Panitz v. Comptroller of the Treasury & State Treasurer

232 A.2d 891, 247 Md. 501, 1967 Md. LEXIS 387
CourtCourt of Appeals of Maryland
DecidedSeptember 13, 1967
Docket[No. 125, September Term, 1967 (Adv.).]
StatusPublished
Cited by29 cases

This text of 232 A.2d 891 (Panitz v. Comptroller of the Treasury & State Treasurer) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Panitz v. Comptroller of the Treasury & State Treasurer, 232 A.2d 891, 247 Md. 501, 1967 Md. LEXIS 387 (Md. 1967).

Opinion

Hammond, C. J.,

delivered the opinion of the Court.

This Court by per curiam order held on June 14, 1967, that Ch. 142 of the Laws of 1967, sometimes referred to as the Agnew-Hughes-Lee bill (or the amended Cooper-Hughes bill) was invalid and ineffective as a Supplementary Appropriation Bill but was prima facie valid as other legislation. The grounds for holding Ch. 142 to be invalid and ineffective as an appropriation bill were stated in the order to be that the enactment violated :

“the requirement of Section 52 (8) of Article III of the Constitution of Maryland that every appropriation not made by the Budget Bill 'shall be embodied in a separate bill limited to some single work, object or purpose therein stated,’ and * * * it does not make 'an appropriation by Law’ as required by Section 32 of Article III of the said Constitution.”

Chapter 142 increased the State income tax to an extent estimated by the Fiscal Research Bureau to produce for fiscal 1968 $120,264,100 over and above the amount to be produced by the existing income tax law for the same year and contemplated the appropriation of this sum for State aid for increased local po *505 lice protection, for schools and for unrestricted State grants to subdivisions of the State. Chapter 199 of the Laws of 1967, the Budget Bill, appropriated for some of these purposes $21,290,-373 of the expected increase, contingent upon the enactment of Ch. 142. The difference of $98,973,727 between the estimated additional revenues of $120,264,100 and the $21,290,373 appropriated by the Budget Bill was either effectively appropriated by Ch. 142, as the appellees, the Comptroller of the Treasury and the State Treasurer, claimed or was not appropriated at all, as the appellants claimed and this Court held. 1

The situation in Maryland before the establishment of the executive budget system by amendment of the Constitution was well described by the late Hooper S. Miles, long Treasurer of Maryland, in his essay, The Maryland Executive Budget System. He said (pages 8 and 9) :

“It was customary, under the former method, for the Governor to appear in person before a joint meeting of the members of the House of Delegates and the Senate, at the beginning of every regular session of the Legislature, and to address them on ‘the condition of the State’, — in the course of which he was expected to direct their attention to the essential needs of the State, and to specifically recommend to their consideration such measures as he judged necessary. Having thus discharged the responsibility imposed upon him by the Constitution, the Governor must thereafter await the final disposition of his recommendations by the Legislature, whose members were free to adopt, alter or entirely ignore any or all of them, except in so far as the Governor, by virtue of his prestige and his influence with the members of the Legislature, might affect the course of his recommendations through the Legislature.
“It is true, the Governor then had the ‘power to dis *506 approve of any item or items of Bills making appropriations of money’ and to thus void the items which he disapproved. However, his use of this veto power on individual items had to be exercised with rare discrimination and with an intimate understanding of the temper of the Legislature, to avoid the danger of antagonizing powerful groups in the Legislature, and thereby jeopardize all of his recommended measures. * * *
“The power to fix the fiscal policies and determine the course of the fiscal operations of the State was, therefore, exclusively vested in the Legislature, subject only to the mild restraint of the limited veto powers of the Governor, and whatever power of persuasion he might be capable of exercising with individual members of the Legislature.
“The old method often witnessed ‘log-rolling’ or ‘you help me and I’ll help you’ tactics among many of the members of the Legislature in their efforts to insure passage of the particular appropriations in which they had some selfish or political interest. It was not unusual for excessive appropriations to result from such tactics and also from the pressure of political and professional lobbyists; and, almost as frequently, some of the most important activities or needs of the State were either overlooked or sadly neglected in what was commonly termed, the ‘Pork Barrel’ scramble.”

