Alabama’s budget increased cumulatively more than the maximum rate of population growth plus inflation in state funds and all funds from 2016-25, meaning that taxes are higher than the average taxpayer can afford. 

  • The 2025 state funds budget is $5.2 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
  • Because the state funds budget grew by more than population growth plus inflation for each of the last ten years, the state spent $23.7 billion too much.
  • The 2025 all funds budget is $9.6 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
  • Because the all funds budget grew by more than population growth plus inflation for each year over the past decade, the state spent $45.4 billion too much.

State Funds Budget Data

  • Estimated FY 2026 Only State Funds Budget ($ Billions): $ 27.55
  • FY 2027 Only State Funds Budget Limit ($ Billions): $ 28.58
  • FY 2027 Only State Funds Budget Limit Growth (%): 3.74%
  • Cost per person of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 1,010
  • Cost per family of 4 of only state funds budgeting more than pop+inf over the last decade in 2025 budget: $ 4,039
  • Cumulative cost per person of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 4,558
  • Cumulative cost per family of 4 of only state funds budgeting more than pop+inf over the last decade from 2016-25: $ 18,234

All Funds Budget Data

  • Estimated FY 2026 All Funds Budget ($ Billions): $ 45.43
  • FY 2027 All Funds Budget Limit ($ Billions): $ 47.13
  • FY 2027 All Funds Budget Limit Growth (%): 3.7%
  • Cost per person of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 1,852
  • Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2025 budget: $ 7,406
  • Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 8,741
  • Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2016-25: $ 34,964

Other Economic and Fiscal Considerations