Alabama
Alabama finance leaders say 'sugar high is over' for state budgets • Alabama Reflector
Alabama finance officials said Wednesday that the state’s “sugar high is over” as they predicted uncertainty around the economy in the coming years.
Speaking to lawmakers on Wednesday, officials said growth in the General Fund and the Education Trust Fund (ETF) are declining from double-digit growth it has seen over the last couple of years, due to the loss of federal COVID relief funds and uncertainty about a General Fund revenue source dependent on higher interest rates.
“In a span of three years, you went from a revenue source that wasn’t even on a pie chart in terms of its percentage contribution to the total General Fund to it’s now the second largest revenue source, and it’s not a reliable revenue source,” said Kirk Fulford, deputy director of the Legislative Services Agency.
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Gross domestic product (GDP) grew by 6% in the 3rd quarter of 2023, higher than all but Arkansas, and personal income increased by 5%.
The General Fund’s revenue grew about $226 million year over year, largely driven by a $150 million increase in interest on state deposits, Fulford said.
The ETF, which gets most of its revenue from state income and sales taxes, is expected to grow 1.82% in fiscal year 2026. The current 2025 budget was about 6% higher than the prior year’s budget.
State Finance Director Bill Poole, who said “ditto on virtually everything” to Fulford’s remarks, cautioned lawmakers to budget conservatively.
“Be cautious, particularly in periods of uncertainty and clearly in kind of a transformative transition period in national and state economy,” Poole said.
Gov. Kay Ivey will request a $3.7 billion General Fund budget, about $400 million (12.1% increase) higher than the current budget, and a $9.9 billion ETF, about $560 million (6% increase) higher than the current ETF. The budget prioritizes education, public safety and workforce development. Key proposed allocations include increases of $230 million for Medicaid, $124 million for PEEHIP (Public Education Employees’ Health Insurance Plan) costs and further investment in mental health and law enforcement.
The Alabama Legislature will have the final say on what the budgets look like.
Poole said that as the state reduces earmarked funds and removes one-time line items from the last budget, it may look like some agencies may have been negatively impacted.
“But there’s a story behind those numbers. Understand that we have not reduced operating maintenance costs at any of the agencies,” he said.
Fulford also reminded lawmakers of the expiration of federal Elementary and Secondary School Emergency Relief (ESSER) funds, which provided Alabama schools with $3 billion in temporary funding. Officials warned that school districts may seek state support to continue programs initially funded by ESSER, potentially straining future budgets.
“You can’t sustain another $3 billion of funding, and by the way … you certainly couldn’t support it on an ongoing basis either,” Fulford said.
But Alabama’s economy seems strong compared to other states, Fulford said.
“There’s so many other states that are having to come in and figure out how to move the shells around to fill holes in their budget because of various decisions that they made, because of revenues declining and them not assuming the revenues were going to decline as fast as they did,” Fulford, adding that many states would like to be in Alabama’s position.
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SPANISH FORT, Ala. (WALA) – The YMCA of South Alabama held a Healthy Kids Day at Spanish Fort Town Center Park.
Saturday’s event featured games and demonstrations, along with interactive activities featuring police and fire vehicles.
“I think just seeing so many organizations come together that serve kids, and just seeing kids have fun,” said Gwen Summer, CEO of the YMCA of South Alabama.
Marissa Rennaker, director of development for the YMCA of South Alabama, said the event exposed children to new activities.
“I think it’s been seeing all the kids laugh and try different things that they probably haven’t tried before,” Rennaker said. “There was a big group doing pickleball and yoga. We had ballet earlier, so just getting them out and exposed to things, I think it’s been great.”
The event was designed to kick off a healthy, active summer.
The YMCA of South Alabama is located at 27080 Pollard Road in Daphne.
Copyright 2026 WALA. All rights reserved.
Former Alabama star Will Anderson Jr. has reportedly signed a three-year, $150 million extension with the Houston Texans, per ESPN’s Adam Schefter.
Anderson instantly solidified himself as one of the top defensive players in football throughout his rookie campaign in 2023. The star defensive end was named as the Rookie of the Year in 2023, as Anderson’s extension will officially keep him in Houston long-term, as well as make him the highest paid non-quarterback in NFL history.
Anderson recorded an impressive 12 sacks on the Texans’ defensive line in 2025, as the former Alabama star has made history following his head turning extension with Houston.
Anderson was nothing short of a superstar throughout his time at Alabama. Houston drafted the talented lineman with the third overall pick of the 2023 NFL draft, as Anderson was widely regarded as one of the top overall selections from his class.
The former Crimson Tide superstar has officially inked a massive extension with the Texans, as Anderson will undoubtedly continue playing a critical role on Houston’s defensive line over the coming seasons.
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Alabama head coach Rob Vaughn said that No. 4 Texas would be “hungry” against the No. 11Crimson Tide coming off its first series loss of the season to Texas A&M.
The Longhorns certainly were, as they pounced all over Vaughn’s team, striking out 17 Alabama batters en route to a 10-2 win.
“The story of the game was they just kind of kicked our tail in every phase tonight,” Vaughn said.
Alabama starter Tyler Fay had been elite over his past four starts, dating back to his complete-game no-hitter against Florida, allowing just six earned runs over the 26.0 innings pitched in those games. That changed instantly on Friday evening, as leadoff batter Aiden Robbins opened the game with a double and catcher Carson Tinney took him deep for a two-run blast moments later.
Texas added a third run in the first off an Ethan Mendoza RBI double, setting the tone for a dominant day. Alabama did not record a hit until the fourth inning as Longhorn ace Dylan Volantis tore through batters, striking out 12 over six innings.
Fay ended up going 5.1 innings, just the second time he did not make it through the sixth. The other, against Auburn, was only due to Vaughn wanting to keep his pitch count down in the wake of the no-hitter. He allowed season-highs of seven earned runs and 12 hits in the loss.
The Longhorns added a run each in the third and the fifth, before Alabama put the slightest amount of pressure on Texas in the top of the sixth. Bryce Fowler and Justin Lebron scored on the basepaths off an error and a wild pitch, respectively, to cut the Texas lead to three runs.
“You’ve got to find ways to score,” Vaughn said. “Those two guys just created two runs for us, and did a great job creating those runs and we crawl back in at 5-2, and it’s like, ‘Let’s go back to work…’ So thought we had that chance in those middle innings.”
The Longhorns effectively put the game to bed in the next frame, responding with three runs as Fay was relieved by Connor Lehman. Texas would add two more runs on the day, with the only silver lining coming in the fact that Alabama avoided a run-rule.
The Crimson Tide has now lost four straight SEC games after winning three consecutive series. Zane Adams takes the mound with the series on the line on Saturday, in a game that has been moved up to 12 p.m. CT due to anticipated rain in Austin.
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