HB361 Alabama 2012 Session

Summary

Primary Sponsor

Craig Ford

Independent

Session

Regular Session 2012

Title

PACT Program, transfer of funds designated to Budget Stabilization Fund to PACT program in those years where program is unable to meet financial obligations, authorized, legislative intent re, Secs. 16-33C-16, 29-9-4 am'd

Summary

HB361 would ensure full funding of the PACT Program by providing specific annual appropriations and, if necessary, allowing transfers from the Budget Stabilization Fund to cover shortfalls.

What This Bill Does

It adds dedicated yearly dollars to the PACT Trust Fund for 2016-2019 (10 million, 20 million, 20 million, and 13 million, respectively) to help fully fund the PACT Program as determined by actuarial analysis. Starting in FY2016, if the PACT Fund lacks enough assets to meet its obligations, money can be transferred from the Budget Stabilization Fund to cover the shortfall. The bill also reorganizes how the Budget Stabilization Fund and related accounts manage excess revenues and repayments, with provisions directing funds first to Rainy Day repayments and then, if appropriate, to support PACT funding until targets are met, and it is effective immediately upon passage.

Who It Affects

• PACT Program and PACT Board: will receive specified annual appropriations and the possibility of additional transfers from the Budget Stabilization Fund to cover any shortfalls, helping to meet mandated obligations and achieve 100% funding as determined by actuarial analysis.
• Education and Budgetary Funds (Education Trust Fund, Budget Stabilization Fund, Rainy Day Account): new transfer provisions could move money from the Budget Stabilization Fund to the PACT Program in lean years, and existing fund balance rules will govern how excess revenues and repayments are allocated.

Key Provisions

• Annual appropriations to the PACT Trust Fund for FY ending 2016-2019: 2016 - $10,000,000; 2017 - $20,000,000; 2018 - $20,000,000; 2019 - $13,000,000, in addition to other existing appropriations to fully fund PACT as determined by actuarial analysis.
• Beginning in FY2016, if the PACT Trust Fund does not have enough assets to pay its mandated obligations, the shortfall shall be covered by transferring funds from the Budget Stabilization Fund to the PACT Program.
• Amendments to the Budget Stabilization Fund provisions clarify the flow of excess revenues and repayments, including transfers to the Rainy Day Account and, after repayment, potential transfers to the PACT Trust Fund to support its mandated funding, with remaining excess going to the Education Trust Fund Budget Stabilization Fund and then to the Capital Fund as applicable.
• The act expresses the Legislature's intent that the PACT Program, as amended, shall be fully funded as originally intended, and it becomes effective immediately upon passage.

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

Subjects

PACT Program