Jim Wayne in His Official Capacity as State Representative v. Commonwealth of Kentucky Office of the Governor Matthew Bevin in His Official Capacity as Governor
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Full Opinion
OPINION OF THE COURT BY
This case presents two questions. First, does the Attorney General or an. individual member of the General Assembly have
I. Background
Upon taking office in 2016, Governor Matt Bevin ordered an across-the-board 4.5% budget reduction for the executive branch in the fourth quarter of the 2015-2016 fiscal year. This reduction extended to the stateâs nine institutions of higher education, which consist of several universities and the eonimunity college system (collectively, âthe Universitiesâ).
The Universitiesâ reductions were delineated in a letter to the Secretary of the Finance and Administration Cabinet and -the State Budget Director directing that their fourth-quarter allotments be reduced. The letter was dated March 31, 2Ă16- and stated in relevant part:
Pursuant to the authority provided to me in KRS § 48.620(1), this is to certify that the allotments for. the following budget -units of the Executive Branch for April 1, 2016 drawn-downs- [sic] by each unit under the 2015-2016 Executive Branch budget should be reduced by 4.5% of the-2015-2016 allotments:
⢠Eastern Kentucky University
⢠Kentucky State University
⢠Morehead State University
⢠Murray State University
⢠Northern Kentucky University
⢠University of Kentucky
⢠University of Louisville
⢠Western Kentucky University
⢠Kentucky Community and Technical College System ⢠â
On April 19, 2016, the Governor sent another letter, again to the Secretary of the Finance and Administration Cabinet and the State Budget Director. This letter recounted the previous letterâs contents and then ordered âpursuant to the same statutory authority that the 2015-2016 allotments to each ... institution! ] should be further revised.â As to Kentucky State University, the 4.5% reduction was' restored. As to the other eight institutions, the letter ordered that their budget reductions be amended from 4.5% to 2%.
The Attorney General filed a declaratory-judgment action against the Governor, the State Budget Director, the. Secretary of the Finance and Administration Cabinet, and the State Treasurer challenging this action,
The Governor moved to dismiss the case, claiming both that the Attorney General and the legislators lacked standing and that his actions were legal. As to the latter claim, he relied primarily on two statutes, KRS § 48.620(1), which was cited in his letters, and KRS § 45.258(4). He claimed that KRS § 48.620(1) allowed him to reduce the âallotmentsâ to the Universities without changing the legislative appropriations. He claimed that KRS § 45.258(4) allowed him to withhold appropriations until the Universities had spent their trust and agency funds (that is, funds generated by tuition, etc.). The statutes combined, he claimed, gave him âgreat discretionâ in whether to provide the appropriated funds.
The Attorney General disputed that KRS § 48.620 gave the Governor such broad authority and argued that any such reading of the statute would violate the separation-of-powers doctrine and constitute an improper delegation of authority by the General Assembly. The Attorney General also claimed that the Governorâs actions would unlawfully suspend the budget bill and that KRS § 45,253(4) did not apply to the Universities, which had elected to operate under KRS Chapter 164A.
The Franklin Circuit Court concluded that the Attorney General had standing to bring the suit, but nevertheless granted summary judgment in the Governorâs favor on the merits. The court concluded primarily that KRS § 48.620(1) and KRS § 45.253(4) delegated the authority âto address budget concerns within the executive branch.â Specifically, the court concluded that these âstatutes ... grant [the Governor] the authority to revise downward the Universitiesâ allotments.â The court also stated: âThe Universities ... are under the Governorâs control as part of the executive branch,â at least in the context of the budget bill. The court concluded that the Governorâs actions did not violate Kentuckyâs strict separation-of-powers doctrine. In this respect, the court concluded that the allotment revision was not, in fact, a reduction in the appropriation by another name, and was instead an exercise of legislatively granted power. Finally, the court concluded that there remained a check on the Governorâs power, in that the judiciary could ârealign! ] the balance of powerâ if he âpurports to wield divine power over another branch, or even over a division, cabinet or program within the executive branch, to the point that funding levels reached constitutionally impermissi-bly low levels.â
The Attorney General and the House members filed notices of appeal and a motion to transfer the case from the Court of Appeals to this Court. That motion was granted, and thus the appeal is before this Court.
