Alabama Fiscal Planning
Tue February 4, 2014
National Study Faults Alabama's Fiscal Planning
A new study ranks Alabama 44th among the states in long-range budgeting.
The study was released Tuesday by the nonpartisan Center for Budget and Policy Priorities in Washington. It says Alabama needs to look beyond one-year budgets and consider multi-year revenue forecasts and the costs of programs over several years. The report complimented Alabama for having adequate pension funding, a Legislative Fiscal Office to analyze spending, and a well-designed rainy day fund.
In response to the report, House Speaker Mike Hubbard of Auburn said the Republican leadership inherited the budget problems in 2010, and that's why they have tried to put better policies in place. That includes legislation limiting how much growth they can project in the state education budget and trimming retirement costs for state employees in future years.