MONTGOMERY — On Thursday, the Alabama House of Representatives passed the $3.4 billion General Fund Budget for the 2025 fiscal year and the supplemental appropriation for the current year.

State Rep. Rex Reynolds (R-Huntsville) brought the pair of budget bills before the House, offering substituted versions of both with slight changes in divided spending from the governor's proposal and the version that passed the Senate. Reynolds said that General Fund revenue had increased by 16% from the previous year.

The General Fund Budget increased Medicaid funding by $92 million, totaling $955 million.

"That is no expansion of Medicaid, "Reynolds said. "That is simply playing catchup to the years that we did not fully fund Medicaid due to an increase in federal dollars. Now we're seeing that decline. We're having to increase that amount, and hopefully, we don't see that every year. And just to remind you, 52% of who we serve under Medicaid are children."

The House also passed a budget bill on Thursday, granting all state employees a 2% cost of living increase.

The Alabama Department of Corrections (ADOC) will also receive an over $40 million funding increase. ADOC also received $150 million in the supplemental for prison construction.

The budget also slashed $100,000 from the Board of Pardons and Paroles for a reentry program that Reynolds said did not need the funding.

The Alabama Department of Mental Health's funding jumped from $213.9 million to $238 million.

Both bills passed the House unanimously.

"I'm proud that the House has continued its long streak of passing balanced and conservative budgets," said House Speaker Nathaniel Ledbetter (R-Rainsville). "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 multi-billion-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."

The $263 million Supplemental Appropriations contain the following:

  • $2.2 million from the Youth Services Reimbursement Fund for Diversion Programs to the Department of Youth Services.

  • $7.3 million from the Veterans' Assistance Fund to the Department of Veterans' Affairs.

  • $500,000 to the Legislative Services Agency to contract with an outside entity to conduct a comprehensive review of Alabama's current policies and procedures governing state employment.

  • $20 million to the Legislative Council for the construction of a parking deck related to the new State House construction

  • $716,000 to the Supreme Court for one-time repairs and maintenance of the Heflin-Tolbert building and IT hardware upgrades.  

  • $1.1 million to the Agricultural and Conservation Development Commission.

  • $1.5 million to the Department of Agriculture and Industries, Of this amount, $1 million shall be used for the Hunger Solutions Institute at Auburn University, and $500,000 shall be used for the Geneva County Ag-Plex Arena

  • $10.6 million to the Department of Commerce for pier and port projects in Huntsville and Mobile.  

  • $1.5 million to the Department of Conservation and Natural Resources

  • $150 million to The Alabama Department of Corrections for new prison construction.

  • $10.2 million to the Department of Economic and Community Affairs

  • $221,000 to the Historical Commission for an ADA-compliant bath house at Brierfield Ironworks Historical State Park.

  • $600,000 to the Emergency Management Agency to replace the Mobile Command vehicle.

  • $150,000 to the Educational Television Commission for workforce recruitment.

  • $3 million to the Department of Finance for the State Capitol. Of this amount, $1.5 million shall be used for building security upgrades, and $1.5 million shall be used for repairs to include recoating exterior walls and structural floors.

  • $3.5 million to the Geological Survey for the Core and Sample Repository

  • $20 million to the State Industrial Development Authority for site development

  • $9.8 million to the State Law Enforcement Agency for in-car cameras, body cameras and handheld radios, or other related expenses

  • $6.4 million to the Department of Mental Health. $1 million shall be used to keep the psychiatric beds operational at Bullock County Hospital while the hospital converts to the CMS Rural Emergency Hospital model; $1.5 million shall be used for mental health services for the Lee County Commission; and $1,500,000 shall be used for the East Alabama Medical Center for psychiatric and child services.

  • $2 million to the Department of Public Health.

  • $2.1 million to the Department of Senior Services.

  • $2.1 million to the Tourism Department for a study on establishing a statewide trails network.

  • $600,000 to the Department of Transportation to develop a statewide plan for advanced air mobility.

  • $10.2 million to the Department of Veterans Affairs. $5 million will be used for the construction of Dovetail Landing to help veterans transition to civilian life; and $2.5 million will be used for Veterans Recovery Resources in Mobile.

"Historically large revenues, high interest rates and our previous conservative budgets have led to Alabama's general fund being stronger than ever," Reynolds said. "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 Senate must agree to the House changes before they can be sent to Gov. Kay Ivey's desk for a signature.

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