The bill proposes a two percent salary increase for public education employees in Alabama, effective from the fiscal year 2026-2027. This increase will apply to certificated personnel, education support personnel, and employees of various educational institutions, including the Alabama Institute for Deaf and Blind and two-year postsecondary institutions. The State Minimum Salary Schedule will be revised to reflect this increase, and local salary schedules must also be updated accordingly. Additionally, the bill mandates that appropriations necessary for these salary increases will be included in the annual Education Trust Fund budget act for the designated fiscal year. It also establishes requirements for the allocation of funds to support these salary adjustments and ensures that salaries and increases are paid in full before the end of the applicable fiscal year.

Moreover, the bill introduces a one-time longevity bonus payment for certain retirees and beneficiaries of the Teachers' Retirement System, calculated at $1 per month for each year of service, with payments scheduled for October 2026. However, individuals whose Medicaid eligibility would be affected by this bonus will not receive it. The bill clarifies that it does not make appropriations but requires funding to be allocated in a separate bill (HB238) during the 2026 Regular Session. It also specifies that any cost-of-living adjustments or pay increases mandated by this act will not apply to local salary supplements, bonuses for National Board certification, or federal payments to JROTC instructors. Additionally, county and city boards of education may choose to exclude part-time community education employees from these provisions, and the pay increase will not apply to superintendents without a majority vote of their governing body. The act is set to take effect on October 1, 2026, and includes a severability clause.

Statutes affected:
Enrolled: 16-13-231, 16-1-1, 16-25-1, 16-25-150