Code of Alabama - Title 16: Education - Chapter 13 - School Finances Generally

• Article 1 General Provisions.
• Section 16-13-1 Fiscal year
  The fiscal year of every board of education shall begin October 1 and end September 30.
• Section 16-13-2 Investment of endowment funds held by State Board of Education and trustees of state institutions
  Authority is hereby granted to the State Board of Education and the board of trustees of all state institutions respectively, where education is a part...
• Section 16-13-4 Diversion of funds; payment of debt obligations
  (a) It shall be unlawful for any official in the State of Alabama having the custody of, or in any manner connected with the handling...
• Section 16-13-5 Federal grants, appropriations, etc. - Acceptance
  The State Treasurer is hereby authorized and empowered to accept from the federal government or any instrumentality thereof, in the name of and for the...
• Section 16-13-6 Federal grants, appropriations, etc. - State Board of Education designated state agency in administration
  The State Board of Education is hereby designated as state agency in the administration, distribution and supervision of the expenditure of any funds herein provided...
• Section 16-13-7 Appropriation of federal government funds to Foundation Program Fund
  In addition to all other funds appropriated for the public schools of the state there is hereby appropriated to the Foundation Program Fund for each...
• Section 16-13-8 Bonding of persons handling public school funds generally - Authority to require
  County and city boards of education are hereby authorized to require county and city public school principals and such other persons as may be charged...
• Section 16-13-9 Bonding of persons handling public school funds generally - Payment of premiums
  County and city boards of education are hereby authorized to expend public school funds in order to pay the necessary premiums on the surety bonds...
• Section 16-13-10 Custodian of school funds - Payment of payrolls
  Repealed by Act 2006-196, p. 275, §5, effective June 1, 2006.
• Section 16-13-11 Custodian of school funds - Vouchers required
  Repealed by Act 2006-196, p. 275, §5, effective June 1, 2006.
• Section 16-13-12 Custodian of school funds - Removal
  Repealed by Act 2006-196, p. 275, §5, effective June 1, 2006.
• Section 16-13-13 Fees for courses
  It is the intent of the Legislature that no fees shall be collected in the future in courses required for graduation. In courses not required...
• Section 16-13-14 Advancement of expenses of members and employees of county and city boards of education; itemized statement of expenses to be presented and approved upon return of member or employee
  (a) City and county boards of education, the Department of Youth Services School District and the Alabama Institute for Deaf and Blind are hereby authorized...
• Section 16-13-16 Name of "Alabama Special Educational Trust Fund" changed to "Education Trust Fund."
  The name of the "Alabama Special Educational Trust Fund" is changed to the "Education Trust Fund." All references to the "Alabama Special Educational Trust Fund"...
• Article 2 Apportionment and Disbursement of Public School Funds.
• Section 16-13-31 Record of receipts and disbursements; apportionment of countywide taxes for Foundation Program
  (a) The tax collector/revenue commissioner of each county must keep a record of all receipts and disbursements of school funds of his/her county to the...
• Section 16-13-32 Funds contributed to be applied as indicated in grant
  All funds contributed by persons or otherwise to any school or school district shall be applied as indicated in the grant from such contributors.
• Section 16-13-33 Funds of townships divided by state or county line
  Whenever a township which has an income from a trust fund is divided by a state or county line or otherwise, such income must be...
• Section 16-13-36 Appropriation of funds out of treasury
  Any appropriate local governing body is authorized at any meeting of said governing body in any calendar year to appropriate any funds it may deem...
• Section 16-13-37 Use of county sales and use tax funds for general educational purposes
  (a) When approved at a referendum election held for such purposes in the manner hereinafter prescribed, any local board of education may divert any earmarked...
• Article 3 Minimum Program Fund.
• Article 3A Local Funding of School Programs Generally.
• Article 4 Tax Anticipation Warrants in Cities and Counties.
• Section 16-13-70 Issuance authorized; purposes; source of payment
  (a) Any county board of education and any city board of education may issue and sell interest-bearing tax anticipation warrants for the purpose of paying...
• Section 16-13-71 Terms and conditions; sale; use of proceeds
  (a) Warrants issued pursuant to the provisions of this article may bear such rate or rates of interest, not exceeding 12 percent per annum, payable...
• Section 16-13-72 Refunding warrants
  Any county board of education and any city board of education may from time to time sell and issue refunding warrants for the purpose of...
• Section 16-13-73 Approval of issue by State Superintendent of Education
  Before issuing any warrants hereunder, the board of education by which such warrants are proposed to be issued shall cause an application for approval of...
