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 State may 

use non-matched funds to 

increase AFDC benefits 

when the result is more 

economical than total use 

of federally matched funds. 

Dear Chairman Wilson: 

You have requested our opinion regarding whether the 

State may, under article 3, section 51-a of the Texas Constitution, claim federal matching funds under the federal 

statutory provisions most favorable to the State when the 

amount of the average monthly grant under the Aid to Families 

with Dependent Children program is increased above $32.00 

per recipient. 

Pursuant to its responsibility under article 695c, 

V.T.C.S., for administering programs for needy and dependent 

children, the Department of Public Welfare is presently 

accepting federal matching funds for AFDC programs under the 

formula specified in Title IV-A of the Social Security Act, 

42 U.S.C. S 603. The Title IV-A matching formula provides 

for federal financial participation in AFDC grants and 

administrative costs, with the limitation that the federal 

share of grant costs cannot exceed the amount available when 

the average monthly grant is $32.00 per recipient. Under 

this formula, the federal government contributes an average 

of $22.88 per recipient at the level of $32.00 and at all 

higher levels. 

Under the other available matching formula, Title XIX 

of the Social Security Act, 42 U.S.C. S 1318, the percentage 

contributed by the federal government is somewhat less, but 

P. 4009 
The Honorable John Wilson - Page 2 (H-962) 

it may be claimed on all amounts paid, without regard to any 

fixed maximum. The Title IV-A formula would furnish a larger 

federal percentage contribution for an average monthly grant 

up to $37.72. Above this level, the Title XIX formula would 

provide the greater federal contribution. Between $32.00 

and $37.72, although the Title IV-A formula would be more 

economically beneficial to the State, the federal contribution w0uia not increase, so that, for every dollar increase 

in State funding, no corresponding federal increase would 

result. You ask whether such an arrangement would 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 legislation which will enable the 

State of Texas to cooperate with the Government 

of the United States in providing assistance to 

and/or medical care on behalf of needy persons, 

in providing rehabilitation and any other services included in the federal laws making 

matching funds available to help such families 

and individuals attain or retain capability 

for independence or self-care, to accept and 

expend funds from the Governmencof the Used 

States for such purposes in accordance with 

the laws of the United States as they now are 

Earwyhereafter & amended, 

-- 

-- and to 

make appropriations out of state funds for 

such purposes; provided zat the sum 

amount paid -- out of state funds to or on behalf 

of any needy person=1 not exceed the 

amount -- that is matchable -- outoffederxfunds. . . . 

(Emphasis added). 

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 indicated that the Legislature had the "authority to enact legislation authorizing a matching formula 

p. 4010 
The Honorable John Wilson - Page 3 (H-962) 

of 50% state dollars with 50% federal dollars for grants for 

and to needy families with dependent children." You state 

that, under either the Title IV-A or the Title XIX matching 

formula, the State's contribution for an average monthly 

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 formula would not contravene the provisions of 

article 3, section 51-a. 

SUMMARY 

Pursuant to article 3, section 51-a of the 

Texas Constitution, the State may claim 

matching federal funds under either Title 

IV-A or Title XIX of the Social Security 

Act when the amount of the average monthly 

grant under the Aid to Families with 

Dependent Children program is greater than 

$32.00 but less than $37.72 per recipient. 

Very truly yours, 

Attorney General of Texas 

APPROVED: 

rst Assistant 

C. ROBERT HEAm, Chairman 

Opinion Committee 

p. 4011