Opinion

Untitled Texas Attorney General Opinion

Court
Texas Attorney General Reports
Filed
Jul 2, 1949
Status
Published
On the bench
Price Daniel
Cited by
0 cases
Authority
More cited than 3.5%

The opinion

Ausx-m, TIEEAB

-GE LDANIEL

---

i&ria -1.1, 1949

,, .., .

Hon. H. A. Hull, Chairman ’ Option No. v- 784

Committee of the Whole

House of Repres~entatives Re: Constitutionality of S. B. 19,

51st Legislature 5lst Legislature, supplement-

Austin, Texas ing State Aid appropriation

for teachers’ salaries.

Dear Sir:

Yo~ur request for anyo&ion’of ‘the Attorney General in-

quires as to the’constitutionality of Senate ‘Bill 19.’ Slst Legisiature;

now pending in the House Committee of the Whole, and whether anyof

the money appropriated thereunder may be used kthe payment of in-

t.$rest on moniy~ bor:owed by any individual or’Subdivision ,of the gov-

ernment to meet the obligations proposed to be covered~by~ this supple-

mental appropriation bill, .:

Sections 1. 2, and 3 of tbe~pro$o&d bilI are:

“Section 1. There is hereby . . . appropriated.

the sum of Three Million ($3~,000.000.08) Dollars .as.

a supplemental appropriation to the funds appropriated

for salary aid in House Bill No. 295 of the Acts of the

Regular Session of the 50th Legislature.

“Sec. 2.’ The ‘funds herein aspropriated are to

be used to supplement payments for salary aid for the

first year of the current biennium 1947-1948 Andyfor ’

any other legal purpose. It is specifically provided

that the expenditure of this supplemental appropriation

shall be made under the same~t.&ms and conditions and

in the same manner as~the payment of the regular ap-

‘propriation for salary aid provided in House Bill No.

295, aforementioned, were made, and is to be propor-

tioned by the, schools which are eligible to receive such

.

aid under the provisions of House Bill No. 295,,whlch

schools have been approved for certain amounts, here-

Hon. H. A. Hull, Page 2 (V- 784)

tofore, so that each school is to receive the same

proportionate share of this supplemental appropria-

tion, and the amounts prorated to each school out

of this supplemental approprfation together with the

amounts heretofore appropriated for salary aid in

House Bill NO. 295 is hereby designated to be in full

and complete payment of any claim made by any

school for salary aid under House Bill No. ~2.95 for

the first yea&f k&e &-rent biennial i94;%1948. ‘, “’

:’

“Sec.:3. All applications for salary a&in I1 ’ ~. ~~’

order to be eligible to participate in the provis~ions

of this Act, shall be eligible for aid under the pro&- ‘. ” ‘-

siotis of House Bill No. 295 of the Acts of the Regu-

lar Session of the 50th Legislature.”

The 58th Legislature ,in Article,%III of H. B. 295, the

State aid,school law fork the biennium 1947-49; made ‘the following ap-

...

propriation:

“Section 1. ‘Appropriation. Par the purpose

of promoting the. equalization ‘of educational oppdi-

.

tunities afforded by the St& of Texas’ ‘to all enu-

merated scholastics within the State‘.as hereinabove

set out. there islhereby,appropriated out oft the Gen-

erdl Revenue Fund of the St&e k Texas,~ not other-

wise appropriated, .the sum .of Eighteen hlilliop Dol-

lars ($18.000,008) for the fiscal ‘year ending August

31, 1948. and Eighteen Million Dollars ($18,800,008)~

fork the fiscal year ~en.ding August 31. 1949, or so much

thereof as may be necer iary for the bienniums ending:

August 31. 1949; to be allocated and expended under

the provisions of this Act by the State Department of

Eclu+lon and under the supervision, of the Legisla-

tive Accountant. _; .. :, __;~:

‘Sec. 2. Allocation.. It,.is he&by.specifically

provided that out of t&money appTopriat&d ~for.e&h

school year of the biennium! the sum,‘of Ten lvlilliou,

Seven Hundred and Seventy Th+is&D~llars, ($18.778,

000) is hereby s.et aside for salaiy aid: . .,.”

