<pre style="white-space: pre-wrap">xt73n58cg67c https://exploreuk.uky.edu/dips/xt73n58cg67c/data/mets.xml Lexington, Kentucky University of Kentucky 19350627 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1935-06-jun27-ec. text Minutes of the University of Kentucky Board of Trustees, 1935-06-jun27-ec. 1935 2011 true xt73n58cg67c section xt73n58cg67c 


     Minutes of the Meeting of the Executive Committee of the
Board of Trustees of the University of Kentucky, June 27, 1935.


     The Executive Committee of the Board of Trustees of the Uni-
versity of Kentucky met in President McVey's office at the Univer-
sity June 27, 1935, at 11:00 a.m.; Judge R. C. Stoll, Chairman,
Miller Holland, James Park, members; F. L. McVey, President; D. H.
Peak, Secretary.


     1. Financial Report.

     The financial report for May was filed and ordered to be re-
corded in the Minutes.   It reads as follows:

                                                  EXHIBIT "BU

                 Statement of Income and Expenditures
                          Month of May 1935

                                                        Fiscal
                           Previously     Current       Year
                           Reported       Month         To Date

General Fund Income


Federal Appropriation
Int. on Endowment Bonds
Int. on Liberty Loan Bonds
Vocational Ed. Board
State Appro.-Back Sal.
State Appro.-Repairs to
   Bldgs.
State Appro. - Sum. Sch.
Special Agr. Appro.
State Appro, - General
Student Fees
Student Fees - Sum.Sch.
Student Fees - Un.H.S.
Student Fees - El.Tr.Sch.
Student Fees - Un. Exten.
Miscellaneous Receipts
Rentals
Ments Dormitories
             Total      1.


Expenditures
  Instructiox
  Adm.,Expense & Maint.
  Additions and Better.
               Total
  Excess of Income over
    penditures


EX-


42, 750. 00
8, 644.50
    850.00
16,403,26
71,100.00

7,169.86
  9,000.00
23,374.13
566,702.25
203,853.18
40,636,99
  9,755.00
  7,354.00
  20,764.15
  8,994.21
  2,739.70

055. bl?:J,. Q8


641,357.74
222,368.06
12 .230. 37
 875_956.17


2,258.36


  293.82

2,125.87
67,362.61
2,424.14


  727,50
  100.00
1,067.40
  620.32
  566 .08
  709.65 _
78,255.75


42,750.00
8,644.50
   850.00
18,661.62
71,100.00

7,463.68
  9,000.00
  25,500.00
634,064.86
206,277.32
40,636.99
10,482.50
  7,454.00
  21,831, 55
  9,614.50
  3,305*78
  16,144,10


69,120.12  710,477.86
17,760.34  240,128.40
1,206 .58  13,436e95
388,087.04  964,043.21


9.31  ,9  16 ,78 22


(s.831.0-s)


169.738.22


2.


Patterson Hall Income
  Board
  Misc. Receipts
  Room Rent - Summer Sch.
              Total

Expenditures
  Expense
  Additions and Better-
     ments

              Total


Excess of Income over
   Expenditures


General Fund Income
General Fund Expend.
  Excess of General Func
    Income over Expend.
  Accounts Payable -
    liquidated
  Excess of Expenditurec
    over Receipts for
    General Ledger ac-
    counts
  Excess of Receipts ovE
     Expend. f or the fiE
     year to date - Genf
     Fund
  Excess of Receipts ov(
     Expenditures for t:
     fiscal year to date
     General Fund
  Cash in Bank July 1,
     General Fund
  Cash in Bank May 31,
     General Fund


43,472.38
   186.10
 1,326.00
44,984.48


34,641.80

    25.50

34,667.30


1,171.35    44,643.73
    2.00       188.10
             1,326.00
)1, 73.35   46,157.83


