Riley Increases Proration

Because of declining revenue collections due to the economic downturn, Riley had early declared a proration of 9% in the education budget. On Friday, Riley increased the proration amount to 11% and transferred the last $116 million from the State’s rainy day fund to prevent deeper cuts.

"No one is pleased that the economic situation requires further reductions in education, but they must be made in order for Alabama to meet its obligation to taxpayers to have a balanced budget," Riley said.

Riley says the latest cutback means the state will spend $5.7 billion on education this fiscal year. That's down $1 billion from fiscal 2008.

Alabama's constitution prohibits deficit spending and gives the governor the power to cut spending when appropriations exceed tax collections.

No doubt about it, the economic slump has affected everybody, governments included. I am glad, however, that so far government has resisted the temptation to raise taxes to ensure their revenue flow.


However, the Legislature isn’t COMPLETELY sane. Did you know that a new tax was levied on us during the last Legislative session? I completely missed this one, but we will now pay an additional 50 cents for our driver’s licenses. And why? The money goes to fund “…the Alabama Citizenship Trust Fund, which provides funding for the American Village historical park and a national veterans cemetery in Montevallo.”

Are they kidding? The Legislature actually voted a new tax to fund a historical park and a cemetery? In THIS recession? What were they thinking? No, better question… Why WEREN’T they thinking?