Untitled Texas Attorney General Opinion

Hon. W. 1~.Edwards County Attorney Victoria County Victoria, Texas Dear Sir: Opinion No. O-7183 Rer Whether an independent school distriat is authorized to finance and conduct a ccmununityrecrea- tional center Your request for opinion has been received and carefully considered by this department. We quota from your request as fol- lows, "In behalf of the Viatoria Independent School District, I request an opinion upon the following: "May an independent school district conduct and finance, out of a surplus remaining in the local maintenance funds derived from looalmain- tenance taxes, a community recreational aenter? "The recreational center contemplated would involve taking oVer the recreation and assetibly building formerly used by the USO, on a lease basis foi a long term of years ati.anominal rent. Money would ix expended for the employment of a full time director, and also physical eduoation teachers and play ground direotors on a pgrt time basis. The primary purpose of the projectwouldbe to combat juvenile delinquency by a progrsm of physical edu- cation and supervised play. "NO bond issue is contemplated, and the provi- sions of Article 2802E-1 of the Civil Statutes would not apply." Powers of boards and officers over funds belonging to the school districts, and the manner in which those powers shall be exer- cised, are prescribed by statute, and the course prescribed by law must follow to the exclusion of other methods, 37 Tex. Jurisprudenoe, p, 966; Thompson v. Elmo Ind. School Dist. 269 S.W. 868 and Godson v. Jones, 190 S.W. 253. Hon. W. L, Fkiwards,Page 2 Article 2784e, Vernon's Annotated Texas Civil Statutes, sets forth the purposes for which the trustees of a school district may levy taxes. Article 2827, Vernon's Annotated Texas Civil Statutes, sets forth the purposes for whioh school funds may be expended. Sections 1 and 2 of Article 2827, reads as follows, "The public free school iUds shall not be expended except for the following purposess "la The State end county available funds shall be used exclusively for the payment of teachers' and superintendents' salaries, fees for taking the scholastio oensus, and interest on money borrowed on short time to pay salaries of teachers and superintendents, when these sal- aries become due before the school funds for the current year become availavle; provided that no loans for the purpose of payment of teachers shall be paid out of funds other than those for the then current year. "2. Local school funds from district taxes, tuition fees of pupils not entitled to free tui- tion and other local sources may be used for the purposes enumerated for State and county funds and for purchasing appliances and supplies, for the pay- ment of insurance premilrms,janitors snd'other em- ployees, for buying school sites, buying, building and repairing and renting school houses, and for other purposes necessary in the conduo++of the public schools to be determined by the Board of Trustees, the accounts and vouchers for COMQ districts to be approved by the oounty superinten- dent; provided, that when the State available school fund in any city or district is sufficient to main- tain the schools thereof in any year for at least eight months, and leave a surplus, such surplus may be expended for the purposes mentioned herein. Acts 1905, p. 263: Acts 1919, p. 189." Hon. II.L. Edwards, page 3 The case of Madeley, et al v. Trustees of Conroe Independ- ent School District, et al, 130 S.W. (2) 929 (writ of.error dismissed, judgment correct) held that the local tax levied and collected by the trustees of an independent school district for the maintenance of the schools could only be used for the purposes of maintenance *to the extent needed for that purpose.' The court in its opinion made the following statement conoerning the use of surplus moneys in the main- tenance funds " . What shall the Trustees do with this sur- plus? '1; cannot be expended in the support and mainte- nanoe.of the publio free schools, for it is not needed for that purposes it cannot be diverted from public free school purposes, for under the Constitution it was collected for that purpose. It csnnot be returned to the tax payers. "Its allocation to the maintenance fund was by legislative edict for the purpose of supporting and maintaining the public free school. When that pur- pose has been effectuated, the tid is no longer sub ject to the control of the statutes, for the purpose of the statutes has beem fully effeotuated. If and when the statutes cease to control the fund, then it becomes a constitutional fund, and may be used by the trustees for the constitutional purposes; one oP the constitutional purposes is 'the erection and equipment of school buildings' within the distriot. 