BRADENTON, Fla. - The Alabama Legislature approved a state budget for fiscal 2016 after making structural changes lawmakers hope will stabilize funding for the general fund.
The House and Senate adjourned late Wednesday after adopting a total budget of $12.8 billion, which includes federal funds and revenues for state agencies other than education.
Alabama's fiscal year starts Oct. 1.
The general fund totals $1.7 billion, a 4.5% decrease from the current year, and is supported by several measures aimed at raising about $160 million from new revenue sources.
Gov. Robert Bentley signed the budget into law on Thursday.
Earlier this year, he sought more than $500 million from new revenue sources, and vetoed the Legislature's first budget in June saying that it would cut vital state services too much.
He later reduced his request for new funds to about $200 million.
Bentley in a statement Wednesday night thanked legislators "who courageously voted to increase revenue for the general fund."
"We have made tremendous progress to fundamentally change the way our state budgets," he said, commending lawmakers for "prioritizing people over politics."
Alabama uses a different set of taxes and fees to fund the separate general fund and education budgets.
The education budget's revenue sources are considered by state officials to be less volatile.
Bentley, in a move he said would stabilize the general fund, asked lawmakers to transfer revenue from certain use fees supporting the education budget to the general fund.
Lawmakers agreed to the governor's request, which is expected to bring the general fund about $80 million in fiscal 2016.
To generate an additional $86 million in revenue, lawmakers also voted to increase the tax on cigarettes by 25 cents per pack, and raised taxes on pharmacies and nursing homes for additional Medicaid funding.
Bentley, a Republican, had been largely in step with the GOP-led Legislature on policy and budget matters until this year.
Lawmakers began their annual session in March with a majority of them resisting any tax increase until the compromise reached this week.
The education budget was signed into law earlier this year.
