3 No. 171
George E. Pataki, as Governor of
the State of New York,
Respondent, v. New York State Assembly, et al.,
Appellants.
1 No. 172
Sheldon Silver, &c., et al.,
Appellants, v. George E. Pataki, Governor, &c.,
Respondent.
Case No. 171:
2004 NY Int. 160
December 16, 2004
This opinion is uncorrected and subject to revision before
publication in the New York Reports.
Stewart F. Hancock, Jr., for appellant New York State
Senate. Steven A. Reiss, for appellant New York State Assembly. Paul Shechtman, for respondent. Case No. 172:Steven A. Reiss, for appellant Silver. Stewart F. Hancock, Jr., for appellant New York State
Senate. Max R. Shulman, for respondent.
R. S. SMITH, J.:
Since 1927, the New York Constitution has provided for
executive budgeting. Under this system, the State's budget
originates with the Governor, and he must submit to the
Legislature proposed legislation, including "appropriation
bills," to put his proposed budget into effect. The Legislature
"may not alter an appropriation bill submitted by the governor
except to strike out or reduce items therein" (NY Const, art VII,
§ 4). In these cases, the Governor and the Legislature accuse
each other of overstepping limitations placed by the Constitution
on their roles in enacting the budget. We resolve the dispute in
the Governor's favor. We hold, in both of these cases, that the
Legislature altered the Governor's appropriation bills in ways
not permitted by the Constitution. In Pataki v New York State
Assembly, we also hold that the Governor did not exceed
constitutional limits on what his appropriation bills may
contain. Five members of this Court agree with these two
conclusions, and with the reasoning that leads to the first of
them. As to our second conclusion, two members of the majority
have reservations about the analysis in the section of this
opinion entitled "The Content of Appropriation Bills" (pp. 21-33
below), as explained in Judge Rosenblatt's concurring opinion.
I. Background: New York's Executive Budget System
Until 1927, all budget legislation, like other
legislation, originated with the Legislature. The Governor's
only power over budget legislation was the veto. He could veto
any bill passed by the Legislature, and if any such bill
contained "several items of appropriation" he could veto one or
more of those items while approving the remainder of the bill
(NY Const of 1894, art IV, § 9). The Legislature, if in session,
could pass a bill or item of appropriation over the Governor's
veto by a two-thirds vote ( id.). In 1915, executive budgeting was proposed as a way to
reform the planning and management of the State's finances. A
report submitted by a committee to that year's Constitutional
Convention argued that the Legislature was not the right body to
prepare a budget. The Legislature, the report said, did not
administer government departments, and therefore lacked both the
knowledge about and the authority over those departments that was
necessary to design a budget properly. Legislators were
accountable to voters in their own districts, rather than to the
State as a whole, and thus would prepare a budget by "compromise
or bargain" -- a process which "has become so common . . . as to
be stigmatized by the terms 'log rolling' and 'pork barrel'"
(Report of the Committee on State Finances, Revenues and
Expenditures Relative to a Budget System for the State, Document
No. 32, State of New York in Convention, August 4, 1915 at 8).
The committee chairman, Henry L. Stimson, said that legislative
budgeting produced "extravagance, waste and irresponsibility"
(Stimson, Saving the State's Money: The sound and far-reaching
reforms contained in the proposed Constitution, Albany: Committee
for the Adoption of the Constitution, 1915, No. 12 at 8). The
solution, in Stimson's view, was to make the Governor accountable
for the budget by giving him, not the Legislature, the duty to
originate it. He explained:
"We cannot expect economy in the future
unless some one man will have to lie awake
nights to accomplish it. The only way to
stop waste is for the people of the State to
know exactly whose fault it is if waste
occurs, or if the cost of government steadily
rises without compensating increase in
service rendered. So the proposed Constitution provides
that the estimates of all administrative
departments shall be first submitted to the
Governor, and shall be revised by him. The
responsibility for securing an economical and
systematic plan for the annual budget of the
State is thus laid squarely on his
shoulders."
( Id.)
Stimson's 1915 proposal contained a provision saying:
"The Legislature may not alter an appropriation bill submitted by
the Governor except to strike out or reduce items therein." (New
York State Constitutional Convention 1915, Record [unrevised],
vol. I, p. 1135.) This limitation, Stimson argued, was essential
to the preservation of an executive budget system. The proposal,
he explained:
"provides that when the Governor introduces
his budget that budget must be disposed of
without addition. The Legislature can cut
down, the Legislature can strike out but they
must approach it from the standpoint of a
critic and not from the standpoint of a rival
constructor. The budget must be protected
against its being wholly superseded by a new
legislative budget and a resort to the same
situation that we have now. Otherwise you
would have nothing."
(New York State Constitutional Convention 1915, Record [un-
revised], vol. II, p. 1586.)
Thus the original purpose of the executive budgeting
system was to change the roles of the Governor and the
Legislature in the process -- to make the Governor the
"constructor" and the Legislature the "critic." As the dissent
stresses, the newly-proposed system did not "deprive the
Legislature of any of its prerogatives"; nor did it, in a
fundamental way, "add to the Governor's power" (Dissent at 7).
It remained true, before and after executive budgeting was
adopted, that no budget could pass without the Legislature's
assent. In that sense, we agree with the dissent that the new
system Stimson proposed did not "transfer significant lawmaking
authority from the Legislature to the Executive" ( id. [emphasis
added]). It certainly did, however, transfer the role of
"constructor" from the Legislature to the Governor. That was the
whole point. A proposed Constitution containing the executive budget
provisions that Stimson favored was rejected by the voters in
1915. But efforts to reform budgeting continued, eventually with
the support of Governor Alfred E. Smith. In 1926, the voters
approved constitutional amendments similar to the 1915 executive
budget proposals. These provisions took effect in 1927, and were
carried forward with little change in the 1938 Constitution that
is in force today.
Article VII, §§ 1-7 now govern the budget process.
Several of these sections vest certain legislative powers in the
Governor, creating a limited exception to the rule stated in
article III, § 1 of the Constitution: "The legislative power of
this State shall be vested in the senate and assembly." Thus the
classic "separation of powers" between the executive and
legislative branches is modified to some degree by our
Constitution -- a fact the dissent seems to ignore. In the process prescribed by the Constitution, the
Governor receives estimates from the heads of departments of
their financial needs (NY Const, art VII § 1). By the second
Tuesday in January (or February 1, in the year after a
gubernatorial election), the Governor submits a budget to the
Legislature accompanied by "a bill or bills containing all the
proposed appropriations and re-appropriations included in the
budget and the proposed legislation, if any, recommended therein"
(NY Const, art VII, §§ 2-3). The manner in which the Legislature
may act on these bills is governed by article VII, § 4, the
provision that is central to these cases. That section provides,
in relevant part:
"The legislature may not alter an
appropriation bill submitted by the governor
except to strike out or reduce items therein,
but it may add thereto items of appropriation
provided that such additions are stated
separately and distinctly from the original
items of the bill and refer each to a single
object or purpose. . . . Such an appropriation bill shall when
passed by both houses be a law immediately
without further action by the governor,
except that . . . separate items added to the
governor's bills by the legislature shall be
subject to [the governor's line-item veto]."
The opening words of section 4 are taken verbatim from
the proposal submitted to the voters, and defended by Stimson, in
1915. They accord to an "appropriation bill submitted by the
governor" a special status; the Legislature may not "alter" it
except in the ways specified. We have held that the no-
alteration provision is "a limited grant of authority from the
People to the Legislature to alter the budget proposed by the
Governor, but only in specific instances" ( New York State Bankers
Assn., Inc. v Wetzler, , 81 NY2d 98, 104 [1993]). In other words,
all the power the Legislature has to alter the Governor's
appropriation bills stems from article VII, § 4.
The Constitution provides that, absent a message of
necessity from the Governor, the Legislature may not consider
"any other bill making an appropriation" until it has finally
acted upon all the Governor's appropriation bills (NY Const, art
VII, § 5). Except for appropriations in the Governor's
appropriation bills "and in a supplemental appropriation bill for
the support of government," the legislation may make no
appropriations "except by separate bills each for a single object
or purpose" (NY Const, art VII, § 6). These separate bills, and
the "supplemental appropriation bill," are subject to the
Governor's line item veto, which may be overridden by a two-
thirds vote in the Legislature ( id.; see NY Const, art IV, § 7).
Article VII, § 6 contains the Constitution's only explicit
substantive limitation on the content of an appropriation bill --
the so-called "anti-rider" provision. The last sentence of
article VII, § 6 provides:
"No provision shall be embraced in any
appropriation bill submitted by the governor
or in such supplemental appropriation bill
unless it relates specifically to some
particular appropriation in the bill, and any
such provision shall be limited in its
operation to such appropriation."
The effect of appropriations is limited to two years
(NY Const, art VII, § 7). These constitutional provisions implement Stimson's
vision of executive budgeting -- with the Governor as
"constructor" and the Legislature as "critic." They do not, of
course, leave the Legislature powerless. The Legislature can
reduce or delete the Governor's appropriations and enact (subject
to the Governor's veto) new appropriations of its own. It can
pass legislation over the Governor's veto -- as it has done in
recent years with unprecedented frequency. Perhaps most
important, the Legislature can -- and almost invariably does --
refuse to act on the budget pending negotiations with the
Governor. All budgets within recent memory have been largely a
product of such negotiations, often extremely protracted ones.
The inefficiencies of New York's budgeting system are well known
today, and much deplored; the word "gridlock" is often used. No
one familiar with the process can believe that it is one in which
the Governor is omnipotent, and the Legislature helpless. Our decision today leaves all of the Legislature's
constitutional prerogatives intact, but preserves the role of the
Governor as the "constructor" of the State's budget.
II. Facts and Procedural History
One of the present lawsuits, Silver v Pataki, arises
out of the budget submitted by the Governor to the Legislature in
1998; the other, Pataki v New York State Assembly, out of the
budget submitted in 2001. The appropriations made in those years
have expired, so that the present controversy appears to be moot,
but all parties and all members of the Court agree that the
importance of the issues warrants our ruling on them ( see Hearst
Corp. v Clyne, , 50 NY2d 707 [1980]).
A. Silver v PatakiIt is undisputed that the first step taken by each side
to the dispute in 1998 was constitutional. The Governor
submitted appropriation bills, as well as other legislation, to
the Legislature; and the Legislature passed the appropriation
bills without altering them, except to strike out or reduce
particular items. The bills, as so modified, became law. But
then the Legislature, by amending the Governor's other, non-
appropriation budget bills, sought to change the appropriation
legislation it had just enacted -- not altering the amount of any
appropriation, but altering the purposes for which, and the
conditions upon which, the money could be spent. For example, the Governor proposed, and the Legislature
passed, an appropriation of $180 million to build a prison in
Franklin County; but the Legislature shortly thereafter passed a
bill providing that the funds would be available only when
authorized by later legislation and that the prison must contain
a separate building "suitable for educational, vocational,
recreational and other inmate activities" (L 1998, ch 56).
