7 | | - | Page 0 SB331 |
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8 | | - | 1 SB331 |
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9 | | - | 2 |
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10 | | - | 3 |
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11 | | - | 4 ENROLLED, An Act, |
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12 | | - | 5 To amend Sections 29-9-2, 29-9-3, 29-9-4, as last |
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13 | | - | 6 amended by Act 2022-139 of the 2022 Regular Session, and |
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14 | | - | 7 29-9-6, Code of Alabama 1975, relating to the Education Trust |
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15 | | - | 8 Fund Rolling Reserve Act, to clarify current practices for the |
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16 | | - | 9 calculation of the annual appropriation cap for the |
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17 | | - | 10 disposition of revenues in excess of the cap, and for the |
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18 | | - | 11 appropriation of funds in the Education Trust Fund Advancement |
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19 | | - | 12 and Technology Fund; to delete certain obsolete provisions; |
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20 | | - | 13 and to modify certain transfer dates to improve cash flow for |
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21 | | - | 14 the Education Trust Fund. |
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22 | | - | 15 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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23 | | - | 16 Section 1. Sections 29-9-2, 29-9-3, 29-9-4, as last |
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24 | | - | 17 amended by Act 2022-139 of the 2022 Regular Session, and |
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25 | | - | 18 29-9-6, Code of Alabama 1975, are amended to read as follows: |
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26 | | - | 19 "§29-9-2. |
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27 | | - | 20 "For the purposes of this chapter, the following |
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28 | | - | 21 terms shall have the following meanings: |
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29 | | - | 22 "(1) ALABAMA TRUST FUND. The Alabama Trust Fund |
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30 | | - | 23 created by Amendment No. 450 to the Constitution of Alabama of |
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31 | | - | 24 1901. |
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32 | | - | Page 1 SB331 |
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33 | | - | 1 "(2) EDUCATION TRUST FUND. An account in the State |
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34 | | - | 2 Treasury into which are deposited certain revenues paid to the |
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35 | | - | 3 State of Alabama that are earmarked or set aside for |
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36 | | - | 4 appropriation for public educational purposes. |
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37 | | - | 5 "(3) EDUCATION TRUST FUND RAINY DAY ACCOUNT. The |
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38 | | - | 6 special account created within the Alabama Trust Fund by |
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39 | | - | 7 Amendment No. 803 to the Constitution of Alabama of 1901. |
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40 | | - | 8 "(4) FISCAL YEAR. The fiscal year of the State of |
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41 | | - | 9 Alabama that begins on October 1 and ends on September 30. |
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42 | | - | 10 "(5) FISCAL YEAR APPROPRIATION CAP. The maximum |
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43 | | - | 11 amount of appropriations that may be made from the Education |
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44 | | - | 12 Trust Fund for any fiscal year pursuant to this chapter. |
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45 | | - | 13 "(6) NEW RECURRING REVENUE. Revenue of any kind or |
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46 | | - | 14 type constituting a new annual source of money that has been |
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47 | | - | 15 enacted, established, or provided for prior to the first day |
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48 | | - | 16 of the fiscal year of which it is to first be included in the |
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49 | | - | 17 calculation of the Fiscal Year Appropriation Cap for the |
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50 | | - | 18 Education Trust Fund. |
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51 | | - | 19 "(7) NONRECURRING REVENUE. Revenue of any kind or |
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52 | | - | 20 type that is deposited into or causes one-time abnormal |
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53 | | - | 21 revenue impacts on the Education Trust Fund and that is not |
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54 | | - | 22 recurring revenue, including one-time enhancements to revenues |
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55 | | - | 23 resulting from one-time assistance to individuals or |
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56 | | - | 24 businesses provided by the federal government. Any balance |
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57 | | - | 25 remaining in the Education Trust Fund at the end of any fiscal |
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58 | | - | Page 2 SB331 |
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59 | | - | 1 year, and transfers from the Education Trust Fund Proration |
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60 | | - | 2 Prevention Account, the Education Trust Fund Rainy Day |
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61 | | - | 3 Account, and the Education Trust Fund Budget Stabilization |
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62 | | - | 4 Fund shall be nonrecurring revenue. |
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63 | | - | 5 "(8) RECURRING REVENUE. Any permanent and continuing |
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64 | | - | 6 source of revenue of any kind or type that has been enacted, |
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65 | | - | 7 established, or provided for in fiscal years prior to the |
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66 | | - | 8 fiscal year for which it is to be included in the calculation |
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67 | | - | 9 of the fiscal year appropriation cap for the Education Trust |
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68 | | - | 10 Fund. Recurring revenue shall not include any balance |
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69 | | - | 11 remaining in the Education Trust Fund at the end of any fiscal |
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70 | | - | 12 year. Once a new recurring revenue produces a source of |
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71 | | - | 13 revenue for one complete fiscal year, it becomes a recurring |
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72 | | - | 14 revenue. |
