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The following opinion is presented on-line for informational use only and does not replace the official version. (Mich Dept of Attorney General Web Site - www.ag.state.mi.us)



STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL


Opinion No. 5816

November 17, 1980

APPROPRIATIONS:

Expenditure of appropriated funds by elected county officers without prior approval of county purchasing agent designated as chief administrative officer of the county

BUDGET:

Expenditure of appropriated funds by elected county officers without prior approval of county purchasing agent designated as chief administrative officer of the county

COUNTIES:

Board of commissioners--authority to appoint administrative assistant to board and combining position with county purchasing agent

Expenditure of appropriated funds by elected county officers without prior approval of county purchasing agent designated as chief administrative officer of the county

A county board of commissioners may create the position of administrative assistant to the board and combine it with the position of county purchasing agent, and such person may be designated chief administrative officer of the county.

A county board of commissioners may not require prior approval of the chief administrative officer for expenditure by elected county officials of authorized line-item budget appropriations, except that the board may require pre-expenditure notification to such officer (1) to ensure that such expenditure is within authorized budgetary limits and (2) to effectuate centralized county purchasing functions.

The Honorable John M. Engler

State Senator

The Capitol

Lansing, Michigan 48909

You have requested my opinion on the following questions:

(1) May a county board of commissioners create the position of administrative assistant to the board?

(2) If the answer to the first question is yes, may the board designate that the person so appointed also serve as the county purchasing agent?

(3) May a county board of commissioners require county elected officials (ie, county clerk, sheriff, treasurer, etc) to seek permission or to notify the county purchasing agent prior to expending designated 'line items' in their budget?

(4) What budgetary control may a county board of commissioners exercise over county elected officials?

Since your first two questions are related, they will be considered together. 1917 PA 307; MCLA 45.81 et seq; MSA 5.1151 et seq, provides for the purchase of all supplies, merchandise and articles for all county offices, departments and institutions, in counties with greater than 75,000 population which adopt the provisions of such act. 1917 PA 307, supra, Sec. 2, provides for the appointment of a county purchasing agent by the board of supervisors (now commissioners). (1) However, 1851 PA 156, Sec. 13-a; MCLA 46.13a; MSA 5.335 provides:

'The Board of Supervisors in each of the several counties may appoint a county purchasing agent and such other representatives, agents and employees for its county as may be deemed necessary by it, to carry out any of the powers granted by this act, or by any other law of the state: Provided, that the provisions of this section shall not apply in any county in which county purchasing agents and other county representatives, agents, and employees are now appointed or elected under the provisions of any general or local act.' [Emphasis supplied.]

Thus, the county board of commissioners, under the authority of 1851 PA 156, Sec. 13-a, supra, is authorized to appoint a county purchasing agent and such other representatives, agents and employees of the county as it may determine to be necessary.

It should also be noted that there is no statutory prohibition preventing the same person from occupying both positions. As noted in OAG, 1943-1944, No 0-982, p 455 (July 12, 1943), the county board of commissioners may appoint a person to perform various duties provided for in this section. See also OAG, 1947-1948, No 808, p 745 (June 23, 1948).

It is my opinion, therefore, in answer to your first two questions, that the county board of commissioners may appoint an administrative assistant to the board and may provide that its administrative assistant shall serve as county purchasing agent.

Turning to your third question, county boards of commissioners possess both legislative and administrative powers. Const 1963, art 7, Sec. 8; Wayne County Jail Inmates v Wayne County Sheriff, 391 Mich 359; 216 NW2d 910 (1974); Crain v Gibson, 73 Mich App 192, 200; 250 NW2d 792 (1977) lv den 400 Mich 828. The power to appropriate money is exclusively legislative in character. Civil Service Commission v Auditor General, 302 Mich 673; 5 NW2d 526 (1942).

Const 1963, art 7, Sec. 4, creates certain county offices as constitutional offices, and the officers therein specified, as well as other county executive officials, are charged by Const 1963 and statute with the duty of administering offices within county government. Powers possessed by counties and their officials are those expressly conferred by Const 1963 or statute, or by necessary implication therefrom. Crain v Gibson, supra, 73 Mich App 192, 200, citing Alan v Wayne County, 388 Mich 210; 200 NW2d 628 (1972).

