HB456 Alabama 2024 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2024

Title

Advancement and Technology Fund, interest earned to remain in fund

Summary

HB456 would keep interest earned in key Education Trust Fund accounts in the funds each year and set rules for how those revenues are allocated and spent for one-time education needs.

What This Bill Does

It requires that interest earned in the Budget Stabilization Fund and the Advancement and Technology Fund be retained year to year. It creates an annual transfer plan: up to 1% of the previous year's total Education Trust Fund appropriations goes to the Budget Stabilization Fund until it reaches 7.5% of the prior-year appropriations; any remaining excess goes to the Advancement and Technology Fund. The Advancement and Technology Fund funds may be used only for nonrecurring education-related expenses through an independent supplemental appropriation bill, with the annual appropriation divided between public schools and higher education according to a split certified by the Legislative Fiscal Officer, and a minimum end-of-year balance of $10 million required to allow appropriations. It also creates an Educational Opportunities Reserve Fund funded from excess revenues (20%), with a $300 million balance threshold before any appropriations and specific one-time-use rules; any remaining excess after these allocations remains nonrecurring revenue in the Education Trust Fund.

Who It Affects

• Public K-12 schools and higher education institutions in Alabama, which would receive annual appropriations from the Advancement and Technology Fund based on a Legislative Fiscal Officer–certified split and could use funds for nonrecurring needs through independent supplemental appropriations.
• State lawmakers and fund administrators (Legislative Fiscal Officer, Director of Finance, and related agencies), who would certify the funding split, oversee the supplemental appropriation process, enforce balance thresholds, and manage fund transfers and restrictions.

Key Provisions

• Interest earned in the Budget Stabilization Fund and the Education Trust Fund Advancement and Technology Fund shall be retained in those funds year after year.
• Annual transfers: up to 1% of the previous year's total Education Trust Fund appropriations go to the Budget Stabilization Fund until it reaches 7.5% of the previous year's appropriations; remaining excess goes to the Advancement and Technology Fund.
• Advancement and Technology Fund may be used only for nonrecurring, education-related expenses through an independent supplemental appropriation bill, including repairs/maintenance, capital outlay, instructional support, insuring facilities, transportation, school security, and education technology/equipment; not for debt service.
• No funds may be appropriated if the end-of-year balance in the Advancement and Technology Fund is less than $10 million.
• Annual appropriation from the Advancement and Technology Fund is shared between public schools and higher education according to a percentage split certified by the Legislative Fiscal Officer.
• Educational Opportunities Reserve Fund is created with 20% of excess revenues; there is a $300 million balance threshold before any appropriations, and uses are limited to one-time purposes such as offsetting revenue reductions, funding unanticipated obligations, sustaining programmatic increases, maintaining prior-year levels when caps are low, or startup/transitional initiatives; funds are not used for ongoing expenditures except in specified extraordinary situations.
• Any remaining excess revenues after these allocations stay in the Education Trust Fund as nonrecurring revenue.

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