How much money will the legislature move out of the Education Trust Fund? That’s the multi-million-dollar question.
Late last week, the House voted to transfer an estimated $50 million of use taxes out of the Education Trust Fund, beginning in FY17 (which starts October 1, 2016).
Use taxes are collected on goods purchased out of state by Alabama residents and are expected to bring in around $225 million for FY16. It is considered a growth tax (meaning revenues increase year after year) and historically has been earmarked for the Education Trust Fund.
On Monday, the Senate substituted its own version and upped that amount to $100 million. A link will be added to the Senate version when it becomes available.
— Tracey Meyer (@Legis_Lady) September 14, 2015
When the bill went back to the House, the original bill’s sponsor, Rep. Bill Poole (R-Tuscaloosa) led the charge to non-concur with the Senate’s changes.
A Conference Committee was appointed to hammer it out. Representatives Poole, Tuggle, and Scott, along with Senators Orr, Pittman and Marsh are the appointed members of the Conference Committee.
This same Committee will consider HB29, as it followed the same path HB30 did.
HB29 concerns the Rolling Reserve Act. It tinkers with when monies can be distributed above the Rolling Reserve cap and where those monies can go. Here’s the version of HB29 that the House passed. A link will be added to the Senate version when it becomes available.
The Committee was unable to reach an agreement, and late on Monday evening the Committee adjourned until 10:30 a.m. on Tuesday.
Marsh indicated some disagreement between House and Senate over size of use tax transfer. Said it was in the $70M-$100M range. #alpolitics
— Brian Lyman (@lyman_brian) September 15, 2015
Here’s a link to how HB30 was introduced, how it changed, and where it stands.
Senator Bill Holtzclaw (R-Madison) broke ranks with fellow Republicans and voted no on the Senate versions of both bills. Holtzclaw blogged about that here.