AL
Alabama House Bill HB456

Alabama 2024 Regular Session

Alabama House Bill HB456 Compare Versions

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11 HB456INTRODUCED
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33 HB456
44 R3P5MMN-1
55 By Representative Garrett
66 RFD: Ways and Means Education
77 First Read: 16-Apr-24
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1212 5 R3P5MMN-1 04/15/2024 KHF (F)KHF 2024-1523
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1414 First Read: 16-Apr-24
1515 SYNOPSIS:
1616 Under the Education Trust Fund Rolling Reserve
1717 Act, the Education Trust Fund Advancement and
1818 Technology Fund was created to receive certain excess
1919 revenues for appropriation through a supplemental
2020 appropriation act. Any monetary interest that accrues
2121 in the fund is not retained in the fund from year to
2222 year.
2323 This bill would provide that any interest earned
2424 in the Education Trust Fund Advancement and Technology
2525 Fund shall be retained in the fund from year to year.
2626 A BILL
2727 TO BE ENTITLED
2828 AN ACT
2929 Relating to the Education Trust Fund Rolling Reserve
3030 Act; to amend Section 29-9-4, Code of Alabama 1975, as last
3131 amended by Act 2023-390 of the 2023 Regular Session, to
3232 provide that any monetary interest earned in the Education
3333 Trust Fund Advancement and Technology Fund shall be retained
3434 in the fund from year to year.
3535 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
3636 Section 1. Section 29-9-4, Code of Alabama 1975, as
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6666 Section 1. Section 29-9-4, Code of Alabama 1975, as
6767 last amended by Act 2023-390 of the 2023 Regular Session, is
6868 amended as follows:
6969 "ยง29-9-4
7070 (a) There is hereby created in the State Treasury an
7171 Education Trust Fund Budget Stabilization Fund and an
7272 Education Trust Fund Advancement and Technology Fund. Any
7373 monetary interest that accrues in the Education Trust Fund
7474 Budget Stabilization Fund and the Education Trust Fund
7575 Advancement and Technology Fund shall be retained in the
7676 fundfunds from year to year and shall be subject only to the
7777 provisions of this chapter. If total revenues deposited into
7878 the Education Trust Fund during the immediately preceding
7979 fiscal year exceed the fiscal year appropriation cap for the
8080 immediately preceding fiscal year, and total Education Trust
8181 Fund appropriations for the immediately preceding fiscal year
8282 are less than the fiscal year appropriation cap for the
8383 immediately preceding fiscal year, the excess revenues shall
8484 remain in the Education Trust Fund as nonrecurring revenue. On
8585 or before May 31 of each fiscal year through the fiscal year
8686 ending September 30, 2023, if the total revenues deposited
8787 into the Education Trust Fund during the immediately preceding
8888 fiscal year exceed the fiscal year appropriation cap for the
8989 immediately preceding fiscal year, and Education Trust Fund
9090 appropriations for the immediately preceding fiscal year were
9191 equal to the fiscal year appropriation cap, the excess
9292 revenues shall be transferred to the Education Trust Fund
9393 Rainy Day Account until the account has been repaid in full.
9494 If the account has been repaid in full, any excess revenues
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124124 If the account has been repaid in full, any excess revenues
125125 remaining shall be transferred to the Education Trust Fund
126126 Budget Stabilization Fund and the Education Trust Fund
127127 Advancement and Technology Fund created in this chapter. The
128128 transfers to the Education Trust Fund Budget Stabilization
129129 Fund and the Education Trust Fund Advancement and Technology
130130 Fund shall be made annually as follows:
131131 (1) To the Education Trust Fund Budget Stabilization
132132 Fund in an amount up to one percent of the previous year's
133133 Education Trust Fund total appropriations until the fund
134134 reaches seven and one-half percent of the previous year's
135135 appropriations from the Education Trust Fund.