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73 | | - | 15 "§29-9-3. |
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74 | | - | 16 "(a) Notwithstanding any other provision of law to |
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75 | | - | 17 the contrary, beginning with appropriations made for the |
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76 | | - | 18 fiscal year ending September 30, 2013, appropriations from the |
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77 | | - | 19 Education Trust Fund shall not exceed the fiscal year |
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78 | | - | 20 appropriation cap. |
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79 | | - | 21 "(b) The fiscal year appropriation cap for the |
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80 | | - | 22 Education Trust Fund shall be equal to the sum of all of the |
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81 | | - | 23 following: |
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82 | | - | 24 "(1) The total of recurring revenues deposited into |
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83 | | - | 25 the Education Trust Fund in the last completed fiscal year |
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84 | | - | Page 3 SB331 |
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85 | | - | 1 preceding the date on which the fiscal year appropriation cap |
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86 | | - | 2 is calculated. |
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87 | | - | 3 "(2) An amount equal to the amount in subdivision |
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88 | | - | 4 (1) multiplied by the average annual percent of change in the |
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89 | | - | 5 recurring revenues deposited into the Education Trust Fund for |
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90 | | - | 6 the 14 highest of the 15 completed fiscal years preceding the |
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91 | | - | 7 date on which the fiscal year appropriation cap is calculated. |
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92 | | - | 8 "(3) If new recurring revenue measures are enacted |
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93 | | - | 9 that will be deposited into the Education Trust Fund, or if |
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94 | | - | 10 existing revenue sources are amended to increase the amount of |
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95 | | - | 11 money deposited into the Education Trust Fund, for the first |
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96 | | - | 12 time during the year for which the fiscal year appropriation |
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97 | | - | 13 cap is being calculated, then 95 percent of the amount |
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98 | | - | 14 projected in the enacted fiscal note accompanying the |
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99 | | - | 15 legislative act creating the new recurring revenue shall be |
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100 | | - | 16 added or subtracted as a part of the fiscal year appropriation |
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101 | | - | 17 cap. If a recurring revenue source is removed from to the |
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102 | | - | 18 Education Trust Fund is removed or reduced during the year for |
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103 | | - | 19 which the fiscal year appropriation cap is being calculated, |
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104 | | - | 20 the negative impact, based on the enacted fiscal note, of the |
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105 | | - | 21 removal or reduction of the recurring revenue shall be |
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106 | | - | 22 included in the calculation of the fiscal year appropriation |
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107 | | - | 23 cap. Any new recurring revenue measures and any changes in the |
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108 | | - | 24 distribution of Education Trust Fund recurring revenues |
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109 | | - | 25 enacted during the First or Second Special Session of 2015 |
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110 | | - | Page 4 SB331 |
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111 | | - | 1 shall not require any addition or reduction in the fiscal year |
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112 | | - | 2 appropriation cap for the fiscal year ending September 30, |
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113 | | - | 3 2016. |
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114 | | - | 4 "(4) Nonrecurring revenue shall be added or |
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115 | | - | 5 subtracted as a part of the fiscal year appropriation cap for |
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116 | | - | 6 the fiscal year in which the nonrecurring revenue is deposited |
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117 | | - | 7 into the Education Trust Fund. |
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118 | | - | 8 "(5) The amount required to be appropriated from the |
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119 | | - | 9 Education Trust Fund to the Prepaid Affordable College Tuition |
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120 | | - | 10 Trust Fund pursuant to Section 16-33C-16, Code of Alabama |
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121 | | - | 11 1975. |
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122 | | - | 12 "(c) The Director of Finance and the Director of the |
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123 | | - | 13 Fiscal Office Legislative Fiscal Officer shall certify their |
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124 | | - | 14 computation of the fiscal year appropriation cap at the same |
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125 | | - | 15 time as the certification required by Amendment No. 803 to the |
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126 | | - | 16 Constitution of Alabama of 1901. If the computation results in |
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127 | | - | 17 a fiscal year appropriation cap that is less than the total |
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128 | | - | 18 appropriations from the Education Trust Fund for the fiscal |
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129 | | - | 19 year immediately preceding the fiscal year for which the |
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130 | | - | 20 fiscal year appropriation cap is being calculated, the |
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131 | | - | 21 Legislature may appropriate from the Education Trust Fund |
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132 | | - | 22 Budget Stabilization Fund created in this chapter an amount |
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133 | | - | 23 equal to the difference between the preceding fiscal year's |
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134 | | - | 24 total appropriations from the Education Trust Fund and the |
