HB47 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

First Special Session 2015

Title

Education Trust Fund, Rolling Reserve, to provide further for appropriation cap; ETF Budget Stabilization Fund authorizes further uses of revenues, including payments to the PACT Fund; to prohibit appropriations from holding or clearing accounts; Secs. 29-9-3, 29-9-4, 29-9-5, 29-9-6 am'd.

Summary

HB47 would change how Alabama calculates and uses the Education Trust Fund by adding PACT payments to the cap, adjusting reserve fund rules, and tightening access to holding and clearing accounts.

What This Bill Does

It adds payments to the Prepaid Affordable College Tuition (PACT) Trust Fund to the annual Education Trust Fund appropriation cap and allows a one-time transfer of funds to the State General Fund for fiscal year ending 2015. It updates how revenues in the Budget Stabilization Fund and the Capital and Technology Fund can be used and how they are transferred, including safeguards and timing. It repeals obsolete PSCA debt service provisions and prohibits appropriations from holding or clearing accounts used to process tax revenues. It also sets a funding schedule for PACT appropriations through 2027 and, starting in 2017, requires 45% of PACT funds to go to colleges and universities with the remainder for debt service.

Who It Affects

• The Education Trust Fund, Budget Stabilization Fund, Capital and Technology Fund, and the PACT Fund would be affected by changes to cap calculations, fund transfers, and restrictions on fund uses.
• Public colleges and universities and PACT program participants (students with prepaid college tuition) would see changes to funding amounts and allocation rules, including a 45% higher education allocation starting in 2017 and a defined schedule through 2027.

Key Provisions

• Include PACT payments in the Education Trust Fund annual appropriation cap.
• Authorize a one-time transfer of funds to the State General Fund for the fiscal year ending September 30, 2015.
• Modify use and transfer rules for the Budget Stabilization Fund and the Capital and Technology Fund, including transfers to the Rainy Day Account and related timing and safeguards.
• Delete obsolete provisions related to PSCA debt service.
• Prohibit appropriations from holding or clearing accounts used for depositing tax revenues.
• Repeal Sections 16-33C-14 and 16-33C-15 of the Code.
• Amend Section 16-33C-16 to establish PACT funding amounts through 2027 and require 45% of PACT funds to go to colleges and universities starting in 2017, with the remainder for debt service.
• Allow temporary transfers from the Budget Stabilization Fund to the Education Trust Fund in the first quarter to address cash flow, with repayment within 90 days.

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