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FISCAL NOTE
House Bill 334
Committee: Ways and Means Education Sponsor: Representative Danny Garrett
Analyst: John Friedenreich Date: 04/25/2023
House Bill 334 as introduced would create the Students with Unique Needs (SUN) Education
Scholarship Account (ESA) Program which could increase the obligations of the Education
Trust Fund (ETF) by an estimated maximum of $3 million in fiscal year 2025, and up to an
additional similar amount each fiscal year thereafter, by depositing funds into ESAs of
participating eligible students, which may be used for certain educational services, pursuant to
the provisions of this bill. This bill would provide that 95% of the gross state Foundation
Program cost-per-student would be deposited into each ESA during the applicable tax year,
subject to appropriations from the ETF. This amount is approximately $5,600 for Fiscal Year
2023. This bill would cap enrollment in the program at 500 students for the initial 2024-2025
school year and would provide that this cap would increase by 500 each year thereafter.
Additionally, this bill would increase the obligations of the Alabama Department of Revenue
(ADOR) by an undetermined amount to administer the ESAs, adopt rules and policies for the
program, and conduct regular audits to prevent fraud. These obligations would be offset by the
retention of 5% of the gross state Foundation Program cost-per-student by ADOR for the
administration of this program, as provided by this bill. This amount for Fiscal Year 2023 is
approximately $300.
This bill could also increase the administrative obligations of the Department of Education to
determine eligibility for ESAs, maintain the list of approved education service providers, and
collect and disseminate test results and graduation rates of participants.