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135 | | - | 25 fiscal year appropriation cap, provided that any such amount |
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136 | | - | Page 5 SB331 |
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137 | | - | 1 shall be in the determination of the Legislature not to |
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138 | | - | 2 compromise the fiscal integrity of the fund to offset any |
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139 | | - | 3 future proration of the Education Trust Fund. |
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140 | | - | 4 "(d) Amendment No. 803 to the Constitution of 1901, |
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141 | | - | 5 requires an estimate of available revenue for the Education |
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142 | | - | 6 Trust Fund which is to be certified by the Finance Director |
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143 | | - | 7 and the Legislative Fiscal Officer prior to the third |
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144 | | - | 8 legislative day of each regular session. If, however, the |
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145 | | - | 9 average of the estimated available revenue is less than the |
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146 | | - | 10 fiscal year appropriation cap calculated in subsection (b), |
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147 | | - | 11 the Legislature shall appropriate no more than the lesser |
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148 | | - | 12 amount of the average of the estimated available revenue or |
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149 | | - | 13 the fiscal year appropriation cap as required to be determined |
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150 | | - | 14 by this section. |
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151 | | - | 15 "§29-9-4. |
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152 | | - | 16 "There is hereby created in the State Treasury an |
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153 | | - | 17 Education Trust Fund Budget Stabilization Fund and an |
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154 | | - | 18 Education Trust Fund Advancement and Technology Fund. Any |
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155 | | - | 19 monetary interest which accrues in the Education Trust Fund |
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156 | | - | 20 Budget Stabilization Fund shall be retained in the fund from |
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157 | | - | 21 year to year and shall be subject only to the provisions of |
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158 | | - | 22 this chapter. If total revenues deposited into the Education |
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159 | | - | 23 Trust Fund during the immediately preceding fiscal year exceed |
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160 | | - | 24 the fiscal year appropriation cap for the immediately |
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161 | | - | 25 preceding fiscal year, and total Education Trust Fund |
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162 | | - | Page 6 SB331 |
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163 | | - | 1 appropriations for the immediately preceding fiscal year are |
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164 | | - | 2 less than the fiscal year appropriation cap for the |
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165 | | - | 3 immediately preceding fiscal year, the excess revenues shall |
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166 | | - | 4 remain in the Education Trust Fund as nonrecurring revenue. On |
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167 | | - | 5 or before November 15 May 31 of each fiscal year, if the total |
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168 | | - | 6 revenues deposited into the Education Trust Fund during the |
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169 | | - | 7 immediately preceding fiscal year exceed the fiscal year |
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170 | | - | 8 appropriation cap for the immediately preceding fiscal year, |
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171 | | - | 9 and Education Trust Fund appropriations for the immediately |
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172 | | - | 10 preceding fiscal year were equal to the fiscal year |
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173 | | - | 11 appropriation cap, the excess revenues shall be transferred to |
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174 | | - | 12 the Education Trust Fund Rainy Day Account until the account |
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175 | | - | 13 has been repaid in full. If the account has been repaid in |
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176 | | - | 14 full, any excess revenues remaining shall be transferred to |
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177 | | - | 15 the Education Trust Fund Budget Stabilization Fund and the |
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178 | | - | 16 Education Trust Fund Advancement and Technology Fund created |
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179 | | - | 17 in this chapter. The transfers to the Education Trust Fund |
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180 | | - | 18 Budget Stabilization Fund and the Education Trust Fund |
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181 | | - | 19 Advancement and Technology Fund shall be made annually as |
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182 | | - | 20 follows: |
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183 | | - | 21 "(a)(1) Any excess revenues remaining for the any |
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184 | | - | 22 fiscal year ending September 30, 2015, up to two percent of |
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185 | | - | 23 the previous year's Education Trust Fund appropriations, shall |
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186 | | - | 24 be transferred to the Education Trust Fund Budget |
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187 | | - | 25 Stabilization Fund. Thereafter, in an amount up to one percent |
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188 | | - | Page 7 SB331 |
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189 | | - | 1 of the previous year's Education Trust Fund appropriations |
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190 | | - | 2 shall be transferred to the Education Trust Fund Budget |
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191 | | - | 3 Stabilization Fund annually until the fund reaches seven and |
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192 | | - | 4 one-half percent of the previous year's appropriations from |
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193 | | - | 5 the Education Trust Fund. |
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194 | | - | 6 "(b)(2) Funds Revenues in excess of those |
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195 | | - | 7 transferred in subsection subdivision (a) (1) shall be |
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196 | | - | 8 transferred to the Education Trust Fund Advancement and |
