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Monday, September 15, 2003
And So It Begins…

By Steven Taylor @ 8:16 am

The Alabama Legislature goes into special session today to consider the ramifications of the failure of the vote last week, and to put together the budget that has to go into effect on October 1st. The Governor has proposed the following cuts:

Erase a total of about $120 million that was spent this year on more than 100 separate budget items. For instance, Riley wants to erase $11.7 million that lawmakers got this year for special projects in their districts, $4.7 million that Tuskegee University got and $346,872 that Miles College got this year.

Cut this year’s General Fund spending for many state agencies by a total of about $56 million. Spending for courts, for instance, would fall by $14.6 million, 9.9 percent.

Chop $75 million that was spent this year on textbooks, technology, library books, teacher training and other items for public kindergarten through 12th grade.

The revenue increases in Riley’s plans include:
A $265 million federal windfall. Congress gave all states special grants they could spend this year or next year.

$58 million from higher health insurance co-payments by employees of public schools and state agencies, and from payments by universities for their retirees’ health insurance.
$23 million in extra state income tax collections expected because of changes in federal income-tax law.

The real fun will be next year when the $265 million in federal funds will not be available. The only short-term revenue hopes are that a growing economy will lead to increased tax receipts, although that is unlikely to be sufficient to fill the holes.

Source: Lawmakers set to begin budget cuts

Filed under: Alabama Politics

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4 Comments»

  1. Yep. Although cutting the pork for Tuskeegee and Miles wouldn’t break my heart. Indeed, this crisis could theoretically provide pressure to close down some of the unneeded JuCos and universities. Not bloody likely, though.

    Comment by James Joyner — Monday, September 15, 2003 @ 8:29 am

  2. There is no doubt that some of the stuff that will be cut ought to be cut, or, at least, isn’t going to be a big deal.

    And there is always something to cut, to be sure.

    However, the cuts to basic education services and criminal justice (prisons, highway patrols) and some key social services, are going be problematic. Especially next year when we have to find an additional $200 million plus in cuts.

    And, I think, this affects the growth of the state’s economy, as such conditions makes bringing business to the state more difficult.

    Comment by Steven — Monday, September 15, 2003 @ 8:42 am

  3. No, I agree. Another $200 million ain’t available.

    Comment by James Joyner — Monday, September 15, 2003 @ 12:56 pm


  4. Comment by Anonymous — Tuesday, August 10, 2004 @ 3:26 pm

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