SB248 Alabama 2015 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2015

Title

Education Trust Fund, maximum amount appropriated annually, budget stabilization fund and capital fund, established, const. amend.

Summary

SB248 would amend Alabama's constitution to cap annual Education Trust Fund spending and create dedicated Budget Stabilization and Capital funds to manage education funding and savings.

What This Bill Does

It sets a maximum annual appropriation cap for the Education Trust Fund beginning in 2017 and explains how that cap is calculated using various revenue measures. It creates two new funds—the Budget Stabilization Fund and the Capital Fund—for managing education money, with rules for how excess revenues are allocated and how funds are repaid. It allows temporary transfers from the Stabilization Fund to the ETF for cash flow needs (with repayment), and requires a statewide vote to approve the constitutional amendment.

Who It Affects

• State government financial managers (Governor, Department of Finance, State Comptroller, and the Legislature) who must certify the cap, oversee fund transfers, and manage proration rules.
• Public education system (schools, school districts, students, and educators) whose funding and capital projects would be governed by the cap and the new Stabilization and Capital funds, affecting funding stability and potential investments in facilities and technology.

Key Provisions

• Proposes a constitutional amendment to set the maximum amount that may be appropriated annually from the Education Trust Fund (ETF).
• Creates the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Capital Fund with specific purposes and rules for use and investment returns.
• Defines terms such as Education Trust Fund, Rainy Day Account, recurring and nonrecurring revenue, and the fiscal year appropriation cap to guide calculations.
• Establishes a detailed method for calculating the fiscal year appropriation cap, including recurring revenue, growth rates, PACT allocations, and adjustments for new or nonrecurring revenues.
• If revenues exceed the cap, 70% goes to the Budget Stabilization Fund and 30% to the Capital Fund after repaying any Rainy Day obligations, with further conditions on use.
• Stabilization Fund withdrawals are limited to preventing proration of ETF, require governor certification, and any excess withdrawals must be repaid within 30 days after the fiscal year ends.
• Capital Fund money may be used for construction, alterations, equipment, technology, and debt service for public education facilities, and is not limited by the fiscal year cap.
• Allows temporary transfers from the Stabilization Fund to the ETF in the first quarter of the fiscal year to address cash flow problems, with repayment within 90 days.

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

Subjects

Constitutional Amendments