Alabama’s Education Budget Soars Past $11 Billion, Focusing on K-12 and Higher Education

On Tuesday, the Alabama House of Representatives passed the education budget package, which included provisions allocating more than $11 billion to k-12 schools, the two-year college system, specialty schools, state four-year colleges and universities, and other state agencies.

The majority of the provisions in the school budget package were carried by State Rep. Danny Garrett (R-Trussville), who chairs the House Ways and Means School Committee. Garrett’s committee is in charge of preparing the House budget.

“I’m proud that the House has advanced a record-breaking Education Trust Fund Budget for the sixth straight year,” House Speaker Nathaniel Ledbetter said after the bill was passed. “At more than $9.3 billion, this historic funding addresses essential needs in our K-12 system fully finances the Literacy and Numeracy Acts, and gives a well-deserved pay raise for teachers. In addition, we are financing reading coaches, career coaches, and mental health coordinators in all school systems. “By investing in our students’ education today, we ensure a brighter Alabama tomorrow,” stated Ledbetter (R-Rainsville).

The first bill in the package was House Bill 147. This is a supplemental appropriation from the Advancement in Technology Fund, the education budget’s rolling reserve fund. Because there was no proration in the 2024 budget, there are surplus monies in the reserve. “The governor has offered a budget of $700 million,” Garrett explained. “I will offer a sub that will take that up to one billion dollars.”

Rep. Juandalynn Givan (D-Birmingham) praised Garrett, saying, “You did a fantastic job. The Speaker made a fantastic move by appointing you as budget chair.” “I am happy to have graduated from Tuskegee Institute. “How do we increase our appropriation?” said Rep. Mary Moore (D-Birmingham).

“We need to talk about that,” Garrett replied. “We do increase Tuskegee $5 million in the supplemental,” Garrett explained that the state has $1.75 billion in reserves, which he proposes spending $1 billion of this year.

“We did not release any of that Advancement in Technology Fund last year,” he said. “The governor asked for $700 million, We are increasing that by $300 million to $one billion.” “I will introduce a bill tomorrow to eliminate the Distressed (Institutions of Higher Education) Loan Program. Are you including that money in this budget?” Asked Givan.

“We are addressing it in an amendment,” Garrett explained.

The Distressed Institutions of Higher Education Loan Program was designed to preserve the struggling private Birmingham Southern College (BSC). State Treasurer Young Boozer judged that the loan would pose a financial danger to the state, so the college announced that it would close on May 31. “Every year we are doing more to help our children stay competitive in the state of Alabama,” said Rep. Mary Moore, who is a Republican.

HB147 passed 102 to 0 as amended.

HB144 is a supplemental allocation using budget surplus funds held over from 2023 because receipts exceeded the Legislature’s estimates. For the past five years, the state has carried over its budget surpluses. Garrett noted that the committee approved the governor’s request for $651 million, but that the committee relocated part of the money and added certain projects.

Rep. Laura Hall (D-Huntsville) introduced an amendment to establish a $30 million summer food program for students. Garrett stated that this was initially a federal initiative during the COVID era, but Alabama did not opt-in last year. “I would ask that you table this motion,” Garrett said. “I have a hard time recommending something that I do not understand.”

The motion to table the Hall amendment was mostly carried along party lines.

House Majority Leader Brett Stadthagen (R-Hartselle) proposed a floor amendment to redirect $15 million from the Lieutenant Governor’s grant program to Community Service Grants, which members distribute to projects in their districts. That modification was approved unanimously.

Bracy proposed an amendment that transferred $1 million from the HBCU deferred maintenance program to Alabama State University, which was also approved. HB144 passed 103 to 0. Rep. Cynthia Almond (R-Tuscaloosa) supported legislation to establish a residential high school in Demopolis for kids interested in working in the healthcare field.

“This is my honor and privilege to carry the Alabama Healthcare Sciences Act,” he stated. “For the past two years, Gov. Ivey has made this a priority.” “This will be a four-year, residential high school. The overall goal of this school is to

The healthcare-focused high school in Demopolis will be similar to the Alabama School of Fine Arts, Alabama School of Math and Sciences, and Alabama School of Cybertechnology. The bill was also passed. HB145 represents the actual ETF budget for 2025. Garrett stated that the budget is increasing by 6.5%, which is the maximum amount that the Legislature can increase the ETF under the Rolling Reserve Act.

He explained that this includes $200 million for Pre-K, reading coaches in every school, assistant principals in every school with more than 300 students, full funding for the Literacy Act and the Numeracy Act, a 2% pay increase for education employees, starting teacher salaries in Alabama being the highest in the Southeast, and $2.4 billion for Higher Education.

HB145 passed 102 to one. HB146 is a 2% wage increase for education staff. It passed unanimously. “This is a two percent increase for education employees,” stated Rep. Barbara Drummond (D-Mobile). “The cost of this increase is $104.5 million.”

Tuskegee University’s appropriation is HB148. Talladega College’s appropriation is HB149. The Southern Preparatory Academy’s appropriation is HB150. Everything passed overwhelmingly.

“As ETF Chairman, my top priority is providing Alabama’s K-12 system with the necessary tools to succeed while also remaining conscious of the state’s future needs,” Garrett, the chairman, stated. “I’m proud that our conservative approach has paved the way for another historic investment into public education while also preparing for the difficult economic times ahead.”

Alabama has a complicated budgeting structure with two budgets: the ETF and the state general fund (SGF), which funds non-education state agencies. The Senate approved the SGF package on Thursday. The SGF is supported by State Senator Greg Albritton (R-Atmore), chairman of the Senate Finance and Taxation General Fund Committee.

The education budget package’s measures will now be assigned to the Senate Finance and Taxation Education Committee, which is chaired by Sen. Arthur Orr (R-Decatur).