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The Penny Trust Fund

The Penny Trust Fund is a permanent trust fund approved by the voters of Alabama to provide for public health initiatives and health-related public school programs. It is codified in the Code of Alabama, 1975, in Title 41, Chapter 15A. Contributions to the Penny Trust Fund are tax-deductible.  

Revenue Sources  

  • The Penny Trust Fund check-off on state income tax forms

  • Sales of the “Educator” or “Retired Educator” license plates and other specialty license plates, as approved by the Alabama Legislature

  • Individual donations mailed to: The Penny Trust Fund, Alabama State Treasurer’s Office, 600 Dexter Avenue, Room S-106, Montgomery, Alabama 36104. 

Distributions

On August 20, 2012, the Penny Trust Fund Board met to approve distributions from the Fund. A grant request from Montgomery County Public Schools was submitted by the State Superintendent of Education and was approved. Distributions were granted to the Department of Education and the Department of Public Health. The Department of Education received $5,518.80 and the Department of Public Health received $5,518.81. These amounts were paid to those agencies on September 19, 2012.

Creation of the Penny Trust Fund

Amendment 512 of the Constitution of Alabama created the Penny Trust Fund. It states:

(a) There shall be established and maintained the "penny trust fund" within the state treasury to promote the public health and the public schools. Citizens may make voluntary donations to the penny trust fund. All donations and funds received shall be held in perpetual trust and shall not be subject to legislative appropriation or otherwise expended.

(b) Earnings, including accrued interest and dividends, shall be retained in the penny trust fund, not subject to appropriation until the state treasurer certifies that sufficient moneys exist in the Fund or until the fiscal year which begins in 2000, whichever comes first; then and afterward, only 90 percent of the prior fiscal year's earnings to be subject to appropriation. Capital gains taken on the sale of any securities shall revert to the principal of the penny trust fund.

(c) Funds in the penny trust fund are to be managed and invested by the state treasurer who may receive funds from any source not prohibited by law.

(d) Fifty percent of the earnings subject to appropriation shall be dedicated to the programs and projects which promote the public health, and 50 percent dedicated to the public schools.

(e) The legislature shall have power to implement this amendment by appropriate legislation.


Penny Trust Fund Board Meeting Agendas and Minutes*

June 23, 2011: Agenda

February 1, 2012: Agenda / Minutes

June 28, 2012: Agenda / Minutes

August 20, 2012: Agenda / Minutes

September 23, 2013: Agenda / Minutes


* Please note minutes posted beside a meeting date are always from the previous meeting. For example, minutes posted for June 28, 2012, are from the February 1 meeting, and minutes posted for the February 1, 2012, meeting are from the June 23, 2011, meeting.

 
 

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