Another appropriation item proposed by the Governor, and passed
by the Legislature, provided $80.8 million for the "regulation
program" of the insurance department; the Legislature's
subsequent enactment provided that $48.2 million should be
expended "under the regulation of insurance organizations
program" and $32.4 million "under the regulation of insurance
product program" (L 1998, ch 57). This sort of thing occurred
dozens of times. The Governor claimed that the Legislature's subsequent
actions altered his appropriation bills, in violation of article
VII, § 4 of the Constitution. He purported to use his line item
veto to delete 55 of the provisions he considered invalid. The Speaker of the Assembly brought suit against the
Governor, seeking a declaratory judgment that the purported line
item vetoes were unconstitutional. The Senate later joined the
case as a plaintiff. The Governor asserted, among other
defenses, that "the items that were subject to the vetoes in
question were unconstitutional and therefore void and
unenforceable ab initio." Supreme Court in substance upheld this
defense, holding that the legislation the Governor objected to
was invalid to begin with; Supreme Court therefore did not reach
the question of whether the Governor's veto power was properly
used. The Appellate Division affirmed. The Speaker and the
Senate appealed as of right, pursuant to CPLR 5601(b) (1), and we
now affirm the Appellate Division's ruling.
B. Pataki v New York State Assembly
In 2001, in contrast to 1998, the first steps in the
budget process were controversial. Certain of the bills
submitted by the Governor as appropriation bills contained
material which, according to the Legislature, did not belong in
appropriation bills. For example, the Governor proposed to
appropriate $8.3 billion for "general support for public schools
for aid payable in the 2001-02 school year" and for "school-wide
performance payments" (2001 NY Senate-Assembly Bill S 905, A
1305). The description of this appropriation in the bill
contains 17 pages of provisos and conditions, determining (based
on pupil population, services provided and many other factors)
how much money would go to each school district. In previous
budgets, such extensive material had not been contained in
appropriation bills; the complex formulas for dividing state
education aid were contained in other proposed legislation
submitted with the budget by the Governor.
The 2001 appropriation bills also contained language
changing the method previously established by the Public Health
Law for computing the Medicaid rates payable to residential
health care facilities (2001 NY Senate-Assembly Bill S 904, A
1304); and appropriating funds for the State Museum and State
Library to a proposed Office of Cultural Resources, though these
entities were, by statute, under the control of the Department of
Education and Board of Regents (2001 NY Senate-Assembly Bill S
905, A 1305). These provisions and many others, in the view of
the Legislature, could not properly be included in "appropriation
bills" that were protected from alteration by article VII, § 4. The Legislature purported to delete from the Governor's
appropriation bills some of the language it considered
unconstitutional. In other cases, the Legislature struck whole
items of appropriation (as it indisputably had a right to do),
and then enacted its own appropriation bills, appropriating
identical amounts of money for similar purposes, but subject to
different conditions and restrictions. In doing this, the
Legislature purported to act pursuant to article VII, § 6 of the
Constitution, which authorizes it, after passing or rejecting the
Governor's appropriation bills, to make its own appropriations
"by separate bills, each for a single object or purpose"; the
Legislature passed 37 such "single purpose bills." Finally, in
some instances the Legislature adopted the same technique it had
used in 1998: enacting the Governor's appropriation as submitted,
but then amending the appropriation by making changes in the
Governor's other budget legislation. The Governor, though contending that the 37 single
purpose bills and certain of the other bills passed by the
Legislature were unconstitutional, signed them all. He then
immediately began this action against the Assembly and the
Senate. The Governor sought a declaration that the bills in
question were unconstitutional; the Assembly and Senate
counterclaimed seeking, among other things, a declaration that
the provisions in the Governor's appropriation bills to which the
Legislature objected were invalid. Supreme Court ruled for the
Governor and the Appellate Division affirmed, with two Justices
dissenting on the ground that the Governor lacked standing. The
Assembly and the Senate appealed as of right pursuant to CPLR 5601(b) (1) (the Assembly relying also on CPLR 5601 [a]). We now
affirm the Appellate Division's ruling.
III. Discussion
A. Preliminary Issues
In Silver v Pataki (, 96 NY2d 532 [2001]), we decided
that Speaker Silver had capacity and standing, as a member of the
Assembly, to bring the case relating to the 1998 budget. The
Governor raises no other issue that would bar us from reaching
the merits of that case. In Pataki v New York State Assembly,
however, the Assembly argues that: (1) the Governor, having
signed the legislation he complains of, lacks standing to bring
this case; and (2) the Governor's suit is barred by the Speech or
Debate Clause of the State Constitution (NY Const, art III, § 11:
"For any speech or debate in either house of the legislature, the
members shall not be questioned in any other place"). The
Senate, apparently preferring to see the case decided on the
merits, does not raise either a standing or a Speech or Debate
Clause defense. Both of these defenses, assuming them to be valid, may
be waived ( seeCPLR 3018(b) ; Fossella v Dinkins, , 66 NY2d 162,
167-168 [1985]). Since the Senate has waived them, it makes no
practical difference in this case whether they are validly
asserted by the Assembly. All three parties seek declaratory
relief only, and the declaration that results from our decision
will be exactly the same whether or not the claims against the
Assembly are dismissed. We therefore think it unnecessary to
decide the standing or Speech or Debate issue, and we proceed to
the merits ( cf. Powell v McCormack395 US 486, 501-502
[1969][where certain defendants could not plead the bar of the
Speech or Debate Clause, it was held unnecessary to discuss the
issue as it affected the other defendants]).
B. The Merits
1. Silver v Pataki
It is undisputed that the effect of the legislation at
issue in Silver v Pataki was to amend language originally
proposed by the Governor in his 1998 appropriation bills. The
Governor contends that this violated the plain terms of article
VII, § 4: "The Legislature may not alter an appropriation bill
submitted by the Governor except to strike out or reduce items
therein . . . ." The Legislature contends that it did not
violate the no-alteration clause because: (1) it did not amend
the appropriation bills before passing them, but passed them
unchanged and then amended them by subsequent legislation; and
(2) the amendments changed only the language describing the
purposes of, and the conditions on, the appropriations, not the
amounts appropriated. We find both of the Legislature's
contentions to be untenable. If the no-alteration clause of article VII, § 4 were
read to prohibit only amendments to appropriation bills before
passage, not subsequent amendments, it would be a completely
formal, ineffectual requirement. The Legislature could discard
the Governor's budget and enact its own, by the simple procedure
of passing his appropriation bills and then amending them out of
existence. Executive budgeting would be replaced by legislative
budgeting. The whole purpose of the no-alteration clause, as
Stimson explained it in 1915, was to assure that the Legislature
remains "a critic" of the budget and does not become "a rival
constructor." Stimson's warning is apposite here: If a
Governor's budget may be "wholly superseded by a new legislative
budget . . . . you would have nothing."
Nor are we persuaded by the Legislature's argument that
subsequent legislation may amend the words of appropriation
bills, so long as it leaves the dollar amounts untouched. In the
first place, the text of article VII, § 4 was obviously not
intended to prohibit changes only in the amounts appropriated.
Indeed, article VII, § 4 expressly permits changes in the amounts
so long as they are changed downward: the Legislature may
"strike out or reduce items" in the Governor's budget. If the
authors of the no-alteration clause had meant to say only that
the Legislature "may not increase" the amount of any
appropriation they could have said so; they would not have used
the cumbersome phrase "may not alter . . . except to strike out
or reduce. . . ."
Furthermore, the theory that the Legislature can
rewrite the text of the Governor's appropriation bills is
inconsistent with the basic idea of executive budgeting. The
author of a budget must make the initial decision not only on how
much money is to be spent, but on what the money is to be spent
for. The Legislature acknowledges that in a broad sense this is
true; counsel for the Assembly admitted at oral argument that, if
the Governor's appropriation bills appropriated money for a
prison, subsequent legislation could not strike out the word
"prison" and substitute the words "football stadium." But the
Legislature contends that it is free to make changes of narrower
scope -- to change, for example "prison in Syracuse" to "prison
in New York City."
We doubt that a meaningful line between broad and
narrow changes could ever be drawn. But more fundamentally, to
permit the Legislature to rewrite the details of the Governor's
budget, as embodied in his appropriation bills, is inconsistent
with the aims of the executive budget system. It is the
Governor, not the Legislature, who was expected by the framers of
this constitutional provision to "lie awake nights" to produce
"an economical and systematic plan for the annual budget of the
State" ( see p. 4 above). That "systematic plan" must be based on
the Governor's judgment not only on how much money to spend, but
on which specific expenditures are prudent, and what pre-
conditions should be imposed on them. The Governor will be able
to perform his constitutional role only if the no-alteration
clause of article VII, § 4 applies to the details of the
appropriation bills he submits to the Legislature. The Legislature's argument is contrary not only to the
basic theory of executive budgeting, but also to our decision in
New York State Bankers Assoc. v Wetzler (, 81 NY2d 98 [1993]). In
Bankers, the Legislature had added to an appropriation bill a
provision authorizing the Department of Taxation and Finance to
charge banks a fee for the cost of conducting bank audits. The
provision did not disturb the amount the Governor had allocated
to cover the audits. Yet we concluded that the Legislature's
addition to the Governor's appropriation violated the no-
alteration clause. And even before Bankers, opinions by
Attorneys General Lefkowitz and Abrams contradicted the idea that
the Legislature may revise language included by the Governor in
an appropriation bill (1978 Ops Atty Gen 76; 1982 Ops Atty Gen F-
2). If the Legislature disagrees with the Governor's
spending proposals, it is free, as the no-alteration clause
provides, to reduce or eliminate them; it is also free to refuse
to act on the Governor's proposed legislation at all, thus
forcing him to negotiate. But it cannot adopt a budget that
substitutes its spending proposals for the Governor's. If it
could do so, executive budgeting would no longer exist. We therefore conclude that the 55 legislative
provisions as to which the Governor purported to exercise his
line item veto were invalid under article VII, § 4 of the State
Constitution. That makes it unnecessary for us to determine
whether the line item veto was properly exercised; the
legislation was invalid whether it was vetoed or not.
2. Pataki v New York State AssemblyIn defending its actions with respect to the 2001
budget, the Legislature makes essentially two arguments. First,
it repeats, in a slightly different context, the argument we have
just rejected -- that the Legislature may, without violating the
no-alteration clause, enact subsequent legislation (mostly taking
the form, in this case, of single-purpose bills) that effectively
amends appropriation legislation proposed by the Governor in ways
not authorized by the no-alteration clause. Secondly, the
Legislature argues that the bills proposed as "appropriation
bills" by the Governor, were, in significant part, not
appropriation bills within the meaning of the Constitution and
were thus not protected by the no-alteration clause. We reject
both arguments.
