When a Tennessee county adds local funding for the DA's 'office expense,' does that include big-ticket capital assets, or only small supplies?

Subject

Opinion No. 18-40, Interpretation of "Office Expense" in Tenn. Code Ann. § 16-2-518, August 29, 2018

Plain-English summary

District Attorney General Glenn Funk asked a question that comes up at county budget time: when § 16-2-518 says a local funding increase for the DA's "positions or for office expense" must be matched at 75% for the public defender, does "office expense" mean just consumables like pens and paper, or does it also include capital assets like vehicles, computer equipment, and other long-term purchases?

The AG concluded "office expense" covers both. The statute does not define the term, so the AG applied Tenn. Code Ann. § 1-3-105(b) (undefined words get their natural and ordinary meaning) and a standard dictionary definition of "expense" as "the cost incurred or required for something" or the cost "incurred in the performance of a job or task." That ordinary meaning maps cleanly onto any authorized cost the DA's office incurs to do its statutorily assigned work.

Capital assets fall comfortably within that definition. The State of Tennessee Capital Asset Guide (issued by the Department of Finance and Administration's Division of Accounts) defines a capital asset as "a tangible or intangible asset with a cost equal to or greater than an established capitalization threshold and having an estimated useful life of three years or more," and recognizes that "[c]apital asset purchases are recorded as expenditures at the time of purchase." A capital asset is, by the state's own accounting framework, an expenditure when purchased. So the cost of a capital asset bought to let the DA's office perform its duties is an "office expense" under § 16-2-518.

The practical consequence: when a county increases local funding to a DA's office for capital purchases (a vehicle, an evidence-management system, courtroom technology), that increase counts toward the formula. Under § 16-2-518, the public defender's office in the same district must receive an increase of 75% of the DA's increase, earmarked for indigent criminal defense.

The AG distinguished the older "expenses of the office" cases (Sneyd, Marshall) which addressed whether a particular officer's personal legal fees were reimbursable as office expenses. Those cases turn on whether an expense benefits the office or the officer personally; they do not narrow what counts as office expense for an entire office's operating budget.

Currency note

This opinion was issued in 2018. 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.

Background and statutory framework

Tenn. Code Ann. § 16-2-518 imposes a mandatory funding-match formula for DA and public defender offices when local funding goes up:

Any increase in local funding for positions or office expense for the district attorney general shall be accompanied by an increase in funding of seventy-five percent (75%) of the increase in funding to the office of the public defender in such district for the purpose of indigent criminal defense.

The statute does not define "office expense." Tennessee courts had touched the cousin term "expenses of the office" in two prior cases (Sneyd v. Washington Cnty., 387 S.W.3d 1, 9-10 (Tenn. Ct. App. 2012); Marshall v. Sevier Cnty., 639 S.W.2d 440, 444-45 (Tenn. Ct. App. 1982)) but only to decide whether an individual public officer's personal legal fees were reimbursable; neither case parsed the scope of "office expense" within § 16-2-518.

The construction sequence the AG followed:

1. Apply the plain-meaning rule under Tenn. Code Ann. § 1-3-105(b): undefined words get their "natural and ordinary meaning, without forced or subtle construction."
2. Reach for a dictionary, per English Mountain Spring Water Co. v. Chumley, 196 S.W.3d 144, 148 (Tenn. Ct. App. 2005). The Concise Oxford English Dictionary (12th ed. 2011) defines "expense" as "the cost incurred or required for something" or the cost "incurred in the performance of a job or task."
3. Apply that meaning in context: "office expense" under § 16-2-518 is the authorized cost incurred for any item the DA's office needs to fulfill its duties.

The AG then turned to capital assets. The Capital Asset Guide (Aug. 2017) defines them as tangible or intangible assets with a cost meeting the capitalization threshold and a useful life of three years or more, and treats their purchase as a recorded expenditure. The dictionary-and-Guide combination puts capital assets squarely within the meaning of "office expense."

The footnote string of cross-references (§§ 5-14-103(d), 8-22-104(b)(1), -108(a)(1)(A), -109(a), 8-22-110(a), 10-7-408(b)(1)(A), 16-15-102(b)-(d), 40-30-209(c), 58-2-104(d), 67-5-2007(a)(3)) shows how often "office expense" recurs across Tennessee public-officer statutes. The AG's reading is consistent with the broad usage.

