Governor Proposes Larger Budgets Than Last Year

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Alabama’s general fund has suffered serious cuts over the last year, with lawmakers needing special sessions to make it work in 2015.

This year the governor wants to add about 80 million dollars to the general fund, paid for partially by the education budget.

“The governor’s budget proposal for the general fund for FY 17 includes un-earmarking 181 million dollars from the education trust fund,” said Bill Newton, the state finance director.

Newton says even though money is being taken out of the education budget, it will be replaced from a stabilization fund.

That 181 million will help cover the proposed 2 percent state employee cost of living adjustment.

While Bentley plans on increasing funding for agencies like medicaid and corrections, the money for the new prison plan would not come from any new dollars.

The state would use bonds for the upfront costs, with savings picking up the rest.

“We could reduce overtime in a very significant way. They have comprehensive plan that they’ve shown the governor, they’ll be showing the legislature, that has convinced the governor the savings will be adequate to pay the bonds off,” said Newton.

The plan already has support from some lawmakers, including Senate President Pro Tem Del Marsh.

“I’m excited about the prison proposal. If we can build four new prisons without any cost to the general fund through efficiencies, that’s good. I’ve talked to the commissioner about it, the plan makes sense,” said Sen. Marsh.

The governor is proposing an increase for the education budget by about 300 million dollars. That will mean more money for textbooks, libraries, and even teachers.

“Included in this would be the two percent pay raise for teachers, support workers, k-14, so it includes the community college system,” said Newton.