• Section 16-13-74 Warrants legal investments for fiduciaries
  Warrants issued pursuant to the provisions of this article shall be legal investments for executors, administrators, trustees and other fiduciaries.
• Section 16-13-75 Exemption from taxation
  All warrants and interest coupons issued pursuant to the provisions of this article and all income derived therefrom shall forever be exempt from all state,...
• Section 16-13-76 Moneys allocated under article or chapter not to be pledged
  Nothing herein contained shall be construed to authorize any local board of education to pledge, for the benefit of any warrants issued hereunder, any portion...
• Section 16-13-77 Effect of article on existing powers of boards of education
  The provisions of this article shall not be deemed to restrict, abridge or revoke any power which any county or city board of education had...
• Article 5 Warrants for Special County and District Taxes.
• Section 16-13-90 Purposes for which warrants issued
  In any county in which a special county tax shall have been voted under the constitution for such purpose or for school purposes generally, and...
• Section 16-13-91 Approval of issuance
  Before issuing any warrants hereunder the county board of education or the city board of education, as the case may be, shall cause an application...
• Section 16-13-92 Execution
  All warrants issued hereunder shall be executed in the name of the issuing county or city board of education, as the case may be, by...
• Section 16-13-93 Form
  The following form of warrant shall be valid and sufficient for warrants issued hereunder, but any other appropriate form may be used: "No. ___ $...
• Section 16-13-94 Maturity; payment generally
  Capital outlay warrants issued hereunder shall be payable within the period of usefulness of the improvement or property for which the warrants are issued as...
• Section 16-13-95 Interest rate
  All warrants issued hereunder shall bear interest at not exceeding eight percent per annum payable semiannually; provided, that the first interest payment date may be...
• Section 16-13-96 Sale - Generally
  All warrants issued hereunder shall be sold to the highest bidder at public sale unless sold at a better price within 30 days after failure...
• Section 16-13-97 Sale - Price
  Warrants issued hereunder may be sold at such price or prices as the issuing board of education may deem advisable; provided, that no series of...
• Section 16-13-98 Preference and payment of warrants and care of fund
  All warrants issued hereunder by a county or city board of education shall be payable solely from the county or city board of education's apportioned...
• Section 16-13-99 Place and method of payment
  All warrants issued hereunder may be made payable as to principal and interest at such banks within or without the State of Alabama as the...
• Section 16-13-100 Payment of incidental costs
  The board of education issuing any warrants hereunder may pay the cost of printing the warrants, the cost of advertising the sale, the attorneys' fees...
• Section 16-13-101 Redemption of warrants prior to maturity
  Any board of education issuing warrants hereunder may, if such action shall be deemed advisable by the issuing board, retain in the proceedings authorizing the...
• Section 16-13-102 Exchange and delivery of refunding warrants
  Notwithstanding the provisions of Sections 16-13-96 and 16-13-97, refunding warrants issued hereunder may without advertisement be exchanged for a like amount of the warrants being...
• Section 16-13-103 Validity of warrants
  Warrants reciting that they are issued pursuant to the terms of this article shall in any action or proceeding involving their validity be conclusively deemed...
• Section 16-13-104 Exemption from taxation
  All warrants and interest coupons attached to the same issued hereunder shall be exempt from state, county and municipal taxation.
• Section 16-13-105 Warrants may be validated
  All school warrants authorized by this article may, in the discretion of the board of education, be validated in a proceeding in accordance with Sections...
• Section 16-13-106 Records
  The county board of education or the city board of education, as the case may be, shall keep in its minutes a complete record of...
• Section 16-13-107 Exclusiveness of article
  No warrants payable in any fiscal year later than the fiscal year in which they were issued shall be issued except in accordance with the...
• Section 16-13-108 Elections
  (a) Elections for the purpose of voting special taxes for any school purpose or for school purposes generally under the constitution may be held at...
• Section 16-13-109 Investment of unused proceeds in government securities
  If any county or city board of education has issued and sold school warrants under the provisions of this article for school building purposes and...
• Article 6 Warrants for Special License, Privilege or Excise Taxes.
• Section 16-13-120 Authority to issue; interest rate; terms, use of proceeds, etc
  In any county in which a special license or privilege tax or excise tax may now or hereafter be levied, or the proceeds of any...
• Section 16-13-121 Approval of issue by State Superintendent of Education
  Before issuing any warrants under Section 16-13-120, the county board of education or the city board of education, as the case may be, shall cause...
