230 N.Y. 380 (1920)
A city’s Common Council lacks the authority to diminish or reject budget items that relate to salaries when the Board of Estimate and Contract has the exclusive power to fix those salaries and determine positions.
Summary
This case addresses the division of power between a city’s Board of Estimate and Contract and its Common Council concerning budget appropriations, specifically regarding salaries. The Board of Estimate and Contract created several new positions with fixed salaries in its budget estimate. The Common Council then reduced the salary amount for the police department, eliminated the newly created positions, and replaced them with old positions at the same salary. The Court of Appeals determined that the Common Council overstepped its authority because the Board had the exclusive power to create the positions and fix the salaries. The Common Council’s power was limited to either accepting or rejecting the budget as a whole.
Facts
The Board of Estimate and Contract of Mount Vernon prepared its budget estimate for the upcoming fiscal year, including specific salaries for city officials and employees. The estimate included new positions like claims clerk, clerk to deputy comptroller, and indexing and vault clerk, each at $1,800. The police department salaries were estimated at $295,893. For the building department, new positions for construction inspectors at $2,500 each were included. The Common Council then diminished the police department salaries to $262,693, struck out the new positions, and inserted old positions in their place.
Procedural History
The Board of Estimate and Contract sought a court order compelling the Common Council to adopt the original budget estimate. The lower court ordered the Common Council to adopt the estimate as submitted by the Board. The Common Council appealed that decision, and the Court of Appeals reviewed the case.
Issue(s)
1. Whether the Common Council had the power to strike out or diminish items in the budget estimate that related to salaries fixed by the Board of Estimate and Contract.
2. Whether the Common Council had the power to substitute different positions for those included in the budget estimate by the Board of Estimate and Contract.
Holding
1. No, because the city charter explicitly states that “the common council shall not have power to diminish or reject any item which relates to salaries.”
2. No, because the power to determine the positions and numbers of city officers and employees resided exclusively with the Board of Estimate and Contract.
Court’s Reasoning
The court reasoned that the Board of Estimate and Contract had been granted the power to create subordinate positions and fix salaries. This power was explicitly stated in the city charter. Section 81, when read alongside section 71, indicated a legislative intent to vest this authority in the Board. The Common Council’s authority was limited to diminishing or rejecting items in the budget that were *not* related to salaries, indebtedness, estimated revenues, state and county taxes, or judgments. Regarding the police department salaries, the court emphasized that the Board had the power *at all times* to determine the number of officers and men in the police department. Diminishing this item would therefore improperly limit the Board’s power to determine the number of officers and men. Regarding the building department, the Court found the action of the Council essentially rejected the Board’s salary and position determinations, which the Council was not empowered to do.