Emerson Harrington, who served as Governor from 1916 to 1920, in his monograph called “The First State Executive Budget,” 8 Proceedings of the Academy of Political Science (1920), pp. 18-19, 25, wrote of the situation before the adoption of the budget amendment:

“The Finance or Ways and Means Committee did not bring out the [general appropriations] bill until almost the last moment. Then the bill carrying all the expenditures for the state departments and the state government was finally passed in the last hours under a suspension of the rules, generally allowing each senator or delegate practically what he wanted for his own *507 county or locality, regardless of the amount appropriated and leaving it to the executive to do the paring. In our state the executive, it is true, could cut down or veto the separate items of an appropriation bill, but I understand that in many states even this cannot be done. The members of the two committees appropriated this money upon no scientific or expert plan and had not before them any synopsis or summary either of the revenues or their contemplated expenditures. Largely it was a question of logrolling and of senatorial or delegate courtesy. In our state we had also a system of continuing or annual appropriations, which when marked annual would go on forever as appropriations without any further legislative action. Some of these appropriations of ours were of over 100 years’ standing, and most of them were not known to exist by the average member of the legislature.”

To correct the fiscal dilemma of the State and to prevent its recurrence the Legislature proposed and the voters approved a constitutional amendment which now is embodied in the Constitution as § 52 of Art. III. The amendment had been prepared by a Commission appointed by the Democratic State Convention held in Baltimore in 1915. The Commission, designated “The Commission on Efficiency and Economy,” was chaired by Dr. Frank J. Goodnow, president of Johns Hopkins University. Dr. Goodnow, a noted political scientist, had been a member of the national Commission on Efficiency and Economy appointed by President Taft, which in 1912 issued a report on the need for a national budget, which served as a stimulus for the reforms in Maryland. Members of the Maryland Commission, in addition to Dr. Goodnow, were Alfred Pearce, a former Judge of the Court of Appeals, Joseph D. Baker, B. Howell Griswold, Jr., Philip D. Laird, William Miles Maloy, and Neal Parke, later a Judge of this Court. This Commission declared that the purpose of its proposed amendment, § 52 (8), was to prevent the General Assembly from appropriating any money except by way of an appropriation bill which must be either a Budget Bill or a Supplementary Appropriation Bill as defined and limited by the Constitution.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kim v. Bd. of Liquor Lic. Comm'rs
Court of Special Appeals of Maryland, 2022
Fraternal Order of Police v. Montgomery County Executive
62 A.3d 238 (Court of Special Appeals of Maryland, 2013)
Municipal & County Government Employees Organization v. Montgomery County Executive
62 A.3d 265 (Court of Special Appeals of Maryland, 2013)
Montgomery County Career Fire Fighters Ass'n v. Montgomery County
62 A.3d 287 (Court of Special Appeals of Maryland, 2013)
(2006)
91 Op. Att'y Gen. 24 (Maryland Attorney General Reports, 2006)
Migdal v. State
747 A.2d 1225 (Court of Appeals of Maryland, 2000)
City of Annapolis v. Anne Arundel County
698 A.2d 523 (Court of Appeals of Maryland, 1997)
Board of Community College Trustees v. Adams
701 A.2d 1113 (Court of Special Appeals of Maryland, 1997)
Md. Classified Employees Ass'n, Inc. v. State
694 A.2d 937 (Court of Appeals of Maryland, 1997)
Judy v. Schaefer
627 A.2d 1039 (Court of Appeals of Maryland, 1993)
Gardner v. Board of County Commissioners
576 A.2d 208 (Court of Appeals of Maryland, 1990)
Porten Sullivan Corp. v. State
568 A.2d 1111 (Court of Appeals of Maryland, 1990)
Warner v. Town of Ocean City
567 A.2d 160 (Court of Special Appeals of Maryland, 1989)
American Trucking Associations, Inc. v. Goldstein
541 A.2d 955 (Court of Appeals of Maryland, 1988)
Kelly v. Marylanders for Sports Sanity, Inc.
530 A.2d 245 (Court of Appeals of Maryland, 1987)
Litchfield Elementary School District No. 79 v. Babbitt
608 P.2d 792 (Court of Appeals of Arizona, 1980)
Bayne v. Secretary of State
392 A.2d 67 (Court of Appeals of Maryland, 1978)
United States v. Lowery
382 A.2d 1007 (D.C. Circuit, 1977)
Mayor of Baltimore v. American Federation
379 A.2d 1031 (Court of Appeals of Maryland, 1977)

Cite This Page — Counsel Stack

Bluebook (online)
232 A.2d 891, 247 Md. 501, 1967 Md. LEXIS 387, Counsel Stack Legal Research, https://law.counselstack.com/opinion/panitz-v-comptroller-of-the-treasury-state-treasurer-md-1967.