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General Fund Budget Goes to the Governor

During the last full week of the 2008 Legislative Session, the Alabama House of Representatives and State Senate worked aggressively to pass a large number of bills that concern state employees. One of these bills was the General Fund Budget which is now on the way to the Governor for his signature. Included in the General Fund Budget is funding for a 3.5% COLA for all state employees, funding for the increase in state employee health insurance, and language that prevents the arbitrary freezing of merit raises. It was a tough year for the General Fund, collections were down and legislators worked long hours in order to come up with a balanced budget. We would like to thank all of the members of the Alabama Legislature for keeping the promise made last year and funding the COLA as well as the increase in health insurance.

Also this week, the House Government Appropriations Committee passed SB 371, the General Fund Rainy Day Account, and SB 238, the per diem increase for state employees. SB 371, sponsored by Senator Steve French, establishes a General Fund Rainy Day Fund which will aid in funding General Fund agencies if pro-ration is ever declared. SB 238, sponsored by Senator Wendell Mitchell, increases the per diem rate paid to state employees for work related travel. The new proposed rates will be $85 per day if an employee is staying for two consecutive days only. If the employee is staying three or more consecutive days, per diem in increased to $85 for the first day and $100 for every day thereafter. We expect both of the bills, as well as the retired state employee bonus, to be voted on during the last day of the legislative session, May 19th.

Please take the time and thank your local legislator for their work this session for Alabama's state employees.

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