• Section 16-13-122 Provisions of article cumulative
  The provisions of this article are cumulative and shall not be deemed to restrict or abridge any power which any board of education had prior...
• Article 7 Budget System.
• Section 16-13-140 Established for county and city school systems; form of annual budget required; public hearings required
  (a) There shall be a budget system for the public schools of each county and city for the purpose of promoting economy and efficiency in...
• Section 16-13-141 Comptroller and state superintendent to estimate funds
  On or before the first day of September of each year, the Comptroller, or such state official as may be charged by law with the...
• Section 16-13-142 County and city treasurer to certify estimated funds available
  On or before the first day of September, the county treasurer of each county and the city treasurer of each city, the county tax assessor,...
• Section 16-13-143 When budget official; approval of funds for teachers' salaries; changes in budget; approval prerequisite to receipt of funds
  (a) A budget shall become official and shall be followed in the matter relating to the financial operation of the schools of any school system...
• Section 16-13-144 Prohibition and penalty for exceeding budget; waiver of penalty
  (a) No local board of education shall spend or obligate itself to spend more money in any fiscal year than the estimate of income available...
• Section 16-13-145 Authority to borrow funds against revenues of current year; authority to contract with T.V.A. to obtain funds to improve energy-inefficient school buildings with approval of state superintendent
  (a) Any local board of education shall have authority during any fiscal year upon the recommendation of the local superintendent of education, as the case...
• Section 16-13-146 Interest rate on current loans
  County and city boards of education shall have authority to pay interest at a rate not exceeding eight percent per annum on current loans secured...
• Section 16-13-147 Payment of teachers' salaries when due
  It shall be the duty of county and city boards of education to pay teachers' salaries promptly when due and, if funds on hand are...
• Article 8 One-Mill County School Tax.
• Section 16-13-160 Petition for election; calling of election
  Upon a petition signed by 200 or more qualified electors of the county, who are also freeholders, to the county commission in any county within...
• Section 16-13-161 Election notice
  There shall be made publication of the election in some newspaper within the county, which publication shall show the rate of such proposed tax, the...
• Section 16-13-162 Election officers; conduct of election
  (a) The inspectors and officers of the election shall be appointed and such elections shall be held and the result of said elections shall be...
• Section 16-13-163 Electors
  All persons who are at the time of such election qualified electors in the county where such election is held under the laws and Constitution...
• Section 16-13-164 Ballot and election supplies
  The county commission shall provide a sufficient number of ballots for each voting precinct within said county, and at the top of each ballot shall...
• Section 16-13-165 Levy and assessment of tax
  If three fifths of those voting at said election have voted for the proposed taxation, the county commission shall levy said special tax and cause...
• Section 16-13-166 Collection of tax
  The tax collector shall collect such special tax in the same manner and under the same requirements and laws as taxes of the state are...
• Article 9 County and District Three-Mill School Taxes.
• Section 16-13-180 Petition for election; calling of election
  Upon a petition signed by 200 or more qualified electors of any county to the county commission, said county commission shall order an election to...
• Section 16-13-181 Request by board of education for election
  Upon the written request of the county board of education or of the board of education of any city having a city board of education...
• Section 16-13-182 When district tax cannot be levied
  No election in any rural or city school tax district shall be held for the purpose of levying and collecting a special school tax for...
• Section 16-13-183 Election notice
  The sheriff must give notice at least 30 days before any election to be held under this article, by publication in some newspaper in the...
• Section 16-13-184 Election officers; conduct of election
  (a) The inspectors and officers of the special county election shall be appointed and said election shall be held and the results of such election...
• Section 16-13-185 Expenses of election
  The officers, including the sheriff, shall perform the same duties and receive the same pay as provided for under the general election laws aforesaid, and...
• Section 16-13-186 Election supplies
  When any election is to be held in any county or in any rural or city school tax district, under the provisions of this article,...
• Section 16-13-187 Ballots
  The ballots used in said election shall have printed at the top the purpose of such election and, if a tax is proposed to be...
• Section 16-13-188 Election result; levy, amount and duration of tax; limitation on use of proceeds
  The county commission shall declare the result of the election; and, where the electors have voted so as to require the levy of a tax,...
• Section 16-13-189 Electors
  Where the election is for the entire county, all persons who are at the time of such election qualified electors of the county, or where...
• Section 16-13-190 Validation of elections
  Each election heretofore held in any school district or in any municipality or in any county at large, in this state on the question of...