It has developed that the 50~~‘~L~gis~atur~‘underesti-

mared the total valid ,claims of elig+ble school districts for teacher

.’

Hon. H. A. Hull. Page 3 (V- 784 ) ; ~.~~ - ~~ ‘~ :, 2 ,:. ’ ‘. ._

salary aid under H. B.: 295.. presumably to the;extent .~f.~.Sa.000~,00q.O9..

for the 194,7-48, year of the biennjum ~s+r+d to .the. extent .of $8.088.080.80

for the 1948-49 year of the biennium, ‘kpxding: to :the estimates. fixed

in proposed~ 9.~ B. J9,.

..,, ., . ..

Our s,tuay. ofi& law relatiirg’:to this proposed &isla-

&n’ has ret&red a thorough’investi&ioq of the background,. facts,

and~purpqses’. Gf the, appropriation. !C$is~ $a .true:especially ~with ref-

&ei&tO the prop,osed~$3,08b,OOO.O8’to pay in full the.t&al salary,.,~

aid, appIied for by eligible districts~ acting under, H., Bt 395~ for Ethel; .

1947-48 fiscal yeaqthe first year oft the .pre+ent ,bien$um,, : i, .,::

.., ,~

. Wee finds that the 58th ~Legisiatqrey in Ax$& IH of k k.

2.95 fried the salary ‘schedule’ and Jength of, &m’.t&che,rs tb&e$n~shall

serve:and be paid, Eighteen million dollars <“or so much’ thereof as ~,:

may be~necessary” was appropriated for each year of the biennium.

When teacher contracts were entered prior to September 1.1947; ther~e

,was no.apparent reason to doubt the sufficiency of the appropriation;

: The Act provided that, ‘Districts~ receiving aid under the .provisfons

of this Act shall issue warrants for not to exce,ed the amount approved

in the budget . . ;~” The’budgets of .the varjous:,scho@ districts, which

were prepared in August 1947. were approved by the State .+gency. On

the basis of such approved budgets. various contracts with teachers

were entered into.

However, as early as, O&be4 .,& 1947,~ .it ~was _:&ident.

and so announced to County S.upeti&ndents and Superintendents .of.

E&alization Schools .by.letter from~ ~the,Director of F,&lination, State

.Department, of. Education that”salary aid ,w$ll’be approximate>y ,I656

shor~t ,th+ _year.’ That .Jetter sa+d further: .~ : : 1, ~.: :, .-~,

“The&&B be no cut of ite’ms in the b~udget,,, ;’ 1’

but the.‘reduc&in:.wi$.

,. ~~ come in the mG. .salary.grant. .,, ’

Jo ., .,on :a! percentag.e. basis.~ Teachers’ salarie,s:m@.& .I: ;: /s ,’

conwue’to be paid on the schedule; If the schoo$ . . .. . f,

does not have enough money in the allowance per

. .:. tea,& ~and/.or. local tax above the 50$ rate to pay

,, ,ule tot+ salaries for.& full term,,‘it will be net?,. j :.

ossary to cut .the term short ,N avotd a defi.c% in,

the~&uda .of the.$ocal school,..B.is ‘not advisable to .,.’ ~.’( ” ~1.

run into a def$c$f,* .,.

By Ma&h 26? 1948, it wasevide’nt and so announced by

then‘l%ekt& ‘bf~~ipi&z+io~ t&t final salary aid payments for-194’7-48

1411,Hon. H. A. ‘HuIl, Page 4 (V- 784 )

would be 20% short instead of 16%. In the meantime a specialsession

was requested by the Texas State Teachers Association and certain ..

school and State officials to make up the deficit, Thereafter, the Go+

ernor worked out a plan by which the banks of Texas would advance ~.

necessary funds to the teachers or the districts to keep the schools

open for the full term> and avoid a special session of the Legislature.

