Could Tangipahoa Parish schools pay a midyear salary supplement from dedicated sales tax revenue?

Plain-English summary

Tangipahoa Parish's school superintendent asked whether the school system could make a midyear salary supplement without violating Louisiana's ban on donations of public funds. The Attorney General said the proposed payment was permissible because it was a salary increase for future services, funded from sales tax revenue dedicated to employee compensation.

The AG distinguished earned compensation from extra pay for past services. He said the constitutional donation rule barred gratuitous, unearned payments but not this prospective salary adjustment on the facts presented.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Could the school system make the midyear supplement?
Yes. The AG characterized the described payment as compensation earned for future services.

Could the school system simply give a bonus for past work?
The opinion said Article VII, Section 14(A) prohibited gratuitous extra pay for services already rendered.

What funding source did the request describe?
Sales tax revenue dedicated to school employee compensation.

Background and statutory framework

The opinion applied the Louisiana constitutional prohibition on donating public funds and earlier AG advice on employee compensation. The decisive distinction was whether the midyear amount was pay for future services or extra compensation for past services.

Citations and references

• Article VII, Section 14(A): prohibition on donations of public funds.

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/00-0125

Original opinion text

May 2, 2000
OPINION NUMBER 00-125

Mr. Virgil R. Allen
Superintendent
Tangipahoa Parish School System
P. O. Box 457
Amite, LA 70422

Dear Mr. Allen:

We received your request for an opinion regarding a mid-year salary supplement for the employees of the Tangipahoa Parish School System. Specifically, you inquire if the Tangipahoa Parish School System may pay its employees such a salary supplement without violating the Louisiana Constitution.

Article VII, Section 14(A) of the Louisiana Constitution prohibits the state or any political subdivision of the state from loaning, pledging, or donating funds, property, or things of value of the state or any political subdivision thereof to or for any person. Our office has consistently opined that the payment of a bonus or any other gratuitous, unearned payment to public employees is prohibited by Article VII, Section 14(A). Attorney General Opinions 99-307 and 95-323.

Conversely, it is our opinion that Article VII, Section 14(A) does not prohibit an
earned increase in compensation.
Thus, the payment of additional
compensation to public employees must be in the form of a salary increase for future services to be rendered. It may not be given as extra compensation for past services rendered. Attorney General Opinion No. 96-150 and 95-323.

It is our understanding that the payments at issue are to be made from sales tax revenues, which are dedicated to the school system’s employees’ compensation. Surplus revenues, which have been dedicated to teacher compensation, may be expended by a mid-year payment or salary adjustment. Attorney General Opinion Nos. 96-150, 83-489, and 83-410.

Accordingly, it is our opinion that the payment at issue is a salary increase for future services to be rendered rather than extra compensation for past services. The payment is an earned increase in compensation. As such, we do not believe that such a salary adjustment or supplement violates Article VII, Section 14(A) of the constitution.

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We trust this adequately responds to your request. If you have any questions or comments, please do not hesitate to contact me.

With kindest regards, I am

Very truly yours,

RICHARD P. IEYOUB
ATTORNEY GENERAL

BY:
TINA VICARI GRANT
Assistant Attorney General

RPI:TVG:sfj

Page 3

SYLLABUS
OPINION NO. 00-125

90-A(2) Public Funds; loans, pledges or grants
96
Schools and Schools Districts-Fiscal Management
100 Schools and School Districts: Teachers

Article VII, Section 14(A) of the Louisiana Constitution of 1974

The Tangipahoa Parish School System may pay its employees a mid year salary supplement.

Mr. Virgil R. Allen
Superintendent
Tangipahoa Parish School System
P. O. Box 457
Amite, LA 70422

DATE RECEIVED:

DATE RELEASED: May 2, 2000

Tina Vicari Grant
Assistant Attorney General