Much attention has been devoted lately to discussing and promoting Proposed Constitutional Amendment Number 1, which will appear on the November 7, 2000 general election ballot. I encourage county officials and employees to carefully review the information contained herein and devote considerable time and energy toward promoting the ratification of the amendment.

There is, however, another proposed constitutional amendment important to county government that will also appear on the November statewide ballot. The "other" amendment will be designated as Proposed Amendment #3. A discussion of the background to and importance of this amendment is provided below.

Amendment #450 to the Alabama Constitution was ratified in 1985. This amendment established the Alabama Trust Fund, which is comprised of certain revenues received by the state in the form of lease and royalty payments made by oil and gas companies for the privilege of exploring for or extracting oil, gas or other hydrocarbon minerals from certain offshore areas of the state.

The amendment provides, among other things, that much of the income from investment of trust fund assets is to be paid into the general fund of the state. The state legislature, in 1986, enacted a statute (Chapter 29 of Title 11) which provides that county governments receive 10 percent of the annual trust fund income paid into the state general fund once it reaches a total of $60 million.

The income reached this $60 million threshold in 1997 and in 1998 counties began receiving annually between $6 and $8 million. The money is allocated among counties according to a formula provided in the statute. Municipal governments also annually receive 10 percent of trust fund income as provided in a separate statute. The 2000 allocation to each county is shown in the chart on the next page.

County and municipal officials have for the past several years enjoyed receiving and spending this much needed revenue. There is, however, one worrisome problem - the revenue is distributed to counties and municipalities according to the requirements of statutory law.

Local officials have known all along that the legislature could simply repeal or amend the statutes that require the state to share trust fund income with counties and municipalities. In fact, legislation aimed at delaying and reducing trust fund income to be distributed to local government was introduced several years ago. Fortunately, the legislation was defeated in the House of Representatives. See ballot wording of proposed Amendment #3 on facing page.

Recognizing that such an effort could be made again, the Association of County Commissions of Alabama and the Alabama League of Municipalities, in a joint effort, supported legislation introduced during the 1999 regular session of the Alabama Legislature that proposed amending the state's constitution to include the distribution of trust fund income to county and municipal governments in the constitution. The legislation passed the legislature (Act 99-393) and will appear on the statewide ballot this November as Proposed Amendment #3.

If Proposed Amendment #3 is ratified by the voters, the Alabama Legislature will no longer be able to prevent counties and municipalities from receiving a portion of the income generated by the Alabama Trust Fund. County officials and employees should give just as much support for the ratification of Proposed Amendment #3 as they do for the ratification of Proposed Amendment #1.