i

.Gn April 1. 1948, -the Joint.Legislative Committee, after

conference with the .Governor and State Superintendent of ‘Public In-

struction, adopted a resobttion’requesting the State Superintendent to

make payment of 50% of State-aid grants ‘tothe school districts “at

the earliest time possible, the first week in September, for the next

fiscal year beginning September 1, 1948.” The:purpose of this advance

payment, for the 194~8-49 fiscal years was stated in a letter of August 2,

1948. from the Directorof ,Equalisation.to County Superintendents as

follows: .’ ‘.~;

-,

‘The advance ,p+yment is being made early

in 1948149 in order to make up ,for the deficit on

1947-48 until the Legislature meets’ and makes ad-

dition&funds ~availabl,e.‘” :.

It ~appears that various school districts and banks used

various methods to provides funds for teachers’ salaries’ during the

deficit period.. A few districts are reported to have made no addi-

tional payments, merely~proinising to do so if and when the money is

made availabie by the ‘Lk@sl$ure. Other districts issued deficiency

warrants iinciek Sictipn 2 Of’Article IX of H. B. 295. In some cases

the banks’ m’ade ~persbnal~loans to’the teachers to be settIed if and

when their additional warrants are.paid. However, most districts

are said to have borrowed the necessary funds direct from the banks

and already repaid them out of the advance of rural aid funds for 1948-

49. In the latter instances;‘there his now’~no debt tomthe bank3 for 1947-

48 salary advances, the sesame.already having been paid from 1948-49

funds.

:._ .~ .,

~For the sake of~the record, it should be not&d that the

Attorney General was not consulted as to the validity and~constitu-

tionality of these ‘transactions. oneany phase ‘of tbls question., The plans

were negotiated and followed without our knowledge or”advlc&

we are calle.d upon~now for the.first time to pass upon

the legality of, this borrowing by the -school districts because of your‘

Hon. H. A. Hull, Page 5 (V- 784) y ~~ ’

question’as’ to whether ,the’Legislature’can authorize payment of in-

terest on money borrowed b,y any individual or district to meet any

portionof the !$3,008,000.08 deficiency; .This we answer in the nega-

.I

tive,

-School ~Districts are not authorized, to ,borrow money

in excess of their anticipated current year revenues. Clearly H. B.

295, Acts 1947; 1contains .no~pr,ovision ‘authorizing eligible districts to

borrow money and pledge anticipated revenues therefrom in ~payment

of loans.

,..:

Article 2827, ,V. C.. S.; authorizes a’school district to

bor,row ‘money on a short term loan to pay, salaries and interest

,thereon, but it has ~dhfinite limitations which control:~our present

question. It reads ~in’nart as followsi

“The public free school funds shalI not be

exp.e.nded except for tbe~foIlowing purposes:

7’

“1. The State and county avail.abIe funds

shall be used exclusively for the payment of ( ~.

teachers’ and~superintendents”salaries, fees

for :taking the scholastic census;’ and interest tin;

money borrowed’on short time topay-salaries ~~.. ,‘:

of teachers and superintendent.s,~ wbenthese ~sal-.

aries become due before the”schoo1. funds for then.

current year become available; provided that no :

loans for the purpose’of’payment of teachers :I

shall be paid out of funds other than those’for the.

then current.year.”

.

.~.

‘ ~..

‘A&m&that State-aid funds are’ inciuded,in-the above

authorized use, they are specifically~litnited to Yhose for .the then

current year”. No district could have anticipated full State-.aid salary

payments Zbr 1947-48 after’ being notified of at least a 16% shortage by

‘the Director of’Equalization on October,l5, 1947. ‘as heretofore sit,Out.

At such time when those sources bf school revenue which could be.

reasonably anticipated by the district proved to be inaufficient..to meet

the expenses of that current school year, the district trustees were

without authority t&borrow money and pay interest thereon for the

Payment of its teachers’ salaries.

This has been ,&e consistent holding, of,our Supreme

Court under statutes other. &&I. ,B; 2~95. Thus in Collier v. Peacock,

. .

