Enacted Budget – Fiscal Year 2027
On April 9, Alabama Governor Kay Ivey signed the fiscal 2027 budgets for the General Fund and Education Trust Fund. The General Fund budget totals $3.7 billion, an increase of $21.2 million, or 0.6 percent, over budgeted fiscal 2026. The Education Trust Fund budget totals $10.5 billion, an increase of $569.3 million, or 5.8 percent, over budgeted fiscal 2026. The General Fund revenue estimate for fiscal 2027 is $3.4 billion, a decrease of 4.2 percent from estimated fiscal 2026 while the Education Trust Fund revenue estimate is $11.3 billion for fiscal 2027, an increase of 2.4 percent.
The General Fund supports investments in multiple areas. The budget funds a 2.0 percent cost of living adjustment for state employees and increases the employer contribution for state employee health insurance, while a conditional appropriation was made for a retiree bonus. The budget provides additional funding for the judicial system, corrections department, and district attorneys. Other investments include funds to the emergency management agency for a new dam safety program and an increase for the Resource Conservation and Development Program. The Department of Commerce received additional support, including funds for the Innovation Depot. Other agencies were level funded or saw decreases as projects, programs and earmarks were reduced and/or eliminated. In the Education Trust Fund, a 2.0 percent cost of living adjustment was also provided for state employees and conditional appropriations were made for a retiree bonus. The K-12 Local Boards of Education received additional funding along with early childhood education and the School of Cyber Technology and Engineering. Investments were allocated to the new Public Health for Children’s Health Insurance Program, community college system, and financial assistance for veterans. The budget increases support for the Department of Workforce and youth services, along with the Law Enforcement Agency, public health, and rehabilitation services.