Oregon Advisory Opinions February 08, 1978: OAG 78-16 (February 8, 1978)
Collection: Oregon Attorney General Opinions
Docket: OAG 78-16
Date: Feb. 8, 1978
Advisory Opinion Text
OAG 78-16.
May a county make a direct grant, outside of the county school fund, to a school district located entirely within the county?
ANSWER GIVEN
Yes, but only if the grant is for a specified county purpose, rather than for general school purposes.
Our Opinion No. 7488, 38 Op Atty Gen 1093 (1977) dealt with the options available to a county receiving O&C funds, in making grants of those funds to other governmental bodies. In that opinion, we stated at page 1095:
"Education, fire, police, elections, planning and any number of other activities
"We also conclude that a properly budgeted grant to school districts located in the county serves a county purpose since education of the young is a legitimate county concern."
Upon further consideration, we conclude that the statements quoted above, standing alone, imply greater latitude in budgeting county funds for school purposes than we believe is permissible. While there are clearly instances where grants of county funds to a school district would be appropriate, such grants must always be made to serve a county purpose . In 38 Op Atty Gen 1093, supra , we also stated: "A county may use funds for county purposes only." And further: "The key issue is the use of county funds for county purposes." And finally:
"Therefore, the rule is: if a county purpose or benefit can be found for making a grant of county money to a municipality, whether of O&C funds or taxes, it would be an allowable expenditure. It is unlikely, however, that a grant by a county to another unit of government for its general use would fall within that rule, since such general use would ordinarily include purposes which are not county purposes." at 1095.
We believe these latter quotations correctly state the rule. Therefore, general grants of county funds to other governmental bodies are suspect. The county must be able to show a specific county purpose which would be benefited by the grant.
It is our opinion that a general grant to a school district
"for educational purposes" does not meet the test set forth above. However, where the county can point to a specific county benefit derived from its grant, as where the county funds are used for a school gym, playground, swimming pool or other facilities which also serve the general population of the county, a grant to a school district would be appropriate.