Alabama § 29-9-2 - Definitions.

§ 29-9-2. Definitions.

For the purposes of this chapter, the following terms have the following meanings:

(1) ALABAMA TRUST FUND. The Alabama Trust Fund created by Section 219.02 of the Constitution of Alabama of 2022.

(2) EDUCATION TRUST FUND. An account in the State Treasury into which are deposited certain revenues paid to the State of Alabama that are earmarked or set aside for appropriation for public educational purposes.

(3) EDUCATION TRUST FUND BASE APPROPRIATIONS. The Education Trust Fund appropriations for the current fiscal year that were enacted in a prior legislative session, excluding reversions reappropriated and any supplemental appropriations.

(4) EDUCATION TRUST FUND RAINY DAY ACCOUNT. The special account created within the Alabama Trust Fund by Section 260.02 of the Constitution of Alabama of 2022.

(5) EDUCATION TRUST FUND TOTAL APPROPRIATIONS. The total amount of funds appropriated from the Education Trust Fund for a fiscal year, including reversions reappropriated and supplemental appropriations.

(6) EXCESS REVENUES. The difference in the total amount of revenue deposited in the Education Trust Fund in the immediately preceding fiscal year, including nonrecurring revenue, less the Education Trust Fund Total Appropriations for the same fiscal year.

(7) FISCAL YEAR. The fiscal year of the State of Alabama that begins on October 1 and ends on September 30.

(8) FISCAL YEAR APPROPRIATION CAP. The maximum amount of appropriations that may be made from the Education Trust Fund for any fiscal year under certain conditions pursuant to this chapter.

(9) NEW RECURRING REVENUE. Revenue of any kind or type constituting a new annual source of money that has been enacted, established, or provided for prior to the first day of the fiscal year of which it is to first be included in the calculation of the Fiscal Year Appropriation Cap for the Education Trust Fund.

(10) NONRECURRING REVENUE. Revenue of any kind or type that is deposited into or causes one-time abnormal revenue impacts on the Education Trust Fund and that is not recurring revenue, including one-time enhancements to revenues resulting from one-time assistance to individuals or businesses provided by the federal government. Any balance remaining in the Education Trust Fund at the end of any fiscal year, and transfers from the Education Trust Fund Rainy Day Account and the Education Trust Fund Budget Stabilization Fund shall be nonrecurring revenue.

(11) RECURRING REVENUE. Any permanent and continuing source of revenue of any kind or type that has been enacted, established, or provided for in fiscal years prior to the fiscal year for which it is to be included in the calculation of the fiscal year appropriation cap for the Education Trust Fund. Recurring revenue shall not include any balance remaining in the Education Trust Fund at the end of any fiscal year. Once a new recurring revenue produces a source of revenue for one complete fiscal year, it becomes a recurring revenue.

(12) SECONDARY SPENDING LIMIT. An amount equal to 106.5 percent of the Education Trust Fund Base Appropriations for the fiscal year ending September 30, 2024; 106.25 percent of Education Trust Fund Base Appropriations for the fiscal year ending September 30, 2025; 106 percent of the Education Trust Fund Base Appropriations for the fiscal year ending September 30, 2026; and 105.75 percent of the Education Trust Fund Base Appropriations for the fiscal year ending September 30, 2027 and each fiscal year thereafter.