5,819.73    40,461.53

  282.00       307.50

6,101.73    40,769.03


   10,317.18    (4,928.38)    5,388.80

1,100,510.16    79,429.10 1,179,939.26
  910,62.3.47   94,188.77 1,004,812.24

  189,886.60   (24,259.e7)  12,127.09

  (71,100.00)               (71,100.00)


  (79,302.08)    1,321.83   (77,980.25)
er
scal
eral
   39,484.61   (13,437.84)   26,046.77


Ier
he


L934 -

L935 -


Experiment Station Income
  Hatchu- Federal Appro.
  Milk and Butter - Cash
     Receipts
  Beef Cattle Sales
  Dairy Cattle Sales
  Sheep Sales
  Swine Sales
  Poultry Sales
  Farm Produce Sales
  Horticultural Sales
  Seed Test
  Seed Inspection
  Rentals
  Miscellaneous


26,046.77

(4,289.95)


21,756.82


15,000.00


9,259.45
   655.60
   488. 022
   310.51
   495.03
 1,3'.'.4.30
 2,280.79
   333.20
 1,548.12
17,574.43
5,445.70
   991.91


            15,000.00

 871.68    10,131.13
 82.75       738,35
               488.22
               310.51
               495.03
  89.21     1,433.51
  77.04     2,357.83
               383.20
    6.75     1,554.87
1,052.59    18,627.02
   97.67     5,543.37
   11.75     1,003.66


3.


Fertil.Lzper - Fees   27,052.96
Public Service -
  State Appro.        17,690.11
Public Service -
  Misc. Receipts          40.00
Feeding Stuffs - Fees 26,055.98
Adams - Fed. Appro.   15,000.00
Serum - Sales            9433.62
Serum - Virus Sales       96.85
Serum - Supply Sales     133.10
Serum - Misc. Receipts    32.40
State Appro.          41,763.55
Creamery - License
  Fees                 6,471.55
Creamery - Testers
  License              2,279.02
Creamery - Glassware
  Tested                 587.18
Robinson - State     ;10,504.58
  Appro.
Robinson - Misc. Rec.  6,016.01
West Kentucky - State
  Appro.              12,358.55
West Kentucky - Misc.
  Receipts             5,524.93
Purnell - Fed. Appro. 60,000.00
Nursery Inspection -
  State Appro.         1,758.77
Nursery Inspection -
  Fees                 1,775.00
Blood Test                20.75
       Total         291.882.17


Expenditures
   Expense
   Additions & Bet-
   terments
          Total


Excess of Income over
Expendi tures
Excess of Expend. over
Receipts for General
Ledger Accounts


Excess of Receipts over
Expend.


1,572.50

2,120.08


28,625.46

19,810.19


                40.00
1,458.25    27,514.23
            15,000.00
  150.57     1,094.19
  14.40       111.25
    9.65       142.75
    3.00        35.40
4,260.12    46,023.67


  39.00

  39.00

    9.02
1,178.91

  205.13

1,143.42

  309.46


  150.00

  135.00


6,510.55

2,318.02

   596.20
11,683.49

6,221.14

13,501.97

5,834.39
60,000.00

1,908.77


1,910.00
   20.75


15,086.95 306 .969.12


239,710.91   29,159.10 268,870.01

  7,947.02e     452.09    8,399.11
247,657.93   29,611.3'9  277, 269.12


44,224.24


(14,524.24) 29,700.00


1,000.42  (23,257.41)


19,966.41


Excess of Receipts over
Expend. for the fiscal
year to date - Experi-
ment Station
Cash in Bank July 1, 1934 -
Experiment Station
Casih in Bank May 31, 1935 -
Experiment Station


6.442.59


6,442.59

13,586.85


20,029.444


4.