II. Standing
Before reaching the merits of this dispute, this Court must address the claim that the Attorney General and intervening state representatives lack standing to prosecute this action. We answer this question first because if neither the Attorney General nor the individual legislators have standing to challenge the Governorâs actions, then we would be left with a non-justiciable cause of action, which would call for dismissal without addressing the merits. See, e.g., Lawson v. Office of Attây Gen., 415 S.W.3d 59, 67 (Ky.2013) (ââStanding,â of course, in its most basic
A. The Attorney General has standing to seek declaratory and injunctive relief to vindicate the public interest against alleged unauthorized and unconstitutional actions of the Governor.
To have standing to sue in Kentucky, the basic rule is that the person must have a âjudicially recognizable interest-in the subject matter of the suit.â E.g., Ashland v. Ashland FOP No. 3, 888 S.W.2d 667, 668 (Ky.1994). Does the Attorney General have such an interest in the Governorâs reductions of the Universitiesâ budgets?
At the outset, the Attorney General argues that this Courtâs holding in Commonwealth ex rel. Conway v. Thompson, 300 S.W.3d 152 (Ky.2009), on the issue of the Attorney Generalâs standing to sue other executive branch officials for declaratory and injunctive relief, should control outright without need for further analysis. In that case, we overruled our prior decision in Commonwealth ex rel. Cowan v. Wilkinson, 828 S.W.2d 610 (Ky.1992), to the extent that it required the Attorney General to have a âpersonal interestâ in the outcome of the case to have standing. Thompson, 300 S.W.3d at 172-74. In doing so, we âstate[d] categorically ... that the Attorney General of the Commonwealth of Kentucky has standing to seek injunctive relief on behalf of the citizens of the Commonwealth.â Id. at 172. That was because âthe Attorney General ha[d] a sufficient personal right in these' types of cases by virtue of the office and the duties commensurate with that high office.â Id. at 173 (emphasis added).
That italicized language, clarifying our holding in Thompson, is indeed the key to unlocking the issue of the Attorney Generalâs standing in this case. Further analysis, however, is required to determine whether in this case duty calls upon the Attorney General (and, thus, confers on him standing) to vindicate the public rights of the people of the Commonwealth. As we explain below, guided by history and precedent, we conclude that it does.
As we alluded in Thompson, the Attorney Generalâs standing is dictated by the powers and duties of that office. Under the Kentucky Constitution, the Attorney General is an elected constitutional officer whose âduties ... shall be such as prescribed by law.â Ky. Const. § 91; see also id. § 93 (âThe duties and responsibilities of the[] [constitutional] officers shall be prescribed by law_â). The General Assembly has prescribed the Attorney Generalâs duties and responsibilities in KRS § 15.020, which in relevant part provides:
The Attorney General is the chief law officer of the Commonwealth of Kentucky ... and shall exercise all common law duties and authority pertaining to the office of the Attorney General under the common law, except when modified by statutory enactment. ... [H]e shall appear for the Commonwealth in all cases in the Supreme Court or Court of Appeals wherein the Commonwealth is interested, and shall also commence all actions or enter his appearance in all cases, hearings, and proceedings in and before all other courts, tribunals, or commissions in or out of the state, and attend to all litigation and legal business in or out. of the state required of him by law, or in which the Commonwealth has an interest ....
Whether the Attorney General has the power to bring a given action on behalf of the people of the Commonwealth (at least where there is no statute governing
Historians, scholars, and jurists agree that clearly defining the Attorney Generalâs common-law duties is not easily done. See generally Comm, on the Office of Attây Gen., Natâl Assân of Attâys Gen., Common Law Powers of State Attorneys General 13-19 (Jan. 1975) (summarizing historical commentary and judicial holdings on the common-law powers of the Attorney General).
