Houses passes General Fund Budget
By Staff
Rep. Ronald Grantland, Guest Columnist
It has been a productive two weeks in the House of Representatives. Just days after passing the largest education budget in the history of our state, the House also passed a $1.8 billion general fund budget.
Our state budget process is different from the federal government and most states. Instead of one budget we have two: the Education Trust Fund, which funds public education, and the General Fund Budget, which funds everything else.
The General Fund Budget maintains integral government programs such as Medicaid, State Troopers, public roads and highways, public health, the court system and corrections facilities. The Education Budget funds all public schools and Alabama’s public colleges and universities. Each budget relies on separate revenue sources.
The Education Trust Fund Budget is funded by earmarked sales and income taxes, and these revenue sources have been growing with the economy. The General Budget is funded in part by interest on state deposits, like from revenue from gas and oil leases, which are driven by the market’s interest rates. As a consequence, in lean years or when the market fluctuates, our state General Fund is stretched thin, with some state agencies suffering cuts and hard working people losing their jobs.
This year the funds were tight once again. However, Government Finance Appropriations Chairman John Knight (D-Montgomery) and the Legislative Fiscal Office did a wonderful job in crafting a spending plan that while frugal, spends nearly $32 million more than the governor recommended. The budget also fairly funds our state’s vital services, while ensuring that no vital employees are laid-off.
This year the House focused on adequately funding Medicaid. Providing adequate healthcare for all Alabamians is one of the most important things that we can do as a Legislature. The House budget increases Medicaid funding by $70 million more than last year and earmarks an additional $2.3 million from tobacco revenues to expand Medicaid services. Lowering the infant mortality rate, preventing chronic diseases from becoming life threatening, and reducing the number of people from needing full-time care are all outcomes we can expect from better Medicaid funding.
Mental Health and Retardation was another big focus of the budget this year. The House version not only increases the Mental Health Trust Fund by $18 million, it also provides $3 million extra in funding to cut down the list of people waiting to receive services.
We also increased funding by $1.7 million each for both drug courts and district attorneys, increased children’s health insurance by $7.5 million, and added 100 extra state troopers to our highways.
The budget gives all non-education state employees a 3.5 pecent pay raise. For too many years those who patrol our roads, take care of the sick, and protect abused and neglected children have seen the cost of living go up and their paychecks not keep pace. This raise is a good step to reverse that trend.
Retired state workers will also get a one-time bonus around Christmas, approximately $360 for someone who retired after 30 years of service.
I’m very pleased that the House was able to work in a bi-partisan manner to effectively pass both budgets. Probably the most important job of the Legislature is to budget precious tax dollars. In fact, the Constitution requires that passing the budgets is the only mandatory job of the Legislature.
With the House passing both the Education and General Fund budgets, we now wait on the State Senate to act. I urge you to call your Senator and voice your support for both budgets.
It is important that both bodies fulfill our respective roles, and that we do so in the best interest of the people. After all, the people’s business is what we’re here to do.