42

Hon. H. A. Hull, Page 6 (V- 784 )

93 Tex. 255, 54 S.W, 1025 (1900). the Court held:

Y. . . the trustees were not authorized to

contract any debt which would cause a deficiency

in the school fund of the district; in other words,

they’ could not contract debts in employment of

teachers to an amount greater than the school

fund apportioned to that district for that scholas-

tic year. This limitation upon the power of the

trustees in making the contract with the teachers

necessarily limits the payment of the debts . . .

and any debt contracted greater 2 . . would be a

violation of the law, and constitute no claim

against the district. . . . The trustees were au-

thorized to expend the sum set apart to the dis-

trict, but not empowered to contract a debt

against-then funds of future years . . . .”

And in Warren v. Sanger I.S.D., 116 Tex. 183, 288 S.W.

159 (1926), the Court wrote:,

~’ )

>

“The ‘act of defendant trustees, however

commendable. the spirit in which it was done,

creating the debt here sought to be paid, was.

void. It was contrary to the express provisions

of law.:;:.‘art. 2749 forbidding trustees to create

a deficiency debt .against the district in the em-

ployment of teachers. The debt as against. the

district being void, there was nothing for the (~

school authorities t&pass on. . . They.couId.in

no event,, have decided in favor of the application

of the. 1925 .taxes to the payment of the deficiency

cre,at+d in a ~previous year.” ~. .’

‘.

. .

~’The most recent: case fin point is that of C~ity State Bank

of Wellington v.. Wellington I.S;D... 142 .Tex.~ 344, ,178 S.W.2d 114.(1944)

where Justice.Brewster said for the Court;

”

. to permit,the,‘bauk

. . to recover.from

the district’s delinquent maintenance taxes on ~: .‘/ ‘:

checks issued against its available school fund,

. . . would be to circumvent the express provi-

sionS of Art. 2749 . . ~. as wel1’a.s. the plainly im-

plied prohibitions of Art. 2827, .L. . unequivocally ‘~’” ‘.

-’ -..

. .

Hon. H. A. Hull, Page 7 (V- 784 )

( / .‘~,. .~.

.

provides that ‘trustees, in making contracts with

teachers, shall not create a deficiency debt against

the district.* . .~ . That is, no valid debt can be

. .. ‘created’against the ‘available fund; to .pay teachers .~~;

’ ; : ‘. .~,d&+s ,a&, c&&nic:m’bs p&d out of avail&le.cw&; ’ :,

&o&g iiif~r~that~~ear~~;.,“,, ,:I ’ :..’ I”’ ‘s.y;~.~-:.,_, - :

,<~‘. “: _,_: :’ ‘.~.: .~. ‘.. .~

2: ,oUy. ~ox&.itu&~~~ &&ide.~~ i&h*, ~The~,Le&lati& shall

haveno power :. . T to ; ;:I pay. nor authqrine ,the paymentof,~,any claim

created against anycounty or munipipalityof the,.State. under any, .agree-

ment or contract, made without authority of law.’ Art; III, Sec. 53. A

scbool~district is-a !‘munlcipallty” =&binthe ,meahing of that Section.

:,. Har1ingen~~:I.S.D. v. ,C,.H, Page 8. Bro.,~,.48..S.SV.2dY983.~, (C,omm. App. ~1932).

,.,

.Therefo.re. the Legislature is without authority .to appro-

pii+ moneyto ,pay interest on,such unauthorized debts’ or to payd,the

debts. themselvest .

. &&, &gate+er &i.he ~said’.her&&f&r .a&ut pr&xib.ng

‘;+&, $ip&jrhg a $‘i&&t. apjii+a&+ f&..p+,.&nt~+f 1947-48~ teacher

;&$i’es,~‘&& ;&me &dd”no+ aiiply..to.& appr:opriation ‘tobajt inter:fst od

.<

ftinds.borro$ed for ~such purposk,‘by ‘then“i5trict~or;~y~in~~dual. ‘,

i;. . ..

