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Alabama's lawmakers should act responsibly in regards to spending in the upcoming fiscal year's budget. With the national economy in disarray, tax revenues for the state of Alabama are likely to be significantly less.

Key Messages:
  • Alabama Farmers Federation favors budgeting based on actual revenues from the previous year.
  • In tough economic times, government should respond the same as families and businesses -- by cutting expenses and increasing efficiency.
  • With taxpayers facing higher unemployment, rising costs and slumping investments, the government must not raise taxes to balance the budget. Higher taxes would only serve to further depress the economy.
  • Legislation should be passed requiring county and state governments to publish annual, comprehensive statements of income, assets, expenses and liability.
  • The legislature should eliminate duplicate committees and programs that waste taxpayers' dollars.
Alabama is the only state in the country that has two state budgets: one for education-related programs and another for all other state services. The Legislative Fiscal Office prepares revenue projections of future tax revenue to aid in development of annual budgets. Some proposals have recommended using a rolling average of actual receipts from previous years as a guide.

Correlating Issues:
  • A Tax Spending Reform Commission should be appointed to examine the spending in the Education Trust Fund Budget, as well as the General Fund Budget.
  • Legislation should be implemented to use the interest from an invested portion of the oil and gas funds, on a continuing basis, for the preservation and improvement of agricultural and renewable natural resources.
  • Alabama Farmers Federation supports continued funding for the Alabama Department of Environmental Management to offset CAFO registration fees, funding to preserve and expand Career Tech programs, full funding for the Alabama Agricultural Land Grant Alliance (AALGA) and funding for the Alabama Irrigation Initiative.

Click here to download a PDF version of this Issue Card.

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