SB6 Alabama 2015 2nd Special Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Trip Pittman
Republican
Session: Second 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: SB6 changes how Alabama’s Education Trust Fund budgeting works by including PACT payments in the cap, clarifying fund uses, and restricting certain cash-flow accounts and debt provisions.
What This Bill Does
It adds payments to the Prepaid Affordable College Tuition (PACT) Fund to the Education Trust Fund appropriation cap formula and refines how recurring, nonrecurring, and new revenue affect the cap. It guides how any revenue excess is allocated—the Rainy Day/Budget Stabilization Fund first, then transfers to the Budget Stabilization Fund and the Capital and Technology Fund for education-related needs, with specific balance rules and a split between K-12 and higher education. It also repeals obsolete PSCA debt service provisions and prohibits appropriations from holding or clearing accounts used as cash-flow conveniences, while allowing temporary fund transfers to address cash flow and ensuring repayment.

Who It Affects
Public schools and higher education institutions (they will receive funding through the Capital and Technology Fund and the PACT Fund, with a specified share split starting in 2017).
Taxpayers and state budget managers (changes to cap calculations, fund transfers, and prohibitions on using holding/clearing accounts affect how funds are budgeted and managed for the ETF and related programs).

Key Provisions
Includes payments to the PACT Trust Fund in the Education Trust Fund annual appropriation cap calculation.
Specifies how excess ETF revenues are allocated: transfers to the Rainy Day Account and, after repayment, transfers to the Budget Stabilization Fund and the Capital & Technology Fund with a 1% annual transfer to Stabilization until it reaches 10% of prior-year appropriations, then remaining funds to Capital & Technology for education projects.
Funds in the Capital & Technology Fund may be used for planning, construction, maintenance, equipment, debt service, and other education facilities-related needs, not as a pledge for new debt, with minimum balance and timing rules tied to 10 million and 20 percent of current-year ETF appropriations.
Annual outlays from the Capital & Technology Fund are split between public schools and higher education in the same proportion as the previous year’s education funding split.
Adds annual PACT Fund appropriations for fiscal years 2016–2027 with specific amounts; beginning with 2017, 45% of these appropriations are considered funding for colleges/universities, and the remainder is treated as debt service for budgeting purposes.
Repeals Sections 16-33C-14 and 16-33C-15 and amends 16-33C-16 accordingly.
Prohibits appropriations from holding or clearing accounts used for timely tax revenues, restricting use of those accounts to immediate deposits until disbursement, with legislation still able to adjust revenue distribution.
Allows temporary transfers from the Budget Stabilization Fund to the ETF in the first quarter to alleviate cash flow problems, with repayment within 90 days.
Effective upon passage and governor’s approval.

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