Section:44 of .Article III, ‘Constitution~of :Texas,.prouides

gp&: 1; .,:

.“. :

: : ‘. -_ ;

“The Legislature &II not ; . .! gfa+, -by .: ~. .’ .:;I .,~,+-

appropriation or otherwise, any money out.of the

. ,)i Treasury of the State to .eny.individual, on a claim.

v~: .real.,or pretended, .when the:same, shall .not shave..

. . been~.provided for.by pre,existing~ 1a.w;~. ~W+* ;’ ~~ I~

. -, .’ ~.~ :_ T.;

Neither H. B. 295,~ Actsl947,, nor any others pr,eaxis+g

law, authorizes borrowing of money and.payment of interest thereon

by a school district. or. the St&e, unclqr: the. circumstances noiv before US.

‘Therefore. in the absence., of .the:required preexisting,law. an appro-

priation to pay interest or the use of any part of: the ~money’appropriated

byeS. B. 19 for payment of interest would be’unconstitutional.

. $ .B. ,.i9 doe; no; C‘pecin&&$ ‘i;lkntio& inte;est, but You

have asked the question under- the impre.ssion fhat payment.of.:inter-

est was contemplated by the following underscored portion of the

phrase in Sect& 2, “6 be u&d‘t& supplement payments for salary

aid . . . and

” for’

..&, &&ie 21 &‘-yoiee” .; ~‘

mese mder&$e~a wor&

,.

replace the Gords “and for no other pimp&e* .-in other ‘similar bills.

It is our opinion ‘that “the: phrase ‘“a&i for ‘any other’ le-al Purpose”

will not itself support the e%pendlture ‘of ‘any,money for’any’purpose,

because it is too~bro,ad,~.general,and uncertain. Section 6 of Article

VIII of the Texas Constitution provides, “No money shall be drawn

Hon. H. A. Hull, Page 8 (V- 784 )

from the Treasury but in pursuance of specific appropriations made

by law. ” The phrase above quoted cannot qualify as a specific appro-

priation. National Biscuit Co. v. State, 134 Tex. 293, 135 S.W.td 687

(1940); Dallas %ounty v. l&Combs; 135 Tex. 272, 140 S.W.2d 1109 (1940).

It should be rewritten so as to state clearly and specifically what it

is intended,to cover. ~If it is intended to cover an illegal expenditure

such as interest, the phrase should~be eliminated.

While the Legislature cannot constitutionally appro-

priate money to pay interest on unauthorized debts of school districts,

our next .and most vital question presents an entirely different prob-

lem. The cases heretofore cited dealt with powers of the districts

under the general statutes. The districts clearly had no power, under

the above cases, to borrow any money for the purposes here under

consideration. But now we are considering the Legislature itself and

its power to correct and amend in the same biennium its own estimate

of ‘the amount of money it feels necessary to carry out a program it

prescribed itself and proposed to carry out through the various dis-

tricts. The question now is whether the Legislature may supplement

the appropriation of the first fiscal year of the present biennium for

the purpose of paying direct to school districts the amount of salary

aid they qualified for and owe to their teachers under H. B. 295 for

the 1947-k8 &ho&year.

Here we have no question of preexisting law. H. B.

295 provides that the teachers shall be paid a salary within certain

specified limits. It provides the,length of the school term. And it

authorizes the issuance of warrants to cover such contracts. It pro-

vides in Section ~2 of Article IX that:

“Districts receiving aid . . . .shall issue

warrants for not to exceed the amount ,approved

in the budget . . .*

...‘.

Further, the Texas Constitution, Section 1, Article ~VII, reads:

“A general diffusion of knowledge being es-

sential to the preservation of the liberties and ”

rights of the people, its shall be the duty ,of the ~Leg- -

islature of the State to establish and make suitable

provision for the support and maintenance, of an,

efficient system of public free schools,.”

. .