Extension Division Income
  Federal Smith-Lever
  Federal Add. Co-op.
  Federal Supplementary
  Federal Capper-Ketcham
  State Smith-Lever
  County and Other
                 Total

Expenditures
  Expense

  Excess of Income over Ex-
  penditures


148,308,77
31,000.00
53,091.04
36,800.97
107,322.70
  6,172.62


18,677.30
1,115.51


148,308.77
31,000,00
53,091.04
36,800.97
126,000.00
  7,288.13


382,696.10   19,792.81   402,488.91


328,864.83   31,619.06   360,483.89


53,831.27  (11,826.25)   42,005.02


Excess of Income over Ex-
penditures for the fiscal
year to date - Extension
Division
Cash in Bank July 1, 1934 -
Extension Division
Cash in Bank May 31, 1935 -
Extension Division


Trust Fund Income
  Student Loan Fund
  Student Notes Paid
         Total Receipts

Expenditures
  Expense
  Student Notes
         Total Expenditures


1,918.89
3,750.91


156.26
376.80


42,005.02

  (585.04)


41,419.98


2,075.15
4,127.71


5,669.80      533.06     6,202.86


7,262.17    2,077.80     9,339.97
   15.00   _      _15.00
7,277.17    2,077.80     9,354.97


Excess of Expenditures over
Receipts


(1.607.37)


(1.544.74)


(3.152.11)


Excess of Expenditures over Re-
ceipts for the fiscal year to
date - Trust Fund
Cash in Bank July 1, 1935 -
  Trust Fund
Cash in Bank May 31, 1935 -
Trust Fund


(3,152.11)

3.823.72


671.61


5.


Summary
  General Fund Income
  Experiment Station Income
  Extension Div. Income
  Trust Fund Incorne
         Total


1,100,510.16
  291,882.17
  382,696.10
    1,918.89
1.777.007.32


79,429.10
15,086.95
19,792.81
   1b6.26
114,465.12


1,179,939.26
  306,969.12
  402,488.91
    2:075.15
1,891,472.44


General Fund Expend.        910,623.47
Experiment Station Expend.  247,657.93
Extension Div. Expend.     328,864.83
Trust Fund Expenditures       7,262.17
      Total              1,494,408.40


94,188.77
29,611.19
31,619.06
  2,077.80
157,496.82


1,004,812.24
  277,269.12
  360,483.89
    9,339.97
1.651.905.22


Excess of Income over Ex-
penditures


282,598.92


(43,031.70)


239,567.22


Accounts Payable - liqui-
  dated

Excess of Expenditures over
  Receipts for General
  Ledger accounts

Student Loan Fund


Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund


(71,100.00)


(103,559.91)


3,735.91


111.674.92


(71,100.00)


2,322.25  (1o1,237.66!


376.80


(40 .332.65)


Excess of Receipts over Ex-
penditures for the fiscal
year to date - Combined
Fund
Cash in Bank and on hand July 1,
1934  Combined Fund
Cash in Bank and on hand May 31,
1935 - Combined Fund


71,342.27

14.535.58


Abstract of' item shown on statement
of Income and Expenditures as "Excess
of Expenditures over Receipts for Gen-
eral Ledger accounts $101,237.661


Accounts Receivable

Insurance Paid in Ad-
  vance

Sundry Accounts


Debit

101,992,16


  1,229.46


103,221.62
  1,983.96
101,237.66


4.112.71


71.342.27


Credit


1,983,96
1,983.96


--- _                - - .


85,877.85


6.


    2. Condition of 1934-1935 Finances.

    The Business Agent reported:

    As at present indicated, there will be no balances in appro-
priations for College, Experiment Station, or Extension Division,
from State or Federal funds.  There will be a small balance in
each of the revolving fund accounts; that is, College Revolving
Fund anid Experiment Station Revolving Fund.  These funds do not
revert according to latest ruling of Assistant Attorney General
W. R. Attkiason.


     3. Band House.

     At the meeting of the Board of Trustees May 30, 1935, an or-
der was made directing President McVey to proceed with the project
of erecting a house for the band, provided funds in 1934-1935 in-
come were sufficient to add the project to the budget of that
year (Item 15).   In closing the year's business, it was found
that the excess of income over expenditures was not sufficient to
finance the project and, consequently, no further steps have been
taken.


