Untitled Texas Attorney General Opinion ( 1961 )

THE ATTORNEYGENERAL
OF TEXAS
January 17, 1961
Honorable J. W. Edgar Opinion No. WW-985
Commissioner of Education
AustLn, Texas Re: Under the circumstances re-
lated, must school district
tax revenues, realized from
taxes assessed and collecti-
ble within a calendar year,
be allocated for the opera-
tion of its schools in a
single scholastic year begin-
ning September 1 in that calen-
Dear Mr. Edgar: dar year and related questions.
Your letter of recent date requesting the opinion of
this office on the above subject is in part as follows:
"We have before 'us an inquiry from an inde-
pendent school district which was created pursuant
to special law in 1923. (Senate Bill 402, Acts
1923, 38th Legislature, Spec. Law, Chapter 91,
page 317). Section 30 of that law creating the
district provides that the tax assessor-collector
for the City of Houston shall assess and collect
for this independent school district, in the
manner and form prescribed by the charter and
ordinances of the City, the school taxes levied
by the school district board.
'AS required by this law, we are apprised,
the City assesses and collects its taxes on a
calendar year basis. Assessments are made in
or about May, are payable thereafter and become
delinquent on January 1 of the ensuing calendar
year. Taxes levied and collected by the City
for the inde endent school district (for exam-
ple, in 1959 P are delivered to the school dis-
trict in the early part of January (1960), and
such revenues were budgeted and allocated by
the school district for the operation of its
schools in the scholastic year 1959-60, four
months of which--September through December--
are in 1959 and the remaining eight scholastic
Honorable J. W. Edgar, page 2 (Ww-985)
year months extending into 1960. See also
Section 15 of Senate Bill 402, supra.
“It is suggested by this school dis-
trict that under the particular local condi-
tions created by the cited special act, the
law should be construed so that this inde-
pendent school district may budget and
allocate its local tax revenue for the act,ual
calendar months for which the district con-
tends the taxes are collected. In short, the
district desires to know if it legally may
allocate school district taxes assessed, and
collectible in 1961 on the basis of 60 per
cent for use In the eight months from 1 Jan-
uary through 31 August, 1961, and 40 per cent
for use in the four months, 1 September through
31 December, 1961. The effect thereof would be
to allocate school district taxes assessed and
collectible In the calendar year to the opera-
tion of schools covering parts of two scholas-
tic years coming within that calendar year.
“We would appreciate receiving an opinion
from your office on the following q,uestions:
“1. Under the circumstances related,
must school district tax revenues,
realized from taxes assessed and
collectible within a calendar
year, be allocated for the opera-
tion of its schools in a single
scholastic year beginning Sept-
ember 1 in that calendar year?
“2 . If the answer to 1 is in the nega-
tive, may school district tax rev-
ewes, realized from taxes levied
and collectible within a calendar
year (for example in 1961) be al-
located on the basis of 6% for
use in the first eight months
(1 January through 31 August,
1961) and 40% for use in the lat-
ter four months (1 September through
31 December, 1961) of that calendar
year. ”
_ _- -
Honorable J. W. Edgar, page 3 (W-985)
The Uniform Budget Act (Article 689A-17a, Vernon's
Civil Statutes) states in part as follows:
"Section 1. The president of the board of
school trustees in each independent school dis-
trict, whether created by general or special
law in this state, is hereby expressly designated
as the budget officer for such district. Not
later than August 20th, the president of such
school board of trustees shall prepare, or cause
to be prepared, a budget covering all proposed,
carefully estimated receipts and expenditures
for the next succeeding fiscal year, itemized
in detail according to classification and pur-
pose of expenditure. . . .It shall be the
duty of said board of trustees at said meet-
ing to adopt a budget to cover all expendi-
tures for said independent school district
for the next succeeding fiscal year. . . .'
(Emphasis added)
The term "fiscal year" as used in this Article is
synonomous with 'scholastic year" for it is the scholastic
year and not the calender year which governs the operation
of school districts with respect to incurri obligations.
Attorney General's Opinion Nos. O-4257 (19427 and O-4001 (1941).
Another reason for this belief is that this Article requires
the president to prepare, or cause to be prepared, a budget
not later than August 20th for the next succeeding fiscal year.
This indicates that the b,udget is being formulated for use dur-
ing the coming scholastic year which begins on September 1.
(Article 2903, Vernon's Civil Statutes)
To allow a school district to budget and allocate
its local tax revenue on a calender year basis would, in our'
opinion, be in direct conflict with the above quoted Article.
The budget would then be based on the 'calender year" and not
the "fiscal year" as required by the Uniform Budget Act.
Therefore, school district tax revenues, realized
from taxes assessed and collectible within a calender year,
must be allocated for the operation of its schools for a
single scholastic year beginning September 1 in that calender
year.
-- -
Honorable J. W. Edgar, page 4 (Wf-985)
Our answer to your first question renders unnecessary
an answer to your second question.
SUMMARY
School District tax revenues, realized
from taxes assessed and collectible with-
in a calender year, must be budgeted and
allocated for the operation of its schools
for a single scholastic year beginnlng Septem-
ber 1 in that calender year.
Yours very truly,
WILL WILSON
Attorney General of Texas
JMF:hmc
APPROVED:
OPINION COMMIT'IEE
W. V. Geppert, Chairman
L. P. Lollar
Iola Wilcox
Leon F. Pesek
Riley Eugene Fletcher
REVIEWEDFOR THE ATTORNEYGENERAL
BY: Morgan Nesbitt