Goat Hill Report-Week Ending February 6, 2026

This week the Alabama legislature completed Week 4 of the 2026 session. The legislature held another two-day week, which means they were in session on the floor on Tuesday and Thursday while holding committee meetings on Wednesday. The legislature has now one-third of the way through the session, having completed 10 days out of a possible 30 legislative days. As previously mentioned, the session still is expected to wrap up in early to mid-April.

Details of this week’s notable action and news items are provided below.

Joint Education Budget Hearings
On Monday, members of the House and Senate Education Budget Committees met for a joint public hearing to discuss the Governor’s proposed education budget for FY2027, which begins on October 1. Gov. Ivey proposed a record $10.5 billion education budget as well as a $420 million allocation supplemental appropriation of surplus revenue. Ivey’s FY2027 proposal includes s a 5.8% increase of $570 million increase from FY26, with most of the increase aimed at handling teacher salaries and health insurance costs, and an increase in funding for the CHOOSE Act (Educations Savings Account/ESA) program. With Education Trust Fund receipts down 2.3% for the current fiscal year, lawmakers are facing tighter revenue at the same time that major education costs continue to rise.

As the legislature now takes up Ivey’s proposed Education Trust Fund (ETF) budget for consideration, several areas of ETF appropriations were presented at the hearings:

• Public Education Health Insurance Program (PEEHIP). The Public Education Health Insurance Program (PEEHIP), the health insurance program for teachers and other education personnel, was appropriated less in Ivey’s proposal than they requested. The plan is facing a $380 million shortfall for FY2027 fiscal year, according to current projections. Ivey’s proposal includes funding $152 million of that gap, but that leaves program administrators with limited choices for how to make up for the remaining costs. Committee members reviewed different options for closing this funding gap, with House Ways & Means Education Budget Chairman Danny Garrett (R-Trussville) noting that employee premiums haven’t been increased since 2016. PEEHIP representatives indicated that they should be able to manage FY2027, but expressed concern about FY2028 – citing nationwide trends with health care costs.
• Alabama State Department of Education (ALSDE). State Superintendent Eric Mackey presented to the joint committee on behalf of ALSDE and pointed out the department’s requested $957.3 million from legislators for FY2027 versus Ivey’s proposed $755.9 million. Ivey’s proposal is still a $23 million increase (3%) from the previous fiscal year. ALSDE made a large request to help fund Struggling Readers Beyond Grade 3 to increase the number of schools who can participate in that grant program. The acclaimed Literacy Act, which provides reading coaches and intervention for schools with struggling readers, stops at third grade.
  An interesting discussion point emerged during the hearings when the discussion turned to declining enrollment in the public schools and problems with chronic absenteeism. In October, Alabama public schools saw its largest drop in enrollment in 40 years for the 2025-26 school year. According to enrollment data released by ALSDE, enrollment for K-12 schools dropped by 5,800. Roughly 3,000 of those students were CHOOSE Act recipients while the remaining 2,100 were unaccounted for. These enrollment figures become more important when calculating average daily membership (ADM) for the basis of public school funding that doesn’t consider, for example, increased funding for transportation and maintenance costs against increasing funding for the CHOOSE Act at a must less expensive $7,000 per pupil.
• Alabama Community College System (ACCS). The Alabama Community College System told legislators that ACCS is requesting $765.8 million from the legislature, as compared to Gov. Ivey’s proposed appropriation of $658 million to the system. For FY2026, ACCS got $622.2 million. A special maintenance fund for the college facilities was discussed and suggested by the system presenter. The importance of the college system continues to be stressed as the state moves further toward career technical education and workforce development.

Package of Bills Aimed at Data Center Costs and Utility Oversight
A three-bill package with bipartisan sponsorship was introduced this week, touted as the “Affordability Protection Plan” to address utility costs and regulatory oversight.

• SB265 by Sen. Andrew Jones (R-Centre), and carried in the House by Rep. Leigh Hulsey (R-Helena), would reform data center incentives to require measurable public benefits consistent with other economic development incentives.
• SB270 by Sen. Lance Bell (R-Pell City), and carried in the House by Rep. Neil Rafferty (D-Birmingham), would require data centers to pay the full cost of grid and infrastructure upgrades their operations require, preventing those costs from being passed to existing utility customers.
• SB268 by Sen. Bobby Singleton (D-Greensboro), and carried in the House by Rep. Chip Brown (R-Hollinger’s Island), would restructure the Alabama Public Service Commission from an elected body to an appointed one. More specifically, commissioners would be appointed by the Governor, House Speaker, and Senate Pro Tem, and subsequently confirmed by the Alabama Senate. The bill would also require annual public meetings where regulated utilities present on rates and costs, prohibit ratepayer funds from being used for lobbying or political activity, along with a range of added accountability measures. In a press release, Sen. Singleton pointed out that Alabama is one of only ten states that still elects its PSC, and that it’s time to modernize the state’s oversight of utilities.

Bills of Interest to the Concrete Industry
Senate Bill 242 by Senator Lance Bell would codify into state law federal regulations related to commercial driver’s license. Current federal regulations require individuals with a commercial driver’s license issued by a foreign country to provide proof of legal entry into the country. The bill would also codify into state law an English proficiency test to be performed by law enforcement officials during traffic stops. If a driver could not meet the two requirements, the vehicle would be impounded.

The Alabama Legislature will reconvene on Tuesday, February 10, 2026. Please contact our office should you have any questions. To view a list of the bills the association is tracking, click here.