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197 | | - | 9 Technology Fund each year. Amounts Any amount of the available |
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198 | | - | 10 balance in the Education Trust Fund Advancement and Technology |
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199 | | - | 11 Fund shall may be appropriated available for appropriation |
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200 | | - | 12 only by and through an independent supplemental appropriation |
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201 | | - | 13 bill for the following nonrecurring expenses: repairs or |
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202 | | - | 14 deferred maintenance of facilities for public education |
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203 | | - | 15 purposes in the state, capital outlay, for classroom |
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204 | | - | 16 instructional support as provided in Section 16-13-231(b)(2)c. |
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205 | | - | 17 and Section 16-13-231.3, for insuring facilities, for |
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206 | | - | 18 transportation as provided in Section 16-13-233, for school |
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207 | | - | 19 security measures, and for the acquisition or purchase of |
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208 | | - | 20 education technology and equipment, or both. These funds, |
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209 | | - | 21 however, shall not be used as a pledge for the issuance or |
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210 | | - | 22 payment of debt service. No funds shall be appropriated until |
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211 | | - | 23 in years when the balance of the Education Trust Fund |
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212 | | - | 24 Advancement and Technology Fund at the end of the previous |
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213 | | - | 25 fiscal year equals or exceeds is less than ten million dollars |
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214 | | - | Page 8 SB331 |
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215 | | - | 1 ($10,000,000) $10 million. Amounts in the Education Trust Fund |
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216 | | - | 2 Advancement and Technology Fund shall be budgeted and allotted |
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217 | | - | 3 in accordance with Sections 41-4-80 through 41-4-96 and |
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218 | | - | 4 Sections 41-19-1 through 41-19-12, but shall not be limited by |
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219 | | - | 5 the fiscal year appropriation cap. |
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220 | | - | 6 "(c)(3) The annual appropriation of these funds |
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221 | | - | 7 shall be divided between the public schools and institutions |
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222 | | - | 8 of higher education in the state in accordance with the |
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223 | | - | 9 percentage split, based on the fiscal year in which an |
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224 | | - | 10 appropriation is made, between these two sectors of education |
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225 | | - | 11 as certified by the Legislative Services Agency, Fiscal |
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226 | | - | 12 Division, Legislative Fiscal Officer at the end of the |
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227 | | - | 13 preceding fiscal year. Public schools shall be interpreted to |
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228 | | - | 14 include any school in operation for the current fiscal year, |
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229 | | - | 15 the Alabama School of Math and Science, the Alabama School of |
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230 | | - | 16 Fine Arts, the Alabama School of Cyber Technology and |
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231 | | - | 17 Engineering, the portion of the Alabama Institute for Deaf and |
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232 | | - | 18 Blind providing appropriate elementary/secondary instruction, |
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233 | | - | 19 and may include the Department of Youth Services School |
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234 | | - | 20 District. |
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235 | | - | 21 "§29-9-6. |
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236 | | - | 22 "During the first six months of a fiscal year, the |
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237 | | - | 23 Director of Finance may temporarily transfer available funds |
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238 | | - | 24 in the Budget Stabilization Fund into the Education Trust Fund |
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239 | | - | 25 as necessary to alleviate cash flow problems in the Education |
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240 | | - | Page 9 SB331 |
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241 | | - | 1 Trust Fund. Any funds temporarily transferred shall be repaid |
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242 | | - | 2 to the Budget Stabilization Fund from funds in the Education |
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243 | | - | 3 Trust Fund within 90 days following the date the funds are |
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244 | | - | 4 transferred by September 30 of the fiscal year in which the |
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245 | | - | 5 transfer was made." |
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246 | | - | 6 Section 2. This act shall become effective |
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247 | | - | 7 immediately following its passage and approval by the |
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248 | | - | 8 Governor, or its otherwise becoming law. |
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249 | | - | Page 10 SB331 |
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250 | | - | 1 |
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| 7 | + | Page 0 1 219306-1:n:03/25/2022:KF/cmg LSA2022-174F |
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257 | | - | 6 Speaker of the House of Representatives |
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258 | | - | SB3317 |
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259 | | - | 8 Senate 31-MAR-22 |
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260 | | - | 9 I hereby certify that the within Act originated in and passed |
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261 | | - | 10 the Senate. |
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262 | | - | 11 |
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263 | | - | 12 Patrick Harris, |
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264 | | - | 13 Secretary. |
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265 | | - | 14 |
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266 | | - | 15 |
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267 | | - | 16 |
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268 | | - | 17 House of Representatives |
