Alabama

Alabama

Budget Cycle
Annual
  
Governor Submits Budget
February

Fiscal Year Begins
October 1
 
Governor Signs Budget 
May

Budget Links 

FY2024 (proposed)
FY2023 (enacted)
FY2022 (enacted - GF)
FY2022 (enacted - ETF)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)


Proposed Budget - Fiscal Year 2024

On March 21, Alabama Governor Kay Ivey released her fiscal 2024 budget proposals for both the Education Trust Fund and the General Fund. The Education Trust Fund proposes $8.8 billion spending for fiscal 2024, an increase of $537.0 million or 6.5 percent, over fiscal 2023. The General Fund proposes $2.97 billion in non-earmarked spending, an increase of $230.5 million or 8.4 percent over fiscal 2023. Net receipts to the Education Trust Fund are projected to grow from $10.5 billion in fiscal 2023 to $10.9 billion in fiscal 2024, a 3.8 percent growth rate. Net receipts to the General Fund are projected to grow at 0.1 percent, from $2.85 billion in fiscal 2023 to $2.854 billion in fiscal 2024. The estimated balances at the end of fiscal 2024 are $4.4 billion for the Education Trust Fund and $0 for the General Fund. Also, in her State of the State speech, the governor discussed tax relief including one-time rebates of $400 for individual state income tax filers or $800 for families.  

Proposed Budget Highlights 

The governor outlined her priorities for the proposed fiscal 2024 budgets including targeting sustainable agency operations increases and inflation impacts, state employee compensation, Medicaid, corrections spending, teacher compensation, high needs pre-K classrooms, and creating and sustaining childcare programs and access.

General Fund

  • Funds a 2.0 percent pay raise for all state employees.
  • Increase of $1.0 million for Main Street Alabama program members.
  • Increase of $3.0 million for the electric vehicle infrastructure and planning grant program.
  • Increase of $8.04 million for state match required for Drinking Water and Clean Water State Revolving Funds under the federal Infrastructure Investment and Jobs Act.
  • Increase of $13.99 million for the Department of Human Resources.
  • Increase of $69.5 million for the Medicaid Agency, largely driven by the upcoming end of the COVID-19 public health emergency and decreased federal match for Medicaid.
  • Increase of $12.0 million for existing crisis diversion centers and $3.0 million for existing rural crisis care programs.
  • Increase of $7.5 million in the Department of Mental Health for community provider rate increases.
    Increase of $6.8 million for the Department of Senior Services.
  • Increase of $29.6 million for the State Law Enforcement Agency.
  • Increase of $58.8 million for the Department of Corrections, largely driven by a new health care contract for inmates.

 

Education Trust Fund

  • Increase of $8.4 million for the Department of Early Childhood Education, including $7.8 million for the Office School Readiness.
  • Increase of $274.3 million for Local Boards of Education, including $226.6 million for the K-12 Foundation Program. 
  • Increase of $8.7 million for the Department of Commerce, including $2.5 million for the Office of Apprenticeship, $2.4 million for a teacher registered apprenticeship pilot program, and $5.0 million for regional STEM hub grants.
  • Increase of $63.2 million for the Department of Education, including $2.9 million for the afterschool and summer learning program, $15.0 million for college and career readiness grants, and $25.0 million for provisions of the state’s Numeracy Act, passed in 2022, to improve math instruction and support for all students and teachers.
  • Increase of $1.0 million for the school-based mental health services collaboration.
  • Increase of $33.5 million for the community college system, including $2.5 million for career coaches and $4.5 million for expanded dual enrollment for technical education programs.
  • Increase of $1.0 million for the electric vehicle technology education program.
  • Increase of $2.0 million for higher education student financial aid programs.
  • Increase of $30.1 million for the Child Care and After Child Care Program.
  • Increase of $102.8 million for colleges and universities.


Proposed Budget Information
Fiscal Year 2024 Executive Budget 

Education Trust Fund Summary 

General Fund Summary 

Budget Presentation