Enacted Budget – Fiscal Year 2023
On April 7, Alabama Governor Kay Ivey signed the $2.7 billion fiscal 2023 General Fund budget, an increase of $52.8 million or 1.96 percent over the fiscal 2022 budgeted amount. On April 14, the governor signed the $8.3 billion Education Trust Fund budget, which increases funding over the fiscal 2022 budgeted amount by $589.01 million, or 7.68 percent, and represents the largest budget in nominal terms in state history. The General Fund budget includes increases for the judicial system ($2.1 million), Department of Corrections ($19.6 million), District Attorneys ($4.1 million), and Alabama Medicaid Agency ($23.8 million). The budget includes additional funding for existing and new crisis diversion centers, $28 million to fund a 4.0 percent salary increase for state employees, $4.8 million for a retiree bonus, and $40 million in conditional appropriations for the hiring and training of additional corrections officers. The Education Trust Fund budget makes strategic investments in community colleges ($45.7 million), early childhood education ($24.3 million), the K-12 Foundation Program ($222.3 million), and colleges and universities ($118.5 million). The budget adds Pre-K classrooms and funds teacher pay raises of between 4.0 and 21.0 percent, dependent on experience, while also increasing the pay for substitute teachers. The governor noted that for the first time in history the budgets fully fund both the General Fund Budget Reserve and Education Trust Fund’s rainy day fund.