To begin, we reiterate: âIt is unquestioned that â[a]t common law, [the Attorney General] had the power to institute, conduct and maintain suits and proceedings for the enforcement' of the laws of the state, the preservation ⢠of order, and the protection of public rights.ââ Thompson, 300 S.W.3d at 173 (alterations in original) (quoting Commonwealth ex rel. Hancock v. Paxton, 516 S.W.2d 865, 867 (Ky.1974)). Significantly, the Attorney General was empowered under the common law to bring any action thought ânecessary to protect the public interest.â Id. (quoting 7 Am. Jur. 2d Attorney General § 6 (2009)). Indeed, the Attorney General has not only the power to bring suit when he believes the publicâs legal or constitutional interests are under threat, but appears to have even the duty to do so. Cf. Wilkinson, 828 S.W.2d at 618 (Leibson, J., dissenting) (âIt is the Attorney Generalâs responsibility to file suit to vindicate-public rights, as attorney for the people of the State of Kentucky.â). And, notably, this âbroad grant of authority ... includes the power to act to enforce the stateâs statutes.â Thompson, 300 S.W.3d at 173 (quoting 7 Am. Jur. 2d Attorney General § 6 (2009)).
It is widely recognized that the Attorney Generalâs common-law authority to represent the interests of the people derives from the broad powers that office initially possessed in representing the legal interests of the English crown. As one former Attorney General succinctly explained:
As guardian of royal prerogative, the Attorney General of England possessed a broad range of powers. ... [WJhen state governments were organized and recognized in this country, there was no monarch in whom the government prerogatives were vested. Since the essential power of government resided and emanated from the people, the prerogatives had to be exercised on their behalf. Just as the Attorney General safeguarded royal prerogatives at common law, similarly, the official authority, an obligation to protect public rights and enforce public duties on behalf of the general' public, became vested by the states in the Attorney General. And it is this obligation inherited from the common law to represent the public interest which has shaped and colored the role which the Attorney General fulfills today.
Common Law Powers of State Attorneys General, supra, at 2 (quoting Arthur Sills, Proceedings of the Conference of the Natâl
Our predecessor court long ago recognized and adopted this view of the Attorney Generalâs authority. Indeed, that court stated:
[T]he source of authority of the Attorney General is the people who establish the government, and his primary obligation is to the people. ... The Attorney General, as chief law officer of this Commonwealth, charged with the duty of protecting the interest of all the people ... had such a vital interest in this litigation that he had a right to intervene at least insofar as the public issues advanced in the action were involved.
Hancock v. Terry Elkhom Mining Co., 503 S.W.2d 710, 715 (Ky.1974); accord Paxton, 516 S.W.2d at 867 (âBut under the democratic form of government now prevailing the people are the king,- so the Attorney Generalâs duties are to that sovereign rather than to the machinery of government.â (citation omitted)). Our predecessor court made clear that KRS § 15.020, âin stating at the outset that the Attorney General is âthe chief law officer of the Commonwealth,â intends that in case of a conflict of duties the Attorney Generalâs primary obligation is to the Commonwealth, the body politic, rather than to its officers, departments, commissions, or agencies.â Paxton, 516 S.W.2d at 868. Thus, in addition to the unquestioned âright of the Attorney General to appear and be heard in a suit brought by someone else in which the constitutionality of a statute is involved,â id. (citing CR 24.03; KRS § 418.075),
The holding in Paxton thus leads to an inevitable conclusion: If the Attorney General has the power to initiate a suit questioning-the constitutionality of a statute, he must also have the power to initiate a suit questioning the constitutionality or legality of an executive action. There are no grounds for treating allegedly unconstitutional executive actions differently from allegedly unconstitutional legislative actions. It is certainly in âthe interest of all the peopleâ that there be no unconstitutional or illegal governmental conduct. And standing must be determined at the beginning of an action, not retrospectively after the merits have been sorted out.
