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.
Advertisement
GET THE MORNING HEADLINES.
Gross domestic product (GDP) grew by 6% in the 3rd quarter of 2023, higher than all but Arkansas, and personal income increased by 5%.
Advertisement
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. Alabama State Finance Director Bill Poole outlines Gov. Kay Ivey’s 2026 budget priorities during a presentation to Alabama lawmakers on Feb. 5, 2025 at the Alabama Statehouse in Montgomery, Alabama. (Brian Lyman/Alabama Reflector)
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.
Advertisement
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.
Advertisement
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.
MONTGOMERY, Ala. (WSFA) – For those incarcerated in Alabama, there is a path to employment through the Alabama Bureau of Pardons and Paroles Re-Entry Program.
The Bureau looks at where someone may live after serving their sentence and starts connecting them with potential employers, while also conducting drug screenings to help ensure employers and communities are getting a safe employee.
“We make sure as they’re moving through our re-entry programs that they’re re-assessed for mental health stability for substance abuse challenges,” said Rebecca Bensema, Assistant Director of Re-entry and Rehabilitation.
Bensema said the agency sits down with inmates to gauge their interests and review their work history to help match them with opportunities.
Advertisement
Bureau Director Cam Ward explained that there are areas where an individual would be unable to work because of their conviction.
“For example, if I committed check fraud, I’m not going to be able to get a job at the bank. Sex offense… you’re not going to be eligible to work anywhere near kids or sensitive facilities,” Ward said.
Ward said offering job possibilities to people leaving incarceration is key to reducing recidivism and repeat offenses.
“Give the employer all the information and if they want to hire somebody based on their criminal history, let the employer decide, don’t let the government be the one who dictates it,” he said.
The Alabama Bureau of Pardons and Paroles says it currently has positions open that people with a criminal background can apply for.
Advertisement
Not reading this story on the WSFA News App? Get news alerts FASTER and FREE in the Apple App Store and the Google Play Store!
Alabama football is hosting an impressive group of 2027 recruits throughout this weekend. This is the first of several weekends the Tide will host top recruits for official visits.
So, will Alabama add a commit this weekend? This is very much possible, and there are a few prospects Touchdown Alabama has our eyes on.
Advertisement
Justin Smith is the Managing Editor and Lead Writer for Touchdown Alabama Magazine with over 10 years of writing experience & expertise. Smith has consistently delivered high quality, extensively researched information on the University of Alabama’s Crimson Tide football team that fans can trust. Smith is official credentialed media with the University of Alabama under Touchdown Alabama Magazine. He is also the Director of Recruiting for Touchdown Enterprises, specializing in scouting and analyzing high school recruits around the nation, specifically focusing on recruits within the state of Alabama.
OKLAHOMA CITY–– UCLA’s home run power made headlines all season, but it was Alabama’s super sluggers who stepped up in the biggest moments on the biggest stage during the Crimson Tide’s opening game of the Women’s College World Series.
No. 1 Alabama was trailing by two runs heading into the fifth inning of Thursday’s game before Alexis Pupillo tied it up with a two-run shot in the bottom of the frame.
The Tide had struggled with runners in scoring position all game, but when Alabama’s home run leader Brooke Wells stepped to the plate with two on in the sixth inning, she made sure that wasn’t going to happen again. In her first ever game at the WCWS, Wells hit one over the right field wall to give Alabama a three-run lead.
Advertisement
That score would hold as No. 1 Alabama beat No. 8 UCLA 6-3 to move into the winners’ bracket at the WCWS.
Advertisement
The moment meant a lot for Wells after she went without a hit during the super regional round against LSU. The team rallied around her, and head coach Patrick Murphy put a card in her locker at the beginning of the week.
“It was great to do it for these girls,” Wells said after the game. “These girls are so great. They had my back all last weekend, you know, how he said. It wasn’t the best weekend for me, but they never lost trust in me, they never lost faith in me. Murph gave me a card, the girls picked me up all weekend. I walked in here feeling as confident as ever. Didn’t really cross my mind anything that happened last weekend.”
This is the first trip to the World Series for both Wells and Pupillo as transfers into Alabama. Pupillo is in her final season and has now hit a home run in three straight postseason games and is up to 20 on the season.
“This is the moment that I’ve been waiting for since I was like eight years old,” Pupillo said. “I walked through the gates today, I kind of started tearing up for a second because it just felt surreal. I just remember watching Montana Fouts pitch in the World Series when she threw the perfect game. That moment of me when I was eight years old watching it on the TV, man, I really want to do that.”
Alabama junior ace Jocelyn Briski shut down the UCLA batting order the first time through, but the Bruins bats wouldn’t stay down for long. UCLA rallied for three runs on four hits, including two home runs, in the third inning to take a 3-1 lead.
She did not allow another run to the potent UCLA offense over the next four innings. Briski finished with nine strikeouts against a team that does not strike out much.
Advertisement
“You could see they hit two home runs, we hit two home runs, but the ability to come up with those timely hits with runners on obviously makes a difference,” UCLA coach Kelly Inoyue-Perez said after the game.
Advertisement
Coming into the matchup, Alabama knew UCLA would score. It just wanted to limit the damage, and Briski was able to do that.
Jena Young set the tone for the offense at the top of the lineup, reaching base four times with three hits. She scored in the first inning on an RBI-single from Alabama’s senior captain Marlie Giles, Pupillo’s home run and on the Wells’ home run in the sixth inning.
Alabama (55-7) will face the winner of Thursday night’s game between No. 4 Nebraska and No. 5 Arkansas on Saturday. Winning the first game sets the tone for the rest of the series and makes the path a lot smoother. Around 90 percent of previous college softball national champions win their opening game at the WCWS.
Sign up to our free newsletter and follow us on Twitter/X, Facebook, YouTube, Instagram, Threads and Blue Sky for the latest news.