Hon. H. A Hull, Page 9 (V- 784),:::. .‘.i: :: !j T ~. .: ..:X.:T

.-‘;i’, ,. ~:,, .,,‘.~, ., .:, ,,.

.&d in Se&oh 3 of .+.hd,&me :&r&lei; we read:’ . : ;

,. : i .” : I~ i ., ..~.>,:~

y . ’. ; provided.: ;howev&; that sh&ld the :

limit.of ~taxation herein named. be insufficient the :

deficit may be met by appropriation from general

funds of the, State . , .”

,

~The’use of generel’:fuirds’ for paid to rurkiikhools and

-the broad atithdrity of the Legislature in such matters was ,settled by

the Texas .Supreme~Colvt in~Mumme~v:Marrs,:lZO Tex;-383, 48 S.W.

2d 3l,.whereip.the.Court~said:‘. ‘~ Y. .; . ” ,~ ,.., .,e. .Y:- ,.~

.: .‘..:I

.1 . ,-Since the Legislature .has the- mandatory

~1dutyto &ake’suiGible provision for the support

cand ~m’aintenarke of ;anefficient system ‘ot:publ,ic “1 ; .j’

‘~* ~’ free. sk!hoo&. ‘and has the power to pass rury,~law :i~

;;relative thereto;not prohibited by .the. CoastituY _.: :

tion; it necessarily ,foilows that it has a choice in- .>

: the selection of methods by,. which the ,object .of i ,. : ,_

the organic law may beg effectuated. The Legis-

.‘J:‘:lature alo&is to judge what means- are:nec.essary 5

.

‘and approprrate for a ,purpose which the Constitu- ? -: :, J’;,.

’ .‘., T:,: -tion makes legitimate. The Legislative-determi-,. .. :“‘Y’ ; ;

,’ .‘:.nation-of the.methods. restrictions, and regula-.:: .:i: I :~ :..

:-.: :-i tions -is final, except when so arbitrary.as- to .be ,:+. ; ,..,’I:‘:. ,,

.” violative of~.the~‘Constitutioual~rights of. the citizen.?~ ~.,: :I.

.. . .~ ,,. ,. ,,,.il. ._,;-. ,iz . ..::i..

Under this Constitutional authority. the Texas. Legis-

lame has many times~ supplemented rural aid funds.for previous

years of the same biennium. In those instances, as in the .present ~.

case, the previous Legislature underestimated .the needs.for the.”

biennium. : The previous Legislatures, having appropriat+,a lesser

sum than was needed. left no -duty or legal.obligation on the subse-

quent Legislatures’to ma&e a supplemer& But each subsequent Leg-

islature has evidently assumed that the Constitution and: former ap-

propriation bill was sufficient.preexisting law.:.towarrant the use of

its discretion in mahing the’supplf?mental,appropii~~on.!: ,Seme Of

the past instances are 8s foliowsi. ~::. -~~, :.’ ‘. ._:: ~..: , ‘..:i. .:

‘.: : I

:

.’ > ~.l;,*In1,929 the 4lst.,Leg&ure(H. B. ,l26,

8,Acts 1929. 2nd C, S;, P. 19) supplemented ,the; ku& .z.,~’z :: . :!. ?’

1 I~:. ral Aid Bil$.of 1927 (S; ‘k. .7,-Acts 1927;lst.C.; S.,., : .) .,. ‘. I ,:

P. 105) in the sum of $450.000.00.

Hon. I-I. A. Hull, Page 10 (V- 784)

2. In 1933 the 43rd Legislature (S. B. 242,

Acts 1933, p. 530) enacted a supplemental appro-

priation of $1.620~000.00 to the 1931 Rural Aid Law

(Chapter 272, Acts 1931). It authorized the use of

this money in tabulated amounts for the priorbi-

ennium years of 1931-32 and 1932-33.

3. In 1937 the 45th Legislature (H. B. 600,

p.,585) supplemented the Rural Aid Bill of 1935

! for the first year of that biennium. The Attorney

General of ~Texas, at least by implication, approved

the constitutionality of that bill. (Letters of<Attor-~

ney General, ~Vol. 377, p. 761,762.)