A plain reading of Thompson and Pax-ton and other authorities thus establishes that the Attorney General has standing to bring this action questioning the authority for and constitutionality of the Governorâs actions.
The Governor, however, argues that the Attorney Generalâs authority and standing to bring suit in the public interest should be limited to only those eases where there are no identifiable parties with particularized injuries (such as the Universities in this case). In support of this position, he cites Johnson v. Commonwealth ex rel. Meredith, 291 Ky. 829, 165 S.W.2d 820 (1942), for the proposition that by enacting KRS § 12.210, which authorizes state agencies to hire outside counsel, the Gen
This is an overreading of Johnson. That case answered only whether the legislature âmay withdraw [discrete common-law] powers and assign them to others or may authorize the employment df other counsel for the departments and officers of the state, to perform them.â. Id. at 829. In other words, Johnson signed off on the General Assemblyâs authority to divest some of the powers of the Attorney General (i.e., serving as legal counsel to a given state entity) and invest them in another (i.e., private counsel of the entityâs choosing). It. did not hold, as the Governor states, that âwhen a state agency hires, or can hire,- its own attorneys pursuant to statutory authority, the Attorney General no longer has authority to unilaterally decide to act for that agency.â To the contrary, Johnsmi explicitly left that question open:
As to what extent [KRS § 12.210] should be construed as affecting the supremacy of the Attorney General as the chief,law.officer of the .Commonwealth, or to what extent it deprives him of the power and right to represent the Commonwealth as a distinct entity in litigation in which any of the departments employing counsel are involved, or in any other respect, we express no opinion, for they are questions not presented in this suit.
Id. at 829. Indeed, our predecessor thought it sufficient to express only its âopinion that the Act does not deprive the Attorney General of his hereditary and statutory prerogatives to the extent or degree that it can be said that he is left without substantial duties, responsibilities and rights.â Id. KRS § 12.210, as interpreted by Johnson, is not nearly the limitation on the Attorney Generalâs authority as the Governor claims.
But the âsupremacy of the Attorney General as the chief law officer of the Commonwealthâ is squarely before us here. The simple answer is that delegating day-to-day operational powersâin this case, to the Universitiesâ own counselâ does not preclude a need for the Attorney General to protect âthe interest of all the peopleâ when unconstitutional or unlawful conduct is claimed either by or toward those universities. The Governorâs invitation to so constrain the traditional powers and duties of the Attorney General to protect the interests of the people of the Commonwealth could result in unconstitutional or unlawful conduct that would go unaddressed, against the interest of the people, if the Universities and their counsel for political, financial, or other reasons chose not to seek redress.
There is no valid justification for cutting off the âhereditaryâ prerogative of the Attorney General to challenge the legality and constitutionality of a state action merely because the state actor has (or could) employ other legal counsel. Indeed, the words of our predecessor in Paxton, by extension, ring just as true here as they did there: âWe think that if the Constitution is threatened by an item of legislation [or act of the Executive], the Attorney General may rise to the defense of the Constitution by bringing a suit, and is not required to wait until someone else sues.â 516 S.W.2d at 868. Likewise, the Attorney General must defend duly adopted statutory enactments that are not unconstitutional.
In fact, the soundness of this position becomes even more apparent in light of the realities (and costs) to public entities of challenging executive or legislative actions. The ongoing functions of such entities and the costs of such litigation, in money and political good will, could make a legal challenge prohibitive despite whatever dis
This view of the authority of the Attorney General is in line with that taken by most of our sister jurisdictions. Indeed, the facts of a fairly recent case from South Carolina are notably similar to the facts presented here. In State ex rel. Condon v. Hodges, 349 S.C. 232, 562 S.E.2d 623 (2002), the South Carolina Supreme Court upheld the power of the Attorney General to sue to enjoin the Governor from circumventing provisions of an appropriations bill. Noting that â[t]he way in which public funds are handled.- and whether a violation of the separation of powers doctrine has occurred are clearly questions in which the State has an interest,â id. at 627, the South Carolina Supreme Court, held that âthe Attorney General has the authority to sue the Governor when he is bringing the action in the name of the State for the purpose of asserting that a separation of powers violation has occurred,â id. at 628. See also id. (â[T]he Attorney General can bring an action against the Governor when it is necessary for the enforcement of the laws of the State, the preservation of order, and the protection of public rights.â).
