St. John's Well Child & Family Center v. Schwarzenegger

239 P.3d 651, 50 Cal. 4th 960, 116 Cal. Rptr. 3d 195, 2010 Cal. LEXIS 9758
CourtCalifornia Supreme Court
DecidedOctober 4, 2010
DocketS181760
StatusPublished
Cited by19 cases

This text of 239 P.3d 651 (St. John's Well Child & Family Center v. Schwarzenegger) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. John's Well Child & Family Center v. Schwarzenegger, 239 P.3d 651, 50 Cal. 4th 960, 116 Cal. Rptr. 3d 195, 2010 Cal. LEXIS 9758 (Cal. 2010).

Opinion

Opinion

GEORGE, C. J.

We granted review in this original writ proceeding to address the propriety of the Governor’s use of the so-called “line-item veto” under the asserted authority of article IV, section 10, subdivision (e) of the California Constitution, to further reduce funding that already had been reduced by the Legislature in its midyear adjustments to the Budget Act of 2009. The Court of Appeal, First Appellate District, Division Two, denied the requested writ of mandate and upheld the Governor’s action. Upon review, we agree with that court’s disposition of the matter. Because the Court of Appeal’s decision (by Kline, P. J., with Lambden & Richman, JJ., concurring) persuasively sets forth and analyzes the issues presented by this case, we adopt substantial parts of it as our own, as modified below to fully reflect our views and to address the arguments that differ from those advanced in the appellate court. 1

I.

Although the current economic downturn affects all Californians, many persons are particularly vulnerable because they receive essential health and *965 welfare assistance from agencies dependent upon state tax revenues. In this setting, government must choose between and among equally needy groups, knowing that many of those groups not fully funded may be devastated.

In the context of the constitutionally prescribed budget process, the power to appropriate public funds belongs exclusively to the Legislature. With respect to a bill containing appropriations, the Governor has three options: (1) to sign the bill, (2) to veto the measure in its entirety (Cal. Const., art. IV, § 10, subd. (a)), or (3) to “reduce or eliminate one or more items of appropriation” (id., subd. (e), italics added (hereafter article IV, section 10(e))). The question posed by this case is whether the Governor exceeded his limited powers under article IV, section 10(e), by using his line-item authority to further reduce funding levels set forth in midyear reductions that the Legislature had made to the Budget Act of 2009 (Stats. 2009, 3d Ex. Sess. 2009-2010, ch. 1, approved by Governor, Feb. 20, 2009) (hereafter 2009 Budget Act)), thereby imposing a reduction of appropriated sums greater than the reduction made by the Legislature.

Petitioners include St. John’s Well Child and Family Center, a nonprofit network of five community health centers and six school-based climes in medically underserved areas of Los Angeles County, and other entities and individuals located throughout the state whose programs and lives will be drastically affected by the further reductions here at issue. 2

Respondents are Arnold Schwarzenegger, the Governor of the State of California, and John Chiang, who, as the Controller of the State of California, is responsible for the administration of the state’s finances, including disbursement of funds appropriated by law. 3 The Controller does not take a position on the merits of this litigation.

*966 Interveners are Darrell Steinberg, in his official capacity as President pro Tempore of the California State Senate, and in his personal capacity as a resident and taxpayer of Sacramento County, and John Pérez, in his official capacity as Speaker of the California Assembly. Several amici curiae have filed briefs supporting the various parties. 4

Petitioners and interveners contend that the action taken by the Governor exceeded constitutional limits, because the individual budget cuts he made were not imposed on “items of appropriation” (art. IV, § 10(e)) that could be individually vetoed or reduced. They further contend that, in taking this action, the Governor purported to exercise authority belonging solely to the Legislature, in violation of article III, section 3 of the California Constitution.

Petitioners and interveners sought original relief in the Court of Appeal (pursuant to Cal. Const., art. VI, § 10; Code Civ. Proc., §§ 387, 1085; & Cal. Rules of Court, rule 8.485 et seq.) to enjoin the Controller from enforcing or taking any steps to enforce the Governor’s actions concerning certain provisions of Assembly Bill No. 1 (2009-2010 4th Ex. Sess.) (hereafter Assembly Bill 4X 1), as revised by the Governor’s line-item reduction of funding with regard to those provisions. (See Assem. Bill 4X 1, as amended by Sen., July 23, 2009, and approved by Governor, July 28, 2009 (hereafter Governor’s July 28 Message) [with certain deletions, revisions, and reductions], enacted as Stats. 2009, 4th Ex. Sess. 2009-2010, ch. 1 (hereafter revised 2009 Budget Act).) Because of the importance and urgency of the issues presented, the Court of Appeal exercised its original jurisdiction (Legislature v. Eu (1991) 54 Cal.3d 492, 500 [286 Cal.Rptr. 283, 816 P.2d 1309]; Raven v. Deukmejian (1990) 52 Cal.3d 336, 340 [276 Cal.Rptr. 326, 801 P.2d 1077]; see also Planned Parenthood Affiliates v. Van de Kamp (1986) 181 Cal.App.3d 245, 262-265 [226 Cal.Rptr. 361]), issued an order to show cause, and held argument. That court thereafter issued a decision denying the petition for a *967 writ of mandate. 5 As noted above, we agree with most of the analysis of the Court of Appeal and with the conclusion it reached, and thus we shall deny the petition for a writ of mandate.

n.

On February 20, 2009, the Governor signed into law the 2009 Budget Act, which set forth various appropriations of state funds for the 2009-2010 fiscal year. Thereafter, California’s economy worsened; the revenue assumptions upon which the 2009 Budget Act was based proved to be far too optimistic, and the state’s overall cashflow positions continued to deteriorate. The Governor, pursuant to California Constitution, article IV, section 10, subdivision (f) proclaimed a fiscal crisis, 6 and the Legislature assembled in *968 special session to address the fiscal emergency. Following months of negotiations, the Legislature passed Assembly Bill 4X 1 on July 23, 2009. The final revised budget package enacted as Assembly Bill 4X 1 consisted of 547 pages, set forth in 583 sections, and represented an effort to address more than $24 billion in budget shortfalls, including $15.6 billion in cuts, nearly $4 billion in additional revenues, more than $2 billion in borrowing, approximately $1.5 billion in fund shifts, and more than $1 billion in deferrals and other adjustments.

On July 28, 2009, the Governor exercised his line-item authority to reduce or eliminate several items contained in Assembly Bill 4X 1, and then signed the measure into law. (Revised 2009 Budget Act.) The Governor eliminated numerous separate line items contained in various sections of Assembly Bill 4X 1.

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Bluebook (online)
239 P.3d 651, 50 Cal. 4th 960, 116 Cal. Rptr. 3d 195, 2010 Cal. LEXIS 9758, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-johns-well-child-family-center-v-schwarzenegger-cal-2010.