University of the Cumberlands v. Pennybacker

308 S.W.3d 668, 2010 Ky. LEXIS 97
CourtKentucky Supreme Court
DecidedApril 22, 2010
Docket2008-SC-000253-TG (2008-CA-000643), 2008-SC-000285-TG (2008-CA-000682)
StatusPublished
Cited by22 cases

This text of 308 S.W.3d 668 (University of the Cumberlands v. Pennybacker) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
University of the Cumberlands v. Pennybacker, 308 S.W.3d 668, 2010 Ky. LEXIS 97 (Ky. 2010).

Opinions

Opinion of the Court by

Justice ABRAMSON.

In the 2006 Budget Bill, the Kentucky General Assembly appropriated $10 million for the construction of a pharmacy school building on the campus of the University of the Cumberlands, a Baptist college located in Whitley County. The legislature also appropriated $1 million for a Pharmacy Scholarship Program to benefit pharmacy students “at a private four (4) year institution of higher education with a main campus located in an Appalachian Regional Commission county....” KRS 164.7901(1). In a declaratory judgment action challenging both appropriations, the Franklin Circuit Court held that the Pharmacy School appropriation violated Sections 5 and 189 of the Kentucky Constitution and the Pharmacy Scholarship Program violated Section 51. This Court granted transfer of the case from the Court of Appeals pursuant to Kentucky Rule of Civil Procedure 74.02. Following review of the record and applicable law, we affirm the circuit court’s holding that the Pharmacy School appropriation violates Section 189, which prohibits public funding of “any church, sectarian or denominational school,” and further find the Pharmacy Scholarship Program violates Section 59, which prohibits special legislation.

RELEVANT FACTS

The University of the Cumberlands, Inc. (UC), formerly Cumberland College, is a private university founded by Baptists in 1887 and located in Williamsburg, Whitley County, Kentucky. UC is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools and is affiliated with both the Southern Baptist Convention and the Kentucky Baptist Convention. According to UC, it currently provides approximately 1700 students from “diverse religious backgrounds, a liberal arts education enriched with Christian values.” Under a 1986 Covenant Agreement between UC and the Kentucky Baptist Convention, as well as the 2005 Restated Articles of Incorporation for UC, if the corporate entity ever dissolves all assets are to be distributed to the Kentucky Baptist Convention.

On April 11, 2006, in its biennial budget bill, the General Assembly approved $10 million in public bond financing for the construction of a pharmacy school on the UC campus. HB 380, 2006 Ky. Acts 252. The bonds are to be sold by the Kentucky Infrastructure Authority to private investors with the principal on the bonds paid from coal severance taxes levied pursuant to KRS 143.020 and the interest paid from the General Fund.

HB 380 also included a $1 million allocation from the General Fund to a Pharmacy Scholarship Program. That provision, codified at KRS 164.7901 provides in subsection (1):

[672]*672It is the intent of the General Assembly to establish a scholarship program to provide eligible Kentucky students the opportunity to attend an accredited school of pharmacy at a private four (4) year institution of higher education with a main campus located in an Appalachian Regional Commission county in the Commonwealth and become certified pharmacists in the Commonwealth.

Subsection 3 provides that scholarship recipients must be Kentucky residents enrolled full-time in a Kentucky pharmacy school and must provide one year of service as a pharmacist in Kentucky for each year the scholarship is awarded. The scholarship amount is set forth in subsection (4) which provides:

The amount of the scholarship awarded to an eligible student by the authority shall be equal to the difference between:
(a) The amount charged for in-state tuition at the University of Kentucky College of Pharmacy; and
(b) The prevailing amount charged for tuition at the institution in which the student is enrolled.

After the initial funding, the “special trust fund” necessary to sustain the Scholarship Program is to be generated from coal severance tax revenues levied under KRS 143.020. KRS 164.7901(11) provides that up to 4% of the coal severance tax revenues collected annually “shall be transferred to the special trust fund ... in an amount that permits each Kentucky resident eligible” under the statute to receive a scholarship award as provided in subsection (4), i.e., the difference between UK Pharmacy School tuition and the institution’s tuition.

After Governor Ernie L. Fletcher declined to veto the aforementioned appropriations, Appellee Christina Gilgor filed a declaratory judgment action against the Governor on April 25, 2006 challenging both the Pharmacy School and the Pharmacy Scholarship Program appropriations as violating specific provisions of the Kentucky Constitution. Subsequently, through amended complaints, the Kentucky Fairness Alliance, the Jefferson County Teachers Association and two taxpayers, Rev. Albert M. Pennybacker and Rev. Dr. Paul D. Simmons, also became plaintiffs. The Franklin Circuit Court later allowed UC and a group of thirteen members of the General Assembly to intervene as defendants in support of the challenged legislation. For clarity, those challenging the legislation are hereafter referred to as “Plaintiffs” and those defending it are collectively referred to as “Defendants”.

Twenty months after HB 380 passed, on December 10, 2007, UC and the Governor’s Office for Local Development entered into a Memorandum of Understanding (MOU) designed to address some of the issues raised in the declaratory judgment action. UC committed in the MOU inter alia that no portion of the funds would be “used for any church, sectarian or denominational purpose” and that if the building ever ceased to be used as a pharmacy school it would revert to Whitley County.

Meanwhile, UC had moved for summary judgment in October, 2007 and Plaintiffs had filed a response and counter-motion for summary judgment in November. Following additional briefing and oral arguments, the circuit court entered its Judgment and Order on March 6, 2008 granting Plaintiffs’ cross-motion for summary judgment and declaring both appropriations unconstitutional. UC and the intervening legislators filed timely appeals and this Court granted transfer of those appeals from the Court of Appeals pursuant to CR 74.02.

[673]*673 ANALYSIS

I. The Pharmacy School Appropriation for UC Violates Section 189 of the Kentucky Constitution.

Kentucky’s fourth and present Constitution, adopted in 1891, includes in Section 5 a “Right of religious freedom.” In pertinent part, the provision states that “no preference shall ever be given by law to any religious sect, society or denomination; ....” 1

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University of the Cumberlands v. Pennybacker
308 S.W.3d 668 (Kentucky Supreme Court, 2010)

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Bluebook (online)
308 S.W.3d 668, 2010 Ky. LEXIS 97, Counsel Stack Legal Research, https://law.counselstack.com/opinion/university-of-the-cumberlands-v-pennybacker-ky-2010.