136136 (2) a. Any excess revenues remaining after those
137137 transferred in subdivision (1) shall be transferred to the
138138 Education Trust Fund Advancement and Technology Fund each
139139 year. Any amount of the available balance in the Education
140140 Trust Fund Advancement and Technology Fund may be available
141141 for appropriation only by and through an independent
142142 supplemental appropriation bill for the following nonrecurring
143143 expenses: repairs or deferred maintenance of facilities for
144144 public education purposes in the state, capital outlay, for
145145 classroom instructional support as provided in Section
146146 16-13-231(b)(2)c. and Section 16-13-231.3, for insuring
147147 facilities, for transportation as provided in Section
148148 16-13-233, for school security measures, and for the
149149 acquisition or purchase of education technology and equipment,
150150 or both. These funds, however, shall not be used as a pledge
151151 for the issuance or payment of debt service. No funds shall be
152152 appropriated in years when the balance of the Education Trust
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182182 appropriated in years when the balance of the Education Trust
183183 Fund Advancement and Technology Fund at the end of the
184184 previous fiscal year is less than ten million dollars
185185 ($10,000,000). Amounts in the Education Trust Fund Advancement
186186 and Technology Fund shall be budgeted and allotted in
187187 accordance with Sections 41-4-80 through 41-4-96 and Sections
188188 41-19-1 through 41-19-12, but shall not be limited by the
189189 fiscal year appropriation cap.
190190 b. The annual appropriation of funds from the Education
191191 Trust Fund Advancement and Technology Fund shall be divided
192192 between the public schools and institutions of higher
193193 education in the state in accordance with the percentage
194194 split, based on the fiscal year in which an appropriation is
195195 made, between these two sectors of education as certified by
196196 the Legislative Fiscal Officer at the end of the preceding
197197 fiscal year. Public schools shall be interpreted to include
198198 any public school in operation for the current fiscal year,
199199 the Alabama School of Math and Science, the Alabama School of
200200 Fine Arts, the Alabama School of Cyber Technology and
201201 Engineering, the portion of the Alabama Institute for Deaf and
202202 Blind providing appropriate elementary/secondary instruction,
203203 and may include the Department of Youth Services School
204204 District.
205205 (b) There is created in the State Treasury the
206206 Educational Opportunities Reserve Fund into which monies shall
207207 be deposited as provided in this chapter and as appropriated
208208 by the Legislature. Any monetary interest that accrues to the
209209 Educational Opportunities Reserve Fund shall be retained in
210210 the fund from year to year and shall be subject only to this
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240240 the fund from year to year and shall be subject only to this
241241 chapter.
242242 (c) On or before May 31 of each fiscal year beginning
243243 with the fiscal year ending September 30, 2024, if the total
244244 available revenues in the Education Trust Fund during the
245245 immediately preceding fiscal year exceed Education Trust Fund
246246 total appropriations for the immediately preceding fiscal
247247 year, and there is an unpaid balance owed to the Education
248248 Trust Fund Rainy Day Account, the excess revenues shall be
249249 transferred to the Education Trust Fund Rainy Day Account
250250 until the account has been repaid in full. If the account has
251251 been repaid in full, any excess revenues remaining shall be
252252 transferred to the Education Trust Fund Budget Stabilization
253253 Fund, the Education Trust Fund Advancement and Technology
254254 Fund, and the Educational Opportunities Reserve Fund created
255255 in this chapter. The transfers to the Education Trust Fund
256256 Budget Stabilization Fund, the Education Trust Fund
257257 Advancement and Technology Fund, and the Educational
258258 Opportunities Reserve Fund shall be made annually as follows:
259259 (1) To the Education Trust Fund Budget Stabilization
260260 Fund in an amount up to one percent of the previous year's
261261 Education Trust Fund total appropriations until the fund
262262 reaches 10 percent of the previous year's appropriations from
263263 the Education Trust Fund.
