MONTGOMERY — The Alabama House of Representatives voted on Wednesday to approve the $3.7 billion General Fund (GF) and supplemental appropriations budget for the 2027 fiscal year during the next-to-last week of the 2026 legislature.
The Senate is poised to tackle the other side of the state budget, the Education Trust Fund, during its Thursday session.
"My number one priority for our state's budgetary process is ensuring that every dollar of taxpayer money is spent in a manner that positions Alabama for success, and I am proud of our conservative record in doing so," House Speaker Nathaniel Ledbetter (R-Rainsville) said. "The 2027 General Fund Budget represents the 17th consecutive year that House republicans have funded government responsibly, and I commend Chairman Reynolds and our members for working to place Alabama on a firm financial footing."
Highlights from the multiple budget bills passed on Wednesday include a 2% cost-of-living increase for state employees and a one-time, lump-sum "longevity bonus" for state retirees. The bonus is calculated at $1 per month of service.
Additionally, the state increased its debt service by $13 million, including $10.4 million for additional prison debt.
The remaining bills adjusted spending by relatively modest amounts, with fluctuations largely due to the removal of earmarks from fiscal year 2026.
"The most basic responsibility of government is to be a good steward of taxpayer dollars while providing the essential services Alabamians depend on, and this budget does exactly that," said House Ways and Means General Fund Committee chairman State Rep. Rex Reynolds (R-Huntsville). "I am especially proud that even with costs growing across the board, this year's budget is only growing by 1% compared to fiscal year 2026. Make no mistake about it—this budget was challenging, and with interest rates dropping and COVID-era funding coming to an end, I expect the next several budgets to present even greater challenges. Now more than ever, we must lean into the same fiscally conservative approach to government that has delivered stability and success, ensuring we continue to meet our obligations while safeguarding taxpayer dollars in the years ahead."
The Senate must still vote on the budgets and accompanying bills before they are sent to Gov. Kay Ivey for her signature.
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