HB182 Summary

• Repeals Act 2011-3 (HB57), the Education Trust Fund Rolling Reserve Act, which established limits on annual Education Trust Fund appropriations.

• Reenacts Section 40-1-32.1 to establish the Education Trust Fund Proration Prevention Account within the State Treasury to prevent budget shortfalls in education funding.

• Transfers 75 percent of unanticipated and unappropriated Education Trust Fund ending balances annually into the Proration Prevention Account, beginning October 1, 2008.

• Permits withdrawals from the Proration Prevention Account only to prevent Education Trust Fund proration upon Governor certification, or by legislative act with a two-thirds recorded vote in each chamber.

• Requires repayment of withdrawn funds at legislative discretion, allows excess funds above 10 percent of prior year appropriations to revert to the Education Trust Fund, and becomes effective three months after passage.