SB129 Alabama 2020 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2020

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 129 creates a General Fund Budget Reserve Fund to save surplus money and outlines how it can be used to prevent proration or fund certain expenses.

What This Bill Does

The bill creates the General Fund Budget Reserve Fund in the State Treasury and sets rules for deposits and withdrawals. It automatically transfers 20% of the prior year’s unanticipated and unappropriated General Fund ending balance into the Reserve Fund each year (beginning Oct 1, 2020), with the transfer due by Nov 15 if the Reserve Fund is under $100 million. Withdrawals are only allowed to prevent proration, unless a two-thirds legislative vote approves other uses (to offset revenue shortfalls, fund pay raises/bonuses, or cover unanticipated obligations), and such withdrawals require the Reserve Fund balance to be at least $50 million; any excess must be returned within 30 days after the fiscal year. Interest earned stays in the fund, and the act becomes effective immediately after governor approval.

Who It Affects

• State government agencies and officials (Governor, Comptroller, Finance Director, and the Legislature) who manage transfers and withdrawals from the General Fund Budget Reserve Fund.
• State employees and public programs funded by the General Fund, who could receive pay raises/bonuses or other funding if the Reserve Fund is used to finance such needs.

Key Provisions

• Creates the General Fund Budget Reserve Fund in the State Treasury; funds deposited into the fund are not withdrawable except as provided in the act; interest earned remains in the fund.
• Definitions for Ending Balance and Beginning Balance of the General Fund to determine transfers and balances.
• Starting Oct 1, 2020, and each Oct 1 thereafter, transfers 20% of the prior year’s unanticipated and unappropriated General Fund ending balance into the Reserve Fund, with the transfer due by Nov 15; transfers occur if the end-of-year Reserve Fund balance is less than $100 million.
• Withdrawals from the Reserve Fund to prevent proration require Governor certification and must be limited to the amount of the anticipated proration; any excess must be returned to the Reserve Fund within 30 days after the fiscal year.
• Withdrawals may also be made through an independent supplemental appropriation bill (with a two-thirds vote in both chambers) to fund specific needs (revenue shortfalls, pay raises/bonuses, or unanticipated obligations), but only if the prior-year end balance is at least $50 million.
• Funds appropriated under the supplemental provision follow existing budget and appropriation laws.
• Effective immediately upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Appropriations