SB126 Alabama 2019 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2019

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 126 would cap State General Fund spending, create two new funds to hold reserves and capital money, and set rules for handling extra revenues and unspent funds.

What This Bill Does

It establishes a cap on annual General Fund appropriations starting in 2023, calculated from last year’s recurring revenues plus nonrecurring revenues and a phased-in portion of estimated growth, plus certain increases and reappropriations. It creates the Budget Reserve Fund and the Capital Fund, detailing how unspent money is reallocated (80% back to agencies up to 25% of their budget with a capital plan, 20% to the Reserve Fund until it reaches 10% of prior-year appropriations, then 100% to agencies when the balance is at or above that target) and excluding the Medicaid agency from these requirements. It also outlines how excess General Fund revenues are allocated to the Reserve Fund (and eventually the Capital Fund) under set thresholds and starting in 2023, and how deficits can be covered using the Reserve Fund while proration rules may apply.

Who It Affects

• State agencies funded by the General Fund, whose annual appropriations would be capped and may be impacted by the reallocation rules for unspent money and the requirement to have capital improvement plans.
• Alabama Medicaid Agency, which is exempt from the Section 5 reappropriation requirements and continues to be governed by existing Medicaid rules.

Key Provisions

• Imposes a State General Fund appropriation limit starting in 2023, equal to last year’s recurring revenues plus nonrecurring revenue when deposited, plus a phased-in share of estimated growth (80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026), plus amounts reappropriated and certain increases in estimated appropriations.
• Creates the State General Fund Budget Reserve Fund and the State General Fund Capital Fund; requires 80% of unexpended and reverted General Fund appropriations to be reappropriated to agencies (up to 25% of each agency’s annual budget if a capital improvement plan is provided) with the remainder going to the Budget Reserve Fund until it reaches 10% of prior-year appropriations; when the reserve hits 10%, 100% of remaining unexpended funds go to agencies.
• Sets aside excess General Fund revenues for the Budget Reserve Fund (and later the Capital Fund) using specific thresholds and timelines (including years 2019–2022 with defined percentages and starting 2023 with a general transfer rule to the Budget Reserve Fund), with any remaining excess after meeting the reserve target going to the Capital Fund.
• Allows withdrawals from the Budget Reserve Fund starting in 2023 to cover up to 50% of a revenue deficit to reach the calculated appropriation average, with proration certification by the Governor if needed; remaining deficits must be addressed by limiting spending or raising revenue.
• Directs that the Budget Reserve Fund and Capital Fund be used through independent supplemental appropriation bills for emergencies, one-time costs, and capital improvements, with budgeting rules and a preference for projects that create efficiencies or cost savings.

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