The Alabama House of Representatives passed a record General Fund budget and a supplemental appropriation to the 2024 budget Thursday.
The bill now goes back to the Senate for its consideration of the House changes to the budget. There are just three days left in the legislative session to take action on the spending plan.
“I’m proud that the House has continued its long streak of passing balanced and conservative budgets,” said Speaker of the House Nathaniel Ledbetter. “One of our greatest responsibilities as lawmakers is being good stewards of the state’s checkbook and investing the people’s money in impactful ways. This year’s General Fund does just that while also budgeting for the difficult economic times ahead.
Managing a multibillion-dollar budget and ensuring every state agency is sufficiently funded is undoubtedly one of the most difficult jobs in state government, and I couldn’t be prouder of how Chairman Reynolds and his committee have stepped up to the task. Our wise investments today will lead to a stronger Alabama of tomorrow.”
In addition to the expected 2025 revenue, the state carried over a sizable surplus from 2023 into 2024 allowing the Legislature to make a supplemental appropriation in 2024. The 2025 budgeting year begins Oct. 1.
“Historically large revenues, high interest rates and our previous conservative budgets have led to Alabama’s general fund being stronger than ever,” said Rep. Rex Reynolds (R-Huntsville), chair of the House Ways and Means General Fund Committee. “We’re blessed to be operating from a position of surplus, but it’s also important that we recognize this unprecedented growth is not sustainable long term and remain committed to the conservative budgeting practices that got us here.
“This year’s General Fund budget and its supplemental appropriation reflect my committee’s commitment to being responsible with taxpayer dollars, and I sincerely appreciate the body voting unanimously to approve them today.”
The House-passed budget is $3,410,393,112, up from the FY2024 budget of $3,013,400,381.
The supplemental appropriation allocates $2,243,062 from the Youth Services Reimbursement Fund to the Department of Youth Services; $300,000 from the Veterans’ Assistance Fund to the Department of Veterans’ Affairs; and $253,875,169 from the SGF to various state agencies. Both bills are sponsored by Sen. Greg Albritton (R-Atmore).
Corrections, Medicaid, the Alabama Law Enforcement Agency, the Commerce Department, mental health, the Health Department, the courts, the district attorneys, and the Department of Forensic Sciences, Archives and History, are just some of the agencies in the general fund.
The Education Trust Fund is for all things education related. It is funded by state individual and corporate income taxes.
The General Fund deals with non-education related expenditures. It is funded by taxes for online purchases, insurance taxes, utility taxes, a portion of the property tax, and interest income on the money held in trust in the Alabama Trust Fund.
Fuel taxes go to the Road and Bridge Trust Fund for the Department of Transportation.
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