State ex rel. Teasdale v. Spainhower

580 S.W.2d 303, 1979 Mo. LEXIS 352
CourtSupreme Court of Missouri
DecidedMay 2, 1979
DocketNo. 61303
StatusPublished
Cited by1 cases

This text of 580 S.W.2d 303 (State ex rel. Teasdale v. Spainhower) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Teasdale v. Spainhower, 580 S.W.2d 303, 1979 Mo. LEXIS 352 (Mo. 1979).

Opinion

PER CURIAM:

This is an original proceeding in mandamus wherein relators, the Governor of the State of Missouri, Joseph P. Teasdale, and Stephen C. Bradford, Commissioner of Ad[304]*304ministration seek to compel the respondent, James I. Spainhower, State Treasurer, to withdraw a stop payment order on a check issued to the St. Louis Board of Education in the amount of $1,343,066.34. We have jurisdiction, Mo.Const. art. IV, § 4.

The facts were stipulated to by the parties. For many years prior to July 1, 1978, the St. Louis School Board of Education operated Harris-Stowe College in the City of St. Louis. Harris-Stowe is a four year college operating in the City of St. Louis and specializes in the education and training of teachers. In 1963, §§ 163.171 and 163.181, RSMo were enacted, under the terms of which at the end of each fiscal year the State reimbursed the Board for expenditures made in connection with the operation of Harris-Stowe during that fiscal year. Such reimbursement was paid in an amount as determined by a formula set out in the statutes.

In the second regular session of the 79th General Assembly, C.C.S.H.B. No. 1003 was passed and signed by the Governor. Section 3.060 thereof appropriated to the Department of Higher Education $1,775,000 to provide teacher training courses in all cities having 75,000 or more population maintaining a city teacher training school, “providing that in the event [sic] the funds appropriated herein shall in no event exceed 70% of the total actual operating expenditures of any such school.” (Harris-Stowe is the only such school in the State).

In the same session, S.B. 703 was passed and signed by the Governor on May 31, 1978. S.B. 703 is now set out as §§ 174.300, 174.310, 174.320, 1 Vernon’s Missouri Legislative Service 144-45 (1978). Section 1 of S.B. 703, repealed §§ 163.171 and 178.410, RSMo 1969 and § 163.181, RSMo Supp.1977. S.B. 703 became effective August 13, 1978.

From July 1, 1978, the St. Louis Board of Education has continued, as it did during the prior fiscal years, to operate and staff Harris-Stowe and to provide Harris-Stowe with all supportive services including financial, payroll, auditing, accounting, purchasing, legal, data processing and other services. From July 1, 1978, to the present controversy, the Board has paid out of its funds all other expenses in connection with and for the operation of Harris-Stowe.

Pursuant to S.B. 703, a Board of Regents of Harris-Stowe was appointed in October 1978. As of the time of this proceeding, the campus, building, real estate, furniture, fixtures and other property are still owned by the Board of Education and have not, as yet, been conveyed by the Board to the Board of Regents. The stipulation states that “[t]he Board of Regents of Harris has not, as yet taken over the operation of Harris.”

On October 10,1978, the Board of Education forwarded a letter to the Commissioner of Higher Education requesting the $1,775,-000 under the provisions of C.C.S.H.B. 1003. The letter indicated that since the appropriation cannot exceed 70%, a copy of the budget was also forwarded.

On March 12, 1979, the School Board prepared and forwarded an invoice to the State of Missouri for an amount of $1,343,066.34 which was the amount of expenses which the Board had incurred and paid for the period July 1, 1978 through February 28, 1979 for the staffing and operation of Harris-Stowe.

On March 13, 1979, a special warrant request was submitted by the Department of Higher Education through Mr. Bruce Robertson, Director of Higher Education. The special warrant request was for payment of $1,343,066.34 to the St. Louis School Board.

The Director of Administration approved the special warrant request for payment and prepared a warrant dated March 13, 1979 payable to the St. Louis School Board in the amount of $1,343,066.34. The warrant was signed by Commissioner Bradford and by the respondent as Treasurer. By said signatures on the warrant, the warrant was converted into a check drawn on a depository of state funds for payment to the School Board. On March 13, the check was delivered to the Board and deposited in its account.

[305]*305On March 15,1979, the respondent caused a document to be delivered to the depository whereby he ordered the depository bank to stop payment on the check.

On March 16, relator, Governor, called upon the respondent to withdraw the stop order, but the respondent refused to do so.

On March 19, 1979, relators, Governor and the Commissioner of the Office of Administration filed their petition in mandamus in this court. We issued our alternative writ. The cause was briefed by the parties, the Board of Education filed an amicus brief and the case was argued April 9, 1979.

Respondent contends that:

(1) There is no statutory authority for the St. Louis Board of Education to operate Harris-Stowe and provide funding therefor or to make payments to Harris-Stowe (the statutory authority having been repealed) because there is no valid appropriation from which to reimburse the Board; and (2) The payment to the Board is “inappropriate” because C.C.S.H.B. 1003, § 3.060 states that the payment made by the State shall not exceed 70% of the total operating expenditures of Harris-Stowe for the fiscal year and that to insure that the payment does not exceed 70% it would be appropriate to wait until the operating expenditures for fiscal 1978-1979 are all known.

In effect the respondent’s contention is that since S.B. 703 repealed §§ 163.171 and 178.410, RSMo 1969 and § 163.181, RSMo Supp.1977, there is no statutory authorization for the Board of Education to operate Harris-Stowe, to pay out funds to the college and to be reimbursed for expenditures so that the appropriation is invalid.

Respondent argues that S.B. 703 repealed §§ 163.171, 178.410 and 163.181 which authorized the Board to operate Harris-Stowe and provide funding and then obtain reimbursement according to the formula contained in the statutes. By the repeal of these sections and the passage and adoption of S.B. 703, establishing a Board of Regents, respondent contends that “there is absolutely no authority for the Board to operate Harris-Stowe.” “Apparently the Board has continued to provide funding and now expects reimbursement. . . . Respondent submits that, because there is no statutory authority for the funds, the funding was gratuitous and cannot be reimbursed under the present litigation.”

We disagree. S.B. 703 is a comprehensive statute dealing with the State take-over of Harris-Stowe College. It provides that, the State shall, effective July 1, 1978 provide the necessary funds to fully staff and operate Harris-Stowe College. S.B. 703 provides that prior to October 17, 1978, the Governor shall, with the advice and consent of the senate, appoint a six member board of regents to assume the general control and management of Harris-Stowe. This bill provides that “[t]here shall be a period of orderly transition which shall begin with the appointment of the board of regents, during which the St. Louis Board of Education shall convey by gift . . the property of the college and during which the Board shall continue to provide necessary “supporting services” to the college at its own expense. The law provides that the transition period shall terminate no later than July 1,1979, at which time the regents shall be responsible for every aspect of the college’s operation.

Although S.B.

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Bluebook (online)
580 S.W.2d 303, 1979 Mo. LEXIS 352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-teasdale-v-spainhower-mo-1979.