4. In1939 the 46th Legislature (H. B. 978,

.Vol. II, Acts 1939, p. 493) supplemented the salary

aid appropriation of 1937~by $718.255.00; Section ’

.3 thereof gives the purpose: to supplement pay-

ments for salary aid for the “first year of the bi-

ennlum 1937-38 and for no other purpose.” Lo

Theses above designated supplementary rural aid ap-

propriation acts, in so far as we &now. were unchallenged in the

courts. Thus, as .has .been shown, the Legislature in 1929, 1933. 1937

and 1939~. has consistently construed the Texas Constitution as per-

mitting the enactment of rural aid supplementary ~appropriations for

both the first and second years of a current biennium. The execu-

tive department has approved and exec.uted these laws.

As stated by the .Texas Supreme Court in Mumme v.

&larrs. 128Tex. -383; 40 S.W,Zd 31 at page 35: ~’:

~,

._,~ / .~~i.:~

- ‘I’ i’ “. A,~‘;.The ~universal rule of .constructioa.is .~

: ~that-legislative and executives interpretations of the

.: ~ .~organic laws, acquiesced .in and long continued,~~ as

in the case before us,. are of great weight fin deter-

mining tbe~ vdidity of say Act. and in case of ‘ain- ~.

.biguity. Or ~doubt will be followed by the: Courts.” ~.

(Emphasis added by Supreme, Court.)

: A recentopinion by the Attorney.General. V-376,

holds that it is within the-.Constltutional .power and, discretion of the

Legislature ,to supplement a ‘current ~biennial appropriation. The

facts ther.e: were that the ~appropriation for: ,the ,Texas Prison System

was’ insuffdcient to feed and.olothett+ ‘p,r:i,soners. Of ~course, .a djffer-

: Int:ti.e %odld apply after the. end of t&:bienndum. ,,:: :,

~. L<(, , _ ,, :. I .::.:,, :--‘~ ‘,.

i : It is ‘our opinion., therefore.,.that. the ~5Ist Legisjature

duringthe present~biennium has authority.~..make~,an:appropriatipn

-suppk%irenting~ a priur appropriation made by the 50th Legislature.in

E&B;,:295 for salary aid purposes, since$.he. prior Legislature under-

estimated the amount.nee.ded to pay.in.fuJl the~salary.aid cJaim,s,le-

~GgalIy;made

., .I by eligible school districts acting under,,the, provjsjon .of

.‘H. B; 295,‘~ in the &947,-1948 and the. 1948.-1,949 school. years,?, -‘;

.~ ..,

This opinion contemplates that the money appropriated

by S. B. 19. now under your consideration, for 1947-48 will be used by

the school districts to pay their unpaid teacher.s for the 1947-48 year

by issuance of warrants~to them or,~‘pay%ent of outstanding warrants.

As previously .stated. .since: the districts wer,e~ not authorized to bor-

row the money, no part of .the contemplated appropriationshould be

used torepaygistrict debt& .Lihev+e it contemplates.,t+t the sum b

appropriated foi:the pre.sent .1948-49 fiscal year .+6ll be us.ed only for ;[.

State-aid authorized and applkd forduring this~ f+.s+ year..

_. . .. c

If any other lawfi ‘use ‘of the money ‘i~co&mplamd,

.the bill should be redrafted accordingly. For instance, we think it

our duty to observe that most sShool..dist~icts,followed the sugges:-

tions of the State :offici@s heretofore mentioned. land .paid their teach-

ers or the banlcs..the 1947~48’shortage out,ofthis.year~s. (J948-49).,:

appropriation; Such action.was. unauthoriaed,~by; law. ;I+ .-to the en-

tent the 1947-48 deficit has been paid; out of 1948-49. funds, the final

shortage will be ,in, the present fiscal :year r.+ther ,thq last year.

,~ _: ; . .~~

:‘h.o&r, words.‘ifm.e entire’ $3,.Od~,OOCl.O0 oft the.

