SB98 Summary

• Repeals Sections 29-9-1 to 29-9-6 of the Code of Alabama 1975, which established maximum annual appropriation limits from the Education Trust Fund.

• Reenacts Section 40-1-32.1, establishing the Education Trust Fund Proration Prevention Account as a separate fund within the State Treasury to prevent education funding shortfalls.

• Appropriates 75 percent of unanticipated and unappropriated Education Trust Fund balances from the preceding fiscal year into the Proration Prevention Account, beginning October 1, 2008 and annually thereafter.

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

• Requires excess funds exceeding 10 percent of the prior year's Education Trust Fund appropriations to revert to the Education Trust Fund; becomes effective on the first day of the third month following passage.