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269 | | - | 18 Passed: 07-APR-22 |
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270 | | - | 19 |
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271 | | - | 20 |
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272 | | - | 21 By: Senator Orr |
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273 | | - | Page 11 |
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| 12 | + | 6 |
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| 13 | + | 7 |
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| 14 | + | 8 SYNOPSIS: This bill amends the Education Trust Fund |
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| 15 | + | 9 Rolling Reserve Act of 2011 to clarify current |
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| 16 | + | 10 practices for the determination of the annual |
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| 17 | + | 11 appropriation cap, for the disposition of revenues |
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| 18 | + | 12 received in excess of the cap, and for the |
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| 19 | + | 13 appropriation of funds in the Education Trust Fund |
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| 20 | + | 14 Advancement and Technology Fund. |
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| 21 | + | 15 This bill also deletes certain obsolete |
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| 22 | + | 16 provisions and modifies certain transfer dates to |
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| 23 | + | 17 improve cash flow for the Education Trust Fund. |
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| 24 | + | 18 |
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| 25 | + | 19 A BILL |
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| 26 | + | 20 TO BE ENTITLED |
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| 27 | + | 21 AN ACT |
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| 28 | + | 22 |
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| 29 | + | 23 To amend Sections 29-9-2, 29-9-3, 29-9-4, as last |
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| 30 | + | 24 amended by Act 2022-139 of the 2022 Regular Session, and |
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| 31 | + | 25 29-9-6, Code of Alabama 1975, relating to the Education Trust |
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| 32 | + | 26 Fund Rolling Reserve Act, to clarify current practices for the |
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| 33 | + | 27 calculation of the annual appropriation cap for the |
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| 34 | + | Page 1 1 disposition of revenues in excess of the cap, and for the |
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| 35 | + | 2 appropriation of funds in the Education Trust Fund Advancement |
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| 36 | + | 3 and Technology Fund; to delete certain obsolete provisions; |
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| 37 | + | 4 and to modify certain transfer dates to improve cash flow for |
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| 38 | + | 5 the Education Trust Fund. |
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| 39 | + | 6 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: |
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| 40 | + | 7 Section 1. Sections 29-9-2, 29-9-3, 29-9-4, as last |
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| 41 | + | 8 amended by Act 2022-139 of the 2022 Regular Session, and |
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| 42 | + | 9 29-9-6, Code of Alabama 1975, are amended to read as follows: |
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| 43 | + | 10 "§29-9-2. |
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| 44 | + | 11 "For the purposes of this chapter, the following |
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| 45 | + | 12 terms shall have the following meanings: |
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| 46 | + | 13 "(1) ALABAMA TRUST FUND. The Alabama Trust Fund |
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| 47 | + | 14 created by Amendment No. 450 to the Constitution of Alabama of |
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| 48 | + | 15 1901. |
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| 49 | + | 16 "(2) EDUCATION TRUST FUND. An account in the State |
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| 50 | + | 17 Treasury into which are deposited certain revenues paid to the |
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| 51 | + | 18 State of Alabama that are earmarked or set aside for |
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| 52 | + | 19 appropriation for public educational purposes. |
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| 53 | + | 20 "(3) EDUCATION TRUST FUND RAINY DAY ACCOUNT. The |
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| 54 | + | 21 special account created within the Alabama Trust Fund by |
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| 55 | + | 22 Amendment No. 803 to the Constitution of Alabama of 1901. |
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| 56 | + | 23 "(4) FISCAL YEAR. The fiscal year of the State of |
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| 57 | + | 24 Alabama that begins on October 1 and ends on September 30. |
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| 58 | + | 25 "(5) FISCAL YEAR APPROPRIATION CAP. The maximum |
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| 59 | + | 26 amount of appropriations that may be made from the Education |
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| 60 | + | 27 Trust Fund for any fiscal year pursuant to this chapter. |
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| 61 | + | Page 2 1 "(6) NEW RECURRING REVENUE. Revenue of any kind or |
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| 62 | + | 2 type constituting a new annual source of money that has been |
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| 63 | + | 3 enacted, established, or provided for prior to the first day |
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| 64 | + | 4 of the fiscal year of which it is to first be included in the |
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| 65 | + | 5 calculation of the Fiscal Year Appropriation Cap for the |
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| 66 | + | 6 Education Trust Fund. |
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| 67 | + | 7 "(7) NONRECURRING REVENUE. Revenue of any kind or |
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| 68 | + | 8 type that is deposited into or causes one-time abnormal |
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| 69 | + | 9 revenue impacts on the Education Trust Fund and that is not |
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| 70 | + | 10 recurring revenue, including one-time enhancements to revenues |
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| 71 | + | 11 resulting from one-time assistance to individuals or |
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| 72 | + | 12 businesses provided by the federal government. Any balance |
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| 73 | + | 13 remaining in the Education Trust Fund at the end of any fiscal |