(a) The Use of Single Purpose Bills as Substitutes for
Appropriation BillsWhat we said in our discussion of Silver v Pataki
largely disposes of the Legislature's first argument, though the
technique the Legislature used in 2001 was, in most instances,
different from the one used in 1998. Whereas in 1998 the
Legislature passed the Governor's appropriation bills and then
tried to alter them by amending other budget legislation, in 2001
it more frequently struck out items from the Governor's
appropriation bills and then replaced them by single-purpose
bills, which it purported to enact under the authority given it
by article VII, § 4 to "add . . . items of appropriation provided
that such additions are stated separately and distinctly from the
original items of the bill and refer each to a single object or
purpose." This use of single-purpose bills is no different in
principle from the use of other legislation to amend
appropriation bills, and it is no less contrary to the idea of
executive budgeting.
Indeed, we pointed out 65 years ago that using single-
purpose legislation to substitute for items deleted from the
Governor's appropriation bills would violate the Constitution.
In the second of two cases named People v Tremaine (281 NY 1
[1939]) (" Tremaine II"), we said, referring to the "single object
or purpose" clause of article VII, § 4:
"[The Legislature] may . . . add items of
appropriation, provided such additions are
stated separately and distinctly from the
original items of the bill and refer each to
a single object or purpose. The items thus
proposed by the Legislature are to be
additions, not merely substitutions. These
words have been carefully chosen. The added
items must be for something other than the
items stricken out."
(Emphasis added.)
There may be cases in which it is difficult to say
whether a single-purpose bill passed by the Legislature is an
"addition" to, rather than a "substitution" for, a deleted item.
We do not suggest, as the dissent implies, that every bill
originated in the Legislature that touches on the same subject-
matter as an appropriation is unconstitutional. Of course, the
Legislature remains free to legislate on such subjects as the way
in which prisons should be operated ( see Dissent at 27). The
question is simply whether the challenged legislation does or
does not alter an appropriation bill submitted by the Governor. In this case the question is not difficult. It is
clear from the Legislature's own description of the bills it
defends that they are substitutes for items in the Governor's
appropriation bills. The Assembly argues that these bills "did
not have the same purpose as the Governor's proposals," but it
bases this argument on the assertion that its bills "modified the
terms and conditions of the Governor's appropriations" and in
some cases "directed the funding to different agencies or
institutions." In other words, the appropriation bills were
altered. It is undisputed that each of the single-purpose bills
at issue had its counterpart in the Governor's appropriation
bills, and that the Legislature, in each case, replaced
provisions it did not like with provisions it preferred. The no-
alteration clause does not permit the Legislature to treat the
Governor's appropriation bills in this manner.
(b) The Content of Appropriation BillsThe Legislature's second argument -- that what the
Governor called "appropriation bills" in 2001 were, in
significant part, not appropriation bills within the meaning of
the Constitution -- presents, at least in theory, a troublesome
issue, for we recognize that the Governor's power to originate
appropriation bills is susceptible to abuse. A Governor could
insert into what he labeled "appropriation bills," and thus
could purport to shield by the no-alteration clause, legislation
whose primary purpose and effect is not really budgetary. A few
hypothetical questions may illustrate the point: Could a
Governor raise a mandatory retirement age for firefighters, by
making the higher age a condition of appropriations to fire
departments? Could a Governor insert into an appropriation bill
for State construction projects a provision that Labor Law § 240
(the "scaffold law") would be inapplicable? Could an
appropriation bill provide that workers in certain State-financed
activities were free to engage in conduct the Penal Law would
otherwise prohibit? Each of these proposals seems to go beyond
the legitimate purpose of an appropriation bill. The Governor's position in this litigation is that the
only limit on the content of an appropriation bill submitted by
the Governor is the anti-rider clause of article VII, § 6: "No
provision shall be embraced in any appropriation bill submitted
by the governor . . . unless it relates specifically to some
particular appropriation in the bill, and any such provision
shall be limited in its operation to such appropriation." This
is a less than satisfactory answer, because it is quite possible
to write legislation that plainly does not belong in an
appropriation bill, and yet "relates specifically to" and is
"limited in its operation to," an appropriation. The
hypotheticals offered in the previous paragraph are, at least
arguably, of that description. Thus we reject the sweeping proposition, attributed to
us by the dissent, "that what the Governor sees fit to include in
an appropriation bill is properly placed there" (Dissent at 19).
Some matters are not "properly placed there." We also reject,
however, the dissent's suggestion that no "public policy matters"
( id. at 3) or "substantive or programmatic" legislation ( id. at
18 n 8) properly belong in an appropriation bill. The line
between "policy" and "appropriations" is not just thin, but
essentially non-existent: every dollar the State spends is spent
on substance, and the decision of how much to spend and for what
purpose is a policy decision. Thus all appropriations are
substantive, and all appropriations make policy. It is true that
there can be substantive legislation that does not contain
appropriations -- as demonstrated by the cases from other states,
cited by the dissent (at 15-16), in which non-appropriation
legislation was held not to be subject to a line item veto. But
the converse is not true -- there cannot be a "non-substantive"
appropriation bill. Thus, we agree with the dissent that "choices
pertaining to the State-wide allocation of resources among school
districts involve policy determinations" ( id. at 21). But
"allocation of resources" is almost a definition of what an
appropriation bill does. The dissent errs in saying that
appropriation bills cannot be used to make "policy
determinations" that are "fundamentally legislative" ( id.). The
purest and simplest appropriation bill imaginable -- the example
chosen by the dissent, Governor Franklin D. Roosevelt's bill to
fund an investigation of securities sales (Dissent at 2) -- was
plainly the legislative embodiment of a substantive policy
choice. The dissent admits that the line between appropriations
and policy is "difficult to fix" ( id. at 12). The dissent
therefore abandons, if we read it correctly, the idea of
judicially-imposed limits on "what the Governor can do in an
appropriation bill," and addresses instead "what the Legislature
can do in response" ( id.). The dissent's answer seems to be that
the Legislature can do anything it wants to the language of an
appropriation bill, as long as it does so by separate
legislation, rather than by amending the appropriation bill
itself. According to the dissent, the 1929 Legislature could
have, after passing Governor Roosevelt's appropriation for an
investigation of securities sales, passed other legislation
conditioning the expenditure as the Legislature saw fit. Or it
could have stricken the proposed appropriation and passed single-
purpose legislation redirecting the funds to an investigation of
bribery in municipal contracts, or any other purpose the
Legislature liked -- and it could have treated every one of
Governor Roosevelt's other proposed appropriations in a similar
fashion. We reject the dissent's argument for the reasons
explained in previous sections of this opinion: to accept it
would be to countenance the effective abolition of executive
budgeting. While we do not agree with the dissent that it is wrong
to put "substantive" matter into an appropriation bill, we
acknowledge, as we have said, that a Governor should not put into
such a bill essentially non-fiscal or non-budgetary legislation -
- measures like the hypothetical ones suggested at pages 21-22 of
this opinion. We do not find it necessary to answer in this case
the question of what is to be done when a Governor does include
such unsuitable material; but we will try to advance
understanding of the question by exploring it briefly. The Governor argues, in substance, that no judicial
remedy should be available when an appropriation bill contains
material which, though not prohibited by the anti-rider clause,
ought not to be there. He points out that political
considerations may well deter a future Governor from inserting
such material -- and that, if he does insert it, the Legislature
does not have to pass the bill. The Governor argues that, if an
uncontroversial or popular appropriation is accompanied by an
unsuitable condition or proviso that is not barred by the anti-
rider clause, the Legislature's remedy is to refuse to enact the
appropriation until the offending material is removed. The
result may be a stalemate that will be resolved one way or
another without judicial intervention -- in other words, a check
on gubernatorial abuse by political means. The Governor suggests that the problem of inappropriate
content in an appropriation bill is analogous to the problems of
itemization and transfer of appropriations -- problems with which
we have struggled in previous cases, and which we eventually left
to be resolved in the political process. In the first case
entitled People v Tremaine (252 NY 27 [1929]) (" Tremaine I"), the
Governor submitted a budget bill containing lump sum, rather than
itemized, appropriations, with a provision stating that he alone
could later decide how the lump sums should be broken down or
"segregated." The Legislature struck out the items to which the
Governor had attached such provisions, and restated them with
clauses calling for the participation of legislators in the
segregation process. We disposed of the case on other grounds,
but remarked in dictum that the Legislature appeared to have
violated the no-alteration clause of what is now article VII, § 4
(252 NY at 47-48). We then added:
"If the Legislature may not add segregation
provisions to a budget bill proposed by the
Governor without altering the appropriation
bill, . . . it would necessarily follow that
the Governor ought not to insert such
provisions in his bill. He may not insist
that the Legislature accept his propositions
in regard to segregations without amendment,
while denying to it the power to alter them.
The alternative would be the striking out the
items of appropriation thus qualified in toto
and a possible deadlock over details on a
political question outside the field of
judicial review."
( Id. at 50.) Thus, in Tremaine I we said that the Governor
"ought not to" put "segregation provisions" into a lump-sum
appropriation bill, but also suggested that his doing so might
generate "a political question outside the field of judicial
review."
In 1939, in Tremaine II, we implied in dictum that
there are constitutional limits on the Governor's choice between
lump sums and itemizations, saying "we expect the appropriation
bill to contain items . . . . sufficient to furnish the
information necessary to determine whether in the judgment of the
Legislature all that is demanded should be granted or is
required" (281 NY at 5). Decades later, in Saxton v Carey (, 44 NY2d 545 [1978]), we decided that this issue is one for the
political process, not the courts, adopting in substance the
dissenting opinion of Judge Breitel in Hidley v Rockefeller (, 28 NY2d 439 [1971]). While we reiterated in Saxton that "the
Governor is required to submit an 'itemized' budget" (44 2 at
548), we held that the remedy for violations of that requirement
lay with the Legislature itself:
"[T]he degree of itemization necessary in a
particular budget is whatever degree of
itemization is necessary for the Legislature
to effectively review that budget. This is a
decision which is best left to the
Legislature, for it is not something which
can be accurately delineated by a court. It
is, rather, a function of the political
process, and that interplay between the
various elected representatives of the people
which was certainly envisioned by the
draftsmen of the Constitution. Should the
Legislature determine that a particular
budget is so lacking in specificity as to
preclude meaningful review, then it will be
the duty of that Legislature to refuse to
approve such a budget. If, however, as here,
the Legislature is satisfied with the budget
as submitted by the Governor, then it is not
for the courts to intervene . . . . Should a
Legislature fail in its responsibility to
require a sufficiently itemized budget, the
remedy lies not in the courtroom, but in the
voting booth."
( Id. at 550-551.)
We reached a similar conclusion in Saxton as to the
extent to which a Governor's appropriation bill could authorize
transfers of appropriation within programs or departments ( id.).
