HB330 Alabama 2015 Session

Summary

Primary Sponsor

Alan Boothe

Republican

Session

Regular Session 2015

Title

Education Trust Fund, rolling reserve, additional percentage of projected surplus by Finance Director and Director of Legislative Fiscal Office, added to calculator for appropriation cap, Sec. 29-9-4 am'd.

Summary

HB330 would add an extra amount to the Education Trust Fund appropriation cap based on excess revenues and create new Budget Stabilization and Capital Funds to manage that money.

What This Bill Does

Amends the Education Trust Fund Rolling Reserve Act to include an additional amount in calculating the annual appropriation cap. Creates two new funds within the ETF: the Budget Stabilization Fund (Rainy Day) and the Capital Fund, with rules for how money is saved and later used. Requires certification of expected excess revenues by the Director of Finance and the Director of the Fiscal Office, and directs that 90% of the average certified excess be added to the yearly appropriation cap; specifies how excess revenues are transferred first to the Rainy Day Account, then to the Budget Stabilization Fund until it reaches 20% of current-year ETF appropriations, and after that to the Capital Fund.

Who It Affects

• Budget officials (Director of Finance and Director of the Fiscal Office) who will certify excess revenue estimates and determine the amount added to the appropriation cap.
• State agencies and programs funded by the Education Trust Fund, since changes to the cap and new funds can affect how much money is available in a given year.

Key Provisions

• Creates the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Capital Fund; allows interest in the Stabilization Fund to be retained.
• If ETF revenues exceed the annual appropriation cap, the excess must be transferred to the Rainy Day Account until repaid; after repayment, any remaining excess goes to the Budget Stabilization Fund.
• Starting with fiscal year ending 2016, requires annual certifications of the estimated excess revenues to be transferred to the Budget Stabilization Fund, with specific timing deadlines for each year.
• Ninety percent of the average of certified excess revenue amounts will be added to the fiscal year appropriation cap for that year; transfers to the Stabilization Fund continue until it reaches 20% of current-year ETF appropriations, after which any remaining excess goes to the Capital Fund.
• The act becomes effective immediately upon passage.

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