• Section 16-13-191 School tax district - Boundaries fixed by county board
  In order to make it possible to work out a system of local tax units adapted to the needs of the whole county, the county...
• Section 16-13-192 School tax district - Map - Required generally; duration of boundaries
  The county board of education shall have a proper map of such school tax district made and recorded as herein provided. The levy of the...
• Section 16-13-193 School tax district - Map - Not required of city school tax district
  Any city having a city board of education shall constitute an independent school tax district for the purpose of levying the tax authorized under this...
• Section 16-13-194 School tax district - Consolidation - Generally
  When it shall seem desirable to enlarge any school tax district by consolidating with it any adjacent territory or district, which may or may not...
• Section 16-13-195 School tax district - Consolidation - City district with other territory
  When it shall seem desirable to consolidate with a city school tax district having a city board of education, either a county school tax district...
• Section 16-13-196 School tax district - Consolidation - Effect
  Thereupon the county commission shall call an election in like manner as already prescribed for calling an election in a school tax district in the...
• Section 16-13-197 Collection of tax
  Whenever such a levy as is provided for in this article is made, it shall be the duty of the tax collector within and for...
• Section 16-13-198 Use of district funds
  The funds arising from levying a special tax for school purposes in any school tax district under the jurisdiction of the county board of education...
• Section 16-13-199 Municipality may remain under county board of education; disposition of tax when city assumes control of schools
  When a municipality under the jurisdiction of a county board of education attains a population of 5,000 or more, according to the last decennial or...
• Article 10 Notes in Anticipation of Warrants.
• Section 16-13-210 Definitions
  Whenever used in this article, unless a different meaning clearly appears in the context, the following terms shall be given the following respective meanings: (1)...
• Section 16-13-211 Borrowing money in anticipation of warrants authorized; issuance of notes
  Any board of education may borrow money in anticipation of the issuance of warrants for use for any of the purposes described in Section 16-13-70(a)...
• Section 16-13-212 Notes not general obligation; board may pledge tax proceeds
  The principal of and interest on such notes shall not be general obligations of the board of education issuing said notes but shall be payable...
• Section 16-13-213 Refunding, renewing or extending notes
  Any notes issued pursuant to this article may be refunded or renewed or extended for two additional periods of not more than 18 months from...
• Section 16-13-214 Notes sold at public or private sale
  Any notes issued pursuant to the provisions of this article may be sold either at public or private sale as the board of education issuing...
• Section 16-13-215 Approval of note issue by state superintendent; procedure; conclusive determination
  (a) Before issuing any notes hereunder, the board of education by which such notes are proposed to be issued shall cause an application for approval...
• Section 16-13-216 Exemption from taxation
  All notes issued pursuant to the provisions of this article, all interest paid thereon and all income derived therefrom shall forever be exempt from all...
• Section 16-13-217 Legal investments for fiduciaries
  The notes issued pursuant to the provisions of this article shall be legal investments for executors, administrators, trustees and other fiduciaries.
• Article 11 Foundation Program Fund.
• Section 16-13-230 Establishment of fund
  There is hereby established a fund for the public schools of the state which shall be known as the Foundation Program Fund and which shall...
• Section 16-13-231 Purposes and plan of apportionment
  (a) In addition to all other appropriations and apportionments of public school money now provided by law and made available for public schools there shall...
• Section 16-13-231.1 Local salary schedules; written retirement application; appropriations
  (a) Any law to the contrary notwithstanding, each county and city board of education shall adopt a local salary schedule which is at least 100...
• Section 16-13-231.2 State Salary Matrix renamed
  Notwithstanding Chapter 6B and other provisions of this chapter, and notwithstanding Section 16-13-231.1, the "State Salary Matrix" is hereby renamed the "State Minimum Salary Schedule."...
• Section 16-13-231.3 Funds for classroom supplies
  (a) There shall be annually appropriated from the Education Trust Fund to each public state earned classroom teacher in public school grades K to 12...
• Section 16-13-232 Determining number of teacher units and instructional support units; grade level divisors
  (a) In determining the number of teacher units for the purpose of apportioning the state Foundation Program, one teacher unit or fraction thereof shall be...
• Section 16-13-233 Allowance for transportation
  (a) The allowance for transportation for those local boards of education providing same shall be determined as follows for any local board of education: The...
• Section 16-13-234 Allocation of funds
  (a) In making apportionment of the Public School Fund held by the state, to the local boards of education, the State Superintendent of Education shall...