     4. Interest on Land Grant Fund.

     In Item 12, Minutes of the Board of Trustees of May 30, 1935,
facts regarding the act of the Auditor of Public Accounts in with-
holding second payment of interest on land -rant investment are
set out.

     On request of President McVey, the Business Agent wrote to
the Attorney General as follows:


     June
     Fifth
     1 9.3 5

     Hon. Bailey P, Wootton,
     Attorney General,
     Frankfort, Kentucky

     Dear General Woctton:

     Some time ago I submitted to the Auditor a request to trans-
     fer to the University account $4,322.25 for payment of
     second installment of interest due this year on what is gen-
     erally referred to as bond on Land-Grant indebtedness, The
     Auditor failed to give the University credit for the amount
     and, upon inquiry, he stated that no fund had been set aside
     to take care of the charge.   We then took up the question


7.


with te State Board of Finance and on May 15th, President
MoVey wrote to that Board a letter, copy of which I am en-
closing. He also included with his letter a copy of the
statute which authorizes this bonded indebtedness. In
answer to his communication, Mr. Sewell, I think, stated
that the State Board of Finance had been unable to find a
copy of the bond which is referred to in section of stat-
ute that is copied and sent herewith. President McVey
made statement of all these facts to the Board of Trustees
at its meeting on May 30th. The lawyers on the Board im-
mediately gave it as their opinion that copy of the bond
is not the bond but merely evidence thereof and that the
statute referred to is the one on which the State must re-
ly for its authority to pay to the University the inter-
est claimed. Governor Laffoon was present and concurred
in that opinion. Therefore, the Board directed that I
write you, asking you to give an opinion to the State Board
of Finance so that this matter may be settled without
further delay.

I may state that the Auditor promptly paid the amount that
was due in July upon request, I think after he had asked
an opinion from you. The amount of interest due the Uni-
versity has been paid since the passage of the statute,
usually without request to the Auditor and, in all events,
after request has been made, up until payment that was
due in February.

I am asking that you render this opinion without delay be-
cause it is quite necessary that this money be expended
during this fiscal year so that proper report thereon may
be made to the Department of Education after the first of
July as is required by that department.   I am enclosing
blank copy of the form of report required.   It is desir-
able on the part of the University and, I am sure, on the
part of the state authorities, that there be no conflict
with us and the federal department that has control of
this question of finance.

Very truly yours,


(Signed) D. H. Peak
Business Agent


In answer to that letter, the following opinion was given:


B.


             COMMONWEALTH OF KENTUCKY
             ATTORNEY GENERAL'S OFFICE
                Frankfort, Kentucky

                                    June 10, 1935

Mr-. D. H. Peak
Business Agent
University of Kentucky
Lexington, Kentucky

Department of Finance and Budgetary Control
Building


Honq J. Dan Talbott.
Auditor of Public Accounts
Building

Dear Sirs:

     By letter of June 15, 1935, Mbr. Peak states that re-
quest had been made upon the Auditor of Public Accounts
to transfer to the account of the University of Kentucky
$4,322.25, for payment of an instalment of Interest due
on the bond of the Commonwealth executed pursuant to sec-
tion 4591a, Kentucky Statutes.   The Auditor refused to
pay the account, stating that no fund had been set aside
to take care of the charge.

