AGO 1991-019.

Case DateJune 07, 1991
CourtConnecticut
Connecticut Attorney General Opinions 1991. AGO 1991-019. June 7, 1991Opinion No. 1991-019Hon. John B. LarsonPresident Pro Tempore, SenateState of ConnecticutState CapitolHartford, CT 06106 Hon. Cornelius O'Leary Senate Majority Leader State of Connecticut State Capitol Hartford, CT 06106 Dear Senator Larson and Senator O'Leary: You have asked our opinion concerning the State's authority to continue payment for state services if a State budget is not enacted by June 14, 1991. In a May 31, 1991 letter to Senator John B. Larson, the Honorable William E. Curry, Comptroller other State of Connecticut, stated that Conn. Gen. Stat. §§ 4-98 and 4-100 may prohibit budgeted agencies from incurring any obligations for the payment of money which is not included in the current fiscal year's appropriation. Without a budget for fiscal year 1991-92 Mr. Curry specifically suggests that since "the payroll for the last two weeks of this fiscal year would be part of the 1991-92 budget, it will be illegal for the State to incur further payroll expenses against the General Fund" as of June 14, 1991. Certain other expenses in addition to payroll, that may be incurred after June 13th may also be chargeable to the 1991-92 fiscal year. Summary. Our opinion, in summary form, is as follows:
Neither Conn.. Gen. Stat. §§ 4-98 or 4-100 properly applies to the facts of this situation. Conn. Gen. Stat. § 4-98 applies only to the purchase of goods and services and does not apply to State payroll expenses. Section 4-100 applies only to situations in which the General Assembly already has enacted a budget. More to the point, Section 4-99 requires that an appropriation be available fifteen days prior to the new fiscal year, in order for State funds to be committed in that year.
Whatever interpretation in given Conn. Gen. Stat. §§ 4-98 and 4-100, the legislature's failure to adopt a budget for the next fiscal year would not completely bar the State from incurring expenses and spending funds after June 14, 1991. Neither the State government, nor even a branch of the State government, need shut down entirely because of the prospect of inaction by the legislature. Under the reasoning of State v. Staub, 61 Conn. 553 (1892), even in the absence of appropriations passed by the legislature, certain types of expenses associated with the necessary operation of government must be incurred and paid. Additionally, costs associated with statutory duties imposed on State officials or costs required to be incurred by statute must also be paid.
While the Staub decision requires the continuation of certain government operations in the absence of a budget, Staub has not been applied in modern times in the absence of an entire State budget. Practical problems would inevitably arise in applying the Staub standard. The Staub standard itself suffers fro a significant lack of clarity, rendering the choice among spending options difficult to make and support. The necessity to select expenses actually allowable could cause uncertainty and confusion in the operation and delivery of State services. Doubt and anxiety would be rampant not only among State employees, but also among recipients of services and the public in general. It would prevail even after the initial determination as to which services and programs would continue to be funded in the absence of a budget, since the initial decisions very likely would be reviewed and possibly challenged in the courts.
The most prudent approach - and the one I strongly advise be taken in order to avoid fiscal confusion and uncertainty - is to adopt a continuing resolution prior to June 14, 1991.
Analysis. The facts relevant to this opinion are not in dispute. The State makes its payroll on a biweekly basis. Employees are paid in arrears for a period of work commencing four weeks earlier. Thus, the paycheck to be issued on June 14, 1991, covers the period May 17 through May 30. Likewise, the paycheck to be issued on June 28, 1991, will cover days worked during the period May 31 through June 13. Although there is an appropriation in the present budget to cover the checks to be issued on June 14 and June 28, no funding is contained in this budget for payment for work performed during the period June 14 through June 28. Services rendered during that period will be paid on July 12 during the new fiscal year commencing July 1. Absent a new budget, the issue has been raised as to whether the State can pay workers for the last two weeks of June. Conn. Gen. Stat. § 4-98 provides...

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