Examiners flag $32 million in held 9‑1‑1 funds and a rule that may conflict with statute

Legislative examiners briefed the Joint Interim Committee on the Alabama Statewide 9‑1‑1 Board and raised concerns about large bank balances, a board rule that may conflict with statute, and the need to implement new 2025 law changes before Oct. 1.

Miss Thomas said the board administers the statewide 9‑1‑1 charge (currently about $2.23 per phone line) and distributes collections to 85 emergency communication districts (ECDs). She recited two 2025 session laws (Acts 2025‑373 and 2025‑376) that will take effect Oct. 1, 2025 and change required distributions and permitted uses of reserves to support a statewide voice/data 9‑1‑1 system and related costs.

Staff reported reconciled balances and reserves that members described as large for a pass‑through fund: a reconciled cost‑recovery account balance of $15,545,863.26 (May 2025) and an unreserved balance of $32,000,813.68 at the end of FY2024. Miss Thomas told the committee that the board has adopted an administrative rule to withhold monthly distributions from districts that do not meet certain continuing‑education or certification rules — a practice she said is not authorized by the board statute.

Committee members repeatedly raised the mismatch between local ECDs reporting “insufficient personnel and staffing” and the board’s retained balances. One member summarized: while local districts report funding shortfalls, the board has tens of millions in reserves and is changing reserve‑use rules under the new law. Members asked staff and the board to clarify how quickly monthly receipts are processed and when distributions are made, and to explain how the board will implement the new statutory uses for reserve funds and any rule changes that may conflict with statute.

No formal committee action was taken; members asked staff to obtain additional reconciliation detail and to question the board at a follow‑up session.