation such as the Consortium for Adequate School Funding in Georgia, Inc., for the purpose of challenging state school funding by litigation or otherwise. 2009 Op. Att'y Gen. No. 2009-3.
Educational Purposes
1. In General
Expression "for educational purposes" is to be given the broadest significance; the expression is broad enough to cover all things necessary or incidental to the furtherance of education, but the scope of the expression does not extend to any measure that might incidentally prove to be of assistance to a program of education. 1975 Op. Att'y Gen. No. 75-33.
No public school may sponsor any activity that is not for educational purposes. 1954-56 Op. Att'y Gen. p. 269.
Paying of state sales taxes out of school funds.- In the event that schools are liable for the schools' past failures to collect and remit sales taxes, the assessments may not be paid out of the public school funds; public school funds shall be used for educational purposes and none other and the paying of state sales taxes out of public school funds could not conceivably be considered a payment for "educational purposes." 1973 Op. Att'y Gen. No. 73-83. (Overruled to some extent by 1986 Op. Att'y Gen. 86-18).
Board cannot use the board's funds for laying out, altering, maintaining, and improving public, county-maintained road even though school transportation would be facilitated thereby; it is the sole duty and responsibility of the local officials in charge of county matters to lay out, alter, maintain, and improve the road in the manner the officials deem best suited to the needs of the county. 1962 Op. Att'y Gen. p. 189.
Board cannot use funds for red light on state highway.- Expenditure of public school funds for a red light located on a state highway one-half mile from the public school would not be for "educational purposes." 1957 Op. Att'y Gen. p. 116.
School funds cannot be used to purchase billboard space by a local school system for the display of public relations advertisements. 1984 Op. Att'y Gen. No. 84-85.
School funds cannot be used for paying rewards.- Expenditure of school funds for the payment of rewards offered for information concerning damage to and destruction of school property is not an expenditure for "educational purposes," and therefore not a lawful use of general school funds. 1974 Op. Att'y Gen. No. 74-122.
Expending school funds to obtain a water supply for a school is for "educational purposes"; the board of education has authority to enter into a contract with a municipality for that purpose. 1954-56 Op. Att'y Gen. p. 244.
Street assessments.- It is a proper school expenditure for a board of education to pay street assessments. 1954-56 Op. Att'y Gen. p. 244.
Chamber of Commerce dues.- Local school funds may not be used to pay chamber of commerce membership dues of the county school superintendent. 1990 Op. Att'y Gen. No. U90-3.
2. School Facilities
Use of funds for library facilities deemed expenditure for educational purposes.
- In view of the inherent nature of library facilities as a learning tool and the pervasive relationship between educational authorities and library systems on both state and local governmental levels, together with the state legislative policy that establishment of a public library service is to be part of the provisions for public education in this state, the use of school funds for construction of public library facilities is an expenditure for educational purposes. 1975 Op. Att'y Gen. No. 75-33.
Expenditure of funds for leased premises authorized.- An expenditure of school tax funds for the repair, maintenance, and upkeep of leased premises is authorized under the provisions. 1960-61 Op. Att'y Gen. p. 170.
Board can sell building when not necessary or convenient for school purposes.- County board of education can sell any school building when the board by resolution declares that the building is not necessary or convenient for school purposes, but all money received from the sale can be used by the board of education for school purposes and none other, i.e., the board cannot legally make a contribution to a health center nor buy any property which is not to be used for school purposes. 1954-56 Op. Att'y Gen. p. 223.
Board can run board's sewer lines to city's and purchase sewage disposal services.- Expenditure of public school funds by a county board of education to run sewer lines from the schools to the city sewer lines on nearby city streets, and to purchase sewage disposal services from the city, would not violate any constitutional or statutory provision of the State of Georgia. 1967 Op. Att'y Gen. No. 67-85.
3. Extracurricular and Interscholastic ActivitiesPublic school funds cannot lawfully be expended for extracurricular athletic teams such as football and basketball teams. 1971 Op. Att'y Gen. No. 71-10 (decided under former Code 1933, § 32-942, prior to amendment by Ga. L. 1975, p. 94, § 1; see the annotation from 1979 Op. Att'y Gen. No. U79-6 that follows).
