SB175 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: Regular Session 2022
Title: Education Trust Fund Rolling Reserve Act, to allow Education Trust Fund Advancement and Technology Fund to be used for capital outlay, Sec. 29-9-4 am'd.
Summary: SB175 creates two new Education Trust Fund reserves and allows the Advancement and Technology Fund to be used for capital outlay and other nonrecurring education costs.
What This Bill Does
Creates the Education Trust Fund Budget Stabilization Fund and the Education Trust Fund Advancement and Technology Fund, and outlines how interest and excess revenues are allocated between these funds and a Rainy Day Account until debts are repaid. Directs excess revenue to the Budget Stabilization Fund up to specified percentages (initially up to 2% of prior-year appropriations, then up to 1% annually until the fund reaches 7.5%), with remaining excess going to the Advancement and Technology Fund for nonrecurring education expenses such as repairs, capital outlay, facilities insurance, transportation, school security, and education technology; these funds cannot be used to back debt service. Requires a minimum end-of-year balance of $10 million in the Advancement and Technology Fund before any appropriation, and allocates annual funding between public schools and higher education based on the prior year’s split as certified by the Legislative Services Agency; funding can include specified specialized schools.

Who It Affects
Public schools (K-12) and institutions of higher education, which will receive annual allocations from the Advancement and Technology Fund proportional to the prior year's split between these sectors.
Specialized schools and programs listed (e.g., Alabama School for Math and Science, Alabama School of Fine Arts, Alabama School of Cyber Technology and Engineering, and certain elements of the Alabama Institute for Deaf and Blind) and possibly the Department of Youth Services School District under the K-12 allocation.

Key Provisions
Creates two funds under the Education Trust Fund: Budget Stabilization Fund and Advancement and Technology Fund.
Transfers of excess revenue and interest: excess revenues exceeding the appropriation cap are allocated to repay the Rainy Day Account first, then to the two funds according to a set schedule.
Allocation schedule: up to 2% of prior-year appropriations to Budget Stabilization Fund (then up to 1% annually until 7.5% of prior-year appropriations is reached); the remainder to the Advancement and Technology Fund for nonrecurring education expenses, with restrictions including no use for debt service and a $10 million minimum balance requirement before appropriations.
Use of Advancement and Technology Fund: nonrecurring needs for repairs, capital outlay, instructional support, insuring facilities, transportation, school security, and education technology/equipment; funds budgeted and allotted under general laws but not limited by the annual fiscal-year cap.
Distribution: annual appropriation split between public schools and higher education based on the prior year’s certified percentage split by the Legislative Services Agency.
Effective date: immediate upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Education Trust Fund Rolling Reserve Act