Yet we also disavowed in Saxton any suggestion that "the
budgetary process is per se always beyond the realm of judicial
consideration." We said: "The courts will always be available to
resolve disputes concerning the scope of that authority which is
granted by the Constitution to the other two branches of the
government" ( id. at 551). Our cases, in short, reflect the ambivalence we express
today about the use of judicial power to resolve disputes over
budgeting between the executive and legislative branches. Today
we do not reject, but we also do not endorse, the Governor's
argument that no judicial remedy is available (where the anti-
rider clause does not apply) for gubernatorial misuse of
appropriation bills. The dissent makes a valid point that
political stalemate over a budget is an unattractive prospect.
On the other hand, to invite the Governor and the Legislature to
resolve their disputes in the courtroom might produce neither
executive budgeting nor legislative budgeting but judicial
budgeting -- arguably the worst of the three. When a case comes to us in which it appears that a
Governor has attempted to use appropriation bills for essentially
non-budgetary purposes, we may have to decide whether to enforce
limits on the Governor's power in designing "appropriation bills"
or to leave that issue, like the issues of itemization and
transfer, to the political process. We conclude, however, that
we confront no such problem here, for there is nothing in the
appropriation bills before us that is essentially non-budgetary.
All of the appropriation bills that the Legislature challenges
are, on their face, true fiscal measures, designed to allocate
the State's resources in the way the Governor thinks most
productive and efficient; none of them appears to be a device for
achieving collateral ends under the guise of budgeting. This is well illustrated by the bill the Legislature
most vigorously attacks -- the school funding proposal (2001 NY
Senate-Assembly Bill S 905, A 1305). The purpose and effect of
this proposed item of appropriation is to determine how much of
the State's money goes to each school district -- almost as
purely budgetary a question as can be imagined. Whether to
include the allocation of funds to school districts in an
appropriation bill or in other budget legislation is a political
choice; nothing in the Constitution forbids the choice of an
appropriation bill. The Legislature, and the dissent, in substance offer
three reasons why the Governor's 2001 school funding proposal
does not belong in an appropriation bill. First, they point out
-- correctly -- that the bill does not look like a typical
appropriation bill; rather than briefly identifying recipients of
funds and specifying the dollars to be received by each, it
contains many pages of narrative with no numbers at all. The
narrative, however, is merely a very complex formula, or series
of formulas, for distributing the money, and a rule prohibiting
an appropriation bill from taking this approach would be both
formalistic and unworkable. There could be no objection on
constitutional grounds if the bill, instead of reciting the
formula, named every school district in the state and specified
the sum that would go to each -- in other words, if the authors
of the bill had applied the formula themselves and written the
result into proposed legislation. Nor would there be a valid
constitutional objection to an appropriation bill that
distributed dollars by a simple formula -- x dollars per pupil,
for example. The bill is not less an "appropriation bill"
because the formula it uses is complex -- or because, as the
dissent emphasizes, the formula occupies 17 pages, rather than a
page or two. Secondly, the Legislature and the dissent point out
that, until 2001, the details of distribution of school aid had
usually not been the subject of appropriation bills, but of other
legislation submitted with the Governor's budget. We decline,
however, to adopt a narrow historical test of what is an
"appropriation bill" -- to require, in effect, that the Governor
may never use an appropriation bill to deal with subject matters
addressed by other types of legislation in the past. Nothing in
the Constitution says or implies that, once it becomes customary
to deal with a particular subject either in appropriation bills
or in other legislation, the custom must be immutable. On the
contrary, it was an important part of the purpose of executive
budgeting to enable budgets to be adjusted to the changing needs
of an increasingly complex society. Also, it would involve
courts in endless difficulties if they had to determine, every
time the validity of an appropriation bill was challenged,
whether the particular subject of the bill was being dealt with
in accordance with historical practice. Thirdly, the Legislature notes, and the dissent
emphasizes heavily, that the Governor's 2001 school funding
proposal altered existing statutory provisions for the
distribution of school aid. But the Legislature does not even
argue, and could not successfully argue, that it is forbidden for
an appropriation bill -- whose effect is limited to two years by
the Constitution (art VII, § 7) -- to supersede existing law for
that time. The Governor points out that appropriation bills
superseded other legislation long before executive budgeting was
adopted, and have continued to do so since. To permit the
Legislature, by ordinary legislation, to limit the Governor's
flexibility in making future budgetary choices would seriously
endanger the whole structure of executive budgeting. For this
reason, the dissent is simply wrong in saying that, if the
Governor had written the result of a formula into an
appropriation bill, he "would be required to apply the formula
codified in Education Law § 3602" (Dissent at 20). An
appropriation that is effective notwithstanding other law to the
contrary is still a legitimate appropriation. Indeed, one of the
single-purpose appropriation bills that the dissent would uphold
as valid is of that description ( see 2001 NY Senate-Assembly Bill
S 5742, A 9353). In short, we conclude that the 2001 school funding
proposal raises none of the concerns that might be raised by the
insertion of essentially non-budgetary legislation into an
appropriation bill. The governor's choice to use an
appropriation bill, rather than other budget legislation, as the
means of distributing school aid may have been politically
controversial, but it was clearly within the authority given him
by the Constitution. Nor do we find that any of the other proposed measures
that the Legislature challenges in this case are an attempt to
abuse the Governor's power over appropriation bills. The
Legislature contends that the Governor abused his power by using
appropriation bills to transfer the State Library and State
Museum to the control of a newly created Office of Cultural
Resources; this contention, however, seems to be based on a
misreading of the legislation the Governor submitted. The
Governor proposed other budget legislation, not appropriation
bills, to create the new agency and to transfer the library and
museum to it. This other legislation was rejected by the
Legislature ( see 2001 NY Senate-Assembly Bill S 1145b, A 1997b).
The Governor's appropriation bills did include provisions for
funds to the Office of Cultural Resources for the purpose of
operating the State Library and State Museum, but that shows only
that the Governor was proceeding on the assumption -- which
proved ill-founded -- that legislation creating that entity would
be passed. We therefore leave for another day the question of what
judicially enforceable limits, if any, beyond the anti-rider
clause of article VII, § 6 the Constitution imposes on the
content of appropriation bills.
IV. Conclusion
Accordingly, in each case, the order of the Appellate
Division should be affirmed without costs.
Pataki v New York State Assembly, et al., No. 171
Silver, et al. v Pataki, No. 172
ROSENBLATT, J. (concurring):
I join Judge Robert Smith's plurality writing, and thus
make a majority, in ruling that the orders of the Appellate
Division should be affirmed. Contrary to the view expressed by
our dissenting colleagues, I believe that, in the cases before
us, the Legislature violated the state constitution's no-
alteration clause[1]
while the Governor did not go beyond the
relevant constitutional limits in his appropriation bills. I
need not expand on the reasons for that conclusion because they
are explained in the plurality's writing. That said, I concur
separately because, while I agree with the result, I find the
plurality writing not fully satisfying, and am unwilling to
subscribe to its every premise.
The Governor argues that two words in article VII, § 6
of the New York Constitution are pivotal. The section prohibits
the Executive from including in an appropriation bill any
provision that does not relate specifically to some particular
appropriation. The section goes on to say that any such
provision must be limited in its operation to an appropriation.
The clause was designed to preserve the separation of
powers, a concept that goes back to our first State Constitution
in 1777 -- written a decade before the United States
Constitution.[2]
In its first such effort, our fledgling State
provided that the "legislative power is vested in the senate and
assembly."[3]
That provision has been with us throughout our
constitutional history ( see NY Const 1821, art I, § 1; NY Const
1846 and 1894, art 3, § 1). Our State framers also recognized
that governmental powers cannot be neatly separated into pigeon
holes, and so they used general language to reinforce the idea
that while the Governor has considerable powers, the legislative
branch -- and not the executive -- is the primary lawmaking body.
Given this background, the plurality writing does not
go far enough to describe where the line exists so as to protect
the Legislature's lawmaking preeminence. It is not enough to
point out -- as Judge Smith aptly does -- that the power to
originate appropriation bills is susceptible to abuse ( see
plurality op at 19). To illustrate the problem, the plurality
asks a few hypothetical questions: Could a Governor raise a
mandatory retirement age for firefighters, by making the higher
age a condition of appropriations to fire departments? Could a
Governor insert into an appropriation bill for State construction
projects a provision that Labor Law § 240 (the "scaffold law")
would be inapplicable? Could an appropriation bill provide that
workers in certain State-financed activities were free to engage
in conduct the Penal Law would otherwise prohibit? (plurality op
at 21-22).
The plurality then says that the proposals "seem[]" to
go beyond the legitimate purpose of an appropriation bill
(plurality op at 22). In my view, they do, and it is essential
to say so. Anything short of that leaves the parties -- and here
they are those who run the government -- with not an ounce of
guidance.
Our colleagues in the plurality doubt that a line can
be drawn delineating gubernatorial and legislative powers. We
are, however, in the business of drawing lines; that is what we
do in our decisional law. I recognize that it is not normally
our job to give guidance to the other two branches. This,
however, is no ordinary lawsuit: not one, but both branches have
gone out of their way to demand an answer. We would, I think, be
failing in our duty if we punted and simply announced that if and
when a case ever arises in which the executive branch goes too
far, perhaps we will let you know.
That approach disserves the Legislature and does not
give the Governor a clue as to whether he is trespassing on
legislative turf. Saying only that we cannot draw a line but
that, in effect, "I know it when I see it"[4]
is an unacceptable
response. A proper resolution of these lawsuits requires a test,
consisting of a number of factors, no single one of which is
conclusive, to determine when an appropriation becomes
unconstitutionally legislative. To begin with, anything that is
more than incidentally legislative should not appear in an
appropriation bill, as it impermissibly trenches on the
Legislature's role. The factors we consider in deciding whether
an appropriation is impermissibly legislative include the effect
on substantive law, the durational impact of the provision, and
the history and custom of the budgetary process.
In determining whether a budget item is or is not
essentially an appropriation, one must look first to its effects
on substantive law. The more an appropriation actively alters or
impairs the State's statutes and decisional law, the more it is
outside the Governor's budgetary domain. A particular "red flag"
would be non-pecuniary conditions attached to appropriations.
History and custom also count in evaluating whether a
Governor's budget bill exceeds the scope of executive budgeting.
The farther a Governor departs from the pattern set by prior
executives, the resulting budget actions become increasingly
suspect. I agree that customary usage does not establish an
immutable model of appropriation ( see plurality op at 30-31). At
the same time, it would be wrong to ignore more than seventy
years of executive budgets that basically consist of line items.
The more an executive budget strays from the familiar
line-item format, the more likely it is to be unauthorized, non-
budgetary legislation. As an item exceeds a simple
identification of a sum of money along with a brief statement of
purpose and a recipient, it takes on a more legislative
character. Although the degree of specificity the Governor uses
in describing an appropriation is within executive discretion
( see People v Tremaine, 281 NY 1 [1939]), when the specifics
transform an appropriation into proposals for programs, they
poach on powers reserved for the Legislature.
