The State’s Budgets Are On Legislative Agenda This Week
The Alabama Legislature is heading down the backstretch of the 2026 session. With 10 days remaining neither the FY27 General Fund of Education Trust Fund budgets have been passed. The budgets are the two main reasons for the legislative session, but late session passage is nothing unusual.
The General Fund Budget originates in the Senate while the ETF Budget begins in the House.
The General Fund Budget
The $3.69 billion General Fund Budget recommended by Gov. Ivey during her State of the State Address is on the agenda for this afternoon's Senate Finance and Taxation General Fund Committee meeting at the statehouse. Because of economic uncertainties and potential revenue shortfalls, the budget that passes is expected to reflect her call for level funding for FY27.
The Senate committee is expected to vote on the budget today. It meets at 12:30 this afternoon.
The Education Trust Fund Budget
While Ivey's General Fund recommendation is for level fund, the state's Education Trust Fund Budget would be the largest in history. The governor has proposed a record $10.5 billion ETF budget for FY27, representing a $570 million or 5.8% increase over the previous year, with a focus on teacher pay raises, health insurance costs, and school choice. The proposal, which fully utilizes the maximum allowable growth rate, funds key priorities including the controversial CHOOSE Act, literacy/numeracy initiatives, and a 2% teacher pay raise.
The biggest concern in the education budget is with the Public Education Employees Health Insurance Plan (PEEHIP). Due to rising medical and pharmaceutical costs and increased use, a significant shortfall will most likely prompt considerable debate in the committee hearings.
Also applying pressure on lawmakers is a requested increase for individual higher education institutions ranging from 4.2% to 8.4%.
The House Ways and Means Education Committee is scheduled to take up the ETF at its 9:30 meeting tomorrow morning.
Further adding pressure to budget considerations is the fact that this is an election year and lawmakers want to avoid as much controversy as possible.
More From Tuscaloosa Thread
