The Alabama Education Trust Fund (ETF) is the largest operating fund of the State, coming in this year at just under $6 billion. The budget hit the floor of the Alabama House today.

Here’s what we know so far:

WHAT EVERYONE WILL BE TALKING ABOUT

• No pay raise for teachers

• $38 million will be allocated to PEEHIP (teacher health insurance) in an effort to keep their premiums from going up due to the $70 million increased tax burden brought on by ObamaCare. Both active employees and retirees receive the benefit. Total funding for PEEHIP will be $48 million, with the addition of federal and local funds.

RELATED: ObamaCare could keep Alabama teachers from getting a raise

• Language in the budget encourages the PEEHIP board to utilize its more than $1 billion held in reserve to help offset the program’s shortfall.

• Republicans say they believe prioritizing funding for PEEHIP will have the greatest positive impact for teachers and retirees.

• The budget has a $1 million line item to fund research at UAB on the use of cannabidiol (CBD), an oil derived from marijuana that has no ability to get anyone “high,” to treat epilepsy and other neurological disorders. This is the research component of Carly’s Law.

RELATED: Lawmakers take Carly’s Law to next level, announce research partnership with UAB

DIRECTLY IMPACTING THE CLASSROOM

• The middle school divisor will increase by 1%, which will decrease class sizes and allow for the hiring of more than 400 new teachers.

• $5.7 million in increased funding for textbooks is being provided.

• “Other Current Expense” (OCE) funding is being increased by $14.7 million. Local school systems will be given the flexibility to determine the best use of those funds.

• $8.7 million in increased funding for transportation is being provided.

• There is a $605K increase in funding for classroom supplies.

NOTABLE PROGRAM FUNDING

• Alabama’s nationally-recognized pre-k program will receive $10 million in additional funding.

• The career-technical dual enrollment program will receive an additional $6 million

• AMSTI and A-Plus will also receive an increased appropriation.

WHAT’S NEXT?

Gov. Bentley has said he will not sign a budget without a 2 percent pay raise for teachers. The Alabama Constitution allows the legislature to override the governor’s vetoes and executive amendments by a simple majority vote of the House and Senate.

If the Legislature doesn't include my 2% pay raise for teachers & full funding for PEEHIP I'll send the budget back w/ an Exec. Amendment.

— Gov. Robert Bentley (@GovernorBentley) March 5, 2014

Yellowhammer will have more on the budgets in the coming days.

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