Honorable Robert S. Calvert
Comptroller of Public Accounts
Austin, Texas
Opinion NO. ~~-673
Re: Questions relating to
allocations to the
Teacher Retirement
System as provided by
House Bill 5, First
Called Session, 56th
Dear Mr. Calvert: Legislature, 1959.
We quote from your request for an opinion as
follows:
"Your attention is directed to
H. B. 5, First Called Session, 56th
Legislature, Sec. 2(3) relative to
allocations to the Teacher Retirement
System, which reads in part as follows:
"'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.'
"Teachers' contributions are in
excess of contributions at this same
time last year. If such contributions
for June, July and August, 1959, are
the same as June, July and August,
1958, the following will occur:
Honorable Robert S. Calvert, page 2 (w-673)
"Teachers' Contributions 1959
to be matched $31 569 691
Less 1959 matching transfers
authorized by TRS 30 600 ooo
$ 969 691
"This $969,691 will be covered, if
the General Fund is still on a deficit,
by impounding all receipts to the General
Fund beginning September 1, 1959, until
such demand has been satisfied.
"It is customary for the general
appropriation bill to contain an appro-
priation of the sums set aside from
state money to match Teachers' contri-
butions.
"It is apparent now that the
matching set aside this year on certi-
ficate of the Teacher Retirement Sys-
tem will be insufficient, as outlined
above.
"I will thank you to advise me, in
accordance with said H. B. 5:
“1. If the Comptroller at this time must
consider the above estimated deficit
in making an estimate of revenues
available to the General Fund in
the next biennium.
"2. If your answer is in the negative,
must this factor be taken into
consideration in certifying the
general appropriation bill if
such appropriation bill appro-
priates all the state matching
to be received."
Honorable Robert S. Calvert, page 3 (~~-673)
Attorney General's Opinion ~~-640 (1959) con-
strued House Bill 5 as requiring the Comptroller to use
the cash accounting basis as the bill provides that out-
standing appropriations which may exist after the end of
the then fiscal year should not be deducted from the cash
condition of the Treasury or the anticipated revenue of
the next biennium for the purpose of certification. The
constitutional authority of the Legislature to make such
a requirement was sustained by the opinion. The opinion
further pointed out that the Comptroller "In certifying
it to the House in which same originated, should by vlr-
tue of the mandate of Section @a of Article III of the
Constitution, take into consideration every element that
bears upon the amount of funds that will be available, in-
cluding an estimate of the amount of funds that will nor
be expended under the appropriation for the present bi-
ennium, as well as an estimate of the amount of funds that
will not be disbursed by virtue of appropriations made for
the next biennium."
Your request points out that you anticipate a
deficit of approximately Nine Hundred Sixty-nine Thousand,
Six Hundred Ninety-one and no/100 ($969,691.00) Dollars
In the State's matching contributions for the Teacher Re-
tirement System at the close of the current biennium on
August 31. The resulting deficit, you further point out,
will be covered by impounding all receipts to the General
Fund beginning September 1, 1959, until such deficit has
been satisfied. The sum, therefore, will represent an out-
standing and undisbursed appropriation at the end of the
current biennium, and pursuant to Section 1 of House Bill 5
should "be considered as probable disbursements of the suc-
ceeding biennium In the same manner that earned but uncollected
income of a current biennium is considered probable receipts
of the succeeding biennium." Section 1 further provides
that outstanding appropriations which may exist after the
end of the then current fiscal year shall not be deducted
from the cash condition of the Treasury or the anticipated
revenues of the next biennium for the purpose of certiflca-
tion.
It follows from what we have said that the Comp-
troller should not for the purpose of certification deduct
Honorable Robert S. Calvert, page 4 (~673)
the subject deficit from the cash condition of the Treas-
ury on August 31, or from the anticipated revenues for
the next biennium. Since the sum will represent an out-
standing and undisbursed appropriation at the end of the
current biennium, it should be considered as probable dis-
bursements of the succeeding biennium. In estimating the
total disbursements for the ensuing biennium, the Comp-
troller should not include the amount of funds appropriated
but which he tiilticipates
will not be disbursed during the
biennium.
SUMMARY
Since the anticipated deficit in
the State's matching contribution
to the Teacher Retirement System
will represent an outstanding and
undisbursed appropriation at the
end of the current biennium, it
should not be deducted from the
cash condition of the Treasury or
the anticipated revenues of the
next biennium. The deficit, how-
ever, should be considered as
probable disbursements of the en-
suing biennium, but in estimating
the total of such disbursements
the Comptroller should not include
the amount of funds appropriated
but which he anticipates will not
be disbursed during the biennium.
Yours very truly,
WILL WILSON
Attorney General of Texas
LP:mfh
APPROVED: BY
Leo
Ai--+--
ard Passmore
OPINION COMMITTEE Assistant 1
Geo. P. Blackburn, Chairman
BY
J. Arthur Sandlin
Jot Hodges, Jr. Assistant
Marvin H. Brown, Jr.
REVIEWED FOR THE ATTORNEY GENERAL
BY: W. V. Geppert