Common questions

What is the public defender match formula about?

§ 16-2-518 ties DA and public defender funding together at the local level: when a county increases local funding for DA positions or office expense, the public defender's office in the same judicial district must receive a corresponding increase equal to 75% of the DA's increase, earmarked for indigent criminal defense. The legislative purpose is to keep the prosecution and indigent-defense sides reasonably balanced.

So if the county buys the DA a new SUV, the public defender gets 75% of that?

According to this opinion, yes. The AG concluded that capital assets are an "office expense" under § 16-2-518. A local funding increase for a DA capital purchase triggers the 75% public defender match, dollar for dollar (well, $0.75 for $1.00).

Does the rule reach personal benefits of the DA?

No. The earlier "expenses of the office" cases (Sneyd, Marshall) hold that expenses must inure to the benefit of the office, not the officer personally. The AG distinguished those cases as addressing a different question (officer's personal legal fees), but their core principle still applies: an expense that benefits the DA personally rather than the DA's office would not count.

What if the funding increase is from state appropriation rather than local funding?

§ 16-2-518's match formula is triggered only by an increase in "local funding." State appropriations, federal grants, and other non-local sources do not trigger the public-defender match.

Does this opinion bind the county?

No. AG opinions in Tennessee are persuasive authority, not binding precedent. They guide state and local officials and inform budget decisions, but a court interpreting § 16-2-518 in a contested case is free to reach a different conclusion.

Citations

Statutes

• Tenn. Code Ann. § 16-2-518 (DA and public defender local funding match)
• Tenn. Code Ann. § 1-3-105 (plain meaning of undefined statutory terms)
• Tenn. Code Ann. § 5-14-103 (county purchasing agent)
• Tenn. Code Ann. § 8-22-104, -108, -109 (public officer expenses)
• Tenn. Code Ann. § 8-22-110 (sheriff)
• Tenn. Code Ann. § 10-7-408 (county records commission)
• Tenn. Code Ann. § 16-15-102 (courts of general sessions)
• Tenn. Code Ann. § 40-30-209 (post-conviction defender)
• Tenn. Code Ann. § 58-2-104 (Tennessee Emergency Management Agency)
• Tenn. Code Ann. § 67-5-2007 (county trustee)

Cases

• Sneyd v. Washington Cnty., 387 S.W.3d 1 (Tenn. Ct. App. 2012)
• Marshall v. Sevier Cnty., 639 S.W.2d 440 (Tenn. Ct. App. 1982)
• English Mountain Spring Water Co. v. Chumley, 196 S.W.3d 144 (Tenn. Ct. App. 2005)

Other authorities

• State of Tennessee Capital Asset Guide (Aug. 2017), Division of Accounts, Tennessee Department of Finance and Administration

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2018/op18-40.pdf

Original opinion text

STATE OF TENNESSEE
OFFICE OF THE ATTORNEY GENERAL
August 29, 2018

Opinion No. 18-40

Interpretation of "Office Expense" in Tenn. Code Ann. § 16-2-518

Question

Does the term "office expense" in Tennessee Code Annotated § 16-2-518 apply only to items such as pens and paper or does it also include "capital assets" as that term is defined by the Department of Finance and Administration in the State of Tennessee Capital Asset Guide?

Opinion

The term "office expense" in Tennessee Code Annotated § 16-2-518 includes the authorized costs of all items, including capital assets, that are incurred for the district attorney general's office to perform its duties and responsibilities.

ANALYSIS

Tennessee Code Annotated § 16-2-518 addresses local funding of the offices of district attorneys general and public defenders. It imposes a mandatory formula for the allocation of local funds between the office of the district attorney general and the office of the public defender when there is an increase in local funding for positions or for "office expense" provided to the office of the district attorney general of a particular judicial district.

Any increase in local funding for positions or office expense for the district attorney general shall be accompanied by an increase in funding of seventy-five percent (75%) of the increase in funding to the office of the public defender in such district for the purpose of indigent criminal defense.

Tenn. Code Ann. § 16-2-518.

