The Attorney General of Texas 

Febxuary 28, 1978 

JOHN L. HILL 

Attorney General 

Honorable Bob Bullock 

Comptroller of Public Accounts 

L.B.J. Building 

Austin, Texas 

Dr. Kenneth Ashworth 

Commissioner for Higher Education 

Coordinating Board, Texas College and 

University System 

Austin, Texas 

Opinion No. H-l129 

Re: Allocation of funds to 

colleges and universities under 

article 7, section 17 of the Texas 

Constitution. 

Gentlemen: 

You have requested our opinion regarding the allocation of funds to 

colleges and universities under article 7, section 17 of the Texas Constitution. 

Article ‘7, section 17, originally adopted in 1947, and amended in 1956 and 

1965, levies a state ad valorem tax “for the purpose of creating a special 

fund” to finance permanent improvements at 17 state institutions designated 

therein. The 1965 amendment directed the Comptroller to allocate funds 

among the various institutions for the 12-year period beginning June 1, 1966, 

according to a specific formula: 

Eighty-five per cent (85%) of such funds shall be 

allocated by the Comptroller of Public Accounts of the 

State of Texas on June 1, 1966, and fifteen per cent 

(15%) of such funds shall be allocated by said Comptroller on June 1, 1972, based on the following 

determinations: 

(1) Ninety per cent (90%) of the funds allocated on 

June 1, 1966, shall be allocated to state institutions 

based on projected enrollment increases published by 

the Coordinating Board, Texas College and University 

System for fall 1966 to fall 1978. 

(2) Ten per cent (10%) of the funds allocated on 

June 1, 1966,shall be allocated to certain of the eligible 

state institutions based on the number of additional 

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Honorable Bob Bullock 

Dr. Kenneth Ashworth - Page 2 (B-1129) 

square feet needed in educational and general facilities by 

such eligible state institution to meet the average square 

feet per full time equivalent student of all state senior 

institutions (currently numbering twenty-two). 

(3) All of the funds allocated on June 1, 1972, shall be 

allocated to certain of the eligible state institutions based 

on determinations used in the June 1, 1966, allocations 

except that the allocation of fifty per cent (50%) of the 

funds allocated on June 1, 1972, shall be based on projected 

enrollment increases for fall 1972 to fall 1978, and fifty per 

cent (50%) of such funds allocated on June 1, .1972, shall be 

based on the need for additional square feet of education 

and general facilities. 

The amendment then provides: 

Not later than June first of the beginning year of each 

succeeding ten-year period them Comptroller of Public 

Accounts of the State of Texas shall reallocate eighty-five 

per cent (85%) of the funds to be derived from said Ten Cent 

(1Oc) ad valorem tax for said ten-year period and not later 

than June first of the sixth year of each succeeding ten-year 

period said Comptroller shall reallocate fifteen per cent 

(15%) of such funds to the eligible state institutions then in 

existence based on determinations used in the said ten-year 

period that are similar to the determinations used in 

allocatin g f unds durin g the twelve-year period begin% 

January 1, 1966, except that enrollment projections for 

succeeding ten-year periods will be from the fall semester 

of the first year to the fall semester of the tenth year. All 

such designated institutions of higher learning shall not 

thereafter receive any general revenue funds for the 

acquiring or constructing of buildings or other permanent 

improvements for which said Ten Cent (1Od) ad valorem tax 

is herein provided, except in case of fire, flood, storm, or 

earthquake occurring at any such institution, in which case 

an appropriation in an amount sufficient to replace the 

uninsured loss so incurred may be made by the Legislature 

out of any General Revenue Funds. 

(Emphasis added). In pursuance of the constitutional directive that you reallocate 

these funds for the ten-year period beginning June 1, 1978, you first ask whether 

state colleges and universities created by the Legislature since 1965 are eligible to 

receive the funds allocated by article 7, section 17. 

