EATTORNEYGENERAL
OF TEXAS
W’ILL WILSON
ATTORNEY GENERA=-
August 24, 1960
Mr. Frank M. Jackson Opinion No. WW-912
Executive Secretary
Teacher Retirement System Re: Questions relating to the
Austin, Texas payment of the State match-
ing contribution to the,
Teacher Retirement System
occurring during the fiscal
year ending August 31st,
Dear Mr. Jackson: 1959.
Your request for an opinion reads in part as follows:
"During the fiscal year ending August
31, 1959, the teachers' contributions of the
Teacher Retirement System of Texas exceeded
the estimate of contributions of members by
one million, nine hundred eighty-eight thou-
sand, two hundred fifty-five dollars and nine
cents ($1,988,255.09). On September 1, 1959,
a letter concerning said deficit in the State's
matching contributions was received from the
Honorable Robert S. Calvert, Comptroller of
Public Accounts, and reads in part as follows:
II
..... 'House Bill 5, First Called
Session, 56th Legislature charged the
allocations from the Omnibus Tax Fund,
with the result there is no money avail-
able to transfer to the System'.
"Ke respectfully request your opinion concern-
ing the following questions:
"1. Is the C.omptrollerof Public Acc,ounts
req~uireci
to pay tne 'l'eacher
Retirement System
the above deficit in State's matching contri-
butions?
"2. If the answer to question number one
is in the negative, is House Bill 5 in conflict
with Article 3, section 48-a of the Constitu-
tion of Texas?"
Mr. Frank M. Jackson, page 2 (w-912)
Subsection (3) of Section 2 of Article 7083a, Vernon's
Civil Statutes, as amended by House Bill 5, Acts of the
56th Legislature, First Called Session, chapter 1, page 9
at page 10, provides:
"Beginning with the fiscal year starting
on September 1, 1959, and annually thereafter,
there is hereby allocated and appropriated to
the Teacher Retirement System of Texas in accord-
ance with the provisions of Senate Bill No. 47,
Acts of the Regular Session, Forty-fifth Legis-
lature, 1937, and any amendments thereto, a sum
each year equivalent to the contributions of the
members of the Teacher Retirement Svstem during
said year. Said annual allocated and appropriat-
ed amounts shall be paid to the Teacher Retirement
System in equal installments during the months
of November, December, March, April, June and July
of each fiscal year beginning with the year start-
ing September 1, 1959, based upon the annual esti-
mate by the State Board of Trustees of the Teacher
Retirement System of the contributions to be re-
ceived from the members of said System during each
such fiscal year; provided further, that in the
event said estimate of the contributions of the
members of the System shall vary from the actual
amount of the teachers' contributions during the
year, then such adjustments as may be required shall
be made on the first day of the following fiscal
year with any moneys in or due the General Revenue
Fund."
Subsection (2) of Section 11 of Article 2922-1, Vernon's
Civil Statutes, provides:
"The depositing of the State's contribu-
tions shall be made as follows:
"(a) On or before the first day of November,
next preceding each Regular Session of the Legis-
lature, the State Board of Trustees shall certify
to the State Comptroller for his review and adop-
tion the amount necessary to pay the matching con-
tributions of the State of Texas to the Teacher Re-
tirement System for the ensuing biennium. This
amount shall be included in the budget of the State
which the Governor submits to the Legislature. The
State Board of Trustees shall certify on or before
Mr. Frank M. Jackson, page 3 (W-912)
August 31st of each year to the State Comp-
troller of Public Accounts and to the State
Treasurer the estimated amount of contribu-
tions to be received from members during the
ensuing year.
"(b) All monies allocated and appropria-
ted by the State to the Teacher Retirement
System shall be paid to the Teacher Retirement
System in monthly installments as provided in
House Bill No. 8, Acts of the Regular Session,
47th Legislature. ,Each of said monthly install-
ments shall be paid into the State Contribution
Fund."