Validity of Op. Att'y Gen. No. 71-10 is retained in a general sense with respect to any prohibitions on expenditures for extracurricular athletic programs other than those enumerated in Ga. Const. 1976, Art. VII, Sec. II, Para. I (see now Ga. Const. 1983, Art. VII, Sec. III, Para. I) and former Code 1933, § 32-941. 1979 Op. Att'y Gen. No. U79-6.
Board can improve football field only if board has property title.- County board of education can expend school funds on improving a football field only if title to the property is in the board (this would exclude a nonprofit athletic association). 1954-56 Op. Att'y Gen. p. 245.
Lease of vehicles for extracurricular use not authorized.- Local board of education may not provide transportation to students for extracurricular activities by leasing vehicles for that use. 1995 Op. Att'y Gen. No. 95-2.
Debate programs may be supported with tax funds.- Local school boards may spend state and local tax funds to maintain a debate program. These expenditures may include payment of debate meet registration fees for individuals and schools. 1981 Op. Att'y Gen. No. 81-20.
Individual and school registration fees and costs for student room and board while they are away from home at centrally located debate meets are necessary and incidental to the educational process and may be paid with funds derived from local taxation. 1981 Op. Att'y Gen. No. 81-20.
State tax funds may be spent on individual and school registration fees for centrally located debate meets, but may not be spent on either room or board for students attending such meets. 1981 Op. Att'y Gen. No. 81-20.
Only local tax funds may be spent for the necessary costs of room and board for students while the students are away from home at debate meets. 1981 Op. Att'y Gen. No. 81-20.
4. Other Programs
"Medical services" area not wholly within or without limits of lawful expenditures.
- Answering of the question of whether a given expenditure can be said to be an expenditure for "school purposes" is exceedingly difficult and an area as broad as "medical services" is not one which can be said to be either wholly within or wholly without the outer limits of lawful expenditures for "school purposes." 1977 Op. Att'y Gen. No. 77-52.
Funds not usable for medical treatment beyond evaluation necessary to place child.- Neither the State Board of Education nor local boards of education can lawfully use school funds for medical (including psychiatric) treatment or services beyond such evaluation as is necessary to the placement and the determination of the proper educational program for a given child. 1979 Op. Att'y Gen. No. 79-1.
Medical services directly related to school operations can be supported.- Medical services directly related to the actual conduct of school operations with minimum interruption can be supported with school funds. 1977 Op. Att'y Gen. No. 77-52.
No funds usable for lunches for nonpublic school children.- Neither state nor local school funds may be used to provide lunches for children not enrolled in the public school program. 1974 Op. Att'y Gen. No. 155.
Local boards may expend funds for supplies used in physical education programs.- Since physical education is a prescribed course of study for all common schools, local boards of education may legally expend public school funds for physical education supplies to be used in the schools' physical education programs. 1957 Op. Att'y Gen. p. 115.
5. Assessment and Collection of TaxesCollection of taxes for public schools is not a proper function of the county board of education; the board only recommends to the fiscal authorities of the county the rate of levy to be made for taxes for the support and maintenance of education in the county. 1958-59 Op. Att'y Gen. p. 128.
Tax collection expenses.- It is illegal for school board to expend funds to help defray tax collection expenses of the county tax commissioner. 1965-66 Op. Att'y Gen. No. 65-3.
County cannot pay for surveying and appraising taxable property for school taxes.- County which contracts for the surveying and appraisal of taxable property may not pay any part of the cost of such services from the taxes levied for school purposes. 1952-53 Op. Att'y Gen. p. 341.
Board cannot expend funds to pay charges for collection of delinquent taxes.- Since the collection of taxes is not a proper function of a county board of education, the board cannot legally expend public school funds to pay any part of the cost of charges made by the county attorney to the commissioners of roads and revenues (now board of county commissioners) for the collection of delinquent taxes. 1958-59 Op. Att'y Gen. p. 128.
6. Employee Benefits and Insurance
Providing "cafeteria" plan of fringe benefits.
- Local boards of education may provide teachers and employees the "cafeteria" plan of fringe benefits allowed in § 125 of the Internal Revenue Code as an optional program, paid for by local supplement rather than the state's portion of salaries allocated under former § 20-2-220 (see now O.C.G.A. § 20-2-182). 1984 Op. Att'y Gen. No. U84-6.