     Section 4591a, Kentucky Statutes, enacted in 1897,
Chapter 21, page 33, section 2, authorized the then Com-
missioners of the Sinking Fund to issue to themselves as
trustees for the Agricultural and Mechanical College of
Kentucky (Now the University of Kentucky) and the State
Normal School for Colored Persons of Kentucky (now Ken-
tucky State Industrial College) the bond of the Common-
wealth, bearing date of July 1, 1897, for $165,000.00,
becring interest at the rate of 6% per annum, payable
semi-annually, the bond to be a perpetual obligation of
the Commonwealth and the Interest thereon a perpetual
charge upon the treasury.    The act further required
the Auditor to regularly draw his warrant upon the treas-
ury in favor of the treasurer of each of said colleges,
on the 1st day of January an, the first day of July of
each and every year, for the sum of$4,950.00, $627.75
of which went to the treasurer of the colored college
and $4,322.25 of which went to the treasurer of the white
college.

     Section 230 of the Constitution of Kentucky in part
is as follows:

     "No money shall be drawn from the State Treasury,
     except in pursuance of appropriation made by law;"


                               9.


     By Chapter 2, Acts of 1934 Special Session, a lump sum
     appropriation was made to the University of Kentucky for
     the purpose of carrying on its various duties and respon-
     sibilities,    Paragraph 68, of Chapter 2, Acts of the
     1934 Special Session, provides as follows:

          "All annual and/or continuing appropriations here-
     tofore in effect, but not provided for in this act, and
     all other laws and parts of laws in conflict herewith,
     are hereby repealed."

          In view of the sections just cited, we are of the
     opinion that the General Assembly intended to cancel all
     continuing appropriations, and embodied the amount sought
     by the University of Kentucky in its lump sum appropria-
     tion.   The contention of the Auditor that the amount
     should not be paid is, in our opinion, correct.

                           Very truly yours,

                    (Signed) William R. Attkisson

                              William R. Attkisson
                              Assistant Attorney General


     The Business Agent stated to the Committee that, after the
receipt of the above set out opinion, he had had conferences sep-
aTately with General Attkieson, the Seeretary of the Board of Fi-
nance and the Assistant Auditor, and that no further action was
taken.   He stated further that the first installment of interest
on the fund had been paid by the Auditor, who evidently relied on
opinions given by Assistant Attorney General Hogan, the existence
of which was not known to Business Agent until after the date of
the letter copied above.   These opinions are copied as follows:


k,


10.


             Commonwealth of Kentucky

             ATTORNEY GENERAL'S OFFICE

                   Frankfort, Ky.

                                       August 31, 1934

Bailey P. Wottton
Attorney General


Hon. J. Dan Talbott
Auditor Public Accounts
Capitol Building

Dear Sir:

     Yours of the 29th addressed to Attorney General
Wootton has been handed me for reply.    You call atten-
tion to S. 184 of the Constitution and then call atten-
tion to S. 4591a, Kentucky Statutes, 1930 Edition, Fol-
lowing this you state as follows:

     "The 1934 Special Session of the Legislature
     failed to make an appropriation to take care
     of the interest on this bond -- but it did make
     ah appropriation for the interest on the Common
     School Irredeemable Bonds.    Chapter 25, Arti-
     cle 5, S. 4, 1934 Acts, specifies no money
     shall be withdrawn from the Treasury unless
     appropriated by the General Assembly and allot-
     ted by the Board of Finance - exclusive of re-
     volving funds."

     You then inquire:

     "Does chapter 25, Article 5, S. 4, 1934, Acts
     repeal S. 4591a?"

     S. 184 of the Constitution has no bearing upon the
question involved in your letter.

     S. 4591a, Kentucky Statutes, is as follows:

     "That the commissioners of the sinking fund be,
     and they are hereby authorized and directed to
     issue to themselves as trustees for the Agricul-
     tural and Mechanical College of Kentucky and the
     State Normal School for Colored Persons of Kentucky,
     in the proportion hereinafter mentioned, the bond
     of the Commonwealth, bearing the date of July
     first, eighteen hundred and ninety-seven, for om
     hundred and sixty-five thousand dollars ($165,000.00),
     bearing interest at the rate of six per cent (6X),


11.


