SB281 Alabama 2015 Session

Summary

Primary Sponsor

Jimmy Holley

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

SB281 would add an extra amount to the Education Trust Fund's annual appropriation cap calculation and change how excess revenues are allocated to reserve funds.

What This Bill Does

It creates two reserve funds—Budget Stabilization Fund and Capital Fund—for the Education Trust Fund and directs that interest stay in the Stabilization Fund. If revenues exceed the previous year's appropriation cap, the excess goes first to the Rainy Day Account until repaid; after repayment, any remaining excess goes to the Budget Stabilization Fund, and once that fund reaches 20% of current-year ETF appropriations, excess goes to the Capital Fund. Ninety percent of the average certified excess revenues would be added to the next year's appropriation cap. Certification of excess revenues by the Director of Finance and the Director of the Legislative Fiscal Office is required by set dates, with the changes first applying to the fiscal year ending September 30, 2016.

Who It Affects

• Education agencies and schools that rely on Education Trust Fund appropriations—potential changes in the cap could affect how much money is available for education budgets.
• State finance officials (Director of Finance and Director of the Legislative Fiscal Office) and ETF funds—responsible for certifying excess revenues and managing transfers to the Rainy Day Account, Budget Stabilization Fund, and Capital Fund.

Key Provisions

• Adds an additional amount to the calculation of the annual Education Trust Fund appropriation cap.
• Creates Education Trust Fund Budget Stabilization Fund and Education Trust Fund Capital Fund; interest in the Stabilization Fund is retained there year to year.
• Excess revenues above the cap are transferred first to the Education Trust Fund Rainy Day Account until repaid; after repayment, excess goes to the Budget Stabilization Fund, until that fund reaches 20% of current-year ETF appropriations; any remaining excess goes to the Capital Fund.
• Ninety percent of the average of certified excess revenue amounts is added to the fiscal year appropriation cap for the year in which appropriations are being made.
• Certification of excess revenues by the Director of Finance and the Director of the Legislative Fiscal Office is required by specific dates (not later than November 15 after the fiscal year for which appropriations are made; 2016 certifications due before end of 2015 Regular Session; thereafter by the third day of each Regular Session).
• Effective for appropriations for the fiscal year ending September 30, 2016.

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