The county board of commissioners, acting as the legislative body, is obligated to maintain by appropriation the county offices and agencies created by Const 1963 and statutes. In making such appropriations, the county board of commissioners may attach appropriate conditions governing use of county funds, so long as sufficient funds are budgeted to enable county officers and agencies to perform their constitutional and statutory duties and obligations. See Wayne County Prosecutor, et al v Wayne County Board of Commissioners, 93 Mich App 114, 121-122, 124; 286 NW2d 62 (1979). (2)

1851 PA 156, Sec. 11, as last amended by 1978 PA 629, MCLA 46.11; MSA 5.331 prescribes the general powers of county boards of commissioners. Section 11(j) provides that the board of commissioners may

'[d]irect and provide for the raising of money which is necessary to defray the current expenses and charges of the county, and the necessary charges incident to or arising from the execution of their lawful authority, subject to the limitations prescribed in this act.'

Section 11(m) provides the board of commissioners may

'[p]ass regulations and ordinances relating to county affairs as it considers proper, but which shall not contravene the general laws of this state. . . .'

The Uniform Budgeting and Accounting Act, 1968 PA 2, as last amended by 1978 PA 621; MCLA 141.421 et seq; MSA 5.3228(1) et seq, is a general law of the state. 1851 PA 156, Sec. 11(m), supra. 1968 PA 2, supra, Secs. 14-20a, as added by amendatory 1978 PA 621, provide a uniform budgeting system for local units of government. (3) Broad powers of budgetary formulation and control are conferred by 1968 PA 2, Secs. 14-20a, supra, upon the chief administrative officer of the county. 1968 PA 2, supra, Sec. 2b(3) defines 'chief administrative officer' in a county as:

(f) The elected county executive or appointed county manager of a county; or if the county has not adopted an optional unified form of county government, the controller of the county appointed pursuant to section 13b of Act No. 156 of the Public Acts of 1851, as amended, being section 46.13b of the Michigan Compiled Laws; or if the county has not appointed a controller, an individual designated by the county board of commissioners of the county.' [Emphasis supplied.]

Thus, under 1968 PA 2, Sec. 2b(3)(f), where a county has not adopted the optional unified form of county government, and where such county has not created the office of county controller pursuant to 1851 PA 156, supra, Sec. 13b, the county may designate an individual as the chief administrative officer. In such instance, the county purchasing agent, appointed pursuant to 1851 PA 156, Sec. 13-a, supra, may be designated as the chief administrative officer. (4) 1968 PA 2, supra, Sec. 14(1) provides:

'Unless otherwise provided by law, charter, resolution, or ordinance, chief administrative officer shall have final responsibility for budget preparation, presentation of the budget to the legislative body, and the control of expenditures under the budget and the general appropriations act.'

1968 PA 2, supra, Sec. 15(1) provides that the recommended budget shall include certain information, including:

'(b) An estimate of the expenditure amounts required to conduct, in the ensuing fiscal year, the government of the local unit, including its budgetary centers.' (5)

1968 PA 2, supra, Sec. 16, states:

'(1) Unless another method for adopting a budget is provided by a charter provision in effect on the effective date of this section [April 1, 1980], the legislative body of each local unit shall pass a general appropriations act for all funds except trust or agency, intragovernmental service, enterprise, public improvement or building and site, or special assessment funds for which the legislative body may pass a special appropriation act.'

(4) This act shall not be interpreted to mandate the development or adoption by a local unit of a line-item budget or line-item general appropriations act.'

1968 PA 2, supra, Sec. 17, provides a procedure to accomplish budgetary reductions during a fiscal year. See also 1968 PA 2, Sec. 16(6), supra; OAG, 1943-1944, No 24677, p 256 (February 1, 1943) (expenditures in excess of existing funds and anticipated revenue are illegal); OAG, 1947-1948, No 0-5328, p 145 (January 16, 1947) (appropriations reduction during a fiscal year shall not impair contractual obligations); Wayne County Prosecutor, supra.

