Section 135 of the Constitution of Virginia requires that the Generai Assembly apply the annual interest on the Literary Fund, the State's portion of the capitation tax, and the equivalent of a property tax at a rate between one and five mills on the dollar, to. the schools of the primary and grammar grades, on a basis of school population. This section permits such additional appropriations as the General Assembly may deem proper. These additional appropriations now far exceed the constitutional minimum and the method of allocation of these funds in aid of elementary and secondary education in the localities has given the General Assembly concern for many years. The subject has been studied by several legislative and other study groups, the most recent being the study conducted by the Virginia Advisory Legislative Council prior to the 1956 Regular Session of the General Assembly. Expressing its continuing concern over the method of allocation of State aid school funds, the General Assembly at its 1958 Regular Session adopted House Joint Resolution No. 82.

The Council selected Charles K. Hutchens, member of the House of Delegates and member of the Council, to serve as Chairman of a committee to make the initial study and report to it. Chosen to serve with Mr. Hutchens on this committee were: Earle M. Brown, Lynchburg, Russell M. Carneal, Williamsburg, Paul Manns, Bowling Green, and Julian H. Rutherfoord, Jr., Roanoke, members of the House of Delegates; Curry Carter, Staunton, and Earl A. Fitzpatrick, Roanoke, members of the Senate; David B. Kinney, Attorney at Law, Arlington, and Davis Y. Paschall, Superintendent of Public Instruction, Richmond. John B. Boatwright, Jr. and G. M. Lapsley served as Secretary and Recording Secretary, respectively, to the Committee.

The Committee reviewed the history of the allocation of State-aid funds to the localities for education; it examined the practices of other states in their support of education at the local school level; it procured, through the Department of Education, information as to the cost and effect of having the State assume the cost of payment of teachers' salaries up to the approved minimum scales. The Committee completed its study and made its report to the Council. Based upon the information before it, the Council has reached the following conclusions and makes the following recommendations.