Governor’s budgets propose one-time tax rebate, teacher pay raises

MONTGOMERY, Ala. (WSFA) - Alabama could spend a record number of your tax dollars this year. Now the governor’s proposed budgets mean some of that money could go back to the citizens.

Gov. Kay Ivey is proposing a one-time $400 rebate to individuals who files taxes in Alabama and $800 for families.

“She recognizes that families are facing inflationary costs, other challenges in this current economic environment, and the state’s ability to provide one-time assistance in the form of these one-time funds, certainly aimed to assist our working families across the state of Alabama who are struggling to make ends meet,” said State Finance Director Bill Poole.

Lawmakers will have to pass this rebate in a separate bill.

The state has two budgets: the education trust fund and the general fund, which covers everything else. The general fund proposal is around $2.9 billion.

The big news out of the education budget is a 2% pay raise for teachers.

Poole said there is also a focus on increasing the state’s reserves in case of an economic downfall.

“Bring that reserve fund to its highest historic level of $150 million, which is a very small percentage relative to the overall budget but is believed to be important relative to protecting that budget against fluctuating revenues and out years,” he said.

Something missing from the budget is a line item allocating the extra $300 million needed to complete the construction of the new prison in Elmore County.

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