    payable semi-annually, and said bond shall be
    a perpetual obligation of the Commonwealth and
    the interest thereon shall be a perpetual charge
    upon the treasury; and it shall be the duty of
    the auditor to regularly draw his warrant upon
    the treasurer in favor of the treasurer of each
    of said colleges on the first day of January and
    on the first day of July, of each and every year,
    for the sum of four thousand nine hundred and
    fifty dollars ($4,950.00) to pay said interests
    in the following proportions to-wit: SIx hundred
    and twenty-seven and seventy-five one-hundredths
    dollars (.627.75) to the treasurer of the State
    Normal School for Colored Persons, and four thou-
    sand three hundred and twenty-two and twenty-five
    one-hundredths dollars ($4,322.25) to the treas-
    urer of the Agricultural and Mechanical College
    of Kentucky."

    This section of the Statutes is chapter 21 of the Acts
of 1897,  We have been unable to discover where any change
has been made by the General Assembly in this act from that
d ate to the present time.

     It is a settled principle of law that when a duty is
imposed upon an officer, the presumption is that the duty
has been performed unless the contrary is made to appear.
There is nothing presented to indicate that the Sinking Fund
Commission failed to do its duty as required under S. 4591a,
Kentucky Statutes.   Therefore, we proceed upon the assump-
tion that the Sinking Fund Commission did issue to them-
selves as trustees for the Agricultural and Mechanical Col-
lege of Kentucky and the State Normal School for Colored
Persons of Kentucky the bond mentioned in this section of
the Statutes.

     Upon an examination of the Acts of 1934 regular session,
commonly called the Financial Code, we find that there is
created a new department to be known as the Department of
Public Property and it is invested with all of the powers
and duties formerly placed upon the Sinking Fund Commission.
Therefore, we presume that the Department of Public Proper-
ty is now the trustee for the Agricultural and Mechanical
College of Kentucky and the State Normal School for Colored
Persons for Kentucky, as provided for by S. 4591a, Kentucky
Statutes, and must hold the bond of the Commonwealth as men-
tioned in this section as such trustee,

     Upon an examination of Houw Bill 67 enacted at the
special session of the General Assembly of 1934, and common-
ly known as the Budget Bill, we find that by S. 30b under
the title of Interest on Irredeemable State Bonds, the fol-
lowing:


12.


     "There is hereby appropriated out of the General
     Expenditure Fund for the Department of Public
     Property for the fiscal year ending June 30, 1935,
     for the payment of interest upon irredeemable
     state bonds the sum of $138,938.16."

     In this same section a like provision is made for the
fiscal year ending June 30, 1936.

     By S. 57 of House Bill 67, under the heading of Common
School Fund, we find this:

     "There is hereby appropriated out of the General
     Expenditure Fund to the Common School Fund for
     salaries of teachers and school district officials
     for the fiscal year ending June 30, 1935, the sum
     of $8 228,561.84, in addition to the interest, to-
     wit: J138,938.16 on the irredeemable bonds of the
     Commonwealth due the State Board of Education under
     the State Constitution and herein appropriated to
     the Department of Public Property for such purpose."

     A like provision is made in reference to the fiscal year
ending June 30, 1936.

     It will thus be seen that these provisions have no bear-
ing whatever upon the $165,000.00 mentioned in S. 4591a for
the benefit of the Agricultural College of Kentucky and the
State Normal School for Colored Persons of Kentucky.

     The Court of AppEls has held that the appropriations to
the State University and Normal Schools do not have to be
divided upon a per capita basis as required by S. 186 of the
Constitution, and in effect held that these two characters
of institutions are no part of the common school system.
244 Ky. 826.  And if no part of the common school system,
then the appropriation made in the Budget Law by S. 30b and
S. 57 referring to the interest on irredeemable state bonds
and setting apart $138,938.16 to pay such interest, has no
reference to S. 4591a, Kentucky Statutes, and no reference
to the Agricultural and Mechanical College nor the State
Normal School for Colored Persons.

