MONTGOMERY, AL (WBRC) – Governor Bob Riley signs a bill into law that makes more funding available for the state education and general fund budgets.
The legislation will increase spending from the Education Trust Fund by $38 million in fiscal year 2011, and general fund budget spending will increase by $5.6 million.
The money is coming from the Employees' Retirement System and the Teachers' Retirement System. According to Governor Riley's press office, the law changes the accumulated liability of the retirement funds to be computed over a maximum period of 30 years, instead of 20 years. That brings the state employee retirement systems in line with other states.
"With this new law on the books, there will now be extra money to fund schools and state services than there otherwise would have been," said Governor Riley.
According to the governor's press office, the change allows the state contribution to both retirement systems in fiscal year 2011 to remain the same as it is in fiscal year 2010. The funds that would have been used for an increased state contribution can now instead be used to fund programs in the budgets.
Senate Bill 292 was sponsored by Senator Hank Sanders, (D) - Selma.