• Section 16-13-234.1 Funding salary increases mandated by Legislature
  (a) Any local board of education receiving a hold harmless allowance as provided for in Section 16-13-234, may use part or all of the funds...
• Section 16-13-235 Local boards of education to furnish information and file records; State Superintendent of Education to provide data; rules and regulations
  (a) All local boards of education are required, in order to receive state funds, to furnish all such information and to file such records and...
• Section 16-13-236 Funds for vocational/technical education
  Funds provided by the state to local boards of education for vocational/technical education shall be spent only for its intended purposes.
• Section 16-13-237 Funding city board of education beyond board's pro rata share of countywide tax
  It is not the intent of the Legislature to require, and the Legislature expressly so declares that it does not require, any county to provide...
• Section 16-13-238 Failure to provide certain amount of local tax support
  Should any county or city governing body fail to provide an amount of local tax support for its respective local board of education in an...
• Section 16-13-239 References to "minimum program" deemed references to "Foundation Program."
  Whenever any act, section of the Code of Alabama 1975, or any other provision of law refers to the "minimum program" as it relates to...
• Article 12 Special School Taxes Authority Extended When Original Obligation Refunded.
• Section 16-13-260 Legislative findings
  The Legislature makes the following findings and determinations: (1) In a number of instances, the Legislature, by general or local act, has authorized the levy...
• Section 16-13-261 Authority for special school tax to continue until payments of refunding obligations
  In any instance in which the Legislature, by general or local act, has provided for or authorized the levy and collection within any county or...
• Section 16-13-262 Construction
  In no event shall this article be construed or applied in a manner that results in a termination date for the levy of any special...
• Section 16-13-263 Application
  This article shall apply with respect to any special school tax heretofore or hereafter authorized by the Legislature that is subject to a termination provision...
• Article 13 National Average for Teacher Salaries.
• Section 16-13-280 Definitions
  As used in this article, the following terms shall have the following meanings: (1) BOARD. Each county or city board of education; the Board of...
• Section 16-13-281 Average salaries to match national average; funding; compliance
  (a) The average salary of Alabama teachers, including the State Minimum Salary Schedule, local salary supplementals, state incentive pay such as National Board of Professional...
• Section 16-13-282 Purpose of article
  (a) It is the goal of the Governor and the Legislature to raise Alabama's non-salaried expenditures per public school student to the national average in...
• Article 14 Warrants for Eductional Purposes.
• Section 16-13-300 Legislative intent; construction
  (a) It is the intention of the Legislature by the adoption of this article to authorize each county board of education and each city board...
• Section 16-13-301 Definitions
  The following terms as used in this article shall have the following meanings: (1) BOARD. Any county board of education and any city board of...
• Section 16-13-302 Issuance authorized; purposes; refunding warrants; powers of the boards; mandamus for payment
  (a) In addition to all other notes, obligations, warrants, and other forms or types of indebtedness which any board shall have the power to issue...
• Section 16-13-303 Notes not general obligations; source of payment
  (a) Warrants issued under this article shall not be general obligations of the board issuing such warrants but shall be payable solely from the designated...
• Section 16-13-304 Terms and conditions; sale; use of proceeds
  (a)(1) Warrants issued pursuant to this article may be in the denomination or denominations; shall have a maturity or maturities not exceeding 30 years from...
• Section 16-13-305 Approval of issue
  (a) A board shall obtain the prior written approval of the State Superintendent for the issuance of any warrants under this article. Before entering into...
• Section 16-13-306 Validity of warrants
  Warrants reciting that they are issued pursuant to the terms of this article shall in any action or proceeding involving their validity be conclusively deemed...
• Section 16-13-307 Tax exemption
  All warrants and interest accruing thereon issued hereunder shall forever be exempt from all state, county, municipal, and other taxation under the laws of the...
• Section 16-13-308 Warrants as legal investments
  The warrants issued pursuant to the provisions of this article shall be legal investments for executors, administrators, trustees, and other fiduciaries.
• Section 16-13-309 Powers authorized
  Any county may, with respect to the county board of education within its jurisdiction and any city board of education within, in whole or in...
• Section 16-13-310 Obligations under contractual agreements
  (a) Upon the request of a public person who shall have issued or incurred obligations for the benefit of a board and for a purpose...
• Section 16-13-311 Construction with other laws
  Insofar as the provisions of this article may be in conflict or inconsistent with any provisions of any other law concerning actions authorized by this...

Last modified: May 3, 2021