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