Alabama

Alabama

Budget Cycle
Annual
  

Governor Submits Budget
February

Fiscal Year Begins
October 1
 
Governor Signs Budget 
May

Budget Links 

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted - GF)
FY2022 (enacted - ETF)

FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

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.

Proposed Budget - Fiscal Year 2023

On January 13, Alabama Governor Kay Ivey released her fiscal 2023 budget proposals for both the General Fund and the Education Trust Fund. The General Fund proposes $2.7 billion in non-earmarked spending, an increase of $42.5 million or 1.6 percent over fiscal 2022. The Education Trust Fund proposes $8.3 billion in spending for fiscal 2023, an increase of $627.2 million or 8.2 percent over the prior year. Net receipts to the General Fund are projected to grow from $2.5 billion in fiscal 2022 to $2.6 billion in fiscal 2023, a growth rate of 2.1 percent. Net receipts to the Education Trust Fund are projected to grow from $8.0 billion in fiscal 2022 to $8.3 billion in fiscal 2023, a 3.6 percent growth rate. The estimated balances at the end of fiscal 2023 are $337.8 million for the Education Trust Fund and $0 for the General Fund. The governor’s budget proposals also call for fully funding the state’s rainy day fund accounts.  


Proposed Budget Highlights 

The governor outlined her priorities for the proposed fiscal 2023 budget, including investments that will pay long-term dividends to the state.

General Fund
  • Includes a 4 percent pay raise for state employees and a bonus for all retired state employees.
  • Proposes $12 million for mental health crisis centers, including funds for two new centers.
  • Provides $7 million for the state share and related federal matching funds for payment of inpatient and outpatient services in rural hospitals.
  • Includes $6.8 million as state match required for the Drinking Water and Clean Water State Revolving Funds under the federal Infrastructure Investment and Jobs Act.
  • Provides funding increases for several agencies including the Department of Corrections (3.4 percent), Department of Forensic Sciences (14.2 percent), Law Enforcement Agency (4.0 percent), and Department of Mental Health (9.5 percent).
 
Education Trust Fund
  • Includes a 4 percent pay raise for teachers.
  • Provides an additional $212.8 million for the K-12 Foundation Program.
  • Proposes $5 million for the Governor’s Mathematics Education Coaching Corps, a pilot program for math coaches in grades K-5.
  • Includes $10 million for a new initiative aimed at underperforming schools.
  • Provides $22.5 million to add 125 First Class Pre-K classrooms in the state.
  • Includes $1.5 million in the Department of Early Childhood Education for a new pilot program to expand access to high-quality summer and afterschool programs.
  • Provides $4 million for prison education and $5 million to expand dual enrollment for technical education programs.
  • Proposes $17.8 million to support increased quality in childcare providers.
  • Provides a 15.9 percent funding increase to the Commission on Higher Education and a 26.2 percent increase to the Department of Child Abuse and Neglect Prevention.