1968 PA 2, supra, Sec. 18(3), provides:

'Except as otherwise provided in section 19, an administrative officer of the local unit shall not incur expenditures against an appropriation account in excess of the amount appropriated by the legislative body. The chief administrative officer, the fiscal officer, an administrative officer, or an employee of the local unit shall not apply or divert money of the local unit for purposes inconsistent with those specified in the appropriations of the legislative body.' [Emphasis supplied.]

1968 PA 2, supra, Sec. 19, states:

'(1) A member of the legislative body, the chief administrative officer, fiscal officer, an administrative officer, or an employee of a local unit shall not authorize or participate in the expenditure of funds except as authorized by a general appropriations act. An expenditure shall not be incurred except in pursuance of the authority and appropriations of the legislative body of the local unit.

'(2) The legislative body in a general appropriations act may permit the chief administrative officer or fiscal officer to execute transfers within limits stated in the act between appropriations without the prior approval of the legislative body.' [Emphasis supplied.]

It is apparent that no provision of 1968 PA 2, supra, and, in particular, sections 18(3) and 19 thereof, supra, authorize the county board of commissioners, in adopting a general (or non-mandated line-item) appropriation act, to require elected county officials or other administrative officers of budgetary centers, to seek permission of the chief administrative officer or fiscal officer of the county in expending designated 'line-items' within an approved budget. This conclusion is applicable in instances where the county purchasing agent is designated by a board of commissioners as the 'chief fiscal officer', pursuant to 1968 PA 2, Sec. 2b(3)(f), supra. Such requirement of seeking pre-expenditure permission would not only contravene the provisions of 1968 PA 2, supra, but would also violate the separation of powers doctrine embodied in Const 1963, art 3, Sec. 2. See Wayne County Prosecutor, supra, 93 Mich App 114, 121; 1851 PA 156, Sec. 11(m), supra.

However, a fair reading of 1968 PA 2, Sec. 19(1), supra, would authorize the county board of commissioners to provide in its appropriation act that elected county officials or other department heads shall notify the county purchasing agent prior to expenditure of a designated 'line-item', in order to ensure that the expenditure is within authorized budgetary limitations (1968 PA 2, Sec. 14(1), supra) and to facilitate economic centralized county purchasing. (6) However, while such notification is proper, a requirement that the county purchasing agent approve a designated line-item expenditure is invalid. (7)

Therefore, in response to your third question, a county board of commissioners may not require elected county officials or department heads to seek permission of the county purchasing agent prior to expending designated line-items in their approved budget, although prior notification of the county purchasing agent in advance of such approved expenditure for the purpose of (1) ensuring that the expenditure is within authorized budgetary limits and (2) effectuating centralized county purchasing functions may be required by proper appropriations language.

In view of the answer to your third question, a response to your fourth question is unnecessary.

Frank J. Kelley

Attorney General

(1) 1966 PA 26, Sec. 16(3), added by 1969 PA 137; MCLA 46.416; MSA 5.359(16).

(2) Appeal not taken.

(3) The phrase 'local unit', as employed in 1968 PA 2, Secs. 14-20a, supra, includes counties. 1968 PA 2, supra, Sec. 2d(2)(f). Amendatory 1978 PA 621, which added Secs. 14-20a, supra, became effective April 1, 1980.

(4) Where a county has not elected or designated a chief administrative officer, the responsibilities and duties placed upon the chief administrative officer shall be discharged by the 'fiscal officer'. 1968 PA 2, supra, Sec. 14(6). The phrase 'fiscal officer' is defined in 1968 PA 2, supra, Sec. 2c(2) as '. . . the controller, finance director, business manager, or other elected or appointed official who prepares and administers the budget of a local unit.'

(5) 'Budgetary center' is defined in 1968 PA 2, Sec. 2b(1), supra, as '. . . a general operating department of a local unit or any other department, institution, board, commission, agency, office, program, activity, or function to which money is appropriated by the local unit.'

(6) See 1917 PA 301, supra, Secs. 4 and 5.

(7) 1917 PA 307, supra, Sec. 11 provides: 'All purchases by contract, or otherwise, as herein authorized, shall be in accordance with such appropriations as have been made by the supervisors. . . .'

 


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