Alabama Governor’s $70 Million Loan Repayment Reaffirms Commitment to Rainy Day Account

Alabama Governor’s $70 Million Loan Repayment Reaffirms Commitment to Rainy Day Account

About 322 of every million adults in the U.S. file for bankruptcy, and debt is still a major national issue. Fortunately, Alabama will be able to do its part to cut down on debt before the close of this fiscal year.

At the end of September, Alabama Governor Robert Bently announced that the state was able to repay $70 million to the Education Trust Fund’s Rainy Day Account before the end of the 2014 fiscal year on Sept. 30.

Alabama was only required by law to pay back $35 million, but Governor Bently doubled the amount through a conditional appropriation. “I have prioritized Alabama’s commitment to restore the Rainy Day Fund,” Governor Bentley said in a press release.

The Rainy Day Account is a component of the Alabama Trust Fund. In 2009, the state transferred $437.4 million from the account to support the Education Trust Fund over the course of the 2009 fiscal year. The money was used to operate public education without interruption when the recession forced state tax collections to fall. Last year, the state was able to repay $260.3 million to the Account, and full repayment is required by Sept. 30, 2015.

“Together with a conservative, Republican majority in the Legislature, and working closely with House and Senate Budget Chairmen, we have made substantial progress in the state’s commitment to repaying the fund, thanks to an improving economy and stronger revenues. This year’s reimbursement is one of three payments we have made since Fiscal Year 2012 and totals more than $344 million.”

Bently attributed the successful repayment to “fiscally-responsible budgeting practices and the hard work of the men and women across this state,” as well as a commitment to living within the financial means of the state.

The $70 million payment will bring the amount repaid to $344 million. That leaves $93 million to be paid back before the end of the fiscal year in 2015.