Alabama

Alabama

Budget Links

FY2026 (enacted)
FY2026 (proposed)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted - GF)
FY2022 (enacted - ETF)

Enacted Budget – Fiscal Year 2026

On May 5, Alabama Governor Kay Ivey signed the fiscal 2026 budgets for the General Fund and Education Trust Fund. The General Fund budget totals $3.7 billion, an increase of $315.2 million, or 9.4 percent, over budgeted fiscal 2025. The Education Trust Fund budget totals $9.9 billion, an increase of $559.7 million, or 6.0 percent, over the enacted fiscal 2025 budget. The General Fund revenue estimate for fiscal 2026 is $3.4 billion, a decrease of 1.7 percent from fiscal 2025 while the Education Trust Fund revenue estimate is $11.1 billion for fiscal 2026, an increase of 1.8 percent. 

The General Fund funds investments in multiple areas. The budget allocates additional funds to Medicaid, the judicial system, the Department of Corrections, District Attorneys, and the Department of Forensic Sciences. Other areas receiving increased funding includes the Children’s Health Insurance Program, Department of Human Resources, Department of Mental Health, Department of Senior Services, and the State Law Enforcement Agency. The budget also increases the state’s contribution to employee health insurance. In the Education Trust Fund, priorities receiving additional funds include the community college system (with increases for dual enrollment and prison education), the Department of Early Childhood Education, the Foundation Program in the Local Boards of Education, the Alabama Numeracy Act and Reading Initiative, summer and afterschool program, and the Commission on Higher Education. Other investments include the School of Healthcare Sciences, the Department of Human Resources (including child care and afterschool programs), the Department of Mental Health, the Department of Rehabilitation Services, and the Department of Youth Services.

Enacted Budget Information
General Fund Spreadsheet

Education Trust Fund Spreadsheet

Revenue Estimates

Press Clip

Proposed Budget - Fiscal Year 2026

On February 6, Alabama Governor Kay Ivey released her fiscal 2026 budget recommendations for the General Fund and the Education Trust Fund. The General Fund proposes $3.7 billion in non-earmarked spending, an increase of $301.7 million, or 9.0 percent, over budgeted fiscal 2025. The Education Trust Fund proposes $9.9 billion in spending for fiscal 2026, an increase of $560.9 million, or 6.0 percent, over budgeted fiscal 2025. The budget anticipates a beginning balance in fiscal 2026 of $333.6 million in the General Fund and $1.5 billion in the Education Trust Fund. Net receipts to the General Fund are projected to decline 1.65 percent in fiscal 2026 to $3.4 billion compared to the current year. Net receipts to the Education Trust Fund are projected to increase by 1.8 percent in fiscal 2026, to $11.1 billion, compared to fiscal 2025. The estimated balances at the end of fiscal 2026 are $0 for the General Fund and, after accounting for transfers, $1.2 billion in the Education Trust Fund.

Proposed Budget Highlights 

The governor’s budget priorities for fiscal 2026 include expanding educational options, building on gains in educational outcomes, ensuring public safety, supporting the economy, and passing responsible budgets.

General Fund

• Provides funds for metro area crime suppression and body cameras at the state’s Law Enforcement Agency.
• Increases funds for the airport development grant program.
• Provides additional funds for the food bank grant program.
• Increases funds for the Department of Public Health, including fully funding the Children’s Health Insurance Program (CHIP) for fiscal 2026 and providing rural matching grants through the Office of Emergency Medical Services.
• Allocates additional funds to the Department of Human Resources including for Child Advocacy Centers and Family Resource Centers.
• Increases funding for the state Medicaid program.
• Provides additional funds for the Department of Mental Health for civil commitment/residential services.
• Adds funding for the Department of Senior Services to provide inflationary funds for the Elderly Nutrition Program.
• Increases funding for the state employee’s health insurance program to cover increased monthly premiums.
• Provides additional funds to the Department of Corrections for staff hirings at a new correctional complex, contract increases for inmate medical services, food service contract increases, and correctional facility camera equipment.

Education Trust Fund

• Increases funds for early childhood education, including for First Class Pre-K expansion and increased per unit funding; the Dolly Parton Imagination Library; and the Strong Start/Strong Finish program
• Provides additional funding to community colleges, including operational costs across multiple campuses, prison education, and dual enrollment programs.
• Allocates additional funds for K-12 local boards of education, addressing increases in the Foundation Program, the transportation program, and other current expenses.
• Increases funds for the Department of Education to support increases for the Literacy and Numeracy Acts to improve reading and math skills; summer and afterschool programs; the English language learners program; and Turnaround schools.
  • Funds are also provided for the CHOOSE Act, a program allowing qualifying families to claim up to $7,000 for each qualifying student to be used for non-public education expenses, including private school tuition.
• Increases operations and maintenance funding for all four-year colleges and universities.
• Includes funding for a new Law Enforcement Officers’ Family Scholarship Program.
• Provides additional funds for school based mental health services.
• Increases funding for the Youth Services Program at the Department of Youth Services.

Proposed Budget Information
Fiscal Year 2026 Budget Proposal  

Education Trust Fund Summary 

General Fund Summary 

Finance Director's Presentation