     It will be noted from S. 4591a, which as said before
was enacted in 1897, it is provided that the $165,000.00
mentioned in this section should bear interest at the rate
of 6% and that the bond executed by the Commonwealth should
be a perpetual obligation of the Commonwealth and that the
interest derived fromthis principal sum should be a perpetual
charge upon the Treasury, and that it should be the duty of
the Auditor to regularly draw his warrant upon the Treasurer
in favor of the treasurer of each of these colleges at speci-
fied times and for specified sums each year.   This was a
binding obligation upon the State of Kentucky at the time
the present budget bill was enacted and at the time chapter


25, article 5, S. 4 of the Acts of 1934, was enacted. This
section provides as follows:

    "No public money shall be withdrawn from the treasury
    for any purpose whatsoever unless it shall have been
    appropriated by the general assembly or be a part of
    a revolving fund and allotted as in this act provid-
    ed, and for the purposes for which its withdrawal is
    proposed, and unless the expenditure thereof has been
    authorized by the administrative head of the budget
    unit and the state budget officer advised of such
    authorization, and unless a statement of indebted-
    ness has been submitted to and approved by the Audi-
    tor and then only on the warrant of the Auditor of
    Public Accounts as in this act provided.   The pro-
    visions of this section shall not be construed to
    apply to withdrawal of funds from state depository
    banks for immediate redeposit in other state depository
    banks.n

    You have raised the question as to whether or not this
section of chapter 25 of the Acts of 1934 repealed S. 4591a,
Kentucky Statutes.

     S. 19 of the Constitution is as follows:

     "No ex-post factorlaw nor any law impairing the obli-
     gations of contracts shall be enacted."

     When the bond of the Commonwealth was executed to the
Sinking Fund Commission as trustee for the Agricultural and
Mechanical College and the State Normal School for Colored
Persons of Kentucky, as required by S. 4591a, Kentucky Stat-
utes, it became a contract between the Commonwealth of Ken-
tucky and these colleges; and when it was provided that the
interest on this $165,000.00 should become a perpetual
charge against the State Treasury it also became a contract;
and to permit by the enactment of chapter 25, article 5,
S, 4. of the Acts of 1934, the repeal of S. 4591a, Kentucky
Statutes, would be the impairment of such contract, in vio-
lation of the foregoing provision of the Constitution. Or
to permit the destruction of the requirements of S. 4591a,
Kentucky Statutes, simply because the Legislature failed
in its duty to include in what is commonly called the Budget
Bill a setting apart of the amount of money to pay these
two institutions under S. 4591a, would also be in violation
of the foregoing provisions of the Constitution, and an im-
pairment of this contract as set out in S. 4591a, Kentucky
Statutes.   The Federal Constitution provides practically
the same as the above quoted provision of our Kentucky Con-
stitution.


S. 230 of our Constitution Is as follows:


14.


    "No money shall be drawn from the State Treasury
      except in pursuance of appropriations made by
      law, etc."

      The appropriation mentioned in S. 4591a is an appropria-
tion made in pursuance of law, and therefore, no objection
could be raised to it on account of this section of the Con-
stitution.

    We have examined quite a number of former budget acts
and we do not find in any of them where this appropriation
has been specifically mentioned.    In the Budget Act of 1930
there is a heading of "Miscellaneous", and it may be that
under the "Miscellaneous" heading this appropriation con-
tained in S. 4591a, Kentucky Statutes, was taken care of.
In the Budget Act of 1932 the Miscellaneous section was not
included, nor is it included in the Budget Act of the Special
Session of 1934.

     But irrespective of this, we are of the opinion, as
heretofore said, that neither chapter 25, article 5, S. 4,
of the 1934 Acts, nor the Budget Act itself contained in House
Bill 67, repealed S. 4591a, Kentucky Statutes.

