HB182 Alabama 2012 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2012

Title

Education Trust Funds, repeal Education Trust Fund Rolling Reserve Act, reenact Education Trust Fund Proration Account, Sec. 40-1-32.1 reenacted; Act 2011-3, 2011 Reg. Sess., repealed

Summary

HB182 repeals the Education Trust Fund Rolling Reserve Act and reenacts the Education Trust Fund Proration Prevention Account to buffer funding for education from prorations.

What This Bill Does

It repeals the rolling reserve framework that limits annual Education Trust Fund appropriations and replaces it with a dedicated Proration Prevention Account. The account is created in the State Treasury and is funded from 75% of the prior year’s unanticipated and unappropriated ending balance each October. Withdrawals from the account can be made only to prevent proration and require Governor certification along with a two-thirds vote of both legislative chambers; repayments can be required later (and may be suspended during prorated years); any interest stays in the account; and funds above 10% of the prior year’s appropriations revert to the Education Trust Fund.

Who It Affects

• Education budget recipients and state education programs funded by the Education Trust Fund would have a mechanism to prevent funding proration and restricted access to withdrawals; the arrangement is designed to preserve funding stability for education.
• Governor and Legislature would oversee and authorize withdrawals, certify proration events, set repayment terms, and manage the Proration Prevention Account.

Key Provisions

• Repeals Act 2011-3, HB57 (Education Trust Fund Rolling Reserve Act) and repeals Section 40-1-32.1.
• Reenacts Section 40-1-32.1 to create the Education Trust Fund Proration Prevention Account in the State Treasury.
• Deposits 75% of the ending unanticipated and unappropriated beginning balance into the Proration Prevention Account each October (transfer by October 15).
• Withdrawals may be made only to prevent proration; Governor certifies that proration would occur; withdrawals limited to the amount needed.
• Withdrawals require a two-thirds vote of each legislative chamber.
• Withdrawn funds must be repaid as directed by the Legislature; repayment can be suspended during prorated years if necessary to avoid proration.
• Interest earned stays in the Proration Prevention Account.
• Any amount in excess of 10% of the previous year’s appropriations reverts to the Education Trust Fund for public education.
• This act becomes effective on the first day of the third month after approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education Trust Fund