SB371 Alabama 2012 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

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

The bill directs Budget Stabilization Fund money to the PACT Program when PACT can't meet its obligations and sets explicit funding to fully fund PACT through 2019.

What This Bill Does

It amends funding rules to ensure PACT can be fully funded by adding annual appropriations through 2019 and by allowing transfers from the Budget Stabilization Fund to cover shortfalls. It aims for 100% funding of the PACT Program based on actuarial estimates. It also creates rules for how the Education Trust Fund Budget Stabilization Fund and Capital Fund operate, including how excess revenues are distributed and when funds can be moved to PACT.

Who It Affects

• PACT Program beneficiaries (students and families) by improving the likelihood that tuition and other mandated obligations are funded.
• Alabama’s state budget and fund managers (Education Trust Fund, Budget Stabilization Fund, Rainy Day Account, and Capital Fund) through new transfer rules and balance-management provisions.

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 existing appropriations, to reach 100% funding per actuarial estimate.
• If the PACT Fund cannot meet its obligations, the shortfall may be offset by transferring funds designated for the Budget Stabilization Fund to the PACT Program.
• Creates and governs the Education Trust Fund Budget Stabilization Fund and Education Trust Fund Capital Fund with rules on handling excess revenues, repayment to Rainy Day, transfers to PACT to fully fund tuition/fees, and allocations until the Stabilization Fund reaches 20% of current-year Education Trust Fund appropriations, after which excess goes to the Capital Fund.
• Section 2 expresses the intent that the PACT program, as amended in Act 2010-725, be fully funded.
• Sections 3 and 4 provide severability and immediate effectiveness.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

PACT Program