SB345 Alabama 2018 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2018

Title

General Fund Appropriation Act, max. amount of annual approp, General Fund Reserve Fund and Capital Fund estab., unspent approps transfer to fund, General Fund Budget Reform Act

Summary

SB 345 would cap General Fund spending to the prior year's revenue, create two new funds for emergencies and capital projects, and set rules for handling excess revenues and non-education taxes.

What This Bill Does

It limits annual General Fund appropriations to the amount collected in the previous 12 months (excluding nonrecurring revenue). It creates the General Fund Budget Reserve Fund and the General Fund Capital Fund, funds that can be used for emergencies, one-time costs, and capital improvements. Unspent General Fund money would be split: 75% reappropriated to state offices for the next year and 25% deposited into the new funds (first to reach a 10% reserve, then to the Capital Fund); excess revenues are distributed to these funds, with any remaining excess moving to the Capital Fund once the reserve target is met. The bill also caps non-education taxes and revenues at the amount credited in the 2019 fiscal year, with any excess going to the General Fund.

Who It Affects

• State agencies and the Legislature's budget process—unspent General Fund money will be split so that 75% is reappropriated to agencies for the next year, while 25% goes into the new Budget Reserve and Capital Funds for emergencies and capital projects.
• Taxpayers and non-education revenue sources—collections designated for non-education purposes are capped at the 2019 level; any non-education revenue beyond that cap would go to the General Fund.

Key Provisions

• Beginning with the fiscal year ending September 30, 2020, SGF appropriations may not exceed SGF revenues collected in the prior 12 months minus any nonrecurring revenue; the calculation must be certified by the Director of Finance and the Deputy Director of the LSA by the third legislative day of each regular session.
• Creates two funds within the State Treasury: the General Fund Budget Reserve Fund and the General Fund Capital Fund; any interest stays in the respective fund year after year.
• Twenty-five percent of unspent and reverted SGF monies are divided: 75% reappropriated to state offices for the current year, and 25% transferred to the two new funds, first to the Budget Reserve Fund until its balance reaches 10% of prior-year SGF appropriations, with any excess going to the Capital Fund.
• Amounts in the Budget Reserve Fund can be used via an independent supplemental appropriation for emergencies (including natural disasters without federal aid), offsetting revenue reductions, unexpected one-time expenses, or routine expenses in extenuating circumstances.
• Amounts in the Capital Fund can be used for funding critical one-time capital improvements, with preference given to projects that create efficiencies and cost savings for state government.
• Beginning in fiscal year 2020, any SGF revenue above appropriations is transferred to the Budget Reserve Fund; once the Budget Reserve reaches 10% of prior-year appropriations, remaining excess goes to the Capital Fund.
• Taxes and revenues designated for purposes other than education are capped at the 2019 level; any collections beyond that cap are credited to the General Fund.
• The act becomes effective immediately upon passage and approval by the Governor.

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