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| 74 | + | 14 year, and transfers from the Education Trust Fund Proration |
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| 75 | + | 15 Prevention Account, the Education Trust Fund Rainy Day |
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| 76 | + | 16 Account, and the Education Trust Fund Budget Stabilization |
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| 77 | + | 17 Fund shall be nonrecurring revenue. |
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| 78 | + | 18 "(8) RECURRING REVENUE. Any permanent and continuing |
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| 79 | + | 19 source of revenue of any kind or type that has been enacted, |
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| 80 | + | 20 established, or provided for in fiscal years prior to the |
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| 81 | + | 21 fiscal year for which it is to be included in the calculation |
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| 82 | + | 22 of the fiscal year appropriation cap for the Education Trust |
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| 83 | + | 23 Fund. Recurring revenue shall not include any balance |
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| 84 | + | 24 remaining in the Education Trust Fund at the end of any fiscal |
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| 85 | + | 25 year. Once a new recurring revenue produces a source of |
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| 86 | + | 26 revenue for one complete fiscal year, it becomes a recurring |
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| 87 | + | 27 revenue. |
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| 88 | + | Page 3 1 "§29-9-3. |
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| 89 | + | 2 "(a) Notwithstanding any other provision of law to |
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| 90 | + | 3 the contrary, beginning with appropriations made for the |
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| 91 | + | 4 fiscal year ending September 30, 2013, appropriations from the |
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| 92 | + | 5 Education Trust Fund shall not exceed the fiscal year |
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| 93 | + | 6 appropriation cap. |
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| 94 | + | 7 "(b) The fiscal year appropriation cap for the |
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| 95 | + | 8 Education Trust Fund shall be equal to the sum of all of the |
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| 96 | + | 9 following: |
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| 97 | + | 10 "(1) The total of recurring revenues deposited into |
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| 98 | + | 11 the Education Trust Fund in the last completed fiscal year |
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| 99 | + | 12 preceding the date on which the fiscal year appropriation cap |
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| 100 | + | 13 is calculated. |
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| 101 | + | 14 "(2) An amount equal to the amount in subdivision |
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| 102 | + | 15 (1) multiplied by the average annual percent of change in the |
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| 103 | + | 16 recurring revenues deposited into the Education Trust Fund for |
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| 104 | + | 17 the 14 highest of the 15 completed fiscal years preceding the |
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| 105 | + | 18 date on which the fiscal year appropriation cap is calculated. |
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| 106 | + | 19 "(3) If new recurring revenue measures are enacted |
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| 107 | + | 20 that will be deposited into the Education Trust Fund, or if |
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| 108 | + | 21 existing revenue sources are amended to increase the amount of |
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| 109 | + | 22 money deposited into the Education Trust Fund, for the first |
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| 110 | + | 23 time during the year for which the fiscal year appropriation |
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| 111 | + | 24 cap is being calculated, then 95 percent of the amount |
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| 112 | + | 25 projected in the enacted fiscal note accompanying the |
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| 113 | + | 26 legislative act creating the new recurring revenue shall be |
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| 114 | + | 27 added or subtracted as a part of the fiscal year appropriation |
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| 115 | + | Page 4 1 cap. If a recurring revenue source is removed from to the |
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| 116 | + | 2 Education Trust Fund is removed or reduced during the year for |
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| 117 | + | 3 which the fiscal year appropriation cap is being calculated, |
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| 118 | + | 4 the negative impact, based on the enacted fiscal note, of the |
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| 119 | + | 5 removal or reduction of the recurring revenue shall be |
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| 120 | + | 6 included in the calculation of the fiscal year appropriation |
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| 121 | + | 7 cap. Any new recurring revenue measures and any changes in the |
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| 122 | + | 8 distribution of Education Trust Fund recurring revenues |
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| 123 | + | 9 enacted during the First or Second Special Session of 2015 |
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| 124 | + | 10 shall not require any addition or reduction in the fiscal year |
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| 125 | + | 11 appropriation cap for the fiscal year ending September 30, |
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| 126 | + | 12 2016. |
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| 127 | + | 13 "(4) Nonrecurring revenue shall be added or |
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| 128 | + | 14 subtracted as a part of the fiscal year appropriation cap for |
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| 129 | + | 15 the fiscal year in which the nonrecurring revenue is deposited |
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| 130 | + | 16 into the Education Trust Fund. |
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| 131 | + | 17 "(5) The amount required to be appropriated from the |
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| 132 | + | 18 Education Trust Fund to the Prepaid Affordable College Tuition |
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| 133 | + | 19 Trust Fund pursuant to Section 16-33C-16, Code of Alabama |
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| 134 | + | 20 1975. |
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| 135 | + | 21 "(c) The Director of Finance and the Director of the |
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| 136 | + | 22 Fiscal Office Legislative Fiscal Officer shall certify their |
