Honorable, ffeorge H. Sheppard 

Comptroller of Public Aoaounts 

Austin, Texas 

Dear Sirr Opinion No. O-2703 

Be: Use of appropriation for one fisoal year to purchase suppUss for 

use in the follcming fiscal year of a 

biennim. 

Your letter of August 31, 1940, subnits several questions for the 

opinion of this department. We quote such letter in full: 

"In August of 1939 the Department of Publio Safety ordered a supply of drivers* 

licenses to be used in the year 1940 and, at the time of the order, charged or 

attempted to sncmber their 1939'appropriation mith the amoti of the purchase. 

The drivers* liosnsss ?mre mot delivered to the Departmeat of Public Ssfety u" 

til January, 194% The Department of Publio 8afety now desires tc pay for 

these lioenses out of the appropriation available for the fisoal year olssing 

August 31, 1939, o1a.imingtha-b atthe time the order was made, they encumbered 

thpt appropriation withthe rmtit of the purchase* 

"Is this department authorized to issue warramt in payment of this alaim 

against the ,appropiation made for the Deprhnent of Publio Safety for the 

year ending August 31, 39391 

"If not, is this departam& authorized to issue warrantagainst a subsequent 

appropriation for the payment of these lioenses? 

"The Department of Public safety further olaimsthat the balance remaining in 

the appropriation'for the maintenance of the Drivers* License Mvision for the 

year ending August 31, 1940, is insufficient to pay claims that ars not outstanding against the appropriation for the yew 1940,,if the depmbnent should 

be foroed to lxy the aocount in questioa out of the 1940 appropriation. 

"Ifyou hold that the socount iu question should be paid out of the appropllation for the fisoal year ending August 31, 1940, and since there would be insuffioient funds tc pay,this aoaowt and &her outstanding aooouats,thea 

whioh of the'aooouats would maintain priority?' 

Drivers' licenses are suoh supplies as are consumed by their'use. Expenditures made in the purohasa of suoh supplies fall under the head of expenditures for current operating expsnsss, rather than expenditures for fixtures 
Hon. George Sheppard - page 2 (o-2703) 

or permanent operating faoilities. Our Opinion O-2390 rules the situation 

which you present in your letter, so that the cost of the supply of drivers' 

licenses purchased for use in the year 1940 may not be charged againtithe 

appropriationmade available for the fiscal year ending August 31, 1939. 

The item of expenditure must be oharged against the appropriation with 

reference towhioh, oonsidering the nature of the itsla aad the purpose for 

which it is to be used, the deparhnent making the expenditum was authorized to 

oontract. Thus, unless at the time that the ooatraot for the nurahse of the 

supply of drivers' lioenses for use during the year 1940 i8aa made,the approprg- . . 

ation available for suoh purposes for the fiscal year ending August 31, 194.0 

was already fully expended or enoumbered, this expenditure must be aharged 

against such appropriation end the arrant aooordingly issued. 

In reply to your last question, you are advised that the question in 

reality involved is not one cf priority of aooounts, but of availability of the 

appropriation to pay a partioulv aocount. lplen a department of the State govenrment having been provided with an appropriation available for the purchase 

of certain supplies, purchases suoh supplies for use during~the fisoal year for 

whiohthe appropriation is provided, suah appropriatioa is expemded or enoumber 

ed to the extent of the smou+ut involved in such purohase, and, of oourse, to 

the extent ~that the appropriatioa has beem thus enoumbered or expended, the 

authority ofthe department to contra& with refereaoe to the appropriation has 

been accordingly diminished. When, 9 suooessive purahaaes, the depatient has 

fully expended or encumbered the particular Item of appropriatioa, the author 

ity to contract with respect to suohappropriation is likemiss exhausted, so 

that accounts incurred or expenditures made after the appropriaticm has beea 

filly enombered or expended are not entitled to be paid out of such appropriation, for, at the time suoh aooounts were incurred or expenditures made, the 

authorityof the department head to oontraot dth~referenoe to the appropriation had been exhausted. 

Yours very truly 

AlTORt?EYGERRRALOFTEUS 

By /a/R. W. Fairchild 

R. We Fairchild 

Assistant 

AFPROVED SEP 14, 1940 

/s/ Gerald C. %nn 

ATTORN8YGEMERAL OFTXAS 

APPROVWD 

Opinion Cmnnittes 

By B.W.B.~ 

&air&