## THE ATTORNEY GENERAL OF TEXAS

March 22, 1977

The Ronorable John Wilson Chairman Rouse Committee on Health and Welfare P. 0. Box 2910 Austin, Texas 78769 Opinion No. H-962

Re: Whether the Statemay use non-matched funds to increase AFDC benefits when the result ismore economical than total use of federally matched funds.

Dear Chairman Wilson:

You have requested our opinionregarding whether the State may, under article 3, section 51-a of the Texas Constitution, claim federalmatching funds under the federal statutory provisionsmost favorableto the State when the amount of the averagemonthly grantunder the Aid to Families with Dependent Children program is increased above $32.00 per recipient.

Pursuant to its responsibilityunder article 695c, V.T.C.S., for administeringprograms for needy and dependent children, the Department of PublicWelfare is presently accepting federalmatching funds forAFDC programs under the formula specified in Title IV-A of the Social SecurityAct, 42 U.S.C. S 603. The Title IV-Amatching formula provides for federal financialparticipationin AFDC grants and administrative costs, with the limitation that the federal share of grant costs cannot exceed the amount availablewhen the average monthly grant is $32.00per recipient. Under this formula, the federal governmentcontributes an average of $22.88 per recipient at the levelof $32.00 and at all higher levels.
Under the other availablematching formula, Title XIX of the Social Security Act, 42 U.S.C. S 1318, the percentage contributed by the federal governmentis somewhat less,but

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it may be claimed on all amounts paid, without regard to any fixedmaximum. The Title IV-A formula would furnish a larger federal percentage contribution for an averagemonthly grant up to $37.72. Above this level, the Title XIX formulawould provide the greater federalcontribution. Between $32.00 and $37.72, although the Title IV-A formulawould be more economicallybeneficial to the State, the federal contribution w0uia **not** increase, **so that,**  for every dollar increase in State funding,no corresponding federal increasewould result. You ask whether such an arrangementwould violate the provisions of article 3, section 51-a of the Texas Constitution.
Article 3, section 51-a(4)provides, in pertinent part:
The Legislature shall have authority to enact appropriate legislationwhich will enable the State of Texas to cooperate with the Government of the United States in providing assistance to and/ormedical care on behalf of needy persons, in providing rehabilitation and any other services included in the federal lawsmaking matching funds available to help such families and individualsattain or retain capability for independenceor self-care, to accept and expend funds from the Governmencof the Used States for suchpurposes in accordancewith the laws **of** the United States as they now are Earwyhereafter & amended, -- and to -- make appropriationsout of state funds for such purposes;provided zat the sum amountpaid out of state funds to or on behalf

-- of any needy person=1 not exceed the amount that is matchable outoffederxfunds.

. . .

-- -- (Emphasisadded).

In our,opinion, this proviso does not require that every particular State dollar expended be matched, but merely limits total State expenditures to the amount that is matchable out of federal funds. In Attorney Gene?al Opinion H437 (1974),we indicatedthat the Legislaturehad the "authority to enact legislationauthorizing a matching formula

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of 50% statedollarswith 50% federaldollars for grants for and to needy familieswith dependent children." You state that, under either the Title IV-A or the Title XIX matching formula, the State's contribution for an averagemonthly grant between $32.00 and $37.72 would be less than 50 percent of the total. As a result, it is our opinion that the use of either formulawould not contravene the provisions of article 3, section 51-a.

SUMMARY

Pursuant to article 3, section 51-a **of** the Texas Constitution, the Statemay claim matching federal funds under either Title IV-A or Title XIX of the Social Security Act when the amount of the averagemonthly grant under the Aid to Familieswith DependentChildren program is greater than $32.00but less than $37.72per recipient.
Very truly yours,

Attorney General of Texas

APPROVED:

rst Assistant

C. ROBERT HEAm, Chairman Opinion Committee

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