In addition, the more a provision affects the structure
or organization of government, the more it intrudes on the
Legislature's realm. The executive budget amendment contemplates
funding -- but not organizing or reorganizing -- state programs,
agencies and departments through the Governor's appropriation
bills.
The durational consequences of a provision should also
be taken into account. As budget provisions begin to cast
shadows beyond the two-year budget cycle, they look more like
non-budget legislation. The longer a budget item's potential
lifespan, the more legislative is its nature. Similarly, the
more a provision's effects tend to survive the budget cycle, the
more it usurps the legislative function.
Viewed in light of these factors, the Governor's
proposals relating to the State Museum and State Library appear
to push the edge of the envelope because of their effect on the
structure and organization of government agencies. I am
satisfied, however, with Judge Smith's explanation that the
Governor did not purport to restructure or realign these state
agencies but merely appropriated money anticipating the
Legislature's creating a new agency ( see plurality op at 32-33).
Had the Governor simply decreed this sort of reorganization in an
appropriations bill, I would hold the action unconstitutional.
Judge Smith's hypotheticals, however, would run afoul
of the constitutional limits on the Governor's appropriation
power. Although the hypothetical provisions arguably "relate
specifically" to the appropriation, all three appreciably alter
existing substantive law that is not inherently budgetary and
would, therefore, transgress constitutional limits. While there
are financial implications of retirement ages, Labor Law § 240
and various provisions of the Penal Law, none is fundamentally or
primarily fiscal. In contrast, a formula that calculates how
much to allocate to a program -- such as the education provision
at issue -- is tied up in the appropriation and would therefore
fall within the Governor's budgetary powers.
I readily concede that this or any other test is
necessarily imperfect. To my mind, however, it is better than no
test at all. We have an obligation to reveal the considerations
involved in evaluating the challenged provisions and reaching our
conclusion. Determining the constitutional scope of the
legislative and executive powers is, after all, a basic function
of the judicial branch.
Pataki v New York State Assembly, et al., No. 171
Silver, et al. v Pataki, No. 172
KAYE, CHIEF JUDGE (dissenting):
At the heart of both cases before us, arising in the
context of the state's budget, is the line between the Executive
and the Legislature with respect to lawmaking.
In 1927, New York amended its Constitution to adopt
executive budgeting. In article VII, the Constitution confers
upon the Governor initial responsibility for proposing to the
Legislature a coherent statewide plan for government spending;
the Legislature then may not alter the Governor's appropriation
bill,[5]
except to strike out or reduce items in the bill, but the
Legislature may add items of appropriation provided they are
stated separately and distinctly from the original items and
refer each to a single object or purpose ( see NY Const, art VII,
§ 4). Generally, however, lawmaking power remains with the
Legislature. Article III of our Constitution commands that
"[t]he legislative power of this state shall be vested in the
senate and assembly" (NY Const, art III, § 1).
For 70 or more years our constitutional budgeting
scheme has operated with more or less success[6]
-- but without a
major showdown in the courts -- until, in 1998 and again in 2001,
the two sides for the first time reached an impasse precipitating
the present litigation. What happened?
To my mind the problem is exemplified by two items of
appropriation included in the record before us. The first is
contained in Governor Franklin Roosevelt's 1929 appropriation
bill, offered just after passage of the Executive Budgeting
Amendment. The item reads in full: "Investigation of Sale of
Securities and Unlawful Corporative Activities, Services and
expenses -- $210,000.00" My second example, a stark contrast, is
contained in Governor Pataki's 2001 appropriation bill: a so-
called item of appropriation in the form of 17 closely-printed
pages altering Education Law § 3602 for funding public schools
throughout the state. As the Court recognizes, this was the
first time the Governor attempted to amend the school-funding
formula in an appropriation bill ( see Opinion at 11).
Two questions are at the core of this appeal. Does the
authority to propose the budget permit the Governor to rewrite
the substantive law of the state as an item of appropriation? Or
perhaps even more to the point, if the Governor proposes new
substantive law in a budget bill -- either an appropriation bill
or a nonappropriation bill -- is the Legislature then prohibited
by the no-alteration provision of article VII, § 4 from changing
such proposals, limited merely to voting the proposed
appropriation up or down? In the 2001 example, to be more
particular, is the Legislature's only choice to accept the
Governor's proposed significant amendment of the Education Law or
defund the public schools?
While answering these questions in the affirmative, my
Colleagues themselves recognize that the issue is "troublesome"
and the Governor's power they now rubber-stamp "is susceptible to
abuse" (Opinion at 21). I agree, but conclude that it has been
abused here. Given the substantive law amendments now accepted
by my Colleagues as items of appropriation, it is hard to
imagine, for the future, what could not be cast as an item of
appropriation subject to the no-alteration rule. Nor is it a
sufficient answer, or safeguard, that the Court finds the
challenged appropriation items "true fiscal measures" ( id. at
29), for a bridge can readily be constructed between a wide range
of public policy matters and public dollars.
Because I conclude that the Governor has overstepped
the line that separates his budget-making responsibility from the
Legislature's lawmaking responsibility, setting an unacceptable
model for the future, I dissent.[7]
I. The History and Intent of Executive Budgeting
Prior to 1915, the state operated under a legislative
budget system in which -- as with most legislation -- the
Legislature proposed bills, in this case appropriation bills, and
presented them to the Governor for his signature or veto. These
bills were based on budgetary estimates provided to the
Legislature by the various executive departments. The
Legislature, however, had neither the staff nor the resources to
exercise appropriate oversight in scaling back departmental wish
lists. Instead, departments submitted their estimated
expenditures without any review by an authority outside the
department, resulting in very high estimates ( see Journal, 1915
NY Constitutional Convention, at 390). Further, because funds
were appropriated piecemeal in numerous different bills, no
comprehensive budget plan was ever formulated or presented to the
public ( see id. at 392). In addition, by 1915 it had become
apparent that -- because members of the Legislature were beholden
to their districts rather than to the state as a whole --
legislative budgeting produced wasteful pork barrel spending
without any responsible assessment of relative budget priorities.
In reaction, a reform movement arose to adopt an
executive budgeting process. The scheme is a simple one. The
Governor -- as an elected official answerable to the entire state
-- would in the first instance have responsibility for collecting
departmental estimates and proposing appropriations. Free as he[8]
was from the limitations faced by the Legislature, it was thought
that the Governor, who had direct supervisory control over
administrative departments, could better determine whether the
estimates proffered by his department heads were reasonable, and
could send his officers back to the drawing board to revise their
estimates if he found them overblown. In this way, a realistic
and comprehensive assessment of the financial needs of government
could be had. Then, once proposed as a package, the budget would
be reviewed by the Legislature, which would be restricted in its
ability to increase spending beyond the levels proposed by the
Executive after his careful deliberation.
Specifically, the Legislature could reduce spending for
a particular item of appropriation, or forego funding of the item
altogether, but it could not increase the amount of money for any
given item in the Governor's appropriation bills. Since the
spending caps had already been approved by the Governor who
proposed them, the appropriations would become law immediately
upon passage by the Legislature. Further, if the Legislature
sought to fund additional programs or services not provided for
in the Governor's budget, it could add new items of appropriation
to the appropriation bills, each of which -- not having already
been approved by the Governor -- would be subject to his line-
item veto.
Similarly, if the Legislature thought it prudent to
increase funding for an item submitted by the Governor beyond his
proposed cap, it would have to wait until the entire statewide
budget had been acted upon, and only then could it propose a
single-purpose appropriation bill containing the spending
increase, which bill would be subject to veto. Of course, in
that any such increased spending had to be presented in a single-
purpose bill, the veto of such a bill would effectively
constitute a line-item veto. Thus, through a combination of
realistic oversight, consolidated responsibility and political
pressure, executive budgeting promised to produce a more
"scientific budget" ( id. at 387) and reduce the inefficiencies
that had led to wild increases in state spending. Although an
initial attempt at an Executive Budget Amendment failed in 1915,
it was adopted in 1927.
Executive budgeting was not, however, meant to transfer
significant lawmaking authority from the Legislature to the
Executive. "[T]he separation of powers 'requires that the
Legislature make the critical policy decisions, while the
executive branch's responsibility is to implement those
policies'" ( Saratoga County Chamber of Commerce, Inc. v Pataki,
, 100 NY2d 801, 821-822 [2003], quoting Bourquin v Cuomo, , 85 NY2d 781, 784 [1995]). Rather, the scheme of executive budgeting was
aimed at centralizing in one person responsibility for framing
out the budget:
"The executive budget does not deprive the
Legislature of any of its prerogatives. . . .
It simply makes the Governor who represents
the whole State and not a single assembly or
senate district, responsible in the first
instance for collecting, consolidating,
reviewing and revising the estimates of the
several departments of government and also
for presenting to the Legislature a complete
plan of expenditures and revenues -- a plan
which in his judgment will best meet the
needs of the administration of which he is
the head. . . . The executive budget would
not add to the Governor's power over
finances" (Report of Reconstruction Commn to
Governor Alfred E. Smith on Retrenchment and
Reorganization in the State Government, Oct.
10, 1919, at 316-317).
Executive budgeting was not meant to give the Governor
power to require that his fiscal plan be adopted; to deprive the
Legislature of its ability to initiate legislation; or to
reallocate to the Executive responsibility for legislative -- as
opposed to budgetary -- policymaking:
"Nor is there the slightest force to the
claim that the proposed system would give
undue power to the Governor. It would add
not one iota to the power that he now
possesses through the veto of items in the
appropriation bills. Whereas now that power
is subject to no review and thus may be used
as an instrument of reward or punishment
after the legislative session is over, the
proposed system would deprive him of his veto
as to budget items and would thus compel him
to use his influence in advance, in the open,
under the fire of legislative discussion and
the scrutiny of the entire State. It would
thus be the Legislature which would have the
final word" (Report of Comm on State
Finances, Revenues and Expenditures, Relative
to a Budget System for the State, Doc No. 32,
Aug. 4, 1915, at 21).
Plainly, the idea behind executive budgeting was simply
accountability for state expenditures, missing under the old
system:
"[T]he forces of reaction which have opposed
this important reform rest their objections
on an entirely false foundation. We
constantly hear in argument against the
executive budget, that it will deprive the
direct representatives of the people of a
proper control over the purse strings of the
State. This argument is not based on fact.
The executive budget does not in the
slightest degree decrease the power of the
Legislature. It provides only for a more
responsible method for the exercise of that
power. There is nothing new or revolutionary
about a proposal placing upon the Executive
himself the duty in the first instance of
certifying to the Legislature the amount
required for the fixed and definite expenses
of maintenance of the various departments of
the government. There is no reason that I
can see why there should not be put upon the
Executive the further responsibility of
explaining his proposals to the Legislature
in detail. There is also no reason why the
Legislature should make additions to these
sums or indulge in new activities until
provision has first been made for the
absolutely necessary expenses of government.
