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FISCAL NOTE
Senate Bill 101
Committee: Ways and Means Education Sponsor: Senator Arthur Orr
Analyst: John Friedenreich Date: 05/24/2023
Senate Bill 101 as reported by the Committee on Ways and Means Education would amend
the Rolling Reserve Act to: (1) provide a secondary spending cap beginning with the fiscal
year ending September 30, 2024; (2) adjust the fiscal year appropriation cap by dropping the
highest growth year; (3) revise the current distribution of excess revenues deposited into the
Education Trust Fund (ETF) Budget Stabilization Fund and the ETF Advancement and
Technology (A and T) Fund; (4) provide that transfers into the ETF Budget Stabilization
Fund from excess revenues continue until the fund reaches 10%, currently 7.5%, of the
previous year’s ETF appropriation; (5) cap the amount of excess revenue deposited annually
into the ETF A and T Fund at $1 billion; (6) create the Educational Opportunities Reserve
(EOR) Fund in the State Treasury into which monies shall be deposited pursuant to this act,
and which may be withdrawn through supplemental appropriations bills to: (a) offset a
reduction in estimated revenue to the Education Trust Fund; (b) provide funding for
unanticipated and existing obligations paid from the ETF; (c) provide funding to maintain
prior year appropriation levels; and (d) provide for start-up or transitional support for
initiatives that provide access to enhanced educational opportunities to public K-12 or
higher education students, or both; (7) repeal the provision allowing the ETF Budget
Stabilization Fund to be used for loans to public schools or higher education institutions for
damages from natural disasters; (8) further provide that no funds may be appropriated from
the EOR Fund until the balance equals or exceeds $300 million; and (9) provide further that
any remaining excess revenues after the transfers to the ETF Budget Stabilization Fund, the
ETF A and T Fund, and the EOR Fund will remain in the ETF as nonrecurring revenues.