Alabama

Alabama

Budget Links 

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted - GF)
FY2022 (enacted - ETF)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On February 7, Alabama Governor Kay Ivey released her fiscal 2025 budget recommendations for both the General Fund and the Education Trust Fund. The General Fund proposes $3.3 billion in non-earmarked spending, an increase of $285.9 million or 9.5 percent, over fiscal 2024 appropriations. The Education Trust Fund proposes $9.3 billion in spending for fiscal 2025, an increase of $549.9 million or 6.3 percent, over fiscal 2024 appropriations. The budget anticipates a beginning balance in fiscal 2025 of $245.2 million in the General Fund and $1.4 billion in the Education Trust Fund. Net receipts to the General Fund are projected to decline $39.2 million, or 1.3 percent, compared to the current year. Net receipts to the Education Trust Fund are projected to decline by $73.0 million, or 0.7 percent, compared to estimated fiscal 2024. The estimated balances at the end of fiscal 2025 are $0 for the General Fund and $826.5 million in the Education Trust Fund. 

Proposed Budget Highlights 

The governor’s budget priorities for fiscal 2025 include state employee compensation, Medicaid, adequately funding the Department of Corrections, addressing mental health, turning around schools, sustaining Pre-K funding, and creating and sustaining high quality childcare programs.  

General Fund

• $15.5 million for cost-of-living adjustments for state employees.
• $50.0 million provided for inflationary increases.
• $91.7 million increase for the state Medicaid agency.
• $37.5 million increase for the Department of Corrections.
• $5.1 million increase for the State Law Enforcement Agency.
• $6.1 million increase for the Unified Judicial System. 
• $2.0 million increase for District Attorneys.
• $1.0 million increase for the Airport Development Grant Program and
• $3.0 million increase for the Electric Vehicle Infrastructure and Planning Grant Program.
• $9.6 million increase for the Department of Public Health, including $3.2 million for the Children’s Health Insurance Program (CHIP).
• $16.3 million in additional funding for the Department of Human Resources.
• $11.8 million in additional funding for the Department of Mental Health.
• $6.0 million increase for the Department of Senior Services, including
• $3.5 million for the Medicaid Waiver Services Program.
• $3.3 million decrease in funding for the tourism department.

Education Trust Fund

• $165.1 million in additional funding for the K-12 Foundation Program, the state’s school funding formula. 
  
  • This includes an additional $19.2 million for a starting salary increase, $6.2 million for transportation and $23.99 million for school nurses, along with $11.7 million for the special education teacher stipend.
• Under the Department of Education, an increase of $48.0 million for a reading initiative and $28.0 million for the Numeracy Act. 
  
  • There is also increased funding of $26.0 million for the Office of Specialized Treatment Centers, $1.0 million for turnaround schools, and
• $30.0 million for the Principal Leadership and Mentoring Act.
• $3.9 million increase for the Office of School Readiness under the Department of Early Childhood Education.
• $34.5 million increase for the community college system, including $10.0 million for dual enrollment and $5.0 million for career tech equipment.
• $25.0 million for a rural broadband grant program.
• $3.4 million increase for National Guard Education Assistance Scholarships.
• $8.1 million in additional funding for the Childcare and After School Program.
• $2.2 million increase for the Department of Commerce, including additional funding for the industrial training program and the STEM Council.

Proposed Budget Information
Fiscal Year 2025 Budget Proposal  

Education Trust Fund Summary 

General Fund Summary 

Finance Director's Presentation