And So It Begins...

The Alabama Legislature goes into special session today to consider the ramifications of the failure of the vote last week, and to put together the budget that has to go into effect on October 1st. The Governor has proposed the following cuts:

Erase a total of about $120 million that was spent this year on more than 100 separate budget items. For instance, Riley wants to erase $11.7 million that lawmakers got this year for special projects in their districts, $4.7 million that Tuskegee University got and $346,872 that Miles College got this year.

Cut this year's General Fund spending for many state agencies by a total of about $56 million. Spending for courts, for instance, would fall by $14.6 million, 9.9 percent.

Chop $75 million that was spent this year on textbooks, technology, library books, teacher training and other items for public kindergarten through 12th grade.

The revenue increases in Riley's plans include:
A $265 million federal windfall. Congress gave all states special grants they could spend this year or next year.

$58 million from higher health insurance co-payments by employees of public schools and state agencies, and from payments by universities for their retirees' health insurance.
$23 million in extra state income tax collections expected because of changes in federal income-tax law.

The real fun will be next year when the $265 million in federal funds will not be available. The only short-term revenue hopes are that a growing economy will lead to increased tax receipts, although that is unlikely to be sufficient to fill the holes.

Source: Lawmakers set to begin budget cuts