                               Yours truly,

                               (Signed) Overton S. Hogan
                                          Assistant Attorney
                                              General

            Commonwealth of Kentucky
            ATTORNEY GENERAL'S OFFICE
                  Frankfort, Ky.

                                        September 4, 1934

 Bailey P. Wootton
 Attorney General

 Hon. J. Dan Talbott
 Auditor Public Accounts
 Capitol Building

 Dear Sir:

      Yours of the 1st addressed to the Attorney General has
 been handed me fbr reply.    You acknowledge receipt of
 opinion dated August 31st in reference to irredeemable bonds
 issued in 1897 for the benefit of the Agricultural and Me-
 chanical College of Kentucky and the Normal School for Col-
 ored Persons in which it was held that chapter 25, article
 5, S. 4, of the Acts of 1934, does not repeal X, 4591a, Ken-
 tucky Statutes.   You state:


15.


    "To our knowledge in the past this interest amount-
    ing to $4,950.00 per year has been paid to the two
    schools from the Sinking Fund which was derived
    from a percentage of the millage tax under S. 4019.
    What is commonly known as the reorganization bill
    of 1934 abolished the Sinkizg Fund Commission and
    transferred its duties to the Department of Public
    Property."

    You then inquire for advice as to what fund this inter-
est is to be paid from.

     S. 4618-45, 1934 Supplement, Kentucky Statutes, is in
part as follows:

     "The Sinking Fund Commission *** are hereby abolished
     Md). All the duties and functions heretofore vested by
     law in the said Sinking Fund Commission *** are trans-
     ferred to and vested in the Department of Public Prop-
     erty."

     You will note from this section that all the duties and
functions heretofore vested in law in the Sinking Fund Com-
mission are now transferred to and vested in the Department
of Public Property.   Therefore, the duties and functions
of the Sinking Fund Commission set forth in S. 4591a, Ken-
tucky Statutes, are now vested in the Department of ?Public
Property by the foregoing section of the Statutes.

     S. 4595, Kentucky Statutes, relating to the Sinking Fund
is as follows:

     VIt shall be the duty of the CommissionY of the Sink-
     ing Fund when they shall have fully complied with and
     executed the provisions of the preceding section of
     this chapter to notify the Auditor of Public Accounts
     of that fact and direct him to transfer to the Revenue
     Department all the remaining resources of the Sinking
     Fund except so much thereof as may be necessary to
     pay the interest on the school debt for the then cur-
     rent year if there be any such interest due or to be-
     come due; and it shall be the duty of the Auditor upon
     receiving such notice to make the required transfer
     and he shall during each succeeding year thereafter
     continue to pay all the present resources of the Sink-
     ing Fund which may be collected from time to time in-
     to the Revenue Department except the five per cent
     on each one hundred dollars of the taxable property
     of the Commonwealth now collected by law for Sinking
     Fund purposes.   This last amount shall continue to
     be paid into the Treasury to the credit of the Sink-
     ing Fund as now required by law and shall be kept
     as a sacred fund to pay the accruing interest on the
     school debt."


16.


    The question then arises, what funds are appropriated
to the Sinking Fund Commission or the Department of Public
Property to carry out the former functions of the Sinking
Fund Commission?

     S. 4019, which formerly set apart In specific terms a
certain perdentage of the revenue to the Sinking Fund, was
amended by an act of 1934, and upon an examination of this
new act, which is S. 4019, Supplement 1934, to the Kentucky
Statutes, we do not find that any specific amount is set
apart to the Sinking Fund nor to the Department of Public
Property.  After providing for the annual ad valorem tax
for state purposes, then by S. 4019-1, Supplement 1934, Ken-
tucky Statutes, it is provided that the tax realized from
various sources shall be credited to the general fund for
the use of the expenses of the Government.   Presumably the
intention was to place all of these funds in the general
fund, and then by the method of an appropriation or budget
act distribute the fund.

     Upon an examination of House Bill 67, commonly known
as the Budg</pre>