PEER Report #76

A SPECIAL REPORT ON SIXTEENTH SECTION LAND MANAGEMENT, December 5, 1977, 173 pages

Sixteenth section lands are lands held in trust for the support of the public schools. This report examined current sixteenth section land management practices and recommended changes in existing laws and management practices. Recommendations for increasing revenues to school districts from sixteenth section lands also were included.

PEER auditors found that sound trust management principles were not being followed in many counties in administering the school land trust. In addition, many counties were not receiving fair market rental value from surface leases. Record keeping was inadequate in many counties. Also, existing statutes governing sixteenth section lands often were unclear and possibly contradicted each other. Improved management could increase annual revenues to school districts approximately $12 million.

The PEER Committee recommended that sixteenth section land be administered according to strict principles of trust management and that local school boards be given total control of and responsibility for this trust. Among other recommendations detailed were that the Land Commissioner or the Department of Education investigate possible instances of mismanagement. All agricultural leasing should be made on a competitive basis for terms of not longer than five years, and no subleasing should be permitted without school board approval. The Committee also recommended that a state educational endowment fund be established from mineral lease proceeds from state-owned lands. Other recommendations and proposed legislation were included in the report.

For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.