Senate from ADN

The Alabama Senate passed a proposed $3.72 billion fiscal 2027 General Fund budget on Tuesday, which includes a 2% raise for state employees and fully funds the expected increase in their health insurance costs.

The $3.72 billion spending bill is about $37.1 million more than what Gov. Kay Ivey sent to lawmakers two months ago and about $8.5 million more than the current year’s budget.

See a comparison of this year’s spending, Ivey’s proposal and what the Senate approved Tuesday HERE.

Several state agencies are experiencing slight increases in 2027, although some will see small decreases, including the Alabama Department of Mental Health, which will receive approximately $4 million less next year. Asked about that on the Senate floor, Sen. Greg Albritton, the Senate General Fund committee chairman, said the department’s other funding sources, including federal money, mean its services won’t be affected.

Lawmakers also had to find $10 million for the first payment due this fall for the Legislature’s new about $400 million State House.

Alabama Daily News reported on Wednesday the budget includes conditional appropriations for several agencies, assigning the departments of corrections, human resources and mental health tasks before they receive all of their 2027 funding.

Sen. Bobby Singleton, D-Greensboro, asked Albritton, about requiring the Alabama Department of Human Resources to get the error rate down in the Supplemental Nutrition Assistance Program. The state risks having to spend more than $200 million on the program under the looming cost-sharing requirement that is part of the One Big Beautiful Bill Act signed by President Donald Trump last year.

“I’ve got full confidence that DHR can meet this goal,” Albritton said, citing that it already has one of the lowest error rates in the state, about 9%.

“We’ve got to get this down to maintain the services that we’ve got,” he said.

A rate below 6% does not require a state match.

The spending plan was approved 32-2 with one abstention. Sens. Jack Williams, R-Wilmer, and David Sessions, R-Grand Bay, were the no votes. Sen. Sam Givhan, R-Huntsville, abstained.

The spending package now goes to a House committee.

This story is from aldailynews.com. 

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