Request By:
Mr. Junie M. Tutterow
Manager
County Fee Systems
and Municipal Assistance
Department of Local Government
Capitol Annex
Frankfort, Kentucky 40601
Opinion
Opinion By: David L. Armstrong, Attorney General; Nathan Goldman, Assistant Attorney General
You request the formal opinion of this office concerning the accuracy of your computations of the maximum compensation of state, county and city constitutional officers. Pursuant to KRS 15.755(7), 15.765(3), 64,480(2), 64.480(4), 64.527 and 83A.075, you are required to annually compute by the second Friday in February the maximum compensation payable to these officials under the "rubber dollar" theory adopted by the court in
Matthews v. Allen, Ky., 360 S.W.2d 135 (1962) and
Commonwealth v. Hesch, Ky., 395 S.W.2d 362 (1965).
Since we are dealing with the court-established formula application of Section 246 of the Kentucky Constitution, which sets forth maximum compensation levels for state and local governmental constitutional officers, we shall indicate the formula for the following levels of officials. Information from the United States Department of Commerce indicates that the 1949 Consumer Price Index (CPI) was 71.4, while the CPI for the end of 1986 was 331.1.
STATE CONSTITUTIONAL OFFICERS
Section 246 sets a maximum compensation of $12,000 for the Lieutenant Governor, Attorney General, Superintendent of Public Instruction, Commissioner of Agriculture, Secretary of State, State Treasurer, Auditor of Public Accounts and Clerk of the Supreme Court of Kentucky. Pursuant to KRS 64.480(2) these officers must be paid the maximum permissible compensation each year.
Under the Consumer Price Index formula, the maximum annual compensation for the aforementioned state constitutional officers in 1987 would be as follows:
331.1/71.4 (current C.P.I. in terms of 1949) = X/$12,000 71.4X = 331.1 x $12,00071.4X = $ 3,973.200X = $55,647 (rounded)
You have raised a question as to whether this year's calculation relates in any way to the restrictions previously imposed by the General Assembly on state officers' salaries for FY 1984-1985 and FY 1985-1986. In the 1984 General Assembly Statutory Final Enacted Budget Memorandum (p. i) it was stated: "Annual salary increments for elected and non-elected personnel compensated in whole or in part by appropriations in the biennial budget acts or any other appropriation law for the 1984-1986 fiscal biennium shall be two percent above the prior year annual salary in fiscal year 1984-1985 and an additional three percent in fiscal year 1985-1986. It is the intent of the General Assembly that this provision shall expire on June 30, 1986." In
Commonwealth Ex Rel. Armstrong v. Collins, Ky., 709 S.W.2d 437, 445 (1986) the Kentucky Supreme Court upheld the validity of this language and commented that the reduction in increases was temporary only, expiring at the end of the biennium. This case also held that the budget bill may suspend or modify existing statutes for the duration of the budget bill.
There is no similar language in the budget bill or memorandum for the biennium 1986-1988. See, Appendix A to KRS Chapter 47, 1986 Cumulative Supplement. KRS 64.480(2) has not been suspended or modified by the present budget bill. The statute requires that this year's maximum compensation be based on the purchasing power of the 1949 dollar. Thus, the $12,000 constitutional maximum must be determined in terms of this year's CPI without reference to last year's actual salary. Clearly, the intent of the 1984 budget bill was to suspend KRS 64.480(2) temporarily and not to carry over the effect of the suspension to 1986. Thus, it is our opinion that your calculations are correct.
GOVERNOR
KRS 64.480(4) requires your office to compute an adjusted salary of the Governor by multiplying $60,000 by the increase in the CPI during the period January 1, 1984 to the current calendar year. The CPI for 1984 was an increase of 4 percent; for 1985 it was an increase of 3.8 percent; and for 1986 it was an increase of 1.1 percent.
You raise the same question here as you did before regarding the effect of the 1984 budget bill. In our opinion, the situation here is the same as it was for the other state officers. That is, the 1984 budget bill was not intended to affect the calculations for 1987. The 1986 budget bill does not suspend or modify KRS 64.480(4). Thus, the statute must be applied as written.
