Alexander Willis and Mary Sell, Alabama Daily News
MONTGOMERY, Ala. — The proposed $3.3 billion general fund budget and $9.3 billion education budget for 2025 moved forward Thursday, but final passage of both will wait until next week.
The House approved the General Fund and several accompanying spending bills. Proposed additional spending of $254.1 million for the current fiscal year. It will now return to the Senate to seek agreement.
The Senate approved the education budget and sent it back to the House. But delegates have questions and want further discussion through the conference committee next week.
There are three days left in the legislative session, which could end late next week.
Both budgets include 2% raises for state employees and educators. There will also be no raises for retirees, but lawmakers say they are working on an eventual raise for retirees.
The $681.2 million education aid spending plan was recently changed to put $5 million into the already established education retiree pay raise fund.
“This is our first step,” Sen. Arthur Orr (R-Decatur) said on the Senate floor, acknowledging that inflation and rising costs of living are hurting retirees. A bill to provide cost-of-living adjustments to retirees was introduced late in the session, but no progress has been made. Orr then told the Alabama Daily News that at least $100 million would be needed before the increase could be distributed. One-time bonuses may be more likely next year, he said.
“We have to find the resources,” Orr said.
Rep. Rex Reynolds, chairman of the House General Fund Committee, said a similar allocation was considered in that budget but needed further discussion.
“I thought about it in the offseason and decided to come back in 2025 with a solid plan,” Reynolds, a Hazel Green Republican, told ADN. “We certainly continue to have expectations for a dedicated revenue stream.”
Recent changes to the ETF include $10 million to reverse larger federal funding for the 2025 summer lunch program for low-income children. The state had already missed this summer's deadline, but child advocacy groups have asked for funding for next year.
Additionally, $14.9 million was added to the ETF for the new Education Employee Injury Compensation Program. Currently, teachers do not have any type of workers' compensation system, and a bill to create this program is pending in the Alabama House of Representatives.
“These were all important steps,” Orr told ADN about the new items.
Regarding the 2025 General Fund, Reynolds introduced the alternates passed by a House committee on Wednesday.change point That includes a $74 million increase for the Alabama Department of Corrections, a $23 million increase for crisis treatment for the Alabama Department of Mental Health, and a $92 million increase for Medicaid.
“It (Medicaid increase) simply recoups years of underfunding Medicaid due to increased federal spending,” Reynolds explained on the House floor.
“Now that we're seeing that decline, we have to increase this amount. And we hope it doesn't happen every year.”
The alternative was adopted unanimously, followed by minor amendments introduced by Reynolds that primarily changed the language regarding how the funds would be allocated.
The General Fund's supplementary appropriations bill, the money that can be spent this year, saw larger changes on the House floor, but still modest changes, with amendments increasing the total allocation from $253.9 million to $254.1 million. The dollar amount increased by approximately $600,000.
Both the 2025 GF budget and the supplemental spending bill were made changes on the House floor, so both will need the Senate to agree to the changes next week before they go to Gov. Kay Ivey for final approval.
When both education spending bills passed the Senate and were introduced on the House floor, their sponsor, Rep. Danny Garrett (R-Trussville), asked them to be referred to a conference committee, but they were not approved.
Garrett said the Senate had made amendments to the bill and wanted clarity before it passed the House.
Rep. Laura Hall, D-Huntsville, asked Garrett what those changes are and provide some examples.
“For example, the amount of grants paid to the (K-12) Capitol Grants Program has changed. There are some new items that have been added to the grants. (And) we want to understand about them. ,” Garrett said.
Hall seemed hardly satisfied with Garrett's reaction.
“Thank you for that. You haven't given me any information yet,” Hall said. “But I hear you. I take my job seriously, so I'm saying there's no reason why I can't get information about what we're discussing.”
House members voted unanimously to resolve their differences in conference committee, with House Speaker Nathanial Ledbetter (R-Rainsville) joining Garrett, Joe Lovborn (R-Auburn) and Barbara. – Sent Rep. Drummond (Democratic Party) to the committee as a representative of the House of Representatives. .