Gov. Kay Ivey has signed the state’s largest-ever Education Trust Fund and General Fund budgets, as well as two supplemental spending bills Thursday. The budgets are set to govern spending for the fiscal year starting Oct. 1.
The education budget will channel $8.8 billion from the Education Trust Fund, marking an increase of 6.5% or $537 million over the current year. An additional $2.8 billion will be allocated through the education supplemental bill, a surplus result due to exceeding tax revenues.
“I am proud to officially put my signature on yet another historic investment in our students, teachers, and schools,” Ivey said. “This record-setting education budget supports initiatives ranging from expanding Alabama’s pre-K program in high poverty areas to implementing the Literacy and Numeracy Acts and bolstering teacher salaries.
The General Fund budget, marking a 6% increase from the current year, will appropriate $3 billion for non-education state programs including Medicaid, law enforcement, prisons, mental health services, and courts. The supplemental, with an additional allocation of $208 million from the General Fund, will support various state and local programs and projects.
“During my time as governor, we have not once used the word proration, nor have we spent beyond our means,” she said.
The historic $3 billion General Fund, she said, represents “generational money,” facilitating significant public service investment while also paying down debt to mitigate the impact of future economic downturns.
✍️: I have just signed the state’s budgets — our historic Education Trust Fund and General Fund.
You can read my full statements below. ⬇️ #alpolitics pic.twitter.com/T4SjkquQaw
— Governor Kay Ivey (@GovernorKayIvey) June 1, 2023
Both budget plans were formulated based on Ivey’s recommendations submitted in March. The Alabama legislature approved a record-breaking $8.8 billion state education spending plan for fiscal 2024, supplemented by an unprecedented $2.8 billion spending bill for the current fiscal year.
Sen. Arthur Orr, R-Decatur, chairman of the Senate Education Budget Committee, chalked up the task as the most difficult during his three-term tenure as budget chairman. The Senate made significant amendments to the supplemental plan, including reducing Ivey’s proposed income tax rebates for Alabamians, cutting non-education items despite local requests, and increasing school safety grants.
The supplemental now encompasses $200 million in projects at colleges and universities, a $185 million K-12 Capital Grant Program to be overseen by the lieutenant governor, and a $500 million Educational Opportunities Reserve Fund to fortify the education budget against economic fluctuations.
The 2024 budget promises a 2% raise for K-12 and community college educators. The finalized allocation designates $5.9 billion to K-12 learning, $2.4 billion to higher education, and $195 million to early childhood education.
Grayson Everett is a staff writer for Yellowhammer News. You can follow him on Twitter @Grayson270 for coverage of the 2023 legislative session.
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