Gov. Kay Ivey proposes $1 billion bond for school improvements

Feb. 5--Gov. Kay Ivey's proposed $1 billion education bond would provide K-12 and public colleges and universities funding to pursue capital improvements that could include anything from new security measures to technology to construction.

The administration expects to file the proposal, which Ivey announced in her State of the State address, in the Alabama Legislature in the near future. State Finance Director Kelly Butler said in a briefing for journalists that they were putting the finishing touches on it.

"It's been since 2007 since there's been a PSCA (Public Schools and College Authority) bond issue," he said. "We believe, and the governor believes, it's time to make significant investments in capital in public schools."

The measure, which needs legislative approval, would appropriate approximately 73% of the money to Alabama's K-12 public schools and about 27% to two and four-year colleges. The allocation matches the current K-12/higher education split.

Each public school systems would get a base of $200,000. Schools would get additional money based on daily student count and a public school equity formula that tries to allocate more money to systems that raise less in property taxes.

"When you run it through the formula, it results in about $1,000 per student for K-12, which seems to be from talking to superintendents, the desired number that will make an impact for them," Butler said.

Butler outlined the bond proposal in a presentation on the governor's proposals for the Education Trust Fund and the General Fund budgets, which she outlined in the State of the State. The governor is calling for a 3% pay raise for teachers; a 2% pay raise for state employees, and one-time allocations for capital improvements around the state.

Ivey is also proposing about $42 million in new Corrections spending to hire additional staff to help address the prison overcrowding crisis in the state. Legislators have also said they want to pursue new investments in vocational education to try to reduce recidivism in Alabama prisons. Ivey's budget proposes a $4.2 million increase in funding for prison education, money that Butler said would go to J.F. Ingram Technical College, divided among training programs for inmates on subjects like plumbing and teaching on HVAC systems.

The governor also proposed a $25.9 million (20%) increase for the Department of Mental Health, much of which would go to the construction of three regional crisis centers around the state. The budgets also propose new investments in mental health staff for public schools.

Ivey is also calling for funding for grant programs to encourage medical providers to settle in underserved communities.

The education budget proposal would increase funding for colleges and universities by about 6% in total. Alabama State University in Montgomery would see its funding go up about $3 million (from $48.4 million to $51.4 million), an increase of 6.18%.

The governor's budget is the first step in the state's budget process. Legislators will make changes to governor's proposals before passage.

The strong state economy has helped both budgets, Butler said. Forecasts call for the Education Trust Fund budget to grow 6% next year, from $7.1 billion to $7.5 billion ($411.3 million). The $2.3 billion General Fund budget's revenues may go up $46 million year over year. But the General Fund is expected to end the current fiscal year with a balance of $360.5 million, according to the Legislative Services Agency. Butler credited it to officials budgeting less than they could spend each year.

"The General Fund is in better shape than it's been in years," Butler said. "I've been doing this 30 years, and it's the best I've seen in my time doing this."

The governor will allocate about $95 million of the excess money to capital projects around the state, including $60 million to add 96 beds at Taylor Hardin Secure Medical Facility in Tuscaloosa and $11 million for a forensic science facility in north Alabama.

Both Butler and the LSA say they expect the Alabama economy to slow down in 2021, though they do not believe the state will tip into recession. But Butler said that it was a reason to be careful about adding recurring expenses.

"The General Fund historically is structurally imbalanced because of the programs funded out of it," he said. "Just because we have these good times doesn't mean there are programs that can't swallow it up."

Contact Montgomery Advertiser reporter Brian Lyman at 334-240-0185 or blyman@gannett.com.

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