Nebraska State Constitution Article VII-7

Article VII-7


Perpetual funds enumerated.

The following are hereby declared to be perpetual funds for common school purposes, including early childhood educational purposes operated by or distributed through the common schools, of which the annual interest or income only can be appropriated, to wit:

First. Such percent as has been, or may hereafter be, granted by Congress on the sale of lands in this state.

Second. All money arising from the sale or leasing of sections number sixteen and thirty-six in each township in this state, and the lands selected, or that may be selected, in lieu thereof.

Third. The proceeds of all lands that have been, or may hereafter be, granted to this state, where by the terms and conditions of such grant the same are not to be otherwise appropriated.

Fourth. The net proceeds of lands and other property and effects that may come to this state, by escheat or forfeiture, or from unclaimed dividends, or distributive shares of the estates of deceased persons.

Fifth. All other property of any kind now belonging to the perpetual fund.



Legislative act providing for offsetting of capital gains against past capital losses held unconstitutional. State ex rel. Bottcher v. Bartling, 149 Neb. 491, 31 N.W.2d 422 (1948).

Act providing for payment out of state school funds of tuition of children whose parent is in military service of United States, stationed in Nebraska, was void. Taylor v. School Dist. of City of Lincoln, 128 Neb. 437, 259 N.W. 168 (1935).

Constitution recognizes the right of the state to acquire land by escheat. In re Estate of O'Connor, 126 Neb. 182, 252 N.W. 826 (1934).

School in part sectarian was not eligible to receive portion of state common school trust funds. State ex rel. Public School Dist. No. 6, Cedar County v. Taylor, 122 Neb. 454, 240 N.W. 573 (1932).

Saline lands granted to state by United States are not included in educational lands under control of Board of Educational Lands and Funds. Chicago, B. & Q. R. R. Co. v. Neville, 102 Neb. 817, 170 N.W. 176 (1918).

Teaching of foreign language is not contrary to public policy of state to provide common schools. State ex rel. Thayer v. School Dist. of Nebraska City, 99 Neb. 338, 156 N.W. 641 (1916).

Sale of school lands to pay special assessment for drainage purposes does not affect right of state in such lands. Morehouse v. Elkhorn River Drainage Dist., 90 Neb. 406, 133 N.W. 446 (1911); McMurtry v. Engelhardt, 5 Neb. Unof. 271, 98 N.W. 40 (1904).

Act of Legislature is not necessary to appropriation and use of funds in order to expend same for purposes expressed in grant. State ex rel. Spencer Lens Co. v. Searle, 77 Neb. 155, 109 N.W. 770 (1906).

Returns of unsold school lands must be applied to support of common schools and not be vested in permanent school fund. State ex rel. McKenzie v. McBride, 5 Neb. 102 (1876).