Therefore, the Governor's salary for 1987 is established as follows:
(1) Base Year 1985, Base Salary $60,000, CPI 4%
$60,000 X 104% = $62,400
$62,400 = 1985 adjusted salary
(2) 1985 adjusted salary multiplied by the then current CPI = 1986 adjusted salary:
1985 adjusted salary = $62,400
Then current CPI = 3.8%
$62,400 x 103.8% = $64,771
$64,771 = 1986 adjusted salary
(3) 1986 adjusted salary multiplied by the current CPI = 1987 adjusted salary:
1986 adjusted salary = $64,771
Current CPI = 1.1%
$64,771 x 101.1% = $65,483
The Governor's salary for 1987 is computed to be $65,483. Your computations are correct.
LOCAL OFFICIALS
The $7200 maximum compensation of Section 246 of the Kentucky Constitution applies to county judge/executives, justices of the peace, county commissioners, county clerks, sheriffs, jailers and coroners pursuant to KRS 64.527 and mayors (except in cities of the first class) and city legislative body members pursuant to KRS 83A.075.
Under the CPI formula the maximum annual compensation possible for the above-mentioned local constitutional officers in 1987 would be as follows:
331.1/71.4 (current CPI in terms of 1949) = X/$7200 71.4X = 331.1 x $720071.4X = $ 2,383,920X = $33,388 (rounded)
Under the CPI formula, the maximum annual compensation possible for the mayor in cities of the first class in 1987 would be as follows:
331.1/71.4 (current CPI in terms of 1949) = X/$12,000 71.4X = 331.1 x $12,00071.4X = $ 3,973.00X = $55,647 (rounded)
Your computations are correct.
COUNTY ATTORNEY
The county attorney, although a county constitutional officer under Section 99 of the Kentucky Constitution, and KRS 69.210, has been given a state-wide function in his prosecutorial role. KRS 15.765(3) establishes the indexing of the original $12,000 maximum in Section 246 of the Constitution as the maximum compensation possible for the county attorney, regardless of what he receives from the fiscal court as county attorney, the county's civil advisor, and from the state as a state prosecutor. That point was decided as early as 1928 in
Coleman v. Hurst, 226 Ky. 501, 11 S.W.2d 133, in which the court ruled that the constitutional limit of compensation for constitutional officers applies whether such services are rendered in one position or more than one.
Pursuant to KRS 15.765(3), the maximum annual compensation possible for the county attorney under the CPI formula for 1987 would be $55,647, which is computed as follows:
331.4/71.4 (current CPI in terms of 1949) = X/$12,000 71.4X = 331.4 x $12,00071.4X = $3,973,200X = $ 55,647 (rounded)
Your computations are correct.
KRS 15.765(1) provides, in effect, for the indexing of the $7200 level for his prosecutorial duties. The compensation which the county attorney may receive for performing his prosecutorial function in 1987 is as follows:
331.4/71.4 (current CPI in terms of 1949) = X/$7200 71.4X = 331.4 x $720071.4X = $2,383.920X = $ 33,388 (rounded)
In your letter you state that you believe the 1986 budget bill restricted unified prosecutorial elected officers to a 3.5 percent increase for 1987 over their 1986 salary.
However, such language appears only in the Governor's recommended budget. It does not appear in the final enacted bill or memorandum. Thus, it would be our opinion that unified prosecutorial elected officers are entitled to have their maximum state compensation computed pursuant to the applicable statutes.
COMMONWEALTH'S ATTORNEY
Full-time
Pursuant to KRS 15.755(7), the maximum annual compensation possible for full-time commonwealth's attorneys for 1987 is as follows:
331.4/71.4 (current CPI in terms of 1949) = X/$12,000 71.4X = 331.4 x $12,00071.4X = $ 3,973,200X = $55,647 (rounded)
Part-time
OAG 84-54 interpreted the provisions of KRS 15.755 to indicate that part-time commonwealth's attorneys are to be paid a salary equal to the maximum state share for the county attorney. As stated above, that salary is $33,388 for 1987.
You have raised the same concerns for commonwealth's attorneys as you did for county attorneys in regard to their maximum state compensation. We believe the same reasoning applies here as we stated there.