The statute does not, however, provide a definition of "office expense," and, while Tennessee courts have determined that "expenses of the office" are expenses that inure to the benefit of the particular office, as opposed to expenses that personally benefit an officer,[1] no court has been required to examine the meaning or scope of the term "expense" within the context of Tenn. Code Ann. § 16-2-518 or any of the many other Tennessee statutes[2] involving public officers and entities that refer to "office expenses."

Undefined words in the Tennessee Code must "be given their natural and ordinary meaning, without forced or subtle construction that would limit or extend the meaning of the language, except when a contrary intention is clearly manifest." Tenn. Code Ann. § 1-3-105(b). Dictionaries remain the accepted source for information concerning the natural and ordinary meaning of words. English Mountain Spring Water Co. v. Chumley, 196 S.W.3d 144, 148 (Tenn. Ct. App. 2005). The dictionary defines the noun "expense" as "the cost incurred or required for something," or "something on which money must be spent," or the cost "incurred in the performance of a job or task." Concise Oxford English Dictionary 501 (12th ed. 2011).

Thus, in the context of Tenn. Code Ann. § 16-2-518, the natural and ordinary meaning of "expense" is a cost incurred to perform a job or task. An "office expense" as used in § 16-2-518 therefore encompasses the authorized cost incurred for any item for the district attorney general's office to fulfill its duties and responsibilities.

It follows that, if a "capital asset" is an item necessary for the district attorney general's office to perform its job, the authorized cost of that capital asset will fall within the meaning of "office expense" for purposes of § 16-2-518. A "capital asset" is generally defined as a "long-term asset that is not bought or sold in the normal course of business." John Downs and Jordan Elliott Goodman, eds., Barron's Dictionary of Finance and Investment Terms 92 (6th ed. 2003). Consistent with this definition, the State of Tennessee Capital Asset Guide defines a "capital asset" as "a tangible or intangible asset with a cost equal to or greater than an established capitalization threshold and having an estimated useful life of three years or more." Division of Accounts, Tennessee Department of Finance and Administration, State of Tennessee Capital Asset Guide 1 (Aug. 2017). By its express terms, the Guide defines a capital asset, whether tangible or intangible, as one with a "cost." Id. Moreover, the Guide makes clear that "[c]apital asset purchases are recorded as expenditures at the time of purchase." Id. at 3. Therefore, the cost of a capital asset that is incurred for the district attorney general's office to carry out its duties and responsibilities is an "office expense" under Tennessee Code Annotated § 16-2-518.

In sum, the term "office expense" in Tennessee Code Annotated § 16-2-518 includes the authorized costs of all items, including capital assets, that are incurred for the district attorney general's office to perform its duties and responsibilities.

[1] See Sneyd v. Washington Cnty., 387 S.W.3d 1, 9-10 (Tenn. Ct. App. 2012) (court found that attorney fees incurred by clerk and master in her action against county to increase her salary due also to being clerk of probate court did not constitute "expenses of the office" because action was filed for clerk's sole benefit and did not benefit the office of clerk and master); Marshall v. Sevier Cnty., 639 S.W.2d 440, 444-445 (Tenn. Ct. App. 1982) (court found legal expenses incurred by county clerk and master in successfully defending action against her removal were not expenses of her office that were reimbursable under Tenn. Code Ann. § 8-22-108 because the fees paid in her personal defense did not inure to the benefit of the office of clerk and master).

[2] See, e.g., Tenn. Code Ann. §§ 5-14-103(d) (county purchasing agent); 8-22-104(b)(1), -108(a)(1)(A), -109(a) (various public officers); 8-22-110(a) (sheriff); 10-7-408(b)(1)(A) (county records commission); 16-15-102(b)-(d) (courts of general sessions); 40-30-209(c) (post-conviction defender); 58-2-104(d) (Tennessee emergency management agency); 67-5-2007(a)(3) (county trustee).

HERBERT H. SLATERY III
Attorney General and Reporter

ANDRÉE SOPHIA BLUMSTEIN
Solicitor General

LAURA T. KIDWELL
Senior Counsel

Requested by:
The Honorable Glenn Funk
District Attorney General
Washington Square, Ste. 500
222 2nd Avenue North
Nashville, Tennessee 37201-5599