Bill > SB59

This bill requires public colleges and universities in Alabama to submit an annual report by October 31st to the Executive Budget Office detailing the amount of state and federal funds they received and spent in the previous fiscal year, separately listing each source. These institutions must also report the amount of state and federal funds appropriated to them by the Legislature and calculate the percentage of their total budget that comes from these state and federal receipts. Crucially, the bill mandates that each public institution of higher education develop a plan for how it would operate if its state or federal funding were reduced by 5% or more, or by 20% or more. The Executive Budget Office will then compile these reports into a single summary to be submitted to the Legislature by January 1st, which will be used by the House Ways and Means Education Committee and the Senate Finance and Taxation Education Committee during their budget hearings to consider revising appropriation levels for these institutions. The bill defines "federal receipts" as financial assistance from federal entities, including grants and reimbursements, that is part of a "single audit," which is an audit of an entity's financial statements and federal awards. "State receipts" are defined as state financial assistance from specific funds like the Education Trust Fund, but exclude tuition and other self-generated funds. This legislation is set to become effective on October 1, 2026.

Budget and Finance

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