. . . Opposition to the executive budget upon
the theory that it lessens the power of the
Legislature is nothing but misrepresentation
for political purposes. Every proposal for
its establishment, so far made, has left the
Legislature absolutely free to pass any
appropriations it will and to increase or
decrease any appropriations it may desire to,
after provision has been made for the support
of government as comprehended in the bill
proposed and supported by the governor" (1925
Ann Message of Governor Alfred E. Smith, at
75-76).
The Court ignores this history when it concludes that
executive budgeting effected a transfer to the Governor of
lawmaking power over the terms and conditions of spending, such
that the Legislature is prohibited from amending the Governor's
policy-laden budget bills -- which is the practical effect of
affirmance here.[9]
II. The Constitutional Scheme
The Executive Budget Amendment is currently codified in
article VII of the New York Constitution -- entitled "State
Finances." Under the existing system, the Governor -- after
receiving estimates of the upcoming year's expenses from the
various executive departments ( see NY Const, art VII, § 1) --
must annually
"submit to the legislature a budget
containing a complete plan of expenditures
proposed to be made before the close of the
ensuing fiscal year and all moneys and
revenues estimated to be available therefor,
together with an explanation of the basis of
such estimates and recommendations as to
proposed legislation, if any, which the
governor may deem necessary to provide moneys
and revenues sufficient to meet such proposed
expenditures. It shall also contain such
other recommendations and information as the
governor may deem proper and such additional
information as may be required by law" (NY
Const, art VII, § 2).
By contrast, estimates of the financial needs of the Legislature
and the Judiciary must, after being transmitted by those branches
to the Governor, be included in his executive budget without
revision ( see NY Const, art VII, § 1). Further, "[a]t the time
of submitting the budget to the legislature the governor shall
submit a bill or bills containing all the proposed appropriations
and reappropriations included in the budget and the proposed
legislation, if any, recommended therein" (NY Const, art VII, §
3).
Critical to this appeal, "[t]he legislature may not
alter an appropriation bill submitted by the governor except to
strike out or reduce items therein, but it may add thereto items
of appropriation provided that such additions are stated
separately and distinctly from the original items of the bill and
refer each to a single object or purpose" (NY Const, art VII, §
4). "Such an appropriation bill shall when passed by both houses
be a law immediately without further action by the governor"
( id.).
By contrast, the Governor retains the right to veto any
portions of the legislation that he has not previously approved.
Thus, appropriations for the Legislature and Judiciary -- which
must be submitted by the Governor without revision and thus
without his prior approval ( see NY Const, art VII, § 1) -- as
well as "separate items added to the governor's bills by the
legislature," shall be subject to his approval (NY Const, art
VII, § 4). Specifically, the Governor is granted the power to
veto legislation he disapproves, subject to a two-thirds override
by both Houses of the Legislature, as well as the power of line-
item veto with respect to bills containing several items of
appropriation of money.
This constitutional scheme thus comprises a careful
system of checks and balances in which the Governor has initial
legislative authority over state finances, and in which the
Legislature, while it can always make the determination to spend
less, is forbidden from spending more in the Governor's
appropriation bills. Because the Governor has taken on the
legislative function in this regard and, by definition, pre-
approved of the budget caps contained in legislation he has
proposed, he cannot veto his own appropriation bills once passed
by the Legislature. But since he can review and veto all other
bills, the Constitution does not restrict the Legislature's
untrammeled legislative authority with respect to those bills.
It is with respect to this basic premise that I part company with
the Court.
My Colleagues -- in an endeavor to answer the question
of what the Governor may properly include in an appropriation
bill -- are concerned about the viability of fixing the line
between "items of appropriation" and "proposed legislation." I
agree that the line is difficult to fix. Given that, the better
question may well be not what the Governor can do in an
appropriation bill, but what the Legislature can do in response.
The Constitution restricts the Legislature's power to
alter the Governor's proposed appropriation bills, but not to
alter other proposed legislation. This distinction makes sense
because it is only an appropriation bill that becomes law upon
passage -- without further review by the Governor. All other
proposed legislation is subject to the Governor's veto and thus
need not be insulated from the Legislature's power to amend in
order to ensure that no bill becomes law without the
participation of both branches.
The Constitution distinguishes between items of
appropriation -- properly included in an appropriation bill --
and other legislation, which ought to be proposed elsewhere. An
appropriation bill as defined by section 4 is a bill "containing
all the proposed appropriations and reappropriations included in
the budget" within the meaning of section 3. By contrast, a
nonappropriation bill contains the other "proposed legislation,
if any, recommended" in the executive budget (NY Const, art VII,
§ 3) -- consisting in turn of proposed laws that the Governor
"may deem necessary to provide moneys and revenues sufficient to
meet [the] proposed expenditures," as well as proposals for
legislation implementing "such other recommendations and
information as the governor may deem proper" (NY Const, art VII,
§ 2).
In short, the Governor may propose what he likes,
although the Constitution clearly contemplates that those of his
proposals that do not constitute items of appropriation of money
should go elsewhere than in an appropriation bill. "If the
Legislature may not add segregation provisions to a budget [i.e.,
appropriation][10]
bill proposed by the Governor without altering
the appropriation bill, . . . it would necessarily follow that
the Governor ought not to insert such provisions in his bill. He
may not insist that the Legislature accept his propositions in
regard to segregations without amendment, while denying to it the
power to alter them" ( People v Tremaine (252 NY 27, 50 [1929]
[" Tremaine I"]).
"Items of appropriation" are provisions that "show what
money is to be expended, and for what purpose" ( People v
Tremaine, 281 NY 1, 5 [1939] [" Tremaine II"]). Other subjects do
not belong in an appropriation bill, as evidenced by the
Governor's own submission of "nonappropriation bills" as part of
his budget. In general, nonappropriation bills "contain
programmatic provisions and commonly include sources, schedules
and sub-allocations for funding provided by appropriation bills,
along with provisions authorizing the disbursement of certain
budgeted funds pursuant to subsequent legislative enactment"
( Silver I, 96 NY2d at 535 n1). Put differently, such bills
"detail[] the utilization of [already] appropriated funds or
propose[] changes in the operation of certain programs" ( id. at
535). Further, tax legislation, specifically delineated in
section 2 as the subject of other "proposed legislation," as well
as provisions that affect multiple items of appropriation or
effect general changes in state law, indisputably belongs in a
nonappropriation bill.[11]
Other state courts explaining the distinction between
items of appropriation and other provisions -- the very issue
before us -- have reached similar conclusions: "It can be said
then that the term 'item of appropriation' contemplates the
setting aside or dedicating of funds for a specified purpose.
This is to be distinguished from language which qualifies or
directs the use of appropriated funds . . ." ( Jessen Assoc., Inc.
v Bullock, 531 SW2d 593, 599 [Tex 1975]). "An item in an
appropriation bill is an indivisible sum of money dedicated to a
stated purpose. It is something different from a provision or
condition" ( Commonwealth v Dodson, 176 Va 281 296, 11 SE2d 120,
127 [1940]). Similarly, programmatic provisions that merely
affect the allocation of appropriated funds do not constitute
items of appropriation, because they do not increase the amount
of state expenditures. Such a provision
"does not set aside money for the payment of
any claim and makes no appropriation from the
public treasury, nor does it add any
additional amount to funds already provided
for. Its effect is substantive. Like
thousands of other statutes, it directs that
a department of government act in a
particular manner with regard to certain
matters. Although as is common with
countless other measures, the direction
contained therein will require the
expenditure of funds from the treasury, this
does not transform a substantive measure to
an item of appropriation" ( Harbor v
Deukmejian, 43 Cal 3 1078, 1089-1090, 742
P2d 1290, 1296 [1987]).
Simply put, "state courts have generally . . . excluded
from the definition of appropriation authorizations and other
substantive legislation that create spending programs but do not
actually appropriate funds" (Richard Briffault, The Item Veto in
State Courts, 66 Temp L Rev 1171, 1201 [1993]). For an "item of
an appropriation bill obviously means an item which in itself is
a specific appropriation of money, not some general provision of
law which happens to be put into an appropriation bill" ( Bengzon
v Secretary of Justice of Philippine Islands, 299 US 410, 414-415
[1937]).
III. Distortion of the Constitutional Scheme
My Colleagues conclude not only that the Governor may
propose changes to substantive law in connection with his budget,
but also that the Legislature is forbidden from altering such
proposals by any means -- either directly or indirectly. Thus,
even those policymaking provisions placed in a nonappropriation
bill but relating to a proposed appropriation -- effectively, any
subject properly included in a budget bill -- are held
unalterable under section 4, despite its plain language
restricting the Legislature only from "alter[ing] an
appropriation bill." Indeed, under the Court's rule, the
Legislature is effectively prohibited from amending a
nonappropriation bill in any way, since such a bill -- by its
very nature -- cannot contain items of appropriation subject to
reduction or striking, but must nevertheless relate to some item
in an appropriation bill.
The Governor contends that any programmatic policy
conditions he attaches to an appropriation are simply more
specific identification of the item for which he appropriates
money. If this is so, the Legislature -- limited in its
authority to alter appropriation bills other than by reducing or
striking items -- must either accept the conditions imposed by
the Governor or refuse to fund the program or service to which it
is attached, however essential or desirable. According to the
Governor, the Constitution limits him only insofar as the policy
proposed must relate to a particular appropriation in the bill
and "be limited in its operation" to that appropriation (NY
Const, art VII, § 6).
That is virtually no limitation at all.[12]
Nearly
everything in government requires funding. And since the degree
of budgetary itemization is beyond review, the Governor can
always broaden the scope of his proposed appropriations to the
point where a generally applicable policy condition would "be
limited in its operation" to a particular appropriation -- as I
believe happened here. For example, as conceded at oral
argument, the Governor could not, as part of an appropriation for
500 police cars, require in an appropriation bill that every
police car in the state have bulletproof glass, but could impose
such a requirement attached to an appropriation for police
departments. Further, as also conceded, the Governor could under
his theory -- in order to save money -- suspend worker safety
laws or the minimum wage at every construction project built
using appropriated funds throughout the state. Although the
Governor may well not propose such unpopular examples, there are
according to his argument few limits to what he could propose,
and the Legislature would be foreclosed from affecting the
proposal except by eliminating the projects altogether.
My Colleagues recognize that this is in theory
"troublesome" (Opinion at 21) but nonetheless hold that what the
Governor sees fit to include in an appropriation bill is properly
placed there and incapable of amendment by the Legislature.
Although the plurality opines that it may be "possible" to write
legislation that does not belong in an appropriation bill
(Opinion at 22), it gives no guidance as to when such limits will
have been reached, noting only that no such transgression
occurred here and that, even if one were to occur in the future,
the courts might in any event be precluded from resolving the
political question thereby presented ( see id. at 28-29).
