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# The Attorney General of Texas April 14, 1980 MARK WHITE Attorney General
Honorable Selden N.Snedeker Criminal District Attorney Cameron County Courthouse Brownsville, Texas 78520 Opinion No. NW-169 Re: Whether Cameron County may transfer funds within the 1979 county budget after the 1979fiscal year to pay a claim for county membership dues incurred during the fiscal year. Dear Mr.Snedeker: You state that Cameron County incurred an obligation for dues in a local area development organization prior to the end of the 1979fiscal year on September 30, 1979. Weassume, without deciding, that this constitutes a proper expenditure of public funds. See Attorney General Opinion H-397 (1974). The invoice for the dues wasyceived after September 30, 1979. Upon receipt of the invoice, the 1979 Cameron County budget contained insufficient funds In its “dues and subscriptions” budget item to pay the invoice. However, sufficient unexpended 1979budget funds are available for transfer from another 1979budget item. Youhave requested our opinion on three questions. First, must the payment ofthe membership dues constitute an emergency expenditure to allow a budget amendment? Second, can the 1979budget be amended after September 30, l979? Third, must the budget amendment berequested prior to January 1,1980? Your first question concerns the provisions of article 689a, V.T.C.S., particularly article 689a-11 and article 689a-20, concerning budget amendments. An RlPaso Court of Civil Appeals decision, affirmed by the Texas Supreme Court, defined the applicability of the emergency requirements ofarticle 689&l& V.T.C.S.

The quoted portion of Art. 689a-ll and Art. 689a-20 Seems to be the only provisions relating to amendment of the budget. Art. 689~11 is very specific as to when the county budget may be amended and the steps to be taken to make the amendment. It is thought that the restriction as to amendment applies only when new or additional expenditures not provided for in the original budget are sought to be added byamendment.

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Honorable Selden N.Snedeker - Page Two (NW-1691
(Emphasis added). Rains v. Mercantile National Bank of Dallas, 188S.W.2d 798 (Tex. Civ. 4~. - ElPaso l945),affirmed, 191 S.W.2d 850(19461. Following this interpretation, Attorney General Opinion C-499 (1965)outlined the procedures for transferring funds within the budget.

(Wlhere all of the budgeted funds for a particular line item have been expended, but there isa surplus in other line item accounts in the department budget, and the Commissioners’ Court reallocates the funds, transferring funds from the surplus line item account to the depleted line item account, this wouldrequire anamendment to the budget as contemplated by Section 20of Article 689a. Also, it is our opinion that funds may betransferred from the budget ofone department to the bu%et of another. However, Constitutional funds may not be transferred in contravention of Section 9 of Article VIIIof the Texas Constitution. The transferring of the funds in both instances above Q not require newexpenditures not included inthe original budget, therefore, the provisions of Section 11ofArticle 689a are not applicable. It is our opinion that the correct procedure in transferring the funds in the above two situations would be to amend the budget. However, this would not require the existence ofan emergency as contemplated by Section 11of Article 689a. An order of the Commissioners’ Court showing how the funds were reallocated and show@ that the budget wasamended would, in ouropinion, suffice to affect the amendment ofthe budget under the above situations. Therefore, in reply to your first question, a finding of an emergency Isnot required before funds may be transferred bya budget amendment to increase the budget item for
“dues and subscriptions” to allow payment ofthe membership &es. Your second question concerns whether the 1979 budget can be amended after September 30, 1979. You have indicated that, pursuant to article 1644a, V.T.C.S., Cameron County has adopted a fiscal year beginning onOctober 1ofeach year. Youhave further indicated that the obligation for membership dues wasincurred prior to the end of the fiscal year with the invoice being received after the end of the fiscal year. The Beaumont Court of Civil Appeals inMorrison v. Kohler, 207S.W.2d951(Tex. Civ. App.- Beaumont 1947,writ ref’d n.r.e.), discussed the question ofamending the budget toprovide for obligations previously incurred.

Wefind nothing in the budget law requiring the budget be amended at the time or before an obligation not included inthe budget could belegally assumed. Wefeel that it would bealtogether too strict a construction to place upon the provisions of the budget laws governing counties to require that the budget shouldbe amended at

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Honorable Selden N.Snedeker - Page Three (NN-169)

the time the obligation was incurred. On the contrary webelieve that the Commissioners’ Court inamend@ any budget to cover any item of expense not already covered in the original budget should be controlled by the facts and circumstances as existed at the time the obligation wasincurred or assumed. In Rains a, the court also stated that “[ulnder Art. 689a-20, subject to the limitatton o Art. 689k-11,a county budget can beamended at any time.” Id. 188S.W.2d at .f 803. Therefore the 1979budget may be amended after September 30, lg9, to transfer unexpended funds for payment ofclaims charged tothe 1979fiscal year. Your third question, concerning whether the budget amendment request must be ma& prior to January 1,1980, is covered in our answer to your second question. The budget may be amended at any time to transfer unexpended funds to existing budget items. SUMMARY

Cameron County may transfer funds within the 1979county budget after the 1979fiscal year to pay an obligation incurred during the fiscal year.

MARK WHITE Attorney General ofTexas JOHN W.FAINTER, JR. First Assistant Attorney General TED L.HARTLEY Executive Assistant Attorney General Prepared byJim Allison Assistant Attorney General APPROVED: OPINION COMMITTEE C. Robert Heath, Chairman Jim Allison Walter Davis Susan Garrison Rick Gilpin

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