Press Room
16th Section: Schoolchildren Benefit
August 03, 2009
Revenues for 16th Section land leases are up and that is good news for Mississippi's schoolchildren.
Sixteenth Section land is set aside for the benefit of schools in Mississippi. The land is leased out by local school boards and watched over by the sectary of state. Secretary of State Delbert Hosemann has increased the "watching" part and it is paying off.
Hosemann reported last week that 16th Section revenues had gone up 42 percent in one year. In dollars, that means an additional $22.8 million will be given to local school districts for education.
In the 12-month fiscal year ending June 30, 2007, the total funds from 16th Section leases amounted to $54.2 million. The next year, the total went to $77.1 million.
Hosemann says those figures don't reflect a recent $2 million lease in Simpson County. He said another big jump is coming in hunting and fishing leases, which are up 56 percent or about $300,000.
There are several reasons for the increases. Oil and gas leases are up due to activity, and better negotiations from school boards. The law requires at least a 1/8 interest minimum in an oil or gas well. Hosemann also involved the state geologist and Mississippi Development Authority to provide assistance to school boards. For example, Wayne County is getting more than $900,000 a month from 16th Section leases.
But some of the increases are coming from simply having more eyes on the process.
Hosemann has begun posting all the lease bid notices on the Web site of the secretary of state (sos.state.ms.us).
Hunting and fishing, agriculture, and oil and gas leases are required to be published in newspapers when they are up for renewal.
Leases are filed with the chancery clerk and also are being posted on the Web site.
Hosemann also is reviewing and signing every lease personally.
In other words, the more the public knows about 16th Section leases, the better. When citizens see low lease prices, they should be raising questions. When the public is aware of availability and opportunity to lease lands, especially hunting and fishing lands, there is more competition and more accurate fair-market values.
For decades, the schoolchildren were shortchanged because of sweetheart deals and secrecy. Major reforms pushed through by secretaries of state Dick Molpus and Eric Clark helped bring more realistic lease fees from 16th Section. Hosemann is continuing that effort, bringing more transparency to the process.
Sixteenth Section land belongs to the schoolchildren of Mississippi. In these difficult economic times, school districts need every dollar they can get.
Hosemann should be commended for helping ensure that schoolchildren are getting the most from 16th Section lands.
