fuel up for a new day: repaying the alabama trust fund or refuel the atf by state treasurer young...
TRANSCRIPT
Fuel Up For a New Day:Repaying the Alabama Trust Fund
orRefuel the ATF
by State Treasurer Young Boozer
ACCA 87th Annual Convention August 19, 2015
Perdido Beach ResortOrange Beach, AL
ATF Constitutional Amendment 856September 2012
• Provides for the transfer of $145.8 million from the ATF to the General Fund for the fiscal years 2013, 2014 and 2015.
• Revises the existing method for distributions from the ATF.
• Bases annual distributions on:– 33% of the amount of royalties received in the previous fiscal year – 5% of the average market value of invested assets in the ATF as of
the end of the three prior fiscal years
• Creates the County & Municipal Government Improvement Trust Fund (CMT).
County & Municipal Government Improvement Trust Fund
Advisory Board Members:• Ricky Harcrow, DeKalb County Commission • Mark Culver, Houston County Commission• Charlie Sankey, Crenshaw County Commission
• Donald Myers, Guntersville City Council• Adam Bourne, Chickasaw City Council• Dee Woodham, Montevallo City Council
ATF Cash Flows
Oil and Gas Royalties 1% to Lands Division of Conservation
99% to the Alabama Trust Fund
ATF Distributions 33%
ATF Portfolio 32%
ACITF28%
CMT Fund7%
5% of Rolling 3 year Average MV of ATF
Portfolio
ATF Distributions
Cities 10%
Counties 10%
Forever Wild (1) 10%
Senior Services (2) 1%
General Fund (Remaining Balance)1) FWLT Distributions capped at $15 million annually2) Senior Services capped at $5 million annually
ATF Asset AllocationJuly 31, 2015
Market Value Percent
Domestic Equity $820,962,437 32.24%
International Equity $619,493,658 24.33%
Domestic Fixed Income $874,874,477 34.35%
Real Estate $200,867,390 7.89%
Cash $10,918 0.00%
BNYM STIF $30,414,944 1.19%
Total Fund $2,546,623,824 100.0%
CMT Asset AllocationJuly 31, 2015
Market Value Percent
Domestic Equity $150,698,964 32.57%
International Equity $111,367,768 24.07%
Domestic Fixed Income $164,285,900 35.51%
Real Estate $35,574,559 7.69%
Cash $700,214 0.15%
Total Fund $462,627,405 100.0%
Total Fund at 06/30/2013: $414,000,000
ATF Distribution Schedule FY16
First Quarter
Forever Wild (capped @ $15 million) until FY 2032 $3,743,000
Senior Services Trust Fund (capped @ $5 million) $374,000 General Fund $25,828,000 Total $29,945,000
Second Quarter
Forever Wild $3,743,000
Senior Services Trust Fund $374,000General Fund $25,828,000
Total $29,945,000
ATF Distribution Schedule FY16Third Quarter
County Government Capital Improvement Fund $14,972,000
Municipal Government Capital Improvement Fund $14,972,000
Forever Wild $3,743,000
Senior Services Trust Fund $374,000
General Fund $25,828,000 Total $59,890,000
Fourth Quarter
Forever Wild until FY 2032 $3,743,000
Senior Services Trust Fund $374,000 General Fund $25,828,000Total $ 29,945,000
Total Distributions $149,725,000
CMT Distribution Schedule FY16
Third Quarter
Counties $11,005,000
Cities $11,005,000
Total: $22,010,000
ETF Rainy Day Account FY15
Withdrawals:12/16/2008 (221,136,679)7/16/2009 (100,000,000)7/30/2009 (116,254,149)Total Withdrawals: (437,390,828)
Total Replenishments: 437,390,828
Amount Due From Education Trust Fund $0
GF Rainy Day Account FY15
Withdrawals:8/9/2010 (123,802,227)9/29/2010 (37,763,647)Total Withdrawals: (161,565,874)
No Replenishments have been made $0
Amount Due From General Fund: $ 161,565,874
A Possible BP Settlement
Year Amount 2016 $ 200,000,000 2017 $ - 2018 $ - 2019 $ 53,333,333 2020 $ 53,333,333 2021 $ 53,333,333 2022 $ 53,333,333 2023 $ 53,333,333 2024 $ 53,333,333 2025 $ 53,333,333 2026 $ 53,333,333 2027 $ 53,333,333 2028 $ 53,333,333 2029 $ 53,333,333 2030 $ 53,333,333 2031 $ 53,333,333 2032 $ 53,333,333 2033 $ 53,333,333
$ 1,000,000,000
Projected Payments
Projected Present Value @ 4%: $719,465,343