Ausx-m, TIEEAB

-GE LDANIEL

--- i&ria -1.1, 1949

,, .., Hon. H. A. Hull, Chairman ’ Committee of the Whole House of Repres~entatives 51st Legislature Austin, Texas . Option No. v- 784 Re: Constitutionality of S. B. 19, 5lst Legislature, supplementing State Aid appropriation for teachers’ 

### salaries. Dear Sir: Yo~ur request for anyo&ion’of ‘the Attorney General inquires 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 int.$rest on moniy~ bor:owed by any individual 

### or’ Subdivision ,of the government to meet the obligations proposed to be covered~by~ this supplemental 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 proportioned 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 appropriation, 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. ~2.95for 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 Regular Session of the 50th Legislature.”

The 58th Legislature ,in Article,%III of H. B. 295, the State aid,school law forkthe biennium 1947-49; made ‘the following appropriation: ...

“Section 1. ‘Appropriation. Par the purpose of promoting the. equalization ‘of educational oppdi-

. tunities afforded by the St& of Texas’ ‘to all enumerated scholastics within the State‘.as hereinabove set out. there islhereby,appropriated out oft the Generdl Revenue Fund of the St&e k Texas,~ not otherwise appropriated, .the sum .of Eighteen hlilliop Dollars ($18.000,008) for the fiscal ‘year ending August 31, 1948. and Eighteen Million Dollars ($18,800,008)~ forkthe 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 Legislative 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~‘underestimared 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~$3,08b,OOO.O8’to pay in full the.t&al salary,.,~ aid, appIied for by eligible districts~ acting under, H., Bt 395~ for Ethel ; . 1947-48 fiscal yeaqthe first year oftthe .pre+ent ,bien$um,, : i, .,::



### .., ,~

. Weefinds that the 58th ~Legisiatqrey in 

# Ax$& IHofk k. 2.95 fried the salary ‘schedule’ and Jength of, &m’.t&che,rs tb&e$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 Instruction, 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 addition&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 additional 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 tom the 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~constitutionality 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 interest on money borrowed b,y any individual or district to meet any portionof the !$3,008,000.08 deficiency; .This we answer in the negative, .I

-School ~Districts are not authorized, to ,borrow money in excess of their anticipated current year revenues. Clearly H. B. 295, Acts 1947; 1

contains .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



### 7 ’ “The public free school funds shalI not be exp.e.nded except for tbe~foIlowing purposes:

“ 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 scholastic 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 authorized to expend the sum set apart to the district, 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 employment 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 provisionS of Art. 2749
. . ~. as wel1’a.s. the plainly implied 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 :. . Tto ; ;:I pay. nor authqrine ,the paymentof,~,any claim created against anycounty or munipipalityof the,.State. under any, .agreement 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 appropii+ 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 appropriation 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.:interest 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 drawnHon. 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 appropriation. 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. ~Ifit is intended to cover an illegal expenditure such as interest, the phrase should~be eliminated.

While the Legislature cannot constitutionally appropriate money to pay interest on unauthorized debts of school districts, our next .and most vital question presents an entirely different problem. 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 districts. 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 provides in Section ~2of 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 essential 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 paidto 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 ~1 dutyto &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 begeffectuated. 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. Legislame 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 subsequent Legislatures’to ma&e a supplemer& But each subsequent Legislature has evidently assumed that the Constitution and: former appropriation 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 :: . :!. ?’ 1I~:. 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 appropriation 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 priorbiennium 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 payments for salary aid for the “first year of the biennlum 1937-38 and for no other purpose.” Lo

Theses above designated supplementary rural aid appropriation 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 permitting the enactment of rural aid supplementary ~appropriations for both the first and second years of a current biennium. The executive 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 determining 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. Thefacts 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 underestimated the amount.nee.ded to pay.in.fuJl the~salary.aid cJaim,s,le- ~GgalIy;made by eligible school districts acting under,,the, provjsjon .of
., .I

.‘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 teachers 

### or the banlcs..the 1947~48’shortage out,ofthis.year~s. (J948-49).,: appropriation; Such action.was. unauthoriaed,~by; law. ;I+ .-to the entent 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’ $3,.Od~,OOCl.O0 oft the. 1947-48 deficiency has already .been paid outsof .the appropriation for the present fiscal .year, thqr.e~is,nov! no indebtedness. toteachers for 1~947-48 which would supportthe, .$~3~0.00,;000.00 apprqpriatjon for that year. The .$3,800.0~00.00 short.ag,e~:would,b,e added,.to the shortage 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. 29~5for 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 ‘concerned. 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.enforceable by the teacher ~where’the money to pay them has run o&they nevertheless are valid obBgations where there is~ sufficient money on hand ore where thenmoney 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 ‘authority 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 current biennium. 2 :,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 procedure is unautboriz,ed by law and was followed without 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 designate 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 conference composed of the Attorney General and Assistants Joe Greenhill, Charles D. Mathews, W. V. Geppert, and C. K. Richards.