Ala. budget difficult despite $437M fund shift to general fund

Associated Press

Phillip Rawls

Updated: Feb 3, 2013 2:04 PM

MONTGOMERY, Ala. (AP) — When the Alabama Legislature begins work on a new budget next week, state agencies could end up with less money for operations despite a voter-approved shift of $437 million over three years from a state savings account to the General Fund.

Senate budget committee Chairman Arthur Orr says it will be difficult to craft the new budget that will take effect Oct. 1.

Legislative leaders say state agencies are being asked to prepare operating plans with reductions of 5 percent to 10 percent, but they hope to give them the same amount of money they're getting this year.

Even if they are funded at the same level, legislators say the agencies will have less to spend on operations because they're looking at higher costs for employees' health insurance and retirement.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Political Pulse

We welcome your thoughtful comments. Be the first to participate in the discussion. All comments will display your username and avatar.