October 16, 1981
Ms. Susan Stow Sandness
Minnehaha County Rural Public Library
Box 218
Hartford, South Dakota 57033
Official Opinion No. 81-39
Library Budget Control
Dear Ms. Sandness:
You have indicated that a difference of opinion concerning control over library budgets has arisen between your board of library trustees and the county commission. You have asked the following questions:
QUESTIONS:
1. The library board proposes a budget to a city or county governing body which in turn allocates funds. Can the city or county governing board cut line items from the budget?
2. Can the library board reallocate the dollars needed within the total amount awarded or must they stick to their original budget proposal?
3. Can the city or county governing board assess charges against the library budget for items that were specifically not approved or not previously considered by the library board?
IN RE QUESTION NO. 1:
SDCL 14-2-40 provides:
Each board of public library trustees shall:
(1) Appoint a librarian to serve at the pleasure of the board;
(2) Adopt bylaws for the conduct of their business and adopt policies for the selection of public library materials, the governance of the library, and the use of public library services and materials;
(3) Prepare and submit an annual budget request to its governing body;
(4) Adopt a final annual budget within those funds certified to it as being appropriated in the annual budget of its governing body;
(5) Meet at least once during each quarter of the year;
(6) Prepare and submit an annual report to its governing body and to the South Dakota state library on such forms as may be provided by the state library.
Subdivision (3) of the above statute requires the library board to prepare and submit 'an annual budget request' to its governing board and subdivision (4) requires the board of trustees to adopt a final budget 'within those funds certified to it [the public library] as being appropriated in the annual budget of its governing body.' Reference to the source note of the above statute reveals that the statute is intended to replace numerous statutes which have been repealed. SDCL 14-2-2 (repealed), SDCL 14-3-15 and 16 (repealed) and SDCL 14-4-5 (repealed) are identified as statutes to be replaced by SDCL 14‑2‑40. I see nothing in this statute or S.L. 1976 ch. 143, § 14 revealing an intention on the part of the Legislature to allow the governing body to operate on or eliminate line items in the library board's budget.
IN RE QUESTION NO. 2:
The library board has authority to adopt its final budget pursuant to SDCL 14-2-40(4) . The authority to adopt the final budget appears to lie with the library board and not with the governing unit. Of course, any budget changes would be subject to procedures established by law for amending budgets or adopting supplemental budgets. See SDCL 7-21-23 for county governing bodies and SDCL 9-22-23 for municipalities.
IN RE QUESTION NO. 3:
In my opinion, there is no provision for the governing unit to assess charges or make payments out of library funds without the approval of the public library board. SDCL 14-2-28 allows the governing body to use any funds not otherwise restricted for the provision of the public library services, the purchase of public library materials, or the provision and maintenance of quarters for the public library. Clearly, if these funds have been obligated to the governing library board's budget these are not 'funds available to' the governing body. One exception to this may be found in SDCL 14-2-25 which allows the rent for public library facilities to be paid from the general fund of the local governmental unit or any fund established for the purpose of providing public library services.
SDCL 14-2-46 allows governmental units to establish a public library building fund and make appropriations to the fund. It also allows the board of the public library to determine that the building fund or any part of it is not necessary and the board may request the governing body to transfer all or any part of the fund to any other fund and the governing body shall comply with the request. The authority granted in this statute to the public library board and the ministerial duties placed upon the governing body are not consistent with the notion that the governing body may at any time reach into the library funds for payment of maintenance and other costs.
One caveat should be noted in that SDCL 14-2-28 provides that the contracts for the provision of library services executed prior to July 1, 1976, may continue in operation even though they are not in conformity with SDCL ch. 14-2. If such contract exists, apparently its terms may continue in effect and may be inconsistent with the statutes and opinions set out herein.
Respectfully submitted,
Mark V. Meierhenry
Attorney General