Public school funds cannot be used to purchase a home for teachers.- 1954-56 Op. Att'y Gen. p. 291.
Board cannot pay premiums on liability insurance except as stated in insurance provisions.- It is clear that a local board of education cannot expend school money to pay premiums on liability insurance except under the conditions and circumstances stated in Ga. L. 1949, p. 1155, §§ 1 and 2. 1957 Op. Att'y Gen. p. 116.
Expenditures for physical examination, faculty banquet, and insurance premiums improper.- Expenditures for an annual physical examination of the school superintendent, for a faculty banquet, and for payment of insurance premiums for members of a high school football team would be improper objects for the expenditure of school funds. 1971 Op. Att'y Gen. No. 71-12.
Purchase of a liability insurance policy which covers school officials and employees against injuries a student might receive while participating in an extracurricular athletic activity is a valid expenditure of school funds by a school district. 1984 Op. Att'y Gen. No. 84-66.
Investment of Funds
"Certificates of deposit" defined.
- Phrase "certificates of deposit" applies to certificates of deposit issued by commercial banks and to certificates of deposit issued by federal or state chartered savings and loan associations; the investment of school funds in "certificates of deposit" issued by other institutions would present a question of whether the investment would be prudent and in the exercise of sufficient care and diligence. 1969 Op. Att'y Gen. No. 69-306.
Local officials responsibility for investment loss.- Local school officials, in making legally authorized investments of local school funds, are not responsible if the investment results in a loss rather than a gain, so long as the investment, at the time the investment was made, was reasonably prudent and cautious under the circumstances, and especially if the loss is occasioned by economic conditions over which the officials have no control. 1969 Op. Att'y Gen. No. 69-306.
RESEARCH REFERENCES
Am. Jur. 2d.
- 68 Am. Jur. 2d, Schools, §§ 110, 125, 126, 135 et seq.
C.J.S.- 78A C.J.S., Schools and School Districts, § 699 et seq.
ALR.- Nature and extent of transportation that must be furnished under statute requiring free transportation of school pupils, 52 A.L.R.3d 1036.
PART 3 BOND ISSUES
JUDICIAL DECISIONS
Cited in Davis v. Board of Educ., 203 Ga. 44, 45 S.E.2d 429 (1947); ABC Sch. Supply, Inc. v. Brunswick-Balke-Collender Co., 97 Ga. App. 84, 102 S.E.2d 199 (1958).
OPINIONS OF THE ATTORNEY GENERAL
County board cannot convey property to trustees to create debt to be retired from revenues.
- County board of education would not have the right to convey school property to the trustees for the purpose of enabling the trustees to create against the property a debt to be retired from the revenues derived by the trustees for the use of the property, and with the intent after such debt has been retired to reconvey the property to the county board. 1945-47 Op. Att'y Gen. p. 168.
RESEARCH REFERENCES
ALR.
- Title to buildings when school lands revert for nonuse for school purposes, 28 A.L.R.2d 564.
Subpart 1 County, District, and Joint High School Bonds
20-2-430. Issuance and retirement of county schoolhouse bonds.
When any county board of education shall deem it to the best interests of education in the county to incur any bonded debt for building, equipping, or purchasing sites for the building and equipping of schoolhouses pursuant to Article IX, Section V, Paragraphs I and IV of the Constitution of Georgia, the election required shall be called and held in the manner prescribed by Article 1 of Chapter 82 of Title 36, and the bonds shall be validated in the manner provided by Part 1 of Article 2 of Chapter 82 of Title 36. The purpose of this Code section is to permit and require the same procedure to be followed in the voting, issuance, levying of taxes for, and the retirement of bonds issued by county boards for building and equipping schoolhouses or purchasing sites therefor as is required in the case of municipalities and other county bonds; provided, however, that in any such election persons residing within territorial limits of independent school districts may not participate as qualified voters in the election, and should the election result favorably to the issuance of the bonds, the property located within the limits of an independent school district shall not be subject to taxation for the retirement of any bonds so issued.
(Ga. L. 1919, p. 288, § 145; Ga. L. 1921, p. 221, § 2; Code 1933, § 32-1403; Ga. L. 1946, p. 206, § 23; Ga. L. 1983, p. 3, § 53.)
JUDICIAL DECISIONSANALYSIS