The Attorney General of Texas 

March 22, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. em 12549 

Austin, TX. 76711. 2546 

512/475-2501 

Telex 9101674-1367 

Telecopier 5121475-0266 

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Dallas. TX. 75201.4709 

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El Paso, TX. 79905.2793 

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San Antonio. TX. 76205.2797 

512/225-4191 

An Equal Opportunity/ 

Affirmative Action Employer 

Mr. Kenneth El. Ashworth 

Coordinating Board 

opinion No.MW-459 

Texas College 8 University System Re: Award of merit Pay 

P. 0. Box 12788, Capitol Station increases by coordinating 

Austin, Texas 78711 board 

Dear Mr. Ashworth: 

You ask whether the Coordinating Board of the Texas College and 

University System may use appropriated funds to grant merit bonuses in 

lieu of merit base salary increases. That is, whether the board may 

recognize superior performance by the award of a one-time payment or 

payments over a limited number of months rather than by a permanent 

increase in base salary. 

The board's appropriation is found in article III of the 1981-82 

General Appropriations Act. Acts 1981, 67th Leg., ch. 875, at 3725~. 

Article III, section 22 of that act applies to "agencies of higher 

education" not covered by section 1, article V of the act. Section 22 

provides in pertinent part: 

Funds are provided in the appropriations made to 

those agencies covered by this section in 

sufficient amounts to permit annual salary 

increases as follows: 

(a) All regular employees, excluding ranked 

faculty in the ranks of Professor, Associate 

Professor, Assistant Professor and Instructor in 

the general academic universities; professional 

positions in the Texas A & M Services; and faculty 

and professional positions in the health science 

centers and other medical education programs, 

shall receive a minimum annual salary increase of 

14.3% in fiscal 1982 and 8.7% in fiscal 1983. 

Such increase shall be in addition to the salary 

rates as of January 31, 1981, and shall apply to 

only those salaries paid from funds hereinabove 

appropriated. 

p. 1596 
Mr. Kenneth H. Ashworth - Page 2 (Mw-459) 

(b) Funds are provided in the appropriations 

to agencies covered in this section to permit 

salary increase in fiscal 1982 of 17.06% and 8.7% 

in fiscal 1983 for all employees excluded by the 

preceding section. Salary increases for these 

employees are to be awarded on the basis of merit 

and performance in accepted activities including 

teaching, research and service. Such increases, 

if any, are in addition to the salary rates as of 

January 31, 1981, and shall apply to only those 

salaries paid from funds hereinabove appropriated. 

It is expressly provided that institutional 

administrators may grant merit salary increases to 

employees whose job performance and productivity 

is consistently above that normally expected or 

required. (Emphasis added). 

Article V, section 1 of the General Appropriations Act does not 

apply to the board. That section speaks specifically to the issue of 

merit pay increases for covered agencies. The board is not, however, 

exempt from the terms of article V. section 2 of the act. Subsection 

a of that section provides that: 

All annual salaries appropriated by this Act... 

shall be paid in twelve (12) equal monthly 

installments, except as otherwise provided in 

Article II of this Act. 

Cf. General Appropriations Act, Acts 1981, 67th Leg., ch. 875, art. 

III, §8c, at 3719 (nine month employees). The Texas Supreme Court has 

noted that "a salary is a fixed compensation for regular work." 

Wichita County v. Robinson, 276 S.W.2d 509, 513 (Tex. 1955); see also 

Attorney General Opinion H-1223 (1978). Webster's Third International 

Dictionary defines salary as "fixed compensation paid regularly... for 

services...." Cf. General Appropriations Act, Acts 1981, 67th Leg., 

ch. 875, art. Vxd, at 3791 (merit salary increases to be given on a 

monthly basis). 

Article III, section 22 speaks of "annual salary increases;" 

while article V, section 2a requires that salaries be paid in equal 

monthly installments. We believe this statutory language, with the 

judicial definition of salary, requires us to conclude that the board 

may not grant one-time bonuses in lieu of merit increases to base 

salary. The board must either maintain existing salary levels or 

increase base pay in recognition of exceptional service. 

p. 1597 
. 

Mr. Kenneth H. Ashworth - Page 3 @fW-45g) 

SUMMARY 

The provisions of the General Appropriations 

Bill for 1981-82 fiscal years preclude the payment 

of one-time merit pay bonuses. 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Carl Glaze 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Rick Gilpin 

Patricia Hinojosa 

Shawn Jamail 

Jim Moellinger 

p. 1598