MONTGOMERY — The Senate approved a $3.7 billion General Fund budget on Thursday 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.
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.
State Sen. Greg Albritton (R-Atmore), chairman of the General Fund Budget Committee, said the total budget amount was a "substantive" increase compared to the current fiscal year's budget.
"There's a school of thought that there's never enough money, but as far as what we're doing with this budget, as I mentioned on the floor, there are no cuts here. There was either level funding or increased funding in most cases moving forward," Albritton told reporters on Thursday. "The economy and the trends are reflective that we've got some trouble ahead. We don't know when. We'll get through this fiscal year. Next year, I'm concerned. Hence, that's why we wanted to not spend every stinking dime."
According to Albritton, high interest rates have aided the General Fund's bottom line.
"The biggest income producer for the general fund, of course, has been the interest, and during this past time, we've had more money than we've ever held, federal and state, and the interest rates have climbed, so those two factors have been beneficial for us," Albritton said.
General Fund budget legislation now heads to the House for their consideration.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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