By Jeff Devine, Dale County Chronicle
MONTGOMERY — Kay Ivey has signed into law Alabama’s General Fund and Education Trust Fund budgets for the upcoming fiscal year, enacting a combined spending plan of more than $15 billion and continuing growth in both state services and education funding.
The $3.7 billion General Fund budget supports the day-to-day operations of state government outside of public education, funding agencies such as corrections, law enforcement, mental health services, and public health. The plan includes a 2 percent pay raise for state employees and continues funding for core government functions.
Among the allocations is $10 million designated for construction of a new Alabama State House. Lawmakers also directed approximately $148 million to the Alabama Department of Human Resources, with a portion of that funding tied to improvements in the state’s administration of the Supplemental Nutrition Assistance Program. State officials have said reducing the program’s error rate is necessary to avoid potential federal penalties.
The General Fund also maintains funding for prisons and corrections, Medicaid-related obligations covered within the fund, and other essential services. Lawmakers have emphasized a cautious approach to budgeting, aimed at maintaining financial stability and avoiding proration.
The Education Trust Fund budget, totaling more than $12 billion, represents the largest investment in K-12 and higher education in Alabama history. The plan includes a 2 percent pay raise for teachers and education support personnel.
The education budget provides funding for classroom instruction, transportation, and school operations, while also supporting colleges and universities across the state. It includes additional funding for the Public Education Employees Health Insurance Plan, which provides coverage for teachers and school staff.
The budget also increases funding for the CHOOSE Act, Alabama’s education savings account-style program. Lawmakers raised its allocation from $180 million to $250 million, expanding access for families seeking financial assistance for private school tuition, homeschooling, and other approved educational expenses.
In a statement following the signing, Ivey emphasized the state’s fiscal approach and long-term stability.
“Throughout my tenure as governor and even before, we have worked hard to be fiscally conservative in our budgeting, making meaningful investments to benefit the people of Alabama,” Ivey said. “This Regular Session wraps up my 10th as governor, and I am proud of the fact that we have not once declared proration. Our General Fund wisely invests in our core government services, and our Education Trust Fund is once again the largest ever investment in education in our state’s history.”
She also recognized legislative leaders who helped guide the budgets through the process.
“Thank you to our budget chairmen, Sen. Greg Albritton, Rep. Rex Reynolds, Sen. Arthur Orr and Rep. Danny Garrett, for their outstanding leadership,” Ivey said. “And thank you to our Legislature for continuing our strong track record of wise budgeting in Alabama.”
Both budgets received broad support in the Alabama Legislature. With the governor’s signature, the spending plans will take effect for the upcoming fiscal year, continuing funding for state services and education programs across Alabama.
