HB104 Alabama 2016 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2016

Title

General Fund budget, appropriations for other functions of government, debt service, and capital outlay for fiscal year ending September 30, 2017.

Summary

HB104 is Alabama's FY2017 General Fund budget bill that provides appropriations for state operations, debt service, and capital outlay, and includes a 2% salary increase for state employees.

What This Bill Does

HB104 allocates General Fund and earmarked funds to the executive, legislative, judicial branches and other government functions for the fiscal year ending September 30, 2017. It funds major programs such as Medicaid, Public Health, Mental Health, Corrections, and Transportation, along with debt service and capital outlay. It also authorizes a 2% salary increase for state employees (up to $10 million from the General Fund), reappropriates unspent FY2016 funds to FY2017, and sets aside tobacco settlement funds for specific purposes with required oversight and reporting. Additionally, it includes provisions on how funds may be transferred between appropriations, how encumbered balances lapse, and how grants and interagency transfers are reported.

Who It Affects

• State employees and the Legislature's payroll, who would receive a 2% pay raise funded from the State General Fund (subject to a $10 million cap).
• State agencies and programs (e.g., Medicaid, Public Health, Mental Health, Corrections, Transportation, and other departments) that receive funding to operate services and carry out state programs for residents.

Key Provisions

• Two percent salary increase for state employees, funded from the State General Fund, with priority given to payroll and a total cap of $10,000,000 for FY2017.
• Reappropriation of unspent FY2016 appropriations to FY2017.
• Conditional appropriation of tobacco settlement or litigation proceeds for specified purposes, contingent on receipt and approval by designated officials.
• First up to $50,000,000 of settlements received in FY2017 allocated for Rainy Day Fund repayment, Medicaid reform, prison reform and related capital outlay, with distributions determined by the Director of Finance and Governor.
• SEIB (State Employees' Insurance Benefit) rate fixed at $825 per month for each full-time employee for FY2017, with adjustments as needed.
• Authority for interagency transfers and gifts/grants to be used for their intended purposes, with reporting to legislative leadership; governor may reallocate surplus appropriations to cover salaries when needed.
• Provisions to lapse encumbered balances at the end of the following fiscal year and to require transfers to the State Personnel Department for payroll while ensuring timely payments for services.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Appropriations