SB98 Alabama 2015 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2015

Title

Education Trust Funds, repeal Education Trust Fund Rolling Reserve Act, reenact Education Trust Fund Proration Account, Sec. 40-1-32.1 reenacted; Secs. 29-9-1 to 29-9-6, inclusive, repealed

Summary

SB98 repeals the ETF spending cap and creates a Proration Prevention Account to buffer against proration of Education Trust Fund dollars.

What This Bill Does

First, it repeals the cap on annual ETF appropriations (Sections 29-9-1 to 29-9-6). It then creates the Education Trust Fund Proration Prevention Account in the state treasury. Each year, 75% of the previous year's unanticipated and unappropriated ending balance is deposited into the account (beginning Oct 1, 2008), with the Finance Director transferring it by Oct 15. Withdrawals to prevent proration can be made only with the Governor's certification or by a two-thirds vote of both legislative chambers, must be limited to the amount needed to avoid proration, are to be repaid unless proration would occur, and any excess above 10% reverts to the ETF.

Who It Affects

• State government officials (Governor, Comptroller, Finance Director) and the Legislature would gain new roles in managing ETF funds, including certification of proration and authorization of withdrawals.
• Public schools and other programs funded by the Education Trust Fund would benefit from a buffer against proration under the Proration Prevention Account.

Key Provisions

• Repeal Sections 29-9-1 through 29-9-6, which set the maximum annual appropriation from the Education Trust Fund.
• Reenact Section 40-1-32.1 to create the Education Trust Fund Proration Prevention Account in the State Treasury with defined funding, withdrawal, repayment, interest, and reversion rules.
• Funding: beginning Oct 1 (effective starting 2008), 75% of the ending balance from the previous year that was unanticipated and unappropriated is deposited into the Proration Prevention Account, with the transfer made by Oct 15.
• Withdrawals: allowed only to prevent proration, either with Governor certification or by a two-thirds legislative vote, limited to the amount needed, and repayable unless proration would occur.
• Interest and reversion: interest earned stays in the account; any amount exceeding 10% of the prior year's ETF appropriations reverts to the ETF for public education.
• Effective date: the act becomes effective on the first day of the third month after passage and 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