7fnatms have said is in full recognition of the legal propo- sition that the fund oolleoted for the support and maintenance of the pnbllc free schools, to the ex- tent that it is needed for that purpose, aannot be diverted to any other purpose. "The following illustration is in point on our holding: mere a distriot has issued bonds and vot- ed a tax to retire them, Ihat becomes of the surplus of the tax when the bonds are retired? Since it is not reasonable that the exact amount of the bonds will be colleoted, on every bond issue the trustees will have in their hands a surplus. Again, a tax payer permits his tax to become delinquent until after the bonds are retired; when sued, can he de- fend on the ground that the bonds for kichthe tax against his property was levied have been paid off? When the delinquent tax is collected, how shall it I be expended? These questions find their ansrers in Sec. 3 of Art. 7 of the Constitution) where the Hon. W. L. Edwards, Page 4 bonds have been paid off the statutes regu- lating the expenditures of the funds for their payment cease to oontrol the power of the trus- tees in the expenditure of the surplus, and its expenditure rests in the discretion of the trustees, under Sec. 3 of Art. 7 of the Consti- tion," Article VII, Section 3 of our State Constitution reads as follows; "One-fourth of the revenue derived from the State occupation taxes and poll tax of one dollar on every inhabitant of the State, between the ages of twenty-one and sixty years, shall be set apart annually for the benefit of the public free schools; and in additionthereto, there shall be levied and collected an annual ad valorem State tax of such an amount not to exceed thirty-five cents on the one hundred ($100.00) dollars valua- tion, as with the available school fund arising from all other sources, will be sufficient to maintain and support the public schools of this state for a'period of not less than six months in each year, and it shall be the dmty of the State Board of Education to set aside a suffici- ent amount out of the said tax to provide free text books fer the use of children attending the public free schools of this State3 provided, how- ever, that should the limit of taxation herein named be insufficient the deficit may-be met by appropriation frgn the general funds of the State and the Legislature may also provide for the form- ation of school district(s) by general laws; and all such school districts may embrace parts of tnc or more counties, and the Legislature shall be authorized to pass laws for the assessment and collection of taxes in all said distriots and for the management and control of the public school or schools of such districts, whether such districts are (are) composed of territory wholly within a county or in parts of tvo or more counties. And the Legislature may authorize an additional ad valor-cmtax to be levied and collected within all school districts heretofore formed or hereafter formed, for the further maintenance of publio free Bon. W. L. Edwards, Page 5 schools, and for the erection and equipment of school buildings,thereon~ provided that a majority of the qualified taxpaying voters of the district voting at an election to be held for that purpose, shall vote such tax not to exceed in any one year one ($1.00) dollar on the one hundred dollars valuation of the prop- erty subject to taxation in such district, but the limitation upon the amount of school dis- trict tax herein authorized shall not apply to incorporated cities or towns constituting sep- arate and independent school districts, nor to independent or common school districts created general or special law. (Sec. 3, Art. 7, adopted election November 2, 1926; proclszation January 20, 1927)." Under the authorkitiesabove quoted, it seems to us to be clear that school money may only be expended for school purposes. The Community recreational center as outlined in your letter contemplates the use of school funds for purposes incidentally beneficial to the schools, but not exclusively school purposes. We must, therefore, answer your question in this respect in the negative. However, we know of no legal reason why the Board of School Trustees of the Victoria Independent School District may not establish such a recreational oen- ter and to conduct the same as a part of its educational program, as it does any other school activity, provided the privileges and adwn- tages offered by the center are limited.to those who are legally en- titled to attend school dn the district. Very truly yours ATTORNEY GEEBRAE OF TEXAS By /s 7fn. J.-Fanning 7%. J.Fanning Assistant APPROVED APR 17, 1946 GROVER SELLERS ATTORNEY GENERAL OF TEXAS APPROVED Opinion Committee By E7iBChairman