HB656 Alabama 2015 Session

Summary

Primary Sponsor

Will AinsworthLt. Governor

Republican

Session

Regular Session 2015

Title

Alabama Recurring Revenue Fund, established, to receive certain percentages of recurring revenue sources of the Education Trust Fund and the State General Fund

Summary

The bill creates a separate Alabama Recurring Revenue Fund and directs monthly recurring revenues to the Education Trust Fund (78%) and the State General Fund (22%).

What This Bill Does

It establishes the Alabama Recurring Revenue Fund in the state treasury and initially deposits recurring revenues dedicated to the Education Trust Fund and the State General Fund into this fund. Each month, the fund distributes 78% to the Education Trust Fund and 22% to the State General Fund. The Department of Revenue must certify that the ETF receives at least the amount of income tax receipts that would have gone to the ETF before the bill. The act’s distributions are treated as recurring revenues for budgeting under the Education Trust Fund Rolling Reserve Act, and the FY2016 appropriation cap is not affected by reductions from this act. The bill repeals conflicting laws and becomes effective October 1, 2015.

Who It Affects

• Education Trust Fund: would receive 78% of each month’s recurring revenue distributions, potentially affecting education funding levels.
• State General Fund: would receive 22% of each month’s recurring revenue distributions, affecting state operating funding.
• Department of Revenue: tasked with certifying that ETF monthly distributions meet the prior-year income tax receipt levels for ETF.
• State budgeting framework: distributions are treated as recurring revenues for the ETF under the Education Trust Fund Rolling Reserve Act and influence the FY2016 appropriation cap.

Key Provisions

• Establishes the Alabama Recurring Revenue Fund as a separate fund in the State Treasury; initial deposits come from recurring revenues dedicated to the Education Trust Fund and the State General Fund.
• Monthly distributions from the Recurring Revenue Fund: 78% to the Education Trust Fund and 22% to the State General Fund.
• Department of Revenue must certify that the ETF’s monthly distribution is at least equal to the income tax receipts that would have been deposited into the ETF prior to the bill.
• Distributions to the ETF under this act are treated as recurring revenues for the Education Trust Fund Rolling Reserve Act, and the FY2016 appropriation cap shall not be affected by reductions from this act.
• Repeals conflicting laws.
• Effective 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