SB2 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Paul Bussman

Republican

Session

Second Special Session 2015

Title

General Fund, transfer of certain excess funds from Education Trust Fund Budget Stablization Fund prior to November 2015, Secs. 29-9-4, 40-23-85 am'd.

Summary

The bill authorizes a one-time transfer of certain Education Trust Fund money to the State General Fund for FY 2016 and changes how ETF surpluses are allocated among ETF reserve funds and the General Fund.

What This Bill Does

It creates two ETF-relevant funds (Budget Stabilization Fund and Capital Fund) and sets rules for handling excess ETF revenues, prioritizing repayment to the Rainy Day Account, then moving excess to Budget Stabilization up to 20% of current-year ETF appropriations, with any remaining excess going to the Capital Fund. It requires that the excess funds transferred to the Budget Stabilization Fund for FY 2015 be transferred to the State General Fund by November 30, 2015. It directs that $50,000,000 of taxes collected into the ETF (per 40-23-61) be transferred to the State General Fund for the fiscal year starting October 1, 2015. It specifies that these transfers for FY 2016 do not reduce the FY 2016 appropriation cap under the ETF Rolling Reserve Act. The act would take effect October 1, 2015.

Who It Affects

• State General Fund: would receive a one-time transfer of funds from the Education Trust Fund for FY 2016 and benefit from the diverted revenues specified in the bill.
• Education Trust Fund (Budget Stabilization Fund, Rainy Day Account, and Capital Fund): would see changes in how excess ETF revenues are allocated among these funds, with a priority path that ultimately favors the General Fund for the specified fiscal adjustments.
• Department of Revenue: distributions and operations would be affected by the requirement that $50,000,000 of ETF-derived taxes be transferred to the General Fund for FY 2016 after paying department salaries and operating costs.
• CHIP program funding: remains funded as a first charge against General Fund allocations under the bill, ensuring CHIP funding is secured before other General Fund distributions.

Key Provisions

• Creates the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Capital Fund and sets rules for handling excess ETF revenues (Rainy Day repayment first, then Budget Stabilization up to 20% of current-year ETF appropriations, then Capital Fund).
• For FY 2015, all excess funds allocated to the Budget Stabilization Fund from the ETF must be transferred to the State General Fund no later than November 30, 2015.
• Requires that $50,000,000 of taxes collected and deposited to the ETF be transferred to the State General Fund for the fiscal year starting October 1, 2015, after accounting for Department of Revenue salaries and operating costs.
• States that these transfers to the General Fund for FY 2016 do not require a reduction in the FY 2016 appropriation cap and sets the act to take effect October 1, 2015.

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

Subjects

Appropriations