Untitled Texas Attorney General Opinion

The Attorney General of Texas March 22, 1982 MARK WHITE Attorney General Mr. Kenneth El.Ashworth opinion No.MW-459 Supreme Court Building Coordinating Board P. 0. em 12549 Texas College 8 University System Re: Award of merit Pay Austin, TX. 76711. 2546 512/475-2501 P. 0. Box 12788, Capitol Station increases by coordinating Telex 9101674-1367 Austin, Texas 78711 board Telecopier 5121475-0266 Dear Mr. Ashworth: 1607 Main St., Suite 1400 Dallas. TX. 75201.4709 You ask whether the Coordinating Board of the Texas College and 2141742-6944 University System may use appropriated funds to grant merit bonuses in lieu of merit base salary increases. That is, whether the board may recognize superior performance by the award of a one-time payment or 4624 Alberta Ave., Suite 160 payments over a limited number of months rather than by a permanent El Paso, TX. 79905.2793 9151533-3464 increase in base salary. The board's appropriation is found in article III of the 1981-82 1220 Dallas Ave., Suite 202 General Appropriations Act. Acts 1981, 67th Leg., ch. 875, at 3725~. Houston, TX. 77002-6966 Article III, section 22 of that act applies to "agencies of higher 713,650~0666 education" not covered by section 1, article V of the act. Section 22 provides in pertinent part: 606 Broadway. Suite 312 Lubbock, TX. 79401-3479 Funds are provided in the appropriations made to 6061747-5236 those agencies covered by this section in sufficient amounts to permit annual salary 4309 N. Tenth, Suite B increases as follows: McAllen. TX. 76501-1665 5121662.4547 (a) All regular employees, excluding ranked faculty in the ranks of Professor, Associate 200 Main Plaza, Suite 400 Professor, Assistant Professor and Instructor in San Antonio. TX. 76205.2797 the general academic universities; professional 512/225-4191 positions in the Texas A & M Services; and faculty and professional positions in the health science centers and other medical education programs, An Equal Opportunity/ Affirmative Action Employer shall receive a minimum annual salary increase of 14.3% in fiscal 1982 and 8.7% in fiscal 1983. Such increase shall be in addition to the salary rates as of January 31, 1981, and shall apply to only those salaries paid from funds hereinabove appropriated. p. 1596 Mr. Kenneth H. Ashworth - Page 2 (Mw-459) (b) Funds are provided in the appropriations to agencies covered in this section to permit salary increase in fiscal 1982 of 17.06% and 8.7% in fiscal 1983 for all employees excluded by the preceding section. Salary increases for these employees are to be awarded on the basis of merit and performance in accepted activities including teaching, research and service. Such increases, if any, are in addition to the salary rates as of January 31, 1981, and shall apply to only those salaries paid from funds hereinabove appropriated. It is expressly provided that institutional administrators may grant merit salary increases to employees whose job performance and productivity is consistently above that normally expected or required. (Emphasis added). Article V, section 1 of the General Appropriations Act does not apply to the board. That section speaks specifically to the issue of merit pay increases for covered agencies. The board is not, however, exempt from the terms of article V. section 2 of the act. Subsection a of that section provides that: All annual salaries appropriated by this Act... shall be paid in twelve (12) equal monthly installments, except as otherwise provided in Article II of this Act. Cf. General Appropriations Act, Acts 1981, 67th Leg., ch. 875, art. III, §8c, at 3719 (nine month employees). The Texas Supreme Court has noted that "a salary is a fixed compensation for regular work." Wichita County v. Robinson, 276 S.W.2d 509, 513 (Tex. 1955); see also Attorney General Opinion H-1223 (1978). Webster's Third International Dictionary defines salary as "fixed compensation paid regularly... for services...." Cf. General Appropriations Act, Acts 1981, 67th Leg., ch. 875, art. Vxd, at 3791 (merit salary increases to be given on a monthly basis). Article III, section 22 speaks of "annual salary increases;" while article V, section 2a requires that salaries be paid in equal monthly installments. We believe this statutory language, with the judicial definition of salary, requires us to conclude that the board may not grant one-time bonuses in lieu of merit increases to base salary. The board must either maintain existing salary levels or increase base pay in recognition of exceptional service. p. 1597 . Mr. Kenneth H. Ashworth - Page 3 @fW-45g) SUMMARY The provisions of the General Appropriations Bill for 1981-82 fiscal years preclude the payment of one-time merit pay bonuses. JOHN W. FAINTER, JR. First Assistant Attorney General RICHARD E. GRAY III Executive Assistant Attorney General Prepared by Carl Glaze Assistant Attorney General APPROVED: OPINION COMMITTEE Susan L. Garrison, Chairman Jon Bible Rick Gilpin Patricia Hinojosa Shawn Jamail Jim Moellinger p. 1598