Moon v. Investment Board

560 P.2d 871, 98 Idaho 200, 1977 Ida. LEXIS 347

• Court: Idaho Supreme Court
• Decided: March 1, 1977
• Docket: 12357
• Status: Published

Opinions

PER CURIAM:

The plaintiff State Treasurer filed a petition for writ of mandate or prohibition, seeking, among other things, to prohibit the transfer to the Investment Board Expense Fund of any further interest income earned by the Investment Board upon the investment of the assets of the public school endowment fund. Other issues presented by the writ were quashed. The Investment Board had, pursuant to appropriations by the legislature, on June 25, 1976, transferred $100,000 interest income earned by investment of public school endowment funds into the Investment Board Expense Fund, to defray expenses of investing those assets by the investment board.

The sole issue presented by plaintiff’s petition is whether or not the legislature may constitutionally appropriate and authorize a portion of the earnings from the investment of the public school funds to be transferred to and used by the Investment Board Expense Fund to defray the expenses incurred by the Investment Board in the investment of the public school fund. It is our opinion that the legislation authorizing this practice, and the practice itself, is in violation of Art. 9, § 3, of the Constitution of the State of Idaho. State v. Fitzpatrick, 5 Idaho 499, 51 P. 112 (1897). See also, Roach v. Gooding, 11 Idaho 244, 81 P. 642 (1905); Teachers’ Retirement System of Idaho v. Williams, 84 Idaho 467, 374 P.2d 406 (1962). The alternative writ of prohibition heretofore issued, insofar as the issue regarding the transfer of earnings from public school funds for the purpose of defraying expenses is concerned, is made permanent.