HB29 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Second Special Session 2015

Title

Education Trust Fund, Rolling Reserve, appropriation cap further provided for; additional use of revenue in the ETF Budget Stabilization Fund authorized, including payments to the PACT Fund; prohibited appropriations from holding or clearing accounts; Secs. 29-9-3, 29-9-4, 29-9-5, 29-9-6 am'd.

Summary

HB29 changes how Alabama calculates the Education Trust Fund cap, adds PACT payments to the cap, expands uses of ETF reserves, and bans appropriations from holding/clearing tax accounts.

What This Bill Does

Includes payments to the Prepaid Affordable College Tuition (PACT) Trust Fund in the calculation of the Education Trust Fund annual appropriation cap. Provides for a one-time transfer to the State General Fund for the fiscal year ending September 30, 2015. Clarifies and expands how revenues from the ETF Budget Stabilization Fund and the ETF Advancement and Technology Fund can be used, including facility planning and improvements, debt service, insuring facilities, transportation, deferred maintenance, and education technology, with safeguards and timing rules. Prohibits appropriations from holding or clearing accounts used to manage tax revenues and repeals obsolete PSCA debt service provisions.

Who It Affects

• Public schools and higher education institutions in Alabama, whose funding cap, fund distributions, and specific uses of the Advancement and Technology Fund affect how much money they receive and how it can be used.
• State and local government finances and taxpayers, due to the one-time transfer to the State General Fund, the management of the Budget Stabilization Fund and related transfers, and restrictions on using holding/clearing tax accounts.

Key Provisions

• The annual Education Trust Fund appropriation cap must include payments to the PACT Trust Fund when calculating the cap.
• A one-time transfer to the State General Fund is authorized for the fiscal year ending 2015.
• Revisions to the use of ETF Budget Stabilization Fund and ETF Advancement and Technology Fund revenues, including automatic transfers and thresholds (1% of prior-year appropriations to Stabilization Fund until 7.5% of prior-year appropriations; special 2015 transfer up to $50 million repaid by 2018; excess to Advancement/Technology Fund for education-related uses and cap-exempt until the fund reaches 20% of current-year ETF appropriations; subsequent excess to Capital Fund).
• The Advancement and Technology Fund supports facility planning, improvement, repair/renovation, land/equipment for facilities, debt payments related to facilities, insurance, transportation, deferred maintenance, and education technology; funds cannot be used to pledge new debt; no funds may be appropriated until the balance reaches at least $10 million; allocations are controlled and not limited by the annual cap until the fund reaches 20% of current-year ETF appropriations; after reaching 20%, excess goes to Capital Fund.
• 45% of the appropriations in the PACT-related section (16-33C-16) are treated as funding for colleges/universities for budgeting purposes; the rest is treated as debt service.
• The text repeals obsolete PSCA debt service provisions and prohibits appropriations from holding or clearing tax revenue accounts.

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