1947-48 deficiency has already .been paid outs of .the appropriation for

the present fiscal .year, thqr.e~is,nov! no indebtedness. toteachers for

1~947-48 which would supportthe, .$~3~0.00,;000.00 apprqpriatjon for

that year. The .$3,800.0~00.00 short.ag,e~:would,b,e added,.to the short-

age in the appropriation for ..,,

the .present,fiscaJ, year:.~., ,, I : ; .~:

‘.. ‘ i

Ifthe Legislature in,.gts .+sdpm and, discretjon wishes

to appropriate the total snxqnt needed’ to .settlej wifh&str~cts on the

basis of .H. B. 29~5 for the whole :49,47149 b,Qrmmam.. S.: B. t9 should be

rewritten ,m mahe~ the. unnaeded ba+nce. .fon .the, !9~47:48 fical year

available for thepresent, f&alyear ending ;Augu&3L !949;, in view

of the present state of’affairs.

.

Hon. H. A. Hull, Page 12 (V- 784 ) . ..’~.

The bill also contains an amendment to Section 2 of

Article III’of H. B. 295,~SOth Legislature, changing the present law

as to base ,pay for vocational teachers by adding the followings words:

“provided the proposed plan for such twelve (12) months’ programs

have beenappraved .individually~ and.in..advance by the State Board

for Vocational Education,” etc. This and other changes in teacher

salary schedules and qualifications for eligibility are constitutional;

but canuot be given a retroactive effect in such a manner as ‘to de;

stroy any presently existing contractual rights of the teachers ‘con-

cerned. Section 16 of Article I, Constitution of Texas; Federal Crude

Oil Co. v. ,yount-Lee Oil Co., 122 Tex. 21. 52 S.W.2d 56 (1932); A. G.

Opinion V-674.

SUMMARY

1. School districts cannot legally bo~rrow

‘money and contract for interest for payment of :. ~’

salaries in excess of their anticipated .current year~‘s

revenue. Art. 2827, V. C. S. Such loans being up- ‘.’ _ ‘,

authorized, no part of the proposed appropriation ,.

may be used to repay them nor to pay interest

thereon.

2.. The school districts under H. B: 295

were authorized to enter into the contracts with

their teachers on the basis of the State approved

budgets. While the contracts may not be.enforce-

able by the teacher ~where’the money to pay them

has run o&they nevertheless are valid obBga-

tions where there is~ sufficient money on hand ore

where then money is made available. in a~:lawful

msimer. Although the .Leglslature is not legally.

bound to supplement. its salary~ aid appropriation;

for 1947;49 to pay the obligation of, districts which

owe their teachers~ under such contracts, there .’

exists sufficient constitutional and statutory ‘au-

thority for the Legislature in its discretion to

make ~such funds’ avail.ble~ to the ~districts for such

purposes. Nor&of such funds should be used for ‘-

payment of ~un@ithorized ‘sehool’district loans or !

interest. Such ~supplemental appropriation is con- : ‘. ’

stitutional ‘Only if ma’diz before the lend of the cur-

2 :

rent biennium.

,Hon. I& A. Hull, Page 13 (V-784)

3. Most of the salary aid shortage for 1947-

‘48 has been met already from the advance’payment

~of 50% of the 1948-49 appropriation. While this pro-

cedure is unautboriz,ed by law and was followed with-

out the knowledge or advice of the Attorney General,

most of the 1947-48 deficiency has been extjnguished

and the 1948-49 shortage has been enlarged by the

same amount. Therefore, under the present state of

affairs, any appropriation desi,red to be made by the

Legislature should be redrafted to correctly desig-

nate the amount needed for each year or make the

entire amount available for the biennium rather than

-fork separate years.

Respectfully yours,

-%&$LzK+J

Chester E. Ollison

Assistant

The foregoing opinion was considered and approved in a con-

ference composed of the Attorney General and Assistants Joe Green-

hill, Charles D. Mathews, W. V. Geppert, and C. K. Richards.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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