Can Virginia cities and counties spend tax dollars on dues or contributions to VACo and VML?

Plain-English summary

A delegate asked whether localities had the authority to pay dues to the Virginia Association of Counties (VACo) and the Virginia Municipal League (VML), or to give them tax-derived contributions. The AG concluded that they could.

The delegate's request had pointed to a prior AG opinion saying the Virginia Constitution prohibits state appropriations to charitable institutions not owned or controlled by the Commonwealth. The AG explained that prohibition only applies to General Assembly appropriations from the state treasury. It does not apply to local government spending. Article IV, § 16 of the Virginia Constitution actually authorizes the General Assembly to empower counties, cities, or towns to make appropriations to charitable institutions or associations.

The AG then walked through the statutory grants. A locality may make appropriations for purposes it can tax for, for its own support, for performance of its functions, and for accomplishing other lawful purposes. The General Assembly has also specified entities that may receive gifts and donations from the local fisc, and authorized localities to appropriate to charitable institutions or associations that serve the locality's residents. Localities may form and maintain associations to promote the interest and welfare of political subdivisions of the Commonwealth and to foster closer relations among them, may join regional organizations and appropriate funds for the advancement of the locality's welfare, and may spend locally derived revenue to promote the resources and advantages of the locality.

Even though those statutes don't name VACo or VML, the AG read them as broad enough to cover both organizations, regardless of whether the organizations technically count as charities. Under Dillon's Rule, a locality has only the powers expressly granted, fairly implied, or essential and indispensable, but the AG found ample express authority in the statutes listed.

Currency note

This opinion was issued in 2012. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

What does VACo do?
VACo, by its own mission, exists to represent, promote, and protect county interests at the state and national levels. Its membership includes 95 localities. It runs legislative steering committees, recommends an annual legislative program, publishes a newsletter and legislative bulletin, and offers educational seminars.

What does VML do?
VML, founded in 1905, is a statewide, nonpartisan association of city, town, and county governments that does legislative advocacy, research, education, and other services. Its membership covers all 39 cities, 156 towns, and 10 counties in Virginia.

Why was the constitutional prohibition not an obstacle?
Article IV, § 16 prohibits the General Assembly from making appropriations to charities that aren't owned or controlled by the Commonwealth, but it expressly carves out an exception authorizing the legislature to enable localities to make such appropriations. The General Assembly took up that authority and enacted enabling legislation.

Does it matter whether VACo or VML count as "charities"?
No. The AG noted that the statutes the General Assembly enacted are broad enough to cover localities joining associations of political subdivisions, regardless of charity status.

Could a locality use the funds for something narrower, like ad hoc consulting?
The opinion was specifically about dues and contributions to VACo and VML as ongoing membership organizations. Other arrangements might still need statutory grounding.

Background and statutory framework

Article IV, § 16 of the Virginia Constitution forbids the General Assembly from appropriating public funds to most non-Commonwealth-controlled charitable institutions, but it expressly allows the General Assembly to authorize localities to make such appropriations.

The General Assembly has authorized a series of local appropriation powers:

• Localities may expend locally derived revenue to promote the locality's resources and advantages.
• Localities may appropriate for purposes for which they may tax, for support, for performance of functions, and other lawful purposes.
• Localities may appropriate public funds, personal property, or real estate, and donate, to charitable institutions or associations located within their limits or serving residents of the locality.
• Localities may form and maintain associations to promote the interests of political subdivisions of the Commonwealth.
• Localities may join regional organizations and appropriate funds for the welfare and economic interests of the locality.

Under the Dillon Rule, local powers must either be expressly granted, fairly implied, or essential and indispensable, and any doubt about the existence of a local power is resolved against the locality. The AG found that the statutory grants gave clear express authority for spending on associations like VACo and VML.

Citations

• Va. Code § 2.2-505 (Attorney General opinions)
• Va. Const. art. IV, § 16 (General Assembly may authorize localities to appropriate to charities)

Source

• Landing page: https://www.oag.state.va.us/annual-reports-opinions/official-opinions
• Original PDF: https://www.oag.state.va.us/files/Opinions/2012/12-041_Cole.pdf

Original opinion text

COMMONWEALTH of VIRGINIA
Office of the Attorney General
Kenneth T. Cuccinelli, II
Attorney General

June 29, 2012

The Honorable Mark L. Cole
Member, House of Delegates
Post Office Box 41965
Fredericksburg, Virginia 22404

Dear Delegate Cole:
I am responding to your request for an official advisory opinion in accordance with § 2.2-505 of the Code of Virginia.