But I cannot, for example, agree that the Governor may,
in the course of proposing his annual appropriations for public
schools, include in his bill -- as he did for the first time in
2001 -- 17 pages of substantive revisions to Education Law §
3602, which in turn contains the legislatively enacted formula by
which funds are allocated to school districts across the state,
or that he can thereby present the Legislature with the take-it-
or-leave-it choice of either accepting his substantive proposals
in their entirety, or simply refusing to fund the public schools.
This detailed proposal significantly "stray[ed] from the familiar
line-item format" (one of the criteria identified in the
concurring opinion at page 5).
I agree that "[t]here could be no objection on
constitutional grounds if the bill, instead of reciting the
formula, named every school district in the state and specified
the sum that would go to each -- in other words, if the authors
of the bill had applied the formula themselves and written the
result into proposed legislation" (Opinion at 30). But what my
Colleagues fail to recognize is that, in doing so, the Governor
would be required to apply the formula codified in Education Law § 3602 (McKinney's Cons Laws of NY, Book 16, Education Law §
3602, 2004 Pocket Part, at 3-94) -- for that is the duly enacted
and binding law of the state. Because allocation according to
the existing formula is thus mandatory unless Education Law §
3602 is rewritten or notwithstood, the Governor could not apply a
different formula were he to calculate and propose itemized
appropriations for each district.[13]
As the Court additionally
recognizes, it has been the "history and custom of the budgetary
process" ( see Concurring op at 5) -- until 2001 -- not to include
the policy choices codified in Education Law § 3602 in
gubernatorial appropriation bills ( see Opinion at 11).
Because choices pertaining to the statewide allocation
of resources among school districts involve policy determinations
concerning the relative importance of, for example, special
education; gifted and talented programs; employment preparation;
summer school programs; success at class-size reduction; and
support services for troubled and disabled children, these
choices have until 2001 been understood as fundamentally
legislative. Indeed, school funding has been among the most
intensely negotiated issues ( see e.g. H. Carl McCall, An Agenda
for Equitable and Cost-Effective School Finance Reform, Oct.
1996, at 31 ["School aid is most often one of the last issues to
be resolved in the budget negotiations"]; Too Far on Bargaining,
Rochester Democrat & Chron., Dec. 23, 2002, at 8A ["New York's
governor . . . and state lawmakers traditionally prefer to glide
through the legislative session without taking up the explosive
and nearly intractable problem of public-school funding and the
formula that supposedly drives the money train"]).[14]
Nor can I agree with the Court's conclusion regarding
the Governor's 2001 appropriation for the State Museum and State
Library, which proposed moving the Museum and Library from the
Department of Education to a nonexistent "Office of Cultural
Resources" -- effectively modifying existing Education Law §§ 232
and 202, which provide that the State Museum and Library are
departments of the University of the State of New York, in turn
governed by the Board of Regents. Twenty-two of the
Legislature's 37 single-purpose appropriation bills were enacted
to restore oversight and control of the State Museum and Library
to the Education Department.
As we have recently made clear, the "choice of which
agency shall regulate an activity can be as fundamental a policy
decision as choosing the substance of those regulations"
( Saratoga, 100 NY2d at 823 [emphasis in original]). The Governor
contends that, because he proposed an appropriation of money for
the State Museum and Library, conditioned on their transfer to
the new agency as proposed in his nonappropriation bill, the
Legislature was limited to either accepting his conditions, or
defunding the Museum and Library altogether.
My Colleagues deny any significance to the Governor's
inclusion in his appropriation bill of proposed funds for the
operation of these institutions within the new agency on the
ground that the Governor's assumption that legislation creating
the agency would be passed "proved ill-founded" (Opinion at 33).
If by this they mean that the Legislature remained free -- as in
my view it did -- to appropriate money for the State Museum and
Library but within the Education Department, I certainly agree.
But I cannot reconcile this conclusion with the reasoning
underlying the remainder of the writing. For if the Legislature
is foreclosed from enacting single-purpose appropriations for a
purpose similar to a gubernatorial proposal -- particularly a
proposal that has been stricken or rejected -- as well as from
amending the Governor's appropriations indirectly or adopting
conditions different from those he has proposed, how could the
Legislature -- having rejected the programmatic conditions
attached to the appropriation in the nonappropriation bill --
reauthorize the Museum and Library?
The Governor's claim that the intent of the Executive
Budget Amendment was to grant him authority to change the
substantive laws of the state is unsupportable.
In 1927, after the dangers of legislative budgeting had
been identified and debated, the Governor was for the first time
given the power to propose legislation directly -- but only in
appropriation bills. To be sure, the Governor could recommend
other legislation in his executive budget, but the power to
actually introduce bills obliging action into both Houses of the
Legislature -- a power he has in no other context than the
budget -- was limited to appropriation bills. Only in 1938 was
section 3 amended to give the Governor the additional authority
to introduce other "proposed legislation" recommended in his
executive budget. This amendment was adopted primarily to make
the Governor responsible for submitting tax legislation, rather
than merely recommending it. "Believing that the revenue side of
the budget is of equal importance with the expenditure side, the
committee feels that any bills to carry into effect legislation
affecting the revenues of the State which the Governor may
propose should have the same dignity and importance as his
appropriation bills, and all should be submitted directly by the
Governor and treated as budget bills" (Report of Comm on State
Finances and Revenues of New York State Constitutional
Convention, Doc No. 3, July 8, 1938, at 3).
Thus, my Colleagues' conclusion that the 1915 and 1927
framers of executive budgeting intended to grant the Governor
broad power to make legislative policy beyond mere fiscal policy,
or to propose -- and prevent alteration of -- changes to the
Consolidated Laws of the state, is unfounded and inconsistent
with the constitutional budgeting scheme adopted by the framers.
Under the Constitution, the Legislature is entitled to
respond to the Governor's policy proposals in any of three ways.
First, as we explained in Tremaine I, a condition placed on the
expenditure of funds is itself "an item or particular, distinct
from the other items of the bill, although not an item of
appropriation" (252 NY at 50). As such, it is subject to
striking in an appropriation bill under section 4.[15]
Second, the Legislature may amend a nonappropriation
bill, either by altering policy conditions proposed in the
Governor's appropriation bill, or by proposing new conditions
altogether.[16]
Contrary to the conclusion of my Colleagues ( see
Opinion at 15-17), nothing in section 4 "prevents the Legislature
from itemizing appropriations or from enacting general laws,
apart from the Governor's budget [i.e., appropriation] bill,
providing how lump sum items of appropriation shall be
segregated, subject to the veto power of the Governor" ( Tremaine
I, 252 NY at 49). The Legislature always "can accomplish its
objective to restrict or allocate the expenditure of appropriated
funds by enacting separate bills" (1982 Ops Atty Gen No. F 82-5,
at 22). Nor does New York State Bankers Assn., Inc. v Wetzler
(81 2 98 [1993]) hold otherwise ( see Opinion at 17). There we
held only that the Legislature could not alter an appropriation
bill other than as restricted by section 4, even with the consent
of the Governor. Bankers imposes no limitation on legislative
amendment of nonappropriation bills.
Third, while the Legislature may not increase the
dollars proposed in a gubernatorial appropriation bill, the
Legislature may later -- after the comprehensive budget submitted
by the Governor has first been addressed -- pass a single-purpose
appropriation bill that proposes to spend the same amount of
money, or more, with new, different, or no conditions. Of
course, both branches may well agree, as the fiscal year
progresses, that additional funds are needed. Such funds must be
proposed by the Legislature, because the Executive has no
constitutional power to introduce appropriation bills after the
budget cycle. But if the Governor disapproves of the additional
spending, or of the conditions, he may veto the bill.
With each of these options forbidden, however, the
Legislature will be effectively precluded from proposing or
influencing policies affecting state-funded programs for which
the Governor has proposed an appropriation. To cite one example,
if the Governor proposed money for housing the homeless, the
Legislature could neither specify which shelters should receive
the funding, nor pass legislation requiring that state-funded
shelters apply specific criteria, nor direct that certain
programs be offered within the shelters. Or if the Governor
proposed funding for prisons, the Legislature could not direct
that surveillance cameras be installed, or that additional
security measures be taken. Or if the Governor proposed an
appropriation for police departments, the Legislature could not
direct that police officers undergo counterterrorism training.[17]
In effect, the Legislature loses its ability to legislate in any
area directly or indirectly relating to an appropriation. That
is a distortion of the constitutional scheme of executive
budgeting.
IV. The Line-Item Veto
In Silver I, we held that the question whether the
Governor was empowered to exercise a line-item veto against
substantive amendments enacted in nonappropriation bills in 1998
was justiciable, and returned the case to the lower courts for a
decision on the merits. Today, the Court declines to decide the
question, reasoning that because the Legislature acted
unconstitutionally in amending the Governor's nonappropriation
bills, the question whether the Governor acted constitutionally
in line-item vetoing those amendments is academic.
Silver v Pataki is a declaratory judgment action
brought by the Speaker of the Assembly and the Senate challenging
the Governor's action. As an affirmative defense, the Governor
argues that the Legislature's actions in amending his bills were
unconstitutional, thus permitting him to exercise his line-item
veto. Even if the Constitution precluded the Legislature from
altering nonappropriation bills -- which it does not -- this
circumstance would not relieve the Court of its responsibility to
decide the question presented. For the Governor can prevail in
his affirmative defense only if he establishes two elements:
that the Legislature acted unconstitutionally, and that the
Constitution permits him to exercise a line-item veto to strike
unconstitutionally enacted provisions. The Court ignores the
second element.
As a legislative power, the veto is an exception to the
separation of powers and in derogation of the general plan of
state government. It may therefore be exercised only when
authorized by the Constitution, and the language conferring it
must be strictly construed. Indeed, New York's constitutional
history reflects a determination not to give the Governor the
greater power to veto "parts," "sections," "portions" or
"provisions" of any bill, because this would result "in making
the Governor the affirmative and sole law-making power of the
State, instead of being the negative" (2 Proceedings and Debates,
1867 NY Constitutional Convention, at 1112 [Del. Folger]; accord id. at 1117 [Del. Church] ["it will make the Governor a part of
the affirmative legislative power of the State"]).
"If any bill presented to the governor
contain several items of appropriation of
money, the governor may object to one or more
of such items while approving of the other
portion of the bill. In such case the
governor shall append to the bill, at the
time of signing it, a statement of the items
to which he or she objects; and the
appropriation so objected to shall not take
effect. . . . All the provisions of this
section [governing procedures for
reconsideration by the Legislature of
gubernatorial vetoes], in relation to bills
not approved by the governor, shall apply in
cases in which he or she shall withhold
approval from any item or items contained in
a bill appropriating money" (NY Const, art
IV, § 7).
