Alabama Republican Party Chairman Terry Lathan made the following statements pertaining to the Education Trust Fund surplus:
There is much to celebrate in Alabama this week with the news of a $140 million surplus in the Alabama Education Trust Fund. A report from Mike Carson, of al.com, details the specifics of this recent release of information. (See story below.)
As a conservative activist and a former public elementary school teacher, I applaud the reforms that have given our schools a surplus. Ignored by Democrats for decades, the challenge of fiscal responsibility in education was met and conquered by the Republican majority resulting in much needed reforms that will directly support our students.
Our Republican elected officials will continue placing our children first while keeping a watchful eye on our education funds that parents and citizens invest in with their tax dollars.
Here are three specific items highlighted:
First, note the timeline of the turnaround for our state showing a surplus in the education budgets. Since 2001 to 2011, Alabama has been in proration six times. In 2011, the first Republican majority legislature was seated, and since then, there has been no proration. Along with Governor Robert Bentley, the Republican legislature quickly tackled this reoccurring education budget problem with historic reforms. This is not an accident. It was conservative actions in motion.
Second, the Republican majority diligently and lawfully, through their promise, refunded the $437 million borrowed from the Education Trust Fund in 2009.
Third, the $6 billion budget has many additional items for our students:
Source: http://www.al.com/news/index.ssf/2015/05/education_budget_passes_alabam.html
* $13 million in increased funding for textbooks
* $10 million of additional funding for First Class Pre-K
* $4.5 million in increased funding for transportation
* $3 million in increased funding for classroom supplies to alleviate educators’ spending money out-of-pocket.
* $3 million in additional funding for classroom technology
* $3 million in increased funding for professional development
* $1.3 million in additional funding for distance learning programs
* $1 million in increased funding for school library enhancements
* $1 million in additional funding for Advanced Placement courses
* $1 million in increased funding for local technology coordinators
Highlights from Mr. Carson’s report in al.com:
http://www.al.com/news/index.ssf/2015/11/alabama_education_trust_fund_e.html#incart_river_home
The Rolling Reserve Act is meant to prevent proration; midyear cuts in school spending that are mandated when tax revenues fall short of obligations.
The Rolling Reserve Act sets an annual cap on Education Trust Fund spending and restricts the use of revenues above the cap.
About $118 million will go into the Budget Stabilization Fund, according to a memo from the Legislative Fiscal Office to the Legislature’s education budget chairmen.
The other $22 million will go into a new Advancement and Technology Fund for education.
The Rolling Reserve Act made repayment of $437 million borrowed from the Alabama Trust Fund in 2009 the first priority. Repayment was completed this summer, as mandated by law, clearing the way to begin stashing dollars in the Budget Stabilization Fund.
The money in the stabilization fund can only be used to prevent proration. The law calls for money to continue to go into the stabilization fund until it grows to about $450 million.
The new education Advancement and Technology Fund can be used for repairs and deferred maintenance, insuring facilities, classroom instructional support, transportation and the purchase of technology and equipment.
Lawmakers changed the formula to raise the annual cap and made more money available for education spending.
For fiscal year 2015, which ended Sept. 30, receipts to the Education Trust Fund were $6.05 billion, an increase of 4.2 percent over the previous year.
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