We conclude that since such persons receive at least part of their compensation from state funds, they may serve simultaneously as public school teachers and as members of a city council only if they receive no salary for service on the city council. Since it is clear that a public school teacher may not receive a salary for service on a city council if any part of the teacher's compensation is derived directly or indirectly from state funds, the question is whether the teachers you describe are compensated by state funds within the meaning of article XVI, section 40. Two of the teachers are employed by the school district as directors of programs enacted by the Elementary and Secondary Education Act, which are referred to as a Title I, Regular Program, and Title I, Migrant Program. Funding from the federal government for these programs is deposited in the state treasury in H.E.W. Fund No. 148 and is appropriated to the Texas Central Education Agency by the Texas Legislature. The funds in question are administered by the Texas Education Agency and forwarded to the school district by state warrants.
Federal funds deposited in the state treasury become state funds.
You also describe a teacher who is employed by the school district as director of a program enacted by the Elementary and Secondary Education Act, which is referred to as a Title VII, Bilingual Education Program. See Bilingual Education Act, codified as 20 USCA ss 3221-3261. Federal funding for this program is forwarded directly to the school district from the federal government and is deposited in a Designated Purpose Fund in which the school district places other federal, state, and local funds. You advise that each of the described teachers participates in the State Retirement System, which is administered by a state agency, and each teacher makes the employee's contribution to the system. The employer's contribution is paid from the federal program funds.