Alabama Department of Labor

Many long-term unemployed Alabamians will see their benefits drop 12.8 percent on April 28.

State Labor Department spokeswoman Tara Hutchison said the reductions are the result of mandatory federal spending cuts that all states must make. The cuts will affect people who have been receiving unemployment benefits for more than six months. Currently, about 16,500 Alabamians receive the extended benefits.

Mead Gruver / Associated Press

The U.S. Department of Interior is cutting more than 217,000 dollars in federal mineral payments to Alabama over the next five months.

The reduction is part of the 110 million dollars in cuts to 35 states that receive the mineral payments as their share of revenue from energy and mineral production that occurred on federal land within the states and offshore.

The Interior Department is making the reduction as part of the automatic federal spending cuts that started this month.


Financial experts say the fiscal cliff agreement in Washington will cut funding for Alabama's public schools and colleges by at least $70 million annually.

The fiscal cliff settlement affects Alabama differently than most other states. That's because Alabama is one of the few states that provides its citizens with a state income tax deduction for the federal taxes paid. The federal settlement allowed a temporary reduction in payroll taxes for Social Security and Medicare to expire. It also raised the tax rates on the wealthiest 1 percent of Americans.