SB16 Alabama 2016 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2016

Title

Appropriation process, shared revenue fund established, distribution of certain revenue above amount of revenue in the General Fund and Education Trust Fund prior to act

Summary

SB16 creates the Alabama Shared Revenue Fund to hold certain revenues and distributes those funds monthly to the Education Trust Fund and the State General Fund at 78% and 22% respectively.

What This Bill Does

It creates a separate Alabama Shared Revenue Fund in the State Treasury to hold shared revenues dedicated to the Education Trust Fund and the State General Fund. Each month, the fund balance is distributed to the Education Trust Fund (78%) and the State General Fund (22%). The Department of Revenue and the Executive Budget Office must certify that these distributions meet pre-enactment revenue levels and constitutional requirements. It does not affect direct distributions to state agencies and takes effect October 1, 2016.

Who It Affects

• Education Trust Fund (ETF) would receive 78% of monthly distributions and is guaranteed to receive at least the amount of income tax receipts that would have gone into ETF before enactment.
• State General Fund (SGF) would receive 22% of monthly distributions, and the combined distributions to ETF and SGF must total at least the revenue that would have been deposited into these funds under constitutionally earmarked revenues prior to enactment.

Key Provisions

• Establishes the Alabama Shared Revenue Fund as a separate fund within the State Treasury to hold shared revenues dedicated to the ETF and SGF.
• Initial deposits of shared revenues for ETF and SGF go into the Alabama Shared Revenue Fund and are not earmarked for any specific agency.
• Monthly distributions of the fund balance go 78% to the Education Trust Fund and 22% to the State General Fund.
• Department of Revenue shall certify that ETF's monthly distribution is at least the pre-enactment income tax receipts, and Executive Budget Office shall certify that total distributions meet pre-enactment constitutional earmarked revenues.
• Distributions to ETF/SGF do not affect direct distributions to state agencies or other funds with earmarks.
• The act does not change the ETF Rolling Reserve Cap for FY 2017; pre-enactment amounts distributed under this act are treated as recurring ETF revenues for future caps.
• Effective October 1, 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

Appropriations