State General Fund Budget

Alabama’s State General Fund (GF) budget provides funding for all state activities that are not related to education. The largest components of the SGF are the state Medicaid and Corrections programs.

The GF is financed by a wider range of tax levies than the ETF. The major GF revenue sources are ad valorem taxes, insurance premium taxes, a smaller share of the state’s general sales and use taxes, cigarette taxes, business privilege taxes, and rental and leasing taxes.

In fiscal year 2016 SGF funding totaled less than $1.86 billion. By 2025, total SGF spending had risen to above $3.36 billion annually, an increase of 65.1% Over the same period of time, SGF revenues rose by about 103.3%, reaching over $3.58 billion in FY2025. For FY2027, the State General Fund budget enacted through SB146 totals $3.74 billion.

Over the past five years, SGF spending increased by 31.86% from the $2.5 billion appropriated in 2021. From fiscal year 2021 through 2024 revenues to the SGF grew by 43.6%, about $1.1 billion in new annual revenues compared to 2020.