House Speaker v. State Administrative Board

495 N.W.2d 539, 441 Mich. 547
CourtMichigan Supreme Court
DecidedJanuary 15, 1993
Docket92072, (Calendar No. 8)
StatusPublished
Cited by243 cases

This text of 495 N.W.2d 539 (House Speaker v. State Administrative Board) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
House Speaker v. State Administrative Board, 495 N.W.2d 539, 441 Mich. 547 (Mich. 1993).

Opinions

Griffin, J.

This case presents a challenge by four members of the State Legislature to the authority of the State Administrative Board under § 3 of 1921 PA 2, as amended,1 to transfer appropriated funds from one program to another within a department of state government. After finding that the legislator plaintiffs have standing to bring this action, the Court of Appeals ruled that the intradepartmental transfer in question was invalid on the ground that the statutory authority relied upon by the board had been impliedly repealed by subsequent legislative acts. While we agree that at least one of the plaintiffs has standing, we disagree that the State Administrative Board’s transfer authority was repealed by implication.

i

In 1921, in an effort to promote the efficiency of state government, the Legislature created the State Administrative Board.2 Currently, the board is composed of six officials.3 Four are elected: the Governor, the Lieutenant Governor, the Attorney General, and the Secretary of State.4 The other two, the Superintendent of Public Instruction and the State Treasurer, are appointed.5

The State Administrative Board act defines the [551]*551powers and duties of the board. Section 3 of the act confers upon the board "general supervisory-control over the functions and activities of all administrative departments ... of the state.” Initially, § 6 specifically granted the board control over the system of state accounting. In connection with the performance of its duties, the board exercised authority to transfer appropriated funds within and between departments. In 1931, through an amendment of the act, the Legislature imposed limits upon the board’s transfer authority. This legislation precluded the board from transferring funds between departments; however, the amendatory language added to both § 3 and § 6 specifically reserved to the board the authority to transfer funds "within the appropriation for the particular department.”6 Subsequently, the board’s control over the system of state accounting was withdrawn and delegated to other state officials.7 However, the board’s supervisory role over state departments continues.

This lawsuit arose from an attempt by the board in May 1991 to effect certain transfers of funds within departments pursuant to the authority set forth in § 3. This attempt followed efforts to deal in other ways with a projected fiscal year 1990-91 deficit of $536 million that confronted the state on January 1, 1991, when Governor Engler took office.

For example, on January 16, 1991, acting under the authority of Const 1963, art 5, § 20 and § 391 of the Management and Budget Act,8 the Governor submitted for approval by the Senate and House Appropriations Committees a comprehensive proposal that would have reduced state expenditures [552]*552by $257 million.9 This proposal was approved by the Senate committee; however, it was rejected by the House committee.

Shortly thereafter, on February 22, 1991, a supplemental appropriations bill passed by the Legislature was signed by the Governor with significant line-item vetoes, which resulted in a reduction of $23.9 million in general purpose appropriations.10 However, despite negotiations between executive officials and legislative leaders, the budget crisis persisted and grew more serious in the absence of any comprehensive agreement between the two branches.11

In an effort to deal with one phase of the problem, Budget Director Patricia Woodworth in February and March sent three requests to the Senate and House Appropriations Committees,12 seeking approval for intradepartmental transfers of funds in accordance with § 393(2) of the Management and Budget Act. When, by May 1991, the House Appropriations Committee had taken no action on the requests, Governor Engler called a special meeting of the State Administrative Board for May 9, 1991. Acting under § 3, the board then adopted eleven resolutions providing for the transfer of funds within various departments, including the one resolution still at issue, which would transfer $190,000 within the Department of Natu[553]*553ral Resources from the "Clean Michigan Fund” to certain land and water management accounts.13

The next day, plaintiffs commenced this action. At the time, plaintiff Lewis Dodak was the Speaker of the House of Representatives, plaintiff Dominic J. Jacobetti was the Chair of the House Appropriations Committee, plaintiff Arthur Miller was the Minority Leader of the Senate, and David S. Holmes, Jr., was the Vice-Chair of the Senate Appropriations Committee. Their suit against the board, the Governor, and several other executive branch officials had not been authorized by either House; plaintiffs brought their action as individual members of the Legislature.

In their amended complaint, plaintiffs maintain that the transfer authority set forth in § 3 had been expressly and impliedly repealed by subsequent enactments, and they claim that § 3 is unconstitutional.14 As relief, plaintiffs seek a permanent injunction prohibiting implementation of the contested transfers and a declaratory judgment stating that the board has no independent authority to make transfers of appropriated funds within any department.

After the complaint was filed, the parties submitted cross-motions for summary disposition. Granting defendants’ motion on May 23, 1991, the circuit court found that plaintiffs lacked standing to sue, and that their statutory and constitutional claims were without merit._

[554]*554On the same day, plaintiffs appealed in the Court of Appeals and filed motions for a stay and for immediate consideration. Granting immediate consideration, the Court enjoined the transfers; however, before the Court of Appeals ruled on the merits of the case, defendants filed an emergency application seeking leave to appeal in this Court. In lieu of granting leave, we ordered the Court of Appeals to expedite its consideration of the case. Thereafter, the Court of Appeals decided that plaintiffs have standing and that the statutory authority relied upon by the board had been impliedly repealed.15 190 Mich App 260, 264-265; 475 NW2d 440 (1991). We then granted leave to appeal, 439 Mich 1020 (1992).

ii

Before reviewing the Court of Appeals decision that § 3 was impliedly repealed, we first consider defendants’ contention that plaintiffs lack standing to bring this action. Standing is a legal term used to denote the existence of a party’s interest in the outcome of litigation that will ensure sincere and vigorous advocacy. However, evidence that a party will engage in full and vigorous advocacy, by itself, is insufficient to establish standing. Standing requires a demonstration that the plaintiff’s substantial interest will be detrimentally affected in a manner different from the citizenry at large. Alexander v Norton Shores, 106 Mich App 287; 307 NW2d 476 (1981).

Here, plaintiffs claim standing on the basis of their status as legislators. In their complaint, they allege that the transfer actions of the board reduced their effectiveness as legislators and nulli[555]

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Bluebook (online)
495 N.W.2d 539, 441 Mich. 547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/house-speaker-v-state-administrative-board-mich-1993.