The state of Alabama has a budget for public education services and another, the General Fund budget, for most other services. Spending is limited by revenue availability, and in the current economic downturn, revenues are well below expectations. As a result, both budgets for 2009 were in the red until the governor announced large across-the-board cuts, known as proration, in mid-December.
There is concern for the 2010 education budget to be developed this spring in the Legislature. As adopted, the 2009 education budget is 5 percent below the 2008 level, and proration will cut it by another 5 percent. To shore up revenues and limit cutbacks, the state will borrow the entire $437 million available in the education “rainy-day” fund, which must be repaid in future years. By some estimates, the 2010 education budget will have to be 17 percent below the 2008 level.
The question is: How should the state respond to this dilemma? Should it cut back on education investments, limit future increases to set aside reserves or maintain services by adding new revenues? The impact of the weak economy on taxpayers makes this a tough choice.
From 2003 to 2008, the education budget increased by about 9 percent a year on average, as the economy expanded. Education spending rose from $4.2 billion to $6.7 billion. This allowed the state to fund public school programs that improve teaching practice in reading, math and science; expand course offerings through distance-learning technology; provide school nurses; increase the availability of pre-kindergarten classes and remedial services to students at risk of dropping out; and fund workforce development initiatives.
Results have been achieved. In 2007, for example, Alabama led the nation in reading gains on national tests. The state continually ranks high in economic development success. In 2010, however, education revenues may well be $1 billion lower than the 2008 spending level. What should be done to balance the budget?
The Public Affairs Research Council of Alabama is interested in your views on the budget and has developed an online survey to record them. To participate, visit http://parca.samford.edu and click on the survey link.
EDITOR’S NOTE — Jim Williams is executive director for the nonprofit, nonpartisan Public Affairs Research Council of Alabama.
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