Fiscal Responsibility

Governing with fiscal responsibility requires that elected officials take the smallest amount of money possible in order to provide core government functions that the private sector cannot or is unable to provide. Government funding doesn’t exist; our state budgets are filled with money taken by the government from the earnings of taxpayers. Alabama’s statewide elected leaders and legislators should see cutting wasteful and duplicative spending as one of their primary representative responsibilities. Following the 2026 legislative session, this responsibility is especially critical as state budgets continue to grow at record levels, increasing the need for disciplined, long-term fiscal management.

Budgets 

Alabama lawmakers bear the responsibility of stewarding more tax dollars than ever before following the 2026 legislative session.. In FY2027, lawmakers enacted record budgets, including the Education Trust Fund totaling approximately $10.5 billion and the State General Fund totaling approximately $3.74 billion.
 
This continued growth follows several years of record revenues and surpluses, leading to lawmakers expanding spending and making significant transfers from reserve funds.
 
Following the 2026 session, policymakers should focus on conservative fiscal solutions that reduce the tax burden of Alabamians, limit the use of one-time funds for ongoing obligations, and restrain the long-term growth of state government.

Alabama’s Bifurcated Budget Process

Alabama utilizes what is known as a bifurcated budget process, meaning that the state has two separate operating budgets: one for education, the Education Trust Fund, and one for all other state government activities, the State General Fund. For FY2027, the Education Trust Fund budget totals approximately $10.5 billion, while the State General Fund budget totals approximately $3.74 billion. Alabama is one of just three states that funds most government activities without a unified budget.

Alabama Earmarks More Revenue Than Any Other State

Another unusual aspect of Alabama’s budget process is that over 90% of state revenues are earmarked, meaning that the use of those funds are mandated through the Alabama Constitution or by state law. According to the National Conference of State Legislatures, on average, nationwide states earmark less than 25% of government revenues.

This high level of earmarking limits lawmakers’ flexibility, particularly as total state spending continues to increase following the FY2027 budget cycle.

Additional Resources

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