Thus, the Constitution authorizes the use of the line-item veto
only to strike items from appropriation bills -- that is, bills
containing several items of appropriation of money -- as a check
on government spending. There is simply no authority for
exercise of the line-item veto against provisions contained in
nonappropriation bills, as occurred in 1998. Nor can the
Governor strike related provisions without striking the item of
appropriation itself, for the Constitution is clear that it is
"the appropriation" that shall not take effect upon exercise of a
line-item veto.
Further, the Governor may not exercise a line-item veto
in a manner that would otherwise have been impermissible simply
because he believes that the provisions he strikes are
unconstitutional. The Constitution recognizes no such exception.
The separation of powers, moreover, does not permit the Executive
to assume the judicial function of reviewing the
constitutionality of laws passed by the Legislature and then
acting to void them beyond his explicitly conferred power of
general veto.
Tremaine I does not say otherwise. There, after
determining that certain provisions attached to an appropriation
bill by the Legislature were unconstitutional, we explained that
"[s]o far as the appropriations themselves are concerned, they
may be separated from the unconstitutional parts of the statutes
and are, therefore, the law of the State. . . . The Legislature
may not attach void conditions to an appropriation bill. If it
attempts to do so, the attempt and not the appropriation fails"
(252 NY at 45). The Governor, however, misreads our severability
analysis -- essential to formulating the scope of our corrective
action after judicial review -- as authorizing the Executive
himself to effectively sever purportedly unconstitutional
portions of statutes from the remainder, without any judicial
review. The Constitution grants him no such authority.
Since the courts below agreed that the provisions he
struck were indeed unconstitutional -- and voided the very
provisions he had purported to strike -- his vetoes, and
therefore his ability to veto, were given full effect. Thus, if
the Governor line-item vetoes an unconstitutional provision in a
nonappropriation bill, his endeavor to render the provision void
(by veto) will succeed if challenged on appeal, thereby
effectively upholding the Governor's authority to veto
unconstitutional provisions in nonappropriation bills -- the very
question that the Court declines to answer.
V. Conclusion
The executive budgeting scheme set forth in our
Constitution is not the system my Colleagues sanction today. For
70 years no Executive has exercised the legislative power the
Court, by its affirmance, now recognizes as a template for the
future. The Court rejoins that the Legislature is not deprived
of its ultimate authority because it retains the option to reject
a Governor's appropriations in their entirety and cease to fund
essential services of government. That the system permits
stalemate is unconvincing proof that it requires it.
Footnotes
1 NY Const, Art VII, § 4 ("The legislature may not alter an
appropriation bill submitted by the governor except to strike out
or reduce items therein, but it may add thereto items of
appropriation provided that such additions are stated separately
and distinctly from the original items of the bill and refer each
to a single object or purpose".)
2 Indeed, on our soil, the concept goes back even a century
before that, while we were under colonial rule ( see 1 Lincoln,
The Constitutional History of New York, at 30 [1906]).
3 The 1777 Constitution provided "[t]hat the supreme
legislative power within this state shall be vested in two
separate and distinct bodies of men: the one to be called the
assembly of the state of New York; the other to be called the
senate of the state of New York; who, together, shall form the
legislature, and meet once, at least, every year for the despatch
of business."
4 Jacobellis v Ohio (378 US 184, 197 [1964] [Stewart, J.
concurring] [defining obscenity in the context of First Amendment
protections]).
5 An "appropriation bill" is "a bill or bills containing all
the proposed appropriations and reappropriations included in the
budget" (NY Const, art VII, § 3). An "item" of appropriation is
contained within an appropriation bill ( see NY Const, art VII, §
4). A "nonappropriation bill," which may also be part of the
Governor's budget submission to the Legislature, "contain[s]
programmatic provisions and commonly include[s] sources,
schedules and sub-allocations for funding provided by
appropriation bills, along with provisions authorizing the
disbursement of certain budgeted funds pursuant to subsequent
legislative enactment" ( Silver v Pataki, , 96 NY2d 532, 535 n1
[2001] [" Silver I"]).
6 See e.g. Gerald Benjamin, Reform in New York: The Budget,
The Legislature, and the Governance Process, 67 Alb L Rev 1021
[2004].
7 Indeed, these cases speak only to the future. The 1998
and 2001 budget issues have long been moot. Although there are
two cases before us -- Silver v Pataki from 1998 and Pataki v
Assembly and Senate from 2001 -- the central issue in both is the
same, as the Court recognizes ( see Opinion at 18). In 1998,
unlike in 2001, the Governor did not include substantive law
proposals in his appropriation bills. But the Legislature
amended his nonappropriation bills by further itemizing the
appropriated funds, imposing criteria for their implementation or
conditioning their disbursement on further legislative action.
The Governor exercised the line-item veto with respect to these
amendments, contending that the Legislature's actions in effect
altered his items of appropriation in violation of article VII, §
4, and were therefore unconstitutional. In 2001, the Governor
did include substantive law proposals as items of appropriation.
The Legislature responded by striking the substantive provisions
from the appropriation bills; amending, as in 1998,
nonappropriation bills; and enacting 37 single-purpose
appropriation bills. Thus, the issue presented in the 1998 case
concerning the authority of the Legislature to amend the
Governor's budget submissions is subsumed within the 2001 case,
in which the Legislature sought to amend the Governor's budget
using similar means as well as others. The earlier case,
however, presents an additional issue involving the Governor's
use of the line-item veto.
8 The rule the Court adopts today will, of course, apply to
all future Governors, male and female. Because the current
Governor is a party to these actions, however, I use the
masculine pronoun throughout this writing to refer to the
Executive.
9 As this history makes clear, the Governor's role as
"constructor" (a 1915 quotation repeated in the Opinion at pages
4, 5, 8, 9 and 15) contemplated that he would frame out the
budget, not that he would deliver a turn-key project with full
programmatic detail.
Contrary to the Court's statement, I do not ignore that
executive budgeting modified the separation of powers "to some
degree" (Opinion at 6), but recognize that "except as restrained
by the Constitution, the legislative power is untrammeled and
supreme, and . . . a constitutional provision which withdraws
from the cognizance of the legislature a particular subject, or
which qualifies or regulates the exercise of legislative power in
respect to a particular incident of that subject, leaves all
other matters and incidents under its control" ( Matter of Thirty-
Fourth Street R.R. Co. (102 NY 343, 350 [1886]).
10 In 1929, when the quoted case was decided, the Governor
had no authority to propose any budget bill other than one
containing "all the proposed appropriations and reappropriations
included in the budget" (NY Const, art VII, § 3).
11 Agreement that only items of appropriation of money belong
in appropriation bills resolves little, however, once it is
understood that an "item" is itself a slippery thing.
Recognizing that "[t]here is no judicial definition of
itemization and no inflexible definition is possible," and that
"[t]he specificness or generality of itemization depends upon its
function and the context in which it is used," we have held that
the proper degree of budgetary itemization is beyond the scope of
judicial decisionmaking, and is instead wholly within the
province of the Legislature and the Executive ( Saxton v Carey, , 44 NY2d 545, 550 [1978], quoting Hidley v Rockefeller, , 28 NY2d 439,
444 [1971] [Breitel, J., dissenting]).
12 The Governor misreads the constitutional history of
section 6 when he argues that the anti-rider restriction of that
section constitutes the sole limitation on his ability to attach
substantive or programmatic conditions to an appropriation bill.
The provisions now contained in section 6 were adopted in 1894 --
long before the advent of executive budgeting -- in an effort to
"prevent many abuses which have obtained in the Legislature, of
tacking on to the annual appropriation and supply bill various
provisions which otherwise could not be enacted" (Revised Rec,
1894 NY Constitutional Convention, at 599). Section 6, whose
intent is to "prevent the inclusion of general legislation in an
appropriation bill" ( Tremaine I, 252 NY at 48), thus operates as
a constraint on the Legislature's ability to attach as a rider
"in any appropriation bill" substantive legislation unrelated to
the proposed appropriations -- which, if otherwise permitted,
would become law immediately upon passage of the appropriation
bill containing the legislation, with no opportunity for
gubernatorial veto. Section 6 is not, however, the source of
affirmative authority for the Governor to attach legislation not
consisting of items of appropriation to his appropriation bills,
in derogation of section 3.
13 That a duly enacted statute may suspend, rather than
repeal for all time, the operation of existing law ( see Opinion
at 31-32) is irrelevant. The critical fact remains that even a
temporary abrogation of general legislation reflects a
legislative judgment to be made by the Legislature. Here, the
Governor's proposal had an "effect on substantive law" (one of
the criteria identified in the concurring opinion at page 5),
"actively alter[ing] . . . the State's statutes" ( id.).
14 Other examples of changes to substantive law proposed by
the Governor in his 2001 appropriation bills include amendments
to Public Health Law § 2808, governing the computation of
Medicaid rates for residential health care facilities; and a
proposal reauthorizing lapsed Social Services Law § 153-i, which
provided for state reimbursement to social services districts for
family and children's services.
15 The Legislature may not, however, strike the Governor's
itemized appropriations and replace them with a lump sum, for
"[w]hen . . . we are told that the Legislature may not alter an
appropriation bill submitted by the Governor, except to strike
out or reduce items therein, we expect the appropriation bill to
contain items" ( Tremaine II, 281 NY at 5). Nor is Tremaine II
applicable to single-purpose appropriation bills under article
VII, section 6 ( see Opinion at 19-20). That case construed the
Legislature's authority to add items to a Governor's
appropriation bill under article VII, section 4.
16 Of course, the Legislature's amendments may not propose
new or additional expenditures of money, for such a proposal
would by definition convert the nonappropriation bill into an
appropriation bill -- one containing appropriations of money.
Rather, any such proposals must be made in single-purpose
appropriation bills considered after the Governor's appropriation
bills have been finally acted upon (unless the Governor certifies
the necessity of immediate passage) ( see NY Const, art VII, § 5).
Enacting a wholly new item of appropriation is distinct from
amending substantive conditions placed on the expenditure of
appropriated funds directed to a specified recipient. Thus, my
Colleagues are quite correct that the 1929 Legislature could have
passed a single-purpose appropriation bill -- subject to the
Governor's veto -- for "any other purpose the Legislature liked"
(Opinion at 24). Plainly, if the Legislature wanted to pass this
appropriation instead of Governor Roosevelt's wholly unrelated
proposal, it would strike his appropriation. If, on the other
hand, it wished to pass the new item in addition to the
Governor's item, it would pass both.
17 While denying this, the Opinion notes that even when the
Governor proposes an appropriation for prisons with substantive
conditions attached, the Legislature "remains free to legislate
on such subjects as the way in which prisons should be operated"
(Opinion at 20). I certainly agree, but I cannot reconcile this
statement with the conclusion that in 1998 the Legislature
violated the Constitution by requiring that the Franklin County
prison proposed by the Governor contain a separate building
suitable for educational, vocational, recreational and other
inmate activities ( see Opinion at 9-10).