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FISCAL NOTE
Senate Bill 196
Committee: Education Policy Sponsor: Senator Arthur Orr
Analyst: John Friedenreich Date: 04/16/2025
Senate Bill 196 as reported by the Committee on Education Policy would increase the
administrative obligations of: (1) the State Board of Education, the Board of Trustees of the
Alabama Community College System (ACCS), and the Alabama Commission on Higher
Education's (ACHE) Council of Presidents to develop and adopt rules for 11th and 12th grade
students to take all coursework at certain higher education institutions pursuant to the provisions
of this bill; and (2) the State Department of Education to prepare and publish an annual report
on the impact of the program as described in this bill during the previous academic year.
This bill would also create the Move on When Ready Fund in the State Treasury to be used by
the Executive Director of ACHE, 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 from the Foundation Program for a student in the system. Based on
the 2024-25 school year, the average annual tuition and required fees for public two-year
institutions is $5,300 and for public four-year institutions is $11,900; the average state-funded
Foundation Program allocation is $6,400 per Average Daily Membership (ADM).
This bill would also reduce funding 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 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. FN-TBBUQ51-3
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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
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.