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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. 5766 September 2, 1980 SCHOOLS AND SCHOOL DISTRICTS: Authority of intermediate district to acquire real property with general operating funds The board of education of an intermediate school district may not use general operating funds to acquire real property. Honorable William A. Sederburg State Senator 24th District P. O. Box 30036 Lansing, Michigan 48909 You have requested my opinion whether the general operating funds of an intermediate school district may be used to acquire real property. School districts and their officers have only such powers as the legislature confers upon them by statute, either expressly or by reasonably necessary implication. Senghas v L'Anse Creuse Public Schools, 368 Mich 557, 560; 118 NW2d 975, 977 (1962). The School Code of 1976; 1976 PA 451, MCLA 380.1 et seq; MSA 15.4001 et seq, Sec. 628(b), sets forth the powers of intermediate boards of education to acquire real property as follows: 'The intermediate school board may: (b) Build or acquire real . . . property for use for intermediate school district purposes by . . . land contract . . . The intermediate school board may pay for the property out of funds of the district which will or may become lawfully available for these purposes.' (Emphasis supplied.) The School Code of 1976, supra, Sec. 622(1), provides: 'The intermediate school board shall select depositories for its school funds. It shall keep a set of coded accounts to be approved by the state board and shall have its books audited at least annually by a certified public accountant. General operating funds, building and site funds, cooperative education funds, special education funds, vocational-technical education funds, and debt retirement funds shall be maintained separately and shall not be commingled.' (Emphasis supplied.) In the School Code of 1976, supra, Sec. 624(4), the legislature has provided that: '. . . '[G]eneral fund operating budget' means the budget which includes revenues from the intermediate school district's share of the 15 mills as determined by the tax allocation board or by referendum and state school aid. Disbursements from the general fund operating budget shall apply to those expenditures required for the operation of all district programs except cooperative education, special education, and vocational education.' (Emphasis supplied) The State School Aid Act of 1979; 1979 PA 94, Sec. 7, MCLA 388.1607; MSA 15.1919(907), states: 'Costs for school operating purposes include all of the following expenditures from the general fund of a district or from the operating funds of an intermediate district: '(a) Expenditures for instruction and support services, including salaries and employee benefit of teachers and other employees, purchased services, textbooks, and other supplies and materials. '(b) Expenditures for furniture and equipment and for alterations necessary to maintain school facilities in a safe and sanitary condition. '(c) Expenditures for school lunch programs, bookstore operations, interscholastic athletics, community services, and cooperative education projects.' (Emphasis supplied.) Also, in the School Code of 1976, supra, Sec. 684(2), the Legislature has provided: 'The intermediate school board may expend area vocational-technical education funds for the operation of area vocational-technical education programs approved by the state board for acquiring, purchasing, or constructing area vocational-technical education buildings, acquiring sites therefor, and purchasing area vocational-technical equipment. . . .' (Emphasis supplied.) Reading the above quoted statutory provisions together, it is clear that the general operating funds of an intermediate school district are separate from the building and site funds and debt retirement funds. Further, the statutorily defined school operating costs for intermediate districts do not include the purchase of real property. Finally, as illustrated by the School Code of 1976, supra, Sec. 684(2), where the Legislature intends to authorize intermediate boards of education to expend certain funds for real property, it expressly grants such authority. It is, therefore, my opinion that the board of education of an intermediate school district may not use general operating funds to acquire real property. Frank J. Kelley Attorney General
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