STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 6308

July 26, 1985

APPROPRIATIONS:

Appropriation of amounts of unexpended and unencumbered line item appropriations for prior fiscal year

CONSTITUTIONAL LAW:

Const 1963, art 4, Sec. 24--appropriation of the amounts of unexpended and unencumbered funds for previous fiscal year as second purpose

Enrolled 1985 Senate Bill 137, Sec. 22, which appropriates for the fiscal year ending September 30, 1986 the amounts of certain unexpended and unencumbered line item appropriations contained in 1984 PA 246, Sec. 1, does not violate Const 1963, art 4, Sec. 24.

Honorable John M. Engler

State Senator

The Capitol

Lansing, Michigan

Honorable Harry Gast

State Senator

The Capitol

Lansing, Michigan

You have requested my opinion on the following questions:

Your questions relate to House Substitute (H-1) to SB 137, Sec. 23, which provided:

The House passed SB 137, as substituted with Sec. 23 intact. 1985 HJ, No 73, p 1544. The Senate did not concur in the House Substitute (H-1) to SB 137. 1985 SJ, No 66, p 1361.

It is noted that the Senate Substitutes (S-1) to SB 137, as earlier passed by the Senate, contained a Sec. 22, which provides:

A comparison of these two sections reveals that while House Substitute (H-1) to SB 137, Sec. 23, enumerates six program appropriations, Senate Substitute (S-1) to SB 137, Sec. 22 lists three of the program appropriations only.

The first conference report recommended that the House recede from its Substitute, and in pertinent part, SB 137, Sec. 22, be amended to provide:

The conference report was approved by the Senate. 1985 SJ, No 70, p 1553. It was also approved by the House. 1985 HJ, No 78, p 1727.

1984 PA 246, Sec. 1, contains, inter alia, the following pertinent line item appropriations for the Department of Social Services for the fiscal year ending Sptember 30, 1985:

'Michigan opportunity and skills training .. $21,000,000

Michigan community services corps ........... 13,100,000

Private sector employment subsidy ............ 1,700,000

Multidisciplinary pilot project .............. 1,250,000

Energy related home repairs ................. 6,666,700'

1984 PA 246 does not contain an appropriation for a teen project initiatives program; it does contain an appropriation for teenage parent counseling, $1,700,000. A study of 1984 PA 246 also fails to reveal any appropriation for project self-reliance.

It should also be observed that 1984 PA 246, Sec. 128 provided a carry forward authorization for unexpended portions of the Michigan community service corps, the Michigan opportunity and skills training program, the teenage parent counseling program, the private sector employment subsidiary program, and the energy related home repairs program authorizations for the fiscal year ending September 30, 1985.

The title to Enrolled SB 137, in part, provides that it 'makes appropriations for the department of social services and certain state purposes related to public welfare services for the fiscal year ending September 30, 1986.' Enrolled SB 137, Sec. 1, contains appropriations for the Michigan opportunity and skills program, the Michigan community service corps, the multidisciplinary pilot project, project self-reliance, the teenage parent initiatives program, and energy related home repair program. In light of Enrolled SB 137, Sec. 138, the project self-reliance will begin operation on October 1, 1985 as provided in Secs. 137-147.

In light of the legislative history of Enrolled SB 137, response to your related inquiries will be directed to Enrolled SB 137, Sec. 22.

Because 1984 PA 246 makes appropriations for the fiscal year ending September 30, 1985, it has no viability after that date. Any unencumbered sums within the line item appropriations for the Michigan opportunity and skills program, the multidisciplinary pilot project, the private sector employment subsidy program, the teenage counseling program, and the energy related home repairs program will lapse at the end of the 1984-1985 fiscal year into the state fund from which the funds were appropriated. MCL 18.1451(1); MSA 3.516(451).

Assuming Enrolled SB 137, Sec. 22, is enacted into law, its provisions will take effect on October 1, 1985, the first day of the 1985-1986 fiscal year. MCL 18.1491; MSA 3.516(491).

It is noted that Enrolled SB 137, Sec. 22, employs the term 'carry forward authorization.' Its meaning is not clear.

The object of construction of statutes is to ascertain and give effect to the intent of the Legislature in light of the purpose sought to be accomplished. City of Grand Rapids v Crocker, 219 Mich 178; 189 NW 221 (1922); General Motors Corp v Erves (On Rehearing), 399 Mich 241; 249 NW2d 41 (1976). Each section should be considered in connection with other applicable sections in order to ascertain the legislative intent. Metropolitan Council No 23, AFSCME v Oakland County Prosecutor, 409 Mich 299; 294 NW2d 578 (1980).

Applying these principles of statutory construction against the background set forth in 1984 PA 246, Secs. 1 and 128, it is readily apparent that the Legislature intended to fund on a continuing basis certain programs enumerated in Enrolled SB 137, Secs. 1 and 22, with the exception of the project self-reliance, which is to be established for the first time on October 1, 1985. Because the Legislature of necessity is uncertain of the amount of any unencumbered fund balances for such programs as provided in 1984 PA 246, Sec. 1, which may be available on September 30, 1985, it was not feasible to make specific line item appropriations of such sums, if any. Instead, the Legislature manifested its intent that the amounts of any remaining unencumbered fund balances for such programs be authorized for expenditure in the fiscal year ending September 30, 1986. While Enrolled SB 137, Sec. 22 may be inartfully drawn, nevertheless, it is reasonable to infer an intent to permit the expenditure of the amounts of any unencumbered funds in such line item appropriations during the 1985-1986 fiscal year. This is accomplished by reading Sec. 22 as an appropriation in the respective amount of unencumbered funds within the line item appropriations for the Michigan opportunity training program, the multidisciplinary pilot project program, the community service corps, the private sector employment subsidy program, the teenage parent counseling program, and the energy related home repairs program, as set forth in 1984 PA 246, Sec. 1 on September 30, 1985. The appropriations thus made would be from the same funds to which such unencumbered funds lapsed.

There is no constitutional limitation upon the authority of the Legislature to appropriate such unencumbered funds appropriated to the Department of Social Services and lapsing in one fiscal year to be expended for the same purposes in the ensuing fiscal year. See, Const 1963, art 9, Sec. 17 and Oakland County Taxpayers' League v Oakland County Supervisors, 355 Mich 305; 94 NW2d 875 (1959).

So read, Sec. 22 may well serve to appropriate zero dollars if the line item appropriations contained in 1984 PA 246, Sec. 1 have been fully expended or timely encumbered before the end of the 1984-1985 fiscal year.

It is my opinion, therefore, that Enrolled SB 137, Sec. 22, makes appropriations for the fiscal year ending September 30, 1985 of the amounts of any unexpended and unencumbered line item appropriations for the Michigan opportunity and skills training program, the multidisciplinary pilot project program, the private sector employment subsidy program, the teenage parent initiatives program, and the energy related home repair program, as set forth in 1984 PA 246, Sec. 1.

Turning to your second question, as the analysis to your first question has demonstrated, Enrolled SB 137, Sec. 22, contains appropriations for the fiscal year ending September 30, 1985. The appropriations made in Sec. 22 are within the title to the bill and do not add a second purpose to the bill. It follows that Const 1963, art 4, Sec. 24, which restricts bills to one object, is not violated.

It is my opinion, in answer to your second question, that Enrolled SB 137, Sec. 22, makes appropriations for the fiscal year ending September 30, 1986 as stated in its title and in conformity with Const 1963, art 4, Sec. 24.

Frank J. Kelley

Attorney General