Enacted Budget – Fiscal Year 2025
On May 15, Alabama Governor Kay Ivey signed the fiscal 2025 budgets for the General Fund and Education Trust Fund. The General Fund budget totals $3.36 billion, an increase of $347.6 million, or 11.5 percent, over budgeted fiscal 2024. The Education Trust Fund budget totals $9.33 billion, an increase of $548.6 million, or 6.3 percent, over the enacted fiscal 2024 budget. The General Fund revenue estimate for fiscal 2025 is $3.1 billion, a decrease of 1.3 percent from estimated fiscal 2024 while the Education Trust Fund revenue estimate is $10.2 billion for fiscal 2025, a decrease of 0.7 percent.
The General Fund budget includes the following priorities: an increase of $91.7 million for the state Medicaid agency; $40.4 million increase for the Department of Corrections; $24.1 million increase for the Department of Mental Health, including $1.1 million for community provider rate increases for the substance abuse program; $16.8 million increase for the Department of Human Resources; $13.5 million increase for the Department of Public Health; and $10.6 million increase for the State Law Enforcement Agency, including $4.7 million for trooper overtime. The Education Trust Fund budget includes the following priorities: $185.3 million increase for Local Boards of Education, including $151.3 million for the Foundation Program, $24.0 million for the school nurses program, and $6.2 million for the transportation program; $173.1 million increase for the Department of Education, including $30.6 million for the Math, Science, and Technology Initiative and $48.6 million for the Reading Initiative; $35.7 million increase for the community college system; $8.1 million increase for child care programs; $3.9 million increase for the First Class Pre-K program; $6.5 million increase for the Commission on Higher Education, including $4.5 million for student financial aid programs; and $2.1 million increase for the Department of Mental Health. The budgets also include a two percent pay raise for state employees and teachers, along with $50.0 million for state agency inflationary increases.