264264 (2)a. Fifty percent of the excess revenues remaining
265265 after those transferred in subdivision (1) shall be
266266 transferred to the Education Trust Fund Advancement and
267267 Technology Fund each year, not to exceed one billion dollars
268268 ($1,000,000,000) in any fiscal year. Any amount of the
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298298 ($1,000,000,000) in any fiscal year. Any amount of the
299299 available balance in the Education Trust Fund Advancement and
300300 Technology Fund may be available for appropriation only by and
301301 through an independent supplemental appropriation bill for the
302302 following nonrecurring expenses: repairs or deferred
303303 maintenance of facilities for public education purposes in the
304304 state, capital outlay, for classroom instructional support as
305305 provided in Section 16-13-231(b)(2)c. and Section 16-13-231.3,
306306 for insuring facilities, for transportation as provided in
307307 Section 16-13-233, for school security measures, and for the
308308 acquisition or purchase of education technology or equipment,
309309 or both. These funds, however, shall not be used as a pledge
310310 for the issuance or payment of debt service. No funds shall be
311311 appropriated in years when the balance of the Education Trust
312312 Fund Advancement and Technology Fund at the end of the
313313 previous fiscal year is less than ten million dollars
314314 ($10,000,000). Amounts in the Education Trust Fund Advancement
315315 and Technology Fund shall be budgeted and allotted in
316316 accordance with Sections 41-4-80 through 41-4-96 and Sections
317317 41-19-1 through 41-19-12, but shall not be limited by the
318318 fiscal year appropriation cap.
319319 b. The annual appropriation of funds from the Education
320320 Trust Fund Advancement and Technology Fund shall be divided
321321 between the public schools and institutions of higher
322322 education in the state in accordance with the percentage
323323 split, based on the fiscal year in which an appropriation is
324324 made, between these two sectors of education as certified by
325325 the Legislative Fiscal Officer at the end of the preceding
326326 fiscal year. Public schools shall be interpreted to include
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356356 fiscal year. Public schools shall be interpreted to include
357357 any public school in operation for the current fiscal year,
358358 the Alabama School of Math and Science, the Alabama School of
359359 Fine Arts, the Alabama School of Cyber Technology and
360360 Engineering, the portion of the Alabama Institute for Deaf and
361361 Blind providing appropriate elementary/secondary instruction,
362362 and may include the Department of Youth Services School
363363 District.
364364 (3)a. Twenty percent of the excess revenues remaining
365365 after those transferred in subdivision (1) shall be
366366 transferred to the Educational Opportunities Reserve Fund.
367367 Amounts in the Educational Opportunities Reserve Fund may be
368368 withdrawn by and through an independent supplemental
369369 appropriation bill to provide one-time funding for the
370370 following purposes only: (i) to offset a reduction in revenues
371371 to the Education Trust Fund that could negatively impact
372372 funding for budgeted obligations from the Education Trust Fund
373373 for the current fiscal year as certified by the Director of
374374 Finance and the Legislative Fiscal Officer; (ii) to provide
375375 funding for unanticipated obligations, and to sustain required
376376 programmatic increases for existing obligations paid from the
377377 Education Trust Fund in the event of a change in economic
378378 conditions; (iii) to provide funding to maintain prior year
379379 appropriation levels, if the computation of the fiscal year
380380 appropriation cap or secondary spending limit is less than
381381 Education Trust Fund base appropriations for the previous
382382 fiscal year, not to exceed the difference between the two
383383 figures; and (iv) for start-up or transitional support for
384384 initiatives that provide access to enhanced educational
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414414 initiatives that provide access to enhanced educational
415415 opportunities to all public K-12 or higher education students
416416 in the state, or both. Amounts in the Educational
417417 Opportunities Reserve Fund shall not be appropriated for any
418418 of the following purposes: repairs or deferred maintenance for
419419 facilities, capital outlay, pay raises or bonuses for
420420 educational personnel or retirees, or to provide additional
421421 support for ongoing expenditures other than as specified in
422422 subdivision (2). Provided, however, funds may be appropriated
423423 to maintain Foundation Program state funding in extraordinary
424424 situations.
425425 b. No funds may be appropriated until the balance of
426426 the Educational Opportunities Reserve Fund at the end of the
427427 previous fiscal year equals or exceeds three hundred million
428428 dollars ($300,000,000). Once this threshold is attained, any
429429 amount of the available balance may be appropriated for the
430430 purposes specified in this subsection. Amounts in the
431431 Educational Opportunities Reserve Fund shall be budgeted and
432432 allotted in accordance with Sections 41-4-80 through 41-4-96
433433 and Sections 41-19-1 through 41-19-12.
434434 (4) Any remaining excess revenues after the transfers
435435 in subdivisions (1) through (3) shall remain in the Education
436436 Trust Fund as nonrecurring revenue."
437437 Section 2. This act shall become effective on June 1,
438438 2024.
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