MONTGOMERY — The Alabama House and Senate sent a $3.4 billion General Fund budget to Gov. Kay Ivey on Tuesday for fiscal year 2025.

The General Fund budget passed last session for the current 2024 fiscal year was $3.1 billion. Alabama has two major state budgets: the Education Trust Fund and the General Fund. The General Fund is the smaller of the two and funds all non-education state functions.

The proposed fiscal year 2025 budget included a 2% cost-of-living adjustment for state employees. The state's fiscal year is from October 1 to September 30. 

“Here in Alabama, we continue budgeting wisely. Despite the tough national economic climate, our financial footing is strong, and we are able to make investments where they count – investments that will pay dividends for generations to come,” Ivey said in a statement on Tuesday. “While being good stewards of taxpayer dollars and ensuring our budgets are prepared for whatever may lie ahead, we are increasing funding in critical services like public safety and mental health care."

She added, "Our General Fund will make possible a pilot program that will start hosting checkups for pregnant women at nine county health departments in areas of need. We are protecting our veterans who have served by investing in Dovetail Landing. This General Fund is solid and will go far in making Alabama the best place to live, work and raise a family. I look forward to putting pen to paper and officially signing this budget into law.”

Projects in the General Fund supplemental budget include:

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

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

  • $15 million to the State Industrial Development Authority for site development

  • $ 5 million to the Department of Commerce to be used for pier repairs at the Port of Mobile

  • $5 million to the Department of Veterans Affairs. Of this amount, $2,500,000 will be used for the construction of Dovetail Landing to help veterans transition to civilian life, and $2,500,000 will be used for Veterans Recovery Resources in Mobile.

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