Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Bevin in His Official Capacity as Governor

498 S.W.3d 355, 2016 Ky. LEXIS 435
CourtKentucky Supreme Court
DecidedSeptember 22, 2016
Docket2016 SC 000273
StatusUnknown
Cited by51 cases

This text of 498 S.W.3d 355 (Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Bevin in His Official Capacity as Governor) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Bevin in His Official Capacity as Governor, 498 S.W.3d 355, 2016 Ky. LEXIS 435 (Ky. 2016).

Opinions

OPINION OF THE COURT BY

JUSTICE NOBLE

This case presents two questions. First, does the Attorney General or an. individual member of the General Assembly have [359]*359standing to challenge the Governor’s actions as violating a statute or the constitution? The Court concludes that the Attorney General has standing but that the individual legislators in this case do not. Second, may the Governor reduce the amount of money made available to a state university under a legislative appropriation whether by revising the university’s allotment under KRS § 48.620(1), by withholding the allotment to the extent the university has adequate trust and agency funds under KRS § 45.253(4), or by otherwise requiring a state university not to spend appropriated funds? This Court concludes that the Governor does not have that authority. The judgment of the Franklin Circuit Court is thus reversed.

I. Background

Upon taking office in 2016, Governor Matt Bevin ordered an across-the-board 4.5% budget reduction for the executive branch in the fourth quarter of the 2015-2016 fiscal year. This reduction extended to the state’s nine institutions of higher education, which consist of several universities and the eonimunity college system (collectively, “the Universities”).

The Universities’ reductions were delineated in a letter to the Secretary of the Finance and Administration Cabinet and -the State Budget Director directing that their fourth-quarter allotments be reduced. The letter was dated March 31, 2Ó16- and stated in relevant part:

Pursuant to the authority provided to me in KRS § 48.620(1), this is to certify that the allotments for. the following budget -units of the Executive Branch for April 1, 2016 drawn-downs- [sic] by each unit under the 2015-2016 Executive Branch budget should be reduced by 4.5% of the-2015-2016 allotments:
• Eastern Kentucky University
• Kentucky State University
• Morehead State University
• Murray State University
• Northern Kentucky University
• University of Kentucky
• University of Louisville
• Western Kentucky University
• Kentucky Community and Technical College System • ■

On April 19, 2016, the Governor sent another letter, again to the Secretary of the Finance and Administration Cabinet and the State Budget Director. This letter recounted the previous letter’s contents and then ordered “pursuant to the same statutory authority that the 2015-2016 allotments to each ... institution! ] should be further revised.” As to Kentucky State University, the 4.5% reduction was' restored. As to the other eight institutions, the letter ordered that their budget reductions be amended from 4.5% to 2%.1

The Attorney General filed a declaratory-judgment action against the Governor, the State Budget Director, the. Secretary of the Finance and Administration Cabinet, and the State Treasurer challenging this action,2 Three members of the House of Representatives joined as intervening [360]*360plaintiffs. By agreed order, the funds at issue were placed in a separate account and were “recorded as a disbursement of FY 2016 appropriations but w[ould] not be transferred until further order of the Court at which time the funds w[ouId] be disbursed to the institutions or returned to the Commonwealth’s general fund.”

The Governor moved to dismiss the case, claiming both that the Attorney General and the legislators lacked standing and that his actions were legal. As to the latter claim, he relied primarily on two statutes, KRS § 48.620(1), which was cited in his letters, and KRS § 45.258(4). He claimed that KRS § 48.620(1) allowed him to reduce the “allotments” to the Universities without changing the legislative appropriations. He claimed that KRS § 45.258(4) allowed him to withhold appropriations until the Universities had spent their trust and agency funds (that is, funds generated by tuition, etc.). The statutes combined, he claimed, gave him “great discretion” in whether to provide the appropriated funds.

The Attorney General disputed that KRS § 48.620 gave the Governor such broad authority and argued that any such reading of the statute would violate the separation-of-powers doctrine and constitute an improper delegation of authority by the General Assembly. The Attorney General also claimed that the Governor’s actions would unlawfully suspend the budget bill and that KRS § 45,253(4) did not apply to the Universities, which had elected to operate under KRS Chapter 164A.

The Franklin Circuit Court concluded that the Attorney General had standing to bring the suit, but nevertheless granted summary judgment in the Governor’s favor on the merits. The court concluded primarily that KRS § 48.620(1) and KRS § 45.253(4) delegated the authority “to address budget concerns within the executive branch.” Specifically, the court concluded that these “statutes ... grant [the Governor] the authority to revise downward the Universities’ allotments.” The court also stated: “The Universities ... are under the Governor’s control as part of the executive branch,” at least in the context of the budget bill. The court concluded that the Governor’s actions did not violate Kentucky’s strict separation-of-powers doctrine. In this respect, the court concluded that the allotment revision was not, in fact, a reduction in the appropriation by another name, and was instead an exercise of legislatively granted power. Finally, the court concluded that there remained a check on the Governor’s power, in that the judiciary could “realign! ] the balance of power” if he “purports to wield divine power over another branch, or even over a division, cabinet or program within the executive branch, to the point that funding levels reached constitutionally impermissi-bly low levels.”

The Attorney General and the House members filed notices of appeal and a motion to transfer the case from the Court of Appeals to this Court. That motion was granted, and thus the appeal is before this Court.

II. Standing

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Cite This Page — Counsel Stack

Bluebook (online)
498 S.W.3d 355, 2016 Ky. LEXIS 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jim-wayne-in-his-official-capacity-as-state-representative-v-commonwealth-ky-2016.