Steve Flowers: Inside the Statehouse - Alabama’s budget year begins this week; COVID-19 has played havoc

  The new fiscal year begins this week for Alabama's government. We have two budgets, a General Fund and an Education Budget. Both budgets have experienced a devastating loss in revenues due to the coronavirus. The Education Budget was drastically reduced from what was originally expected at the beginning of the calendar year in January.

  The Education Budget receives the revenues generated from our sales and income taxes in the state. Therefore, the downturn in the economy is especially heartbreaking for educators, teachers, schools, and universities.

Katherine Green Robertson: Budget Basics: The Legislature’s limitations and need for reform

  This is part 3 of API’s 3-part “Budget Basics” series, exploring Alabama’s budget system, the current fiscal climate and related challenges, and the implications for taxpayers.

  Alabama’s Constitution requires the diversion of certain categories of revenue to specific purposes, without those funds ever passing through the hands of the legislature. As noted in Budget Basics, Part 1, 86% percent of Alabama’s general tax revenue is earmarked this way, while the national average is around 25%. The majority of these earmarks pertain to education. The Education Trust Fund (ETF) receives 52% of Alabama’s total state funds, while the General Fund (GF) receives only 16%. Alabama’s income taxes, for example, are specifically dedicated to public school teacher salaries.