Dec 16, 2009

Budget Days

     The annual exercise in the Alabama State House is underway...the heads of dozens of state agencies will come, hat in hand, asking the legislative budget committee for more money. I ran into a college president walking in this afternoon and reminded him to keep his hand opened wide. "Both hands!" he exclaimed.
     That is truly wishful thinking on his part. There will be no two-hand disbursements for fiscal 2011, which starts next Fall. Gone is the majority of the $527-Million in stimulus money. The bottom line is there is a hole about $600-Million deep in the budgets, and there doesn't seem to be any source for that money.
     The New York Times Regional Nerwspapers reports the General Fund may face a 30% cut. That's the budget that pays for most non-education state services.
     Alabama may have the lowest taxes in America, but there doesn't seem to be any will in the State House to raise any new revenue. I don't know of a single politician who ever got elected promising tax increases. But that formula...reduced tax collections with no new money...must equal cuts in state services.
     The Corrections Department went so far yesterday as to mention closing prisons and releasing prisoners, though the Commissioner was quick to say Governor Riley has pledged not to let that happen. Where he'll find that money remains to be seen.
     Medicaid Commissioner Steckel suggested recipients may be limited to five prescriptions a month, only two of them brand name. Can you say "rationing of health care" anyone?

[UPDATE: Dave White, The Birmingham news, reports 3,500+ teachers could be laid off because of budget cuts.]

1 comment:

  1. If legislators would get their heads out of their behinds and seriously consider legalizing and taxing the sale of marijuana to adults there would be a minimum additional revenue of $130 million. If they would release those incarcerated in our prison system for non-violent drug offenses there would be another $117 million that would be saved. That's $247 million right there and that is the bare minimum number.

    Other states are seriously considering it....why can't Alabama?

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