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Honorable Bob Bullock 

Dr. Kenneth Ashworth - Page 3 (H-1129) 

In our opinion, the funds described in article 7, section 17 may be distributed 

only to those institutions named therein. The language of the amendment is clear: 

The following state institutions then in existence shall be 

eligible to receive funds raised from said Ten Cent IlOd) tax 

levy for the twelve-year period beginning January 1, 1966, 

and for the succeeding ten-year period: 

(Emphasis added). It is well established that tax monies levied and collected for a 

particular purpose may be expended only for that purpose. Carroll v. Williams, 202 

S.W. 504, 506-07 (Tex. 1918). In Attorney General Opinion C-687 (19661, this office 

held that 

ItI he five cent tax levied for the year 1965 was levied for 

the purposes set out in Article VII, Section 17 prior to the 

November, 1965 amendment and therefore should be distributed among the twelve schools listed at the time the tax 

levy was made. . . . [WI hether based on the tax levied under 

the 1947, 1956, or 1965 amendments the distribution of funds 

would depend on which allocation was in effect at the time 

the particular tax was levied. 

(Emphasis in original). 

Furthermore, the Legislature has recognized that distribution of funds under 

article 7, section 17 is limited to the institutions named therein by providing other 

means for financing permanent improvements at recently created state universities. See e. 

-P 

Acts 1973, 63rd Leg., ch. 659, at 2119; Acts 1977, 65th Leg., ch. 

872, at 3058 Texas A & I - Corpus Christi State University); Acts 1975, 64th Leg., 

ch. 743, at 2786; Acts 1977, 65th Leg., ch. 872, at 3081 (Texas Eastern University). 

If these institutions were permitted to share in the allocation of article 7, section 

17, any appropriation to them for permanent improvements would be in contravention of that portion of the amendment which prohibits the expenditure of “any 

general revenue funds for the acquiring or constructing of buildings or other 

permanent improvements for which said Ten Cent (1OC) ad valorem tax is herein 

provided . . . .” In addition, the legislative history of amendments and attempted 

amendments to this section indicate clearly that the section has been consistently 

interpreted as applying only to those institutions specifically listed. It is our 

opinion, therefore, that only those institutions designated by name in article 7, 

section 17 are eligible to receive funds allocated thereunder. 

You also ask whether the Comptroller may, for the allocation to be made in 

June, 1978, vary the formula from the 90 percent enrollment - 10 percent square 

footage basis used in 1966. Article 7, section 17 requires that the reallocation shall 

be 

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Honorable Bob Bullock 

Dr. Kenneth Ashworth - Page 4 (R-1129) 

based on determinations for the said ten-year period that 

are similar to the determinations used in allocating funds 

during the twelve-year period beginning January 1, 1966 . . . . . 

(Emphasis added). “Similar” does not mean “identical,” but rather “having 

characteristics in common: very much alike . . . alike in substance or essentials.” 

Webster’s New International Dictionary (3d ed.). As the court noted in Guarantee 

Mutual Life Insurance Co. v. Harrison, 358 S.W.2d 404 (Tex. Civ. App. - Austin 

1962, writ ref’d n.r.e.1, 

[il t is a word with different meanings depending on the 

context in which it is used. 

E at 406. 

In this instance, we believe that the context leaves no room for a variable 

allocation formula. The use of “similar” rather than “identical” probably reflects 

the uncertainty of forecasting in 1965 whether there would indeed be projected 

enrollment increases for a period beginning 13 years thereafter. Additionally, in 

one instance the formula will be based on a ten year period while in another it is 

based on a twelve year period. Jn any case, it is obvious that any determination 

made in 1978 is unlikely to be identical to one made in 1965, if only because the raw 

data are somewhat different. Furthermore, were we to construe “similar” to 

permit a flexible allocation formula, we would have no means by which to 

determine what degree of variation from 90-10 is permissible. Finally, in 

Guarantee Mutual Life Insurance Co. v. Harrison, e, the court rejected a 1951 

Attorney General’s Opinion which had attributed a flexible meaning to “similar.” 

358 S.W.2d at 406-08. In our opinion, the Comptroller may not vary the 1978 

allocation formula from the 90 percent enrollment - 10 percent square footage 

basis used in 1966. 

SUMMARY 

Only those institutions of higher education designated by 

name in article 7, section 17 are eligible to receive funds 

allocated thereunder. The Comptroller may not vary the 

1978 allocation formula from the 90 percent enrollment - 10 

percent square footage basis used in 1986. 

Attorney General of Texas 

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Honorable Bob Bullock 

Dr. Kenneth Ashworth - Page 5 (H-U.29) 

APPROVED: 

DAVID M. KENDALL, First Assistant 

-4 

C. ROBERT HEATH, Chairman 

Opinion Committee 

jst 

D. 4610