Honorable,ffeorgeH. Sheppard Comptrollerof PublicAoaounts Austin, Texas
Dear Sirr OpinionNo. O-2703 Be: Use of appropriationfor one fis- oal year to purchasesuppUss for use in the follcmingfiscalyear of a biennim.
Your letter of August 31, 1940, subnitsseveralquestionsfor the opinionof this department. We quote such letter in full:
"In August of 1939 the Departmentof Publio Safety ordereda supply of drivers* licensesto be used in the year 1940 and, at the time of the order, chargedor attemptedto sncmber their 1939'appropriation mith the amoti of the purchase. The drivers*liosnsss?mre mot deliveredto the Departmeatof Public Ssfetyu" til January,194% The Departmentof Publio 8afetynow desirestc pay for these lioensesout of the appropriationavailablefor the fisoalyear olssing August 31, 1939, o1a.imingtha-b at the time the order was made, they encumbered thpt appropriation withthe rmtit of the purchase*
"Is this departmentauthorizedto issuewarramt in paymentof this alaim againstthe ,appropiationmade for the Deprhnent of Publio Safetyfor the year endingAugust 31, 39391
"If not, is this departam& authorizedto issue warrantagainsta subsequent appropriation for the paymentof these lioenses?
"The Departmentof Public safetyfurther olaimsthat the balanceremainingin the appropriation'for the maintenanceof the Drivers*LicenseMvision for the year endingAugust 31, 1940, is insufficientto pay claims thatars not out- standingagainstthe appropriationfor the yew 1940,,ifthe depmbnent should be foroed to lxy the aocountin questioaout of the 1940 appropriation.
"Ifyou hold that the socountiu questionshould be paid out of the approplla- tion for the fisoalyear endingAugust 31, 1940, and sincethere would be in- suffioientfunds tc pay,thisaoaowt and &her outstandingaooouats,thea whioh of the'aooouatswould maintain priority?'
Drivers'licensesare suoh suppliesas are consumedby their'use. Ex- pendituresmade in the purohasaof suoh suppliesfall under the head of expen- dituresfor currentoperatingexpsnsss,ratherthan expendituresfor fixtures Hon. George Sheppard- page 2 (o-2703)
or permanentoperatingfaoilities. Our OpinionO-2390 rulesthe situation which you presentin your letter,so that the cost of the supplyof drivers' licensespurchasedfor use in the year 1940 may not be chargedagaintithe appropriationmadeavailablefor the fiscal year endingAugust 31, 1939.
The item of expendituremust be ohargedagainstthe appropriationwith referencetowhioh, oonsideringthe nature of the itslaaad the purposefor which it is to be used, the deparhnentmaking the expenditum was authorizedto oontract. Thus, unless at the timethat the ooatraotfor the nurahse of the supplyof drivers'lioensesfor use during the year 1940 i8aamade,the approprg- .. ation availablefor suoh purposesfor the fiscal year endingAugust 31, 194.0 was alreadyfully expendedor enoumbered, this expendituremust be aharged againstsuch appropriationend the arrant aooordinglyissued.
In reply to your last question,you are advisedthat the questionin realityinvolvedis not one cf priorityof aooounts,but of availabilityof the appropriationto pay a partioulv aocount. lplena departmentof the State gov- enrmenthaving been providedwith an appropriation availablefor the purchase of certainsupplies,purchasessuoh suppliesfor use during~thefisoalyear for whiohthe appropriationis provided,suah appropriatioais expemdedor enoumber ed to the extent of the smou+utinvolvedin such purohase,and, of oourse,to the extent~thatthe appropriatioa has beem thus enoumberedor expended,the authorityofthe departmentto contra& with refereaoeto the appropriationhas been accordinglydiminished. When, 9 suooessivepurahaaes,the depatient has fully expendedor encumberedthe particularItem of appropriatioa, the author ity to contractwith respectto suohappropriationis likemissexhausted,so that accountsincurredor expenditures made after the appropriaticmhas beea filly enombered or expendedare not entitledto be paid out of such appropria- tion, for, at the time suoh aooountswere