And courts in numerous other states have reached similar conclusions about the powers and .duties of the Attorney General. See, e.g., State ex rel. Landis v. S.H. Kress & Co., 115 Fla. 189, 155 So. 823 (1934); People ex rel. Scott v. Illinois Racing Bd., 54 Ill.2d 569, 301 N.E.2d 285 (1973); Lund ex rel. Wilbur v. Pratt, 308 A.2d 554 (Me.1973); Jacobson v. Parks & Rec. Commân, 345 Mass. 641, 189 N.E.2d 199 (1963); Attây Gen. v. Trustees of Boston Elevated R.R. Co., 319 Mass. 642, 67 N.E.2d 676 (1946); Fordice v. Bryan, 651 So.2d 998 (Miss.1995); State ex rel. Douglas v. Thone, 204 Neb. 836, 286 N.W.2d 249 (1979); State ex rel. Meyer v. Peters, 188 Neb. 817, 199 N.W.2d 738 (1972); Hetherington v. McHale, 10 Pa.Cmwlth. 501, 311 A.2d 162 (Pa.1973); Yett v. Cook, 281 S.W. 837 (Tex.1926); Hansen v. Barlow, 23 Utah 2d 47, 456 P.2d 177 (1969). Of the minority of states that have ruled oth
Finally, we find particularly apt the following comments by Justice Erwin of the Florida Supreme Court:
The Attorney General is elected by the people; he is entrusted by them with the common law power to legally represent them or some of them in matters deemed by him to affect the public interest. He has a discretionary duty under the common law rarely modified by statute to protect the public interests of any of the people who elected him.
It is his discretionary duty to choose those legal matters in the area of public litigation or quasi-judicial administration in which he believes it is his official duty to intervene, except in those instances when it is mandated by the legislature for him to intervene or to refrain from intervening. If he is mistaken in his legal advocacy, the courts and quasi-judicial tribunals always retain the power to rule against him and often do on the merits but this power does not affect his standing to become a party of interest in the cause or proceeding. Regardless of the effectiveness of his efforts in particular public legal situations, at least the people have the continuing satisfaction of knowing that their elected Attorney General has the right to exercise his conscientious official discretion to enter into those legal matters deemed by him to involve the public interest, even though not expressly authorized by statute. The presumption is that he will not enter strictly private litigation and a great degree of latitude must of necessity be extended to him in the exercise of his right- to intervene in behalf of public interests.
State ex rel. Shevin v. Yarborough, 257 So.2d 891, 895 (Fla.1972) (Erwin, J., specially concurring); see also Mundy v. McDonald, 216 Mich. 444, 185 N.W. 877, 880 (1921) (âA broad discretion is vested in [the Attorney General] in determining what matters may, or may not, be of interest to the people generally,â).
In the end, we are left with only one conclusion: the Attorney General, as chief law officer of Kentucky, has broad authority to sue for declaratory and in-junctive -relief- against state actors, including the Governor, whose actions the Attorney General believes lack legal authority or are unconstitutional. It is that power which the Attorney General-has invoked to support bringing the present actionâto wit, the Attorney General seeks to enjoin the Governorâs reductions of the final quarterly allotments of the Universitiesâ 2015-2016 appropriations as exceeding the Governorâs statutory and constitutional authority and violating the separation-of-powers doctrine. And we must take these allegations at face value in undertaking this standing analysis. See City of Louisville v. Stock Yards Bank & Tr. Co., 843 S.W.2d 327, 328 (Ky.1992) (â[I]t is neither the province of the trial court nor of this Court to consider whether Appellant- may be able to-prove its allegations or ultimately prevail. On review, this Court will confine itself to a determination of whether the matters alleged in the complaint establish appellantâs standing to bring the action or whether it is without a âsubstantial interestâ in the subject matter of the controversy.â (citations omitted)).
