January 28, 2026
Friends,
Wanted to provide a quick note and overview of the General Fund passed this past week in Montgomery:
We did approve a $2.74 billion General Fund budget, which provides for the largest spending plan for non-education states agencies in Alabama history. The General Fund devotes millions of one-time revenue dollars toward paying off long-term debts, which continues our Republican leadership’s responsible spending practices.
In order to balance the General Fund budget, $437 million was transferred from the Alabama Trust Fund around 10 years ago. (The Alabama Trust Fund collects royalties form offshore drilling rights.)
I am proud to say the Fiscal Year 2023 budget approved on Thursday will make good on the $143 million remainder to the Alabama Trust Fund, COMPLETING repayment on what was owed. This is a good thing!
The General Fund also provides funding increases for the state’s Medicaid and Mental Health agencies - this will include a 4% pay raise for state employees. (Part of the House Republican Caucus’ 2023 “Standing Tall for Alabama” legislative agenda.)
State government retirees are scheduled to receive a one-time bonus based upon years of service. For the math, the amount of each retiree bonus would be determined by multiplying $24 by # of years of service.
City governments, county governments, and local boards that participate in RSA would also be authorized to award identical bonuses if they so choose. (Also part of the “Standing Tall for Alabama” agenda.)
The General Fund also adds an additional $36 million to the Senate’s allocation for the Department of Mental Health - with these funds to be used in funding new crisis centers across the state.
Also within the budget are increases for additional funding for district attorneys, the Alabama Department of Corrections, the Alabama Law Enforcement Agency, and the Alabama Board of Pardons and Paroles.
Is this everything that we are trying to do? Of course not, but it’s a great step forward with responsible fiscal management and providing assistance for many areas of need. Still much work to do, and my colleagues and I are determined to continue to work hard for Alabama.
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