The current appropriation to the Teacher Retirement Sys-
tem reads as follows:
"TEACHER RETIREMENT SYSTEM
"1 , There is hereby appropriated and For the Years .Ending
the Comptroller and Treasurer are _ .'-
authorized and directed to trans- August 31, Au,gust31,
fer into a special trust account 1960 1961
in the hands of the Treasurer, the
unexpended balances as of August
31, 1959, of the various funds of
the Teacher Retirement System, es-
timated as follows:
Teacher Savings Fund No. 133... $1,200,000
State Contribution Fund No. 134 1,000
Retire+ Reserve Fund No. 135... 105,000
Interest Fund No. 136.......... 1,000,000
Expense Fund No. 137........... 75,000
Investment Fund No. 138........ 975,000
"2. There is hereby appropriated and al-
located out of the Omnibus Tax Clear-
ance Fund to the Teacher Retirement
System the State contributions neces-
sary to match member contributions,
estimated to be ......w.............. 31,700,OOO $32~,800,000
TOTAL ESTIMATED APPROPRIATIONS,
TEACHER RETIREMENT SYSTEM...........$~~,O~~,OOO$32,800,000~~
From September lst, 1959, all funds in the Teacher Retire-
ment System constitute a separate trust account with the State
Mr'.Frank M. Jackson, page 4 (WW-912)
Treasurer as custodian rather than funds in the State
Treasury Attorney General's Opinions wwT65 (1959) and
~~-600+ 1959). Thus, it is necessary to issue a warrant
on the State Treasu- to transfer money to the Teacher
Retirement System out of the State Treasury into a spe-
cial trust fund of the Teacher Retirement System in the
custody of the State Treasurer.
We are informed by the Comptroller's Office that all
the sums appropriated to the Teacher Retirement System for
the fiscal year ending August jlst, 1960 have been paid to
the Teacher Retirement System. While the Legislature author-
ized the payment of the deficit mentioned in your request
from the General Revenue Fund, no appropriation for this
deficit was made to the Teacher Retirement System. Therefore,
you are advised that the Teacher Retirement System has a
claim against the General Revenue Fund of the State of Texas
for this deficit, which may be paid when such sum is appro-
priated by the Legislature. Article III, Sec. 48a, Texas
Constltution, H.B. 5, Acts of the 56th Leg., 1st C.S., 1959,
ch. 1, p. 9. In this connection, it is noted that the ap-
propriation contained in Item 2 of the appropriation to the
Teacher Retirement System was made out of the Omnibus Tax
Clearance Fund and did not appropriate any additional sum
from the General Revenue Fund. As is noted above, this fund
has been completely exhausted for'the fiscal year ending
August 31st, 1960.
In answer to your first question, you are therefore
advised that the Comptroller of Public Accounts is not author-
ized to issue a warrant atthe present time payable to the
Teacher Retirement System for the deficit of the State's
matching contribution, for the reason that no money has been
appropriated for that purpose.
In answer to your second question, the provisions of
House Bill 5, Acts of the 56th Legislature, First Called Ses-
sion, are constitutional. Attorney General's Opinion WW-640.
SUMMARY
No appropriation to the Teacher Retire-
ment System for the payment of any~deficit
in State matching contribution having been
enacted, the Comptroller of Public Accounts
is not authorized ,to issue a warrant for the
Mr. Frank M. Jackson, Page 5 (WW-912)
payment of the deficit in the State's
matching contributions resulting from
the teachers' contribution of the Teacher
Retirement System exceeding the estimate
of contributions made by the System.
Such deficit'constitutes a claim which may
be paid when an appropriation Is made to
the Teacher Retirement System for such
deficit, as provided in Article 70&a,
Vernon's Civil Statutes.
Yours very truly,
WILL WILSON
Attorney General of Texas
Assistant
JR:ms
APPROVED:
OPINION COMMI'E'PTEE
W. V. Geppert, Chairman
F. C. Jack Goodman
Phocion S. Park III
W. Ray Scruggs
REVIEWED FOR THE ATTORNEY GENERAL
BY: Houghton Brownlee, Jr.