Issue Presented
You inquire whether localities have the authority to provide funds raised through taxation to nonprofit organizations like the Virginia Association of Counties and the Virginia Municipal League.

Response
It is my opinion that a locality may provide such funds to either the Virginia Association of Counties or the Virginia Municipal League. There is nothing in the Virginia Constitution that would prohibit a locality from doing so, and the General Assembly has provided ample statutory authority for a locality to do so.

Background
According to its mission statement, the Virginia Association of Counties ("VACo"), whose origins spring from the early 1930s, "exists to support county officials and to effectively represent, promote and protect the interests of counties to better serve the people of Virginia." VACo represents its membership of 95 localities at the state and national levels in legislative and regulatory processes; its legislative steering committees monitor state and national legislative activities for changes affecting local governments and recommend an annual legislative program. VACo, which also seeks to serve as a valuable resource network for planning and implementing new ideas and technologies, publishes a periodic newsletter and legislative bulletin and offers educational seminars.

The Virginia Municipal League ("VML") describes itself as "a statewide, nonprofit, nonpartisan association of city, town and county governments established in 1905 to improve and assist local governments through legislative advocacy, research, education and other services." The membership includes all 39 cities in the state, 156 towns and 10 counties. VML is governed by an executive committee made up of local government officials. VML's policy and steering committees recommend positions for the league on issues of concern through development of annual policy statements, while a legislative committee recommends a legislative program for adoption at the annual conference.

Applicable Law and Discussion
In your letter, you refer to a previous opinion of this Office addressing the application of the state constitutional provision against appropriations to charitable organizations not owned or controlled by the Commonwealth. That opinion, and the constitutional provision, concern only funds appropriated by the General Assembly and expended from the state treasury and therefore do not apply to your inquiry involving expenditures by local governments. Rather, as the prior opinion relates, Article IV, § 16 provides that the General Assembly may "authorize counties, cities, or towns to make appropriations to any charitable institution or association." The opinion then notes that the General Assembly has enacted enabling legislation permitting such donations. The question thus becomes whether the contributions you posit fall within the purview of that enabling legislation.

The power of a local governing body, unlike that of the General Assembly, "must be exercised pursuant to an express grant[.]" Localities have "only those powers which are expressly granted by the state legislature, those powers fairly or necessarily implied from expressly granted powers, and those powers which are essential and indispensable." Further, any doubt as to the existence of the power must be resolved against the locality.

Generally, a "locality may make appropriations for the purposes for which it is empowered to levy taxes and make assessments, for the support of the locality, for the performance of its functions, and the accomplishment of all other lawful purposes and objectives . . . ." In addition, the General Assembly has specified several entities which, in certain circumstances, may receive gifts and donations from the local fisc. A locality further is authorized to "make appropriations of public funds, of personal property or of any real estate and donations ... to any charitable institution or association, located within their respective limits or outside their limits if such institution or association provides services to residents of the locality[.]"

Furthermore, localities are empowered to "form and maintain associations for the purpose of promoting, through investigation, discussion and cooperative effort, the interest and welfare of the several political subdivisions of the Commonwealth, and to promote a closer relation between the several political subdivisions of the Commonwealth . . . ." They also are authorized to join regional organizations and "to appropriate funds to such organization or to provide goods and services to such organization, all for the purpose of advancing the welfare and economic interests of such locality and the citizens thereof." Finally, a "locality may, in its discretion, expend funds from the locally derived revenues of the locality for the purpose of promoting the resources and advantages of the locality."

Although these statutes do not specifically reference either VACo or VML, the authority the General Assembly has granted localities through these statutes permits a locality to provide funds to VACo and VML, regardless of whether VACo or VML could be classified as charities. Given the lack of a constitutional prohibition and the statutory grants of authority referenced above, I conclude that localities may provide funds to these organizations.

Conclusion

Accordingly, it is my opinion that a locality may provide funds to either the Virginia Association of Counties or the Virginia Municipal League.

With kindest regards, I am
Very truly yours,

Kenneth T. Cuccinelli, II
Attorney General