Shapp v. Sloan

391 A.2d 595, 480 Pa. 449, 1978 Pa. LEXIS 778
CourtSupreme Court of Pennsylvania
DecidedJuly 19, 1978
Docket214; 586; 4
StatusPublished
Cited by52 cases

This text of 391 A.2d 595 (Shapp v. Sloan) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shapp v. Sloan, 391 A.2d 595, 480 Pa. 449, 1978 Pa. LEXIS 778 (Pa. 1978).

Opinions

[458]*458OPINION

MANDERINO, Justice.

On July 7, 1976, the Governor of Pennsylvania, various cabinet officers and the Governor’s Justice Commission — appellants in this case — filed a petition for review directed against the State Treasurer challenging the constitutionality of Acts 117 and 17-A of 1976. They sought a declaratory judgment holding these acts to be null and void, and a writ of mandamus and injunctive relief to compel the State Treasurer to honor requisitions properly presented for federal funds allocated to State agencies pursuant to Acts of Congress. The Governor, Attorney General and the Justice Commission asked also for a preliminary injunction to enjoin the State Treasurer from refusing to honor requisitions for payment of federal funds to the Department of Justice for salaries and operating expenses incurred by the Office of the Special Prosecutor. The General Assembly was granted permission to intervéne as a respondent.

After a hearing on the request for the preliminary injunction seeking release of the Special Prosecutor’s funds, the Commonwealth Court entered an order dated July 15, 1976, denying the injunction as sought but granting an injunction directing the Treasurer to issue her warrant for payment of expenses already incurred, up to the amount of federal funds allocated to that office by the Law Enforcement Assistance Administration (LEAA) through June 30, 1976 and still unexpended. This Court denied a stay of that order. The parties are now before us on cross-appeal from this order of July 15, 1976.

Appellants are also appealing from the final order of the Commonwealth Court entered on December 3, 1976, granting the State Treasurer’s and General Assembly’s motions for summary judgment and dismissing appellants’ motions for partial summary judgment and modification of order.

From 1961 to 1975, the annual appropriations acts of the General Assembly contained a general provision appropriating grants made to the Commonwealth for various federally [459]*459funded programs to the State agency involved in the programs’ administration. The provision in the General Appropriations Act of 1975 was typical of these general allocations:

“In addition to the amounts appropriated by this act, all moneys received from the Federal Government, or from any other source as contributions for the programs provided herein, or as payment for services or materials furnished by one institution to another, except those collections designated as revenues, shall be paid into the General Fund and are hereby appropriated out of the General Fund for the purposes of the respective appropriations.” (Emphasis added.)

General Appropriations Act of 1975, 1975 Act No. 8-A, § 8(b).

Although many of these General Appropriations Acts also appropriated funds for some specific programs, legislative control over the funds was, in the General Assembly’s own terms, “minimal.” At most, the General Assembly’s actual control consisted of authorizing applications for particular federal programs and placing conditions or restrictions upon application for federal funds. The legislature did, of course, maintain exclusive control over appropriations of State matching funds and general revenue sharing.

Despite the minimal control exercised in the yearly Appropriations Acts, it is to be noted that for more than a decade the Acts clearly and unambiguously placed such federal funds into the State’s General Fund, apparently without objection from the Executive.

By 1975, federal aid programs had been increasingly implemented in Pennsylvania, and federal funds accounted for approximately 25% of the total resources of the Commonwealth. The General Assembly accordingly decided to exercise over such federal funds the full control which it considers its constitutional responsibility as the branch of government entrusted with control of the state’s finances.

[460]*460Therefore, on June 29,1976, following extensive study and hearings, the General Assembly enacted Act 117 over the Governor’s veto. The text is as follows:

“§ 4611. Requisitions on state treasury; indicating federal funds requested
Any person authorized by law to issue requisitions for the payment of moneys from the State Treasury shall, when submitting any such requisition to the State Treasury, indicate thereon whether any of the funds so requested were derived, in whole or in part, from Federal funds.
§ 4612. Requisitions on state treasury; indicating requested funds as matching funds to federal funds
Any person authorized by law to issue requisitions for the payment of moneys from the State Treasury shall, when submitting any such requisition to the State Treasurer, indicate thereon whether any of the funds so requested will be used, directly or indirectly, as matching funds to Federal funds.
§ 4613. Warrants for requisitioned federal funds; specific appropriations by act of General Assembly
The State Treasurer is hereby specifically prohibited from issuing any warrant for requisitioned funds which were derived, in whole or in part, from Federal funds unless such funds have been specifically appropriated by an act of the General Assembly.
§ 4614. Warrants for requisitioned funds used as matching funds to federal funds; specific appropriation by act of General Assembly
The State Treasurer is hereby specifically prohibited from issuing any warrants for requisitioned funds which will be used, directly or indirectly, as matching funds to Federal funds unless such Federal funds have been specifically appropriated by an act of the General Assembly.
§ 4615. Deposit of funds; credit to general fund account; exception
Except as may be hereinafter provided in this section, no Federal funds, whether designated as grants, augmen[461]*461tations, credits or otherwise, received from the Federal Government in any fiscal year shall, by executive order of the Governor or by any other executive action, be deposited in or designated as a special or restricted fund account, separate and distinct from the General Fund account. All such federal funds shall be deposited in and credited to the General Fund account, be contained in the budget as hereinafter provided, and be available for appropriation by the General Assembly as part of its operating budget, except that such federal funds need not be deposited in nor disbursed by appropriation from the General Fund account under the following limited statutory circumstances. If the General Assembly has by statutory enactment created a special fund or restricted receipt account and has specifically provided therein for an exclusive, special purpose or purposes for which Federal funds deposited in such special fund or restricted receipt account can only be used, then under such statutory circumstances, Federal funds received which are specifically and exclusively ear-marked for such General Assembly determined special fund or restricted receipt purpose or purposes may be deposited in such statutorily created special fund or restricted receipt account. And, without further statutory appropriation being required, can be used solely and exclusively for such specific statutory special fund or restricted receipt purpose or purposes.

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Cite This Page — Counsel Stack

Bluebook (online)
391 A.2d 595, 480 Pa. 449, 1978 Pa. LEXIS 778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shapp-v-sloan-pa-1978.