State Budgets: Alabama Governor Announces Education Proration and Budget Reductions

January 3, 2009

Alabama Gov. Bob Riley (R) has announced hiring freeze (reducing state workers from 39,000 to 36,000); a ban on merit raises; travel curtailment; and a cut to spending in a targeted manner by 10 percent. Education, which faces a $795 million shortfall, will be cut across-the-board by 12.5%, partly offset to 9 percent by drawing down half of $437 million Education Rainy Day Fund. Alabama requires proration (across-the-board spending cuts) to access rainy day funds, and general proration has not yet been declared. In 2003, Alabama voters rejected Riley’s proposal to raise $1.2 billion per year by increasing property, income, corporate, and cigarette taxes and imposing an intangibles tax.

More on Alabama here.

Was this page helpful to you?


Thank You!

The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?

Contribute to the Tax Foundation

Related Articles