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| 137 | + | 23 computation of the fiscal year appropriation cap at the same |
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| 138 | + | 24 time as the certification required by Amendment No. 803 to the |
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| 139 | + | 25 Constitution of Alabama of 1901. If the computation results in |
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| 140 | + | 26 a fiscal year appropriation cap that is less than the total |
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| 141 | + | 27 appropriations from the Education Trust Fund for the fiscal |
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| 142 | + | Page 5 1 year immediately preceding the fiscal year for which the |
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| 143 | + | 2 fiscal year appropriation cap is being calculated, the |
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| 144 | + | 3 Legislature may appropriate from the Education Trust Fund |
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| 145 | + | 4 Budget Stabilization Fund created in this chapter an amount |
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| 146 | + | 5 equal to the difference between the preceding fiscal year's |
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| 147 | + | 6 total appropriations from the Education Trust Fund and the |
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| 148 | + | 7 fiscal year appropriation cap, provided that any such amount |
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| 149 | + | 8 shall be in the determination of the Legislature not to |
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| 150 | + | 9 compromise the fiscal integrity of the fund to offset any |
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| 151 | + | 10 future proration of the Education Trust Fund. |
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| 152 | + | 11 "(d) Amendment No. 803 to the Constitution of 1901, |
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| 153 | + | 12 requires an estimate of available revenue for the Education |
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| 154 | + | 13 Trust Fund which is to be certified by the Finance Director |
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| 155 | + | 14 and the Legislative Fiscal Officer prior to the third |
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| 156 | + | 15 legislative day of each regular session. If, however, the |
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| 157 | + | 16 average of the estimated available revenue is less than the |
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| 158 | + | 17 fiscal year appropriation cap calculated in subsection (b), |
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| 159 | + | 18 the Legislature shall appropriate no more than the lesser |
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| 160 | + | 19 amount of the average of the estimated available revenue or |
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| 161 | + | 20 the fiscal year appropriation cap as required to be determined |
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| 162 | + | 21 by this section. |
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| 163 | + | 22 "§29-9-4. |
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| 164 | + | 23 "There is hereby created in the State Treasury an |
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| 165 | + | 24 Education Trust Fund Budget Stabilization Fund and an |
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| 166 | + | 25 Education Trust Fund Advancement and Technology Fund. Any |
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| 167 | + | 26 monetary interest which accrues in the Education Trust Fund |
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| 168 | + | 27 Budget Stabilization Fund shall be retained in the fund from |
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| 169 | + | Page 6 1 year to year and shall be subject only to the provisions of |
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| 170 | + | 2 this chapter. If total revenues deposited into the Education |
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| 171 | + | 3 Trust Fund during the immediately preceding fiscal year exceed |
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| 172 | + | 4 the fiscal year appropriation cap for the immediately |
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| 173 | + | 5 preceding fiscal year, and total Education Trust Fund |
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| 174 | + | 6 appropriations for the immediately preceding fiscal year are |
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| 175 | + | 7 less than the fiscal year appropriation cap for the |
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| 176 | + | 8 immediately preceding fiscal year, the excess revenues shall |
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| 177 | + | 9 remain in the Education Trust Fund as nonrecurring revenue. On |
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| 178 | + | 10 or before November 15 May 31 of each fiscal year, if the total |
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| 179 | + | 11 revenues deposited into the Education Trust Fund during the |
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| 180 | + | 12 immediately preceding fiscal year exceed the fiscal year |
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| 181 | + | 13 appropriation cap for the immediately preceding fiscal year, |
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| 182 | + | 14 and Education Trust Fund appropriations for the immediately |
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| 183 | + | 15 preceding fiscal year were equal to the fiscal year |
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| 184 | + | 16 appropriation cap, the excess revenues shall be transferred to |
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| 185 | + | 17 the Education Trust Fund Rainy Day Account until the account |
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| 186 | + | 18 has been repaid in full. If the account has been repaid in |
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| 187 | + | 19 full, any excess revenues remaining shall be transferred to |
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| 188 | + | 20 the Education Trust Fund Budget Stabilization Fund and the |
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| 189 | + | 21 Education Trust Fund Advancement and Technology Fund created |
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| 190 | + | 22 in this chapter. The transfers to the Education Trust Fund |
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| 191 | + | 23 Budget Stabilization Fund and the Education Trust Fund |
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| 192 | + | 24 Advancement and Technology Fund shall be made annually as |
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| 193 | + | 25 follows: |
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| 194 | + | 26 "(a)(1) Any excess revenues remaining for the any |
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| 195 | + | 27 fiscal year ending September 30, 2015, up to two percent of |
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| 196 | + | Page 7 1 the previous year's Education Trust Fund appropriations, shall |
