The Alabama House of Representatives passed a record-breaking general fund budget and supplemental budget for fiscal year 2024 on Thursday.

The bill now heads back to the Senate for consideration of House budget changes, with just three days left in the legislative session to act on the spending plan.

“I'm proud that the House continues to pass a long-term balanced and conservative budget,” said House Speaker Nathaniel Leadbetter. “One of our biggest responsibilities as lawmakers is to be good stewards of our state's checkbook and invest the people's money in an effective way. This year's General Fund does just that, while also budgeting for the tough economic times ahead.”

Managing a multi-billion dollar budget and ensuring every state agency is adequately funded is undoubtedly one of the most difficult jobs in state government. I couldn't be prouder of Chairman Reynolds and the committee's commitment to this task. Smart investments today will lead to a stronger Alabama tomorrow.”

In addition to projected revenues for 2025, the state carried forward a significant surplus from 2023 to 2024, allowing the Legislature to create a supplemental budget in 2024. Budgeting for fiscal year 2025 begins Oct. 1.

“Historically high revenues, strong interest rates and a conservative budget to date have left Alabama's General Fund stronger than it has ever been,” said Rep. Rex Reynolds (R-Huntsville), chairman of the House Ways and Means Committee. “While we are fortunate to be operating in the surplus, it is also important that we recognize that this unprecedented growth is not sustainable in the long term and continue to adhere to the conservative budgeting practices that have gotten us this far.”

“This year’s General Fund budget and its supplemental budget reflect my committee’s commitment to being responsible with taxpayer dollars, and I am sincerely grateful that the committee unanimously approved the budget today.”

The House-passed budget is $3,410,393,112, up from the fiscal year 2024 budget of $3,013,400,381.

The supplemental budget would allocate $2,243,062 from the Youth Services Reimbursement Fund to the Department of Youth Services, $300,000 from the Veterans Assistance Fund to the Department of Veterans Affairs, and $253,875,169 from the SGF to various state agencies. Both bills are sponsored by Sen. Greg Albritton (R-Atmore).

The Department of Corrections, Medicaid, the Alabama Department of Law Enforcement, the Department of Commerce, the Department of Mental Health, the Department of Health, the courts, the District Attorney's Office and the Bureau of Forensic, Archives and History are just a few of the agencies included in the General Fund.

The Education Trust Fund is for all matters relating to education. This fund is funded by state personal and corporate income taxes.

The General Fund handles non-education related expenses. This fund is funded by taxes on online purchases, insurance taxes, utility taxes, a portion of property taxes, and interest income on funds held in the Alabama Trust Fund.

Fuel taxes go to the Department of Transportation's Road and Bridge Trust Fund.

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