Only three legislative days, including today, remain in the 2026 regular session, and lawmakers are expected to adjourn sine die, a Latin phrase meaning “without day,” on Thursday, April 9, allowing incumbents with primary opponents to return home and campaign ahead of the May 19 election.

Both the General Fund and Education Trust Fund budgets lack a final procedural step before going to Gov. Kay Ivey for signature. Only slight changes were made in the House and Senate versions of the spending plans, and it is expected that each chamber will concur with the adjustments made by the other so the budgets can be signed into law.

Much of the attention and media focus last week centered on the legislature’s passage of a measure that expands the Alabama Public Service Commission from its current three seats to seven and reorganizes how it regulates utilities across the state. That bill was considered among the last of the “heavy lifts” by legislative leadership.

Since most bills designated as “priority” measures at the start of the session have already been addressed, the last few days are expected to be relatively uneventful, though the Alabama State House is always full of surprises.

The Alabama House approved on Wednesday a $3.74 billion General Fund budget for Fiscal Year 2027, which is $12.6 million higher than the version approved earlier in the session by the State Senate.

The main difference in the spending plans is the inclusion of a one-time longevity bonus for state retirees, which awards $12 a year multiplied by their years of service. For example, a retiree with 25 years of service would receive $300 ($12 per year × 25 years = $300).

The budget, drafted by Senate Finance and Taxation General Fund Chairman Greg Albritton (R - Range) and carried by House Ways and Means General Fund Chairman Rex Reynolds (R - Huntsville), already includes a 2% cost-of-living pay raise for active state employees, totaling roughly $16 million, and full funding for the State Employees Health Insurance Program, which provides coverage for both active and retired workers.

Growing by only 1% over the previous year’s budget, the General Fund budget, which allocates dollars to all non-education state agencies, essentially represents level funding in most areas, although there were some deviations.

Some agencies, such as the Alabama Department of Environmental Management, the Department of Public Health, the Department of Forestry, and the Alabama Department of Economic and Community Affairs, received slight reductions due largely to administrative changes, and other costs, such as a portion of the Children’s Health Insurance Program, were shifted to the Education Trust Fund.

The plan also conditionally set aside about $15 million each for the State General Fund Budget Reserve Fund and the Medicaid Reserve Fund, money that would be transferred only if it is available at the end of fiscal 2026.

The FY2027 budget was approved by a unanimous 104 - 0 margin, but as noted above, because the House and Senate budget versions slightly differ, the General Fund will travel back to the upper chamber for concurrence before going to Gov. Kay Ivey’s desk for signature.

The Alabama Senate approved on Thursday a record $10.4 billion Education Trust Fund budget for Fiscal Year 2027 that allocates funding for the state’s K-12 public schools, community colleges, and four-year universities.

Drafted by House Ways and Means Education Chairman Danny Garrett (R - Trussville) and carried by Senate Finance and Taxation Education Chairman Arthur Orr (R - Decatur), the FY2027 ETF is roughly $570 million, or 5.7%, higher than the FY2026 spending plan.

The budget includes a 2% cost-of-living pay raise for public school teachers, support staff, and administrators, which is their first salary increase in three years. Senators added a one-time longevity bonus for retired educators identical to the boost provided to state retirees in the General Fund. The bonus is calculated using the same formula as state retirees. 

The CHOOSE Act, Alabama’s expanding school choice program, received $180 million in FY2026 but would increase to $251.2 million, a 38% increase as participation expands.

The Alabama Reading Initiative, which funds the Literacy Act, received level funding. The Alabama Math, Science, and Technology Initiative received a $23 million, or 17%, increase.

Public colleges and universities would receive a $107 million, or 5.8%, increase taking them to $1.8 billion overall.

A separate supplemental budget, was also passed and included approximately $275 million for public higher education institutions, $570 million for the Alabama State Department of Education, and $150 million in grants for career and technical education programs

Like the General Fund, the ETF lacks only concurrence in the House before being transmitted to the governor for signature.

The Alabama Legislature gave final passage on Wednesday to the “Power To The People Act,” which seeks to reduce utility rates by mandating annual rate review hearings for regulated utilities, providing the PSC with subpoena power, and requiring sworn testimony under oath with the threat of perjury charges for deception.

Special rate review hearings may also be convened under HB475 if the newly created secretary of energy or a majority of the commission request them.

A provision in the bill outlaws rate increases for the next three years but continues to allow rate reductions to be implemented at any time.

The measure also adds four new seats to the commission and requires all seven posts to be elected by congressional district, similar to the model used for the Alabama State Board of Education.

To create staggered terms, four commissioners would initially be appointed by the governor in July 2026, two serving two-year terms and two serving four-year terms.

Commissioners would run for office by congressional district beginning in November 2028 and serve six-year terms upon election.

A new cabinet-level secretary of energy would be created under the bill and would oversee the administrative functions of the commission.

In determining rates, regulated utilities are prohibited from passing certain expenses on to consumers, including the costs of lobbying, advertising (except public safety messages), and grants.

Regulated utilities are also prohibited from contributing to candidates running for Public Service Commission seats.

Members of the Public Service Commission, their spouses and immediate family members, the secretary of energy, and all commission employees are prohibited from providing paid services to public utilities.

Gov. Kay Ivey has signed the bill into law.