The Attorney General, therefore, has standing in this ease.
B. The individual legislators do not have standing.
We begin with the legislatorsâ claim that it has been the practice of this Court to allow members of the General Assembly to âdefend the Kentucky Constitutionâs âforceful commandâ that the powers of the Legislative Branch be protected from invasion by the Executive Branch.â This Courtâs practice, at least in the cases cited by the legislators, has not been nearly so broad as claimed. The legislators cite, for example, Fletcher v. Commonwealth, 163 S.W.3d 852 (Ky.2005), in which many members of the General Assembly, including at least one of the members in this case, intervened to challenge gubernatorial action. The question of the legislatorsâ standing, however, was not raised in that case. And, as this Court has held, a claimed lack of standing is a defense that must be timely raised or else be deemed waived. Harrison v. Leach, 323 S.W.3d 702, 708 (Ky.2010). Thus, while Fletcher may be a factual precedent for individual legislatorsâ having intervened in a- ease, it is not legal precedent for their having standing to challenge the Governorâs actions.
As to the legal substance, of the claim, unlike the Attorney General, ⢠individual legislators do not have the role of chief legal officer for the public. The individualized role of a legislator is to represent those who have elected him or her and to participate in the decision-making that becomes the laws of the Commonwealth, including participating in the passage, of budget bills. The idea that individual legislators have standing to challenge an action by the Governorâ-under the premise of an injury to an interest in a statute being carried out properly or the legislatorsâ duty to vote on legislationâis simply too attenuated to create a justiciable controversy. A legislator has no individual ownership of any enacted piece of legislation and certainly can pass no legislation as an individual. Asserting that a governorâs disposition of budgeted funds is an infringement on their duty to enact a budget is a non sequitur.
Nonetheless, the legislators claim that this Court has seemed in the past to take a âbroad[ ] view of when a public official can go to court to defend the prerogatives of office.â (Quoting Paul E. Salamanca, The Constitutionality of an Executive Spending Plan, 92 Ky. L.J. 149, 200 (2004)). In this context, Professor Salamanca discussed Legislative Research Commission v. Brown, 664 S.W.2d 907 (Ky.1984), wherein the Legislative Research Commission sued âto validate its authority under certain parts of the legislation, and the original defendants, the Governor and Attorney General of Kentucky, had by counterclaim called in question other parts.â Salamanca, supra, at 200. But Brown, like Fletcher, is not support for the existence of individual-legislator standing, if only because individual legislators were not the plaintiffs in that case. More importantly, standing again was not raised in that case, at least hot before this Court. See id, (noting that âthe issue of representative standing was not addressed in the Legislative Research Commission courtâs opinionâ),
Obviously, legislators with a particularized, personal injury have standing to seek redress for that injury. Thus, for example, a legislator could sue for the loss of salary. See Powell v. McCormack, 395 U.S. 486, 89 S.Ct. 1944, 23 L.Ed.2d 491
Individual legislators simply do not have a sufficient personal stake in a dispute over the execution or constitutionality of a statute, even when the claim is that another branch of government is violating the separation of powers. The United States Supreme Court reached the same conclusion when members of Congress sought to challenge the constitutionality of the Line Item Veto Act in the 1990s. See Raines v. Byrd, 521 U.S. 811, 830, 117 S.Ct. 2312, 138 L.Ed.2d 849 (1997). There the Court held that âindividual members of Congress do not have a sufficient âpersonal stakeâ in this dispute and have not alleged a sufficiently concrete injury to have established Article III standing.â Id. Although Article III does not dictate the contours of the law of standing before this stateâs courts, we generally require the same particularized, personal injury when individuals seek to bring a claim.
The individual legislators have not shown that they are representative of the entire body of the General Assembly. They âhave not been authorized to represent their respective Houses ... in this action.â Id. at 829,