Alabama Gov. suggested. Ivey on Tuesday presented a one-time tax rebate of $400 for individuals and $800 for couples — as well as a 2% pay raise for teachers and state employees — as he sent his proposed budgets to legislators.
The governor submitted proposed spending plans for the fiscal year that begins Oct. 1 to lawmakers as they continue the legislative session. Lawmakers will debate the legislation over the next several months, likely accepting some of Ivey’s proposals and rejecting others.
“Just as every Alabama family budgets to invest, pay down their debts and increase their savings, my budget proposals do just that for our state. From returning our taxpayers’ hard-earned dollars to back to them until making historic investments in the education of our students, these budgets will help foster a strong Alabama today and a stronger Alabama tomorrow,” Ivey said in a statement about in the proposed budgets.
Lawmakers this session face decisions on what to do with the extraordinary surplus, including how much to save and how to spend what’s left. The state budget that funds education has a $2.8 billion surplus, according to the Legislative Services Agency. The state’s general fund had a smaller surplus of $351 million.
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Alabama Governor Kay Ivey proposed a one-time tax rebate and teacher pay raise as she sent her proposed budget to lawmakers.
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“We believe it is important to provide immediate assistance to families while the state has access to these one-time funds on hand,” Finance Director Bill Poole said of the governor’s rebate proposal.
The proposed tax rebates, first announced by Ivey in his State of the State address, are nearly double those initially discussed by some lawmakers.
The governor’s rebates are limited to people who file state income tax returns. Poole said that’s the most efficient way to provide the rebates. Individuals earning less than $4,000 annually and couples earning less than $10,500 do not need to file returns.
The governor has proposed a 2% salary increase for state employees and for educators. Poole said they are trying to provide sustainable wage increases, while also increasing pay.
“We know we have a teacher shortage. We know it’s a tight labor market. Critical educators have career paths in classrooms,” Poole said.