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| 197 | + | 2 be transferred to the Education Trust Fund Budget |
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| 198 | + | 3 Stabilization Fund. Thereafter, in an amount up to one percent |
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| 199 | + | 4 of the previous year's Education Trust Fund appropriations |
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| 200 | + | 5 shall be transferred to the Education Trust Fund Budget |
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| 201 | + | 6 Stabilization Fund annually until the fund reaches seven and |
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| 202 | + | 7 one-half percent of the previous year's appropriations from |
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| 203 | + | 8 the Education Trust Fund. |
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| 204 | + | 9 "(b)(2) Funds Revenues in excess of those |
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| 205 | + | 10 transferred in subsection subdivision (a) (1) shall be |
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| 206 | + | 11 transferred to the Education Trust Fund Advancement and |
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| 207 | + | 12 Technology Fund each year. Amounts Any amount of the available |
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| 208 | + | 13 balance in the Education Trust Fund Advancement and Technology |
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| 209 | + | 14 Fund shall may be appropriated available for appropriation |
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| 210 | + | 15 only by and through an independent supplemental appropriation |
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| 211 | + | 16 bill for the following nonrecurring expenses: repairs or |
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| 212 | + | 17 deferred maintenance of facilities for public education |
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| 213 | + | 18 purposes in the state, capital outlay, for classroom |
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| 214 | + | 19 instructional support as provided in Section 16-13-231(b)(2)c. |
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| 215 | + | 20 and Section 16-13-231.3, for insuring facilities, for |
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| 216 | + | 21 transportation as provided in Section 16-13-233, for school |
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| 217 | + | 22 security measures, and for the acquisition or purchase of |
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| 218 | + | 23 education technology and equipment, or both. These funds, |
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| 219 | + | 24 however, shall not be used as a pledge for the issuance or |
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| 220 | + | 25 payment of debt service. No funds shall be appropriated until |
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| 221 | + | 26 in years when the balance of the Education Trust Fund |
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| 222 | + | 27 Advancement and Technology Fund at the end of the previous |
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| 223 | + | Page 8 1 fiscal year equals or exceeds is less than ten million dollars |
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| 224 | + | 2 ($10,000,000) $10 million. Amounts in the Education Trust Fund |
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| 225 | + | 3 Advancement and Technology Fund shall be budgeted and allotted |
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| 226 | + | 4 in accordance with Sections 41-4-80 through 41-4-96 and |
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| 227 | + | 5 Sections 41-19-1 through 41-19-12, but shall not be limited by |
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| 228 | + | 6 the fiscal year appropriation cap. |
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| 229 | + | 7 "(c)(3) The annual appropriation of these funds |
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| 230 | + | 8 shall be divided between the public schools and institutions |
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| 231 | + | 9 of higher education in the state in accordance with the |
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| 232 | + | 10 percentage split, based on the fiscal year in which an |
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| 233 | + | 11 appropriation is made, between these two sectors of education |
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| 234 | + | 12 as certified by the Legislative Services Agency, Fiscal |
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| 235 | + | 13 Division, Legislative Fiscal Officer at the end of the |
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| 236 | + | 14 preceding fiscal year. Public schools shall be interpreted to |
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| 237 | + | 15 include any school in operation for the current fiscal year, |
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| 238 | + | 16 the Alabama School of Math and Science, the Alabama School of |
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| 239 | + | 17 Fine Arts, the Alabama School of Cyber Technology and |
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| 240 | + | 18 Engineering, the portion of the Alabama Institute for Deaf and |
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| 241 | + | 19 Blind providing appropriate elementary/secondary instruction, |
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| 242 | + | 20 and may include the Department of Youth Services School |
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| 243 | + | 21 District. |
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| 244 | + | 22 "§29-9-6. |
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| 245 | + | 23 "During the first six months of a fiscal year, the |
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| 246 | + | 24 Director of Finance may temporarily transfer available funds |
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| 247 | + | 25 in the Budget Stabilization Fund into the Education Trust Fund |
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| 248 | + | 26 as necessary to alleviate cash flow problems in the Education |
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| 249 | + | 27 Trust Fund. Any funds temporarily transferred shall be repaid |
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| 250 | + | Page 9 1 to the Budget Stabilization Fund from funds in the Education |
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| 251 | + | 2 Trust Fund within 90 days following the date the funds are |
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| 252 | + | 3 transferred by September 30 of the fiscal year in which the |
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| 253 | + | 4 transfer was made." |
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| 254 | + | 5 Section 2. This act shall become effective |
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| 255 | + | 6 immediately following its passage and approval by the |
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| 256 | + | 7 Governor, or its otherwise becoming law. |
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| 257 | + | Page 10 |
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