Alabama Governor Kay Ivey on Thursday signed the state general fund (SGF) budget and the education trust fund (ETF) budget, including two supplemental appropriations totaling $3.1 billion. This is the largest general fund and education budget in state history. The four budget bills total $14.7 billion.
“I am proud to officially put my signature on yet another historic investment in our students, teachers, and schools,” Ivey said. “Alabama is serious about changing the trajectory of student outcomes, and our steady progress in the classroom and this record-setting education budget prove that to be the Gospel Truth. We are expanding our award-winning pre-K program into some of our highest poverty areas. We are supporting the implementation of the critical Literacy and Numeracy Acts. We are, once again, increasing teacher pay, giving us even more of a competitive edge to recruit and retain the educators of today and tomorrow. We are investing in our two-year and four-year colleges. And thanks to the work of the Alabama Legislature, we continue making these wise investments while paying down debts, adding to our savings, and returning the working people of Alabama’s money back to them through tax rebates. I have said it before, and I will say it again: Our students’ education is the single-most important issue facing our state, and Alabamians can rest assured that it will continue to be my top priority.”
On the General Fund and the General Fund supplemental, Governor Ivey shared the following comment:
“As I said in my State of State address, we can be proud of that fact that during my time as governor, we have not once used the word proration, nor have we spent beyond our means. I am equally proud to announce today that with my signature on the 2024 General Fund that positive trend will continue,” Ivey added. “Alabama’s record-setting $3 billion General Fund is generational money which makes possible greater investments in vital public services while also significantly paying down debt to reduce the impact of future economic downturns. This landmark budget is historic for Alabama. It will positively affect many agency operations from State Troopers protecting our highways to mental health professionals. It expands support for their important missions while rewarding their hard work with a much-needed pay raise. This budget’s robust commitment to our citizens is equally matched by our legislators’ strong bipartisanship to swiftly deliver it to my desk. I am pleased to sign it into law.”
State employees can expect a two percent pay raise. Families will see their state grocery tax decrease, and every tax filer in the state can expect a $150 check. The budgets include more money for pre-K classrooms, math coaches, classroom materials, and economic incentives to spur further economic development. The budget also creates a new $500 million reserve fund in case there is an economic downturn. There is also a new grant program for K-12 school building and renovation projects. Lieutenant Governor Will Ainsworth will manage that fund.
The fiscal year 2024 budgets go into effect on October 1. Money from the supplemental appropriations will be hitting state agencies and schools within just a few weeks.
The record budgets are being driven by the booming economy and the record low unemployment.
There is some criticism from conservatives that the budget grows government and that projects in South Alabama and Montgomery were shorted in the supplemental appropriation, with North Alabama getting just about everything they wanted.
The last day of the legislative session will be on Tuesday.
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