Alabama 2025 2025 Regular Session

Alabama Senate Bill SB196 Introduced / Fiscal Note

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FISCAL NOTE 
Senate Bill 196
Committee: Finance and Taxation EducationSponsor: Senator Arthur Orr
Analyst: John Friedenreich	Date: 02/26/2025
Senate Bill 196 as introduced would increase the administrative obligations of the State Board
of Education and the Board of Trustees of the Alabama Community College System (ACCS) to 
develop and adopt rules for a separate, alternative dual enrollment program pursuant to the
provisions of this bill. 
This bill would also create the Move on When Ready Fund in the State Treasury to be used by
the Chancellor of ACCS, subject to legislative appropriation, to pay eligible institutions, on
behalf of participating students, the lesser of: (1) the actual cost of tuition, materials, and fees
directly related to the courses taken by the student; or (2) the amount that the local school
system would have earned for a student in the local school system. Based on the 2024-25 school
year, the average annual tuition and required fees for public two-year institutions is $5,300 and
the average state-funded Foundation Program allocation is $6,400 per Average Daily
Membership (ADM).  
This bill would also reduce allotments to local boards of education for students in year 2 of  the
program by an amount equivalent to the amount paid from the Fund to the institution on behalf
of the student. However, the reduction in the allotment to the local school system would be
offset by the $200 per student records fee authorized by this bill for the increase in the
administrative and fiscal obligations of local school systems with participating students.
Additionally, this bill would: (1) prohibit participating students from receiving any other state
student financial aid for courses under this program; and (2) authorize the State Board of
Education to increase the records fee by up to 4% annually.
In addition this bill could increase receipts to the State General Fund and municipal general
funds from fines; increase receipts to the State General Fund, county general funds, municipal FN-TBBUQ51-1
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funds from fines; increase receipts to the State General Fund, county general funds, municipal
general funds, and other funds to which court costs are deposited; and could increase the
obligations of the State General Fund, district attorneys, and local jails by an undetermined
amount dependent upon the number of persons charged with and convicted of the offenses
provided by this bill and the penalties imposed.