The Legislative Fiscal Office releases a gloomy forecast

The Legislative Fiscal Office has released its numbers for next fiscal year.  The report foresees flat to decreasing tax revenue, and reduced stimulus funding.  The report also shows how much the stimulus program kept the state afloat.

Links to their presentation, exhibits and slideshow.

The Department of Finance, Executive Budget Office has released a power point presentation on the same subject.

The next session should be interesting to watch.

15 comments to The Legislative Fiscal Office releases a gloomy forecast

  • princeliberty

    Anyone with any sense knew this coming. And the year after will be worse.

    Riley and Goat hill have just kept spending and spending.

    Even this past year they used one stimulis money to keep up spending levels that Alabama’s economy cannot support.

    In fact, Riley being draining every one time and rainy day fund he can find. Anything to avoid hard choices and dealing with problems.

    And of course, the Cult of Riley will be outraged anyone dare speak against the “Great Leader.”

  • anonymous

    let’s see, who votes to spend the money? Ahh, yes, that would be the legislature.

  • waltm

    Princeliberty, what results would you like to see?

  • wildbluyonder

    I do not know about Princeliberty, but if during the last legislative session they all had decided on a course of action to reduce spending, then the present results would have better because using reserves to fund “operating expenses” i.e., government service is unwise. There exists no Political Will among the leadership to make the difficult, but necessary fiscally responsible choices. . . .the futility is everyone’s Plan B to save the day is to throw in more money in order to buy some additional time … in hope of ???

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  • Common Sense

    Do you not consider this a rainy day?

  • princeliberty

    No, a rainy day is unexpected short term cost.

    What we have today is the results of too much spending year and year out that is catching up with the State.

    What results I would like? Cut spending!

    And yes Goat Hill is to be blamed first. However, Riley did not fight to cut spending. So he gets blame too.

  • Anonymous

    Riley vetoed the budget because of the pork Dems inserted for nonsense like UFO Days in Fyffe (home of Barron), various watermelon festivals and such. If the Dems wouldn’t pork up the budget every year, that would be progress. But don’t hold your breath.

  • princeliberty

    Riley really fought hard to avoid having that veto overturned.

    Even before the additional pork, Riley’s orginal budget increased spending.

    So yes, what the Democrats did was even worse, but Riley does not deserve any praise.

  • It’s nice to see that the age old battle cry of “spend less” is still in circulation, whether or not there are any specific examples of state agencies that are getting too much money and whether or not there are credible responses to the human lives that are affected by decreased government services. It’s easy to take potshots at cultural festivals like UFO Days, which are drops in the ocean of state spending that have absolutely nothing to do with the current fiscal crisis. It’s a lot harder to come up with budget solutions that don’t starve key programs like the prison system and schools, much less come up with ways to generate additional revenue for things the state needs.

  • princeliberty

    How about the big pay increases that put in effect for state workers in 2006 and 2007 that Alabama simply did not money to support over the long run?

    An example of a place to eliminate people would be the school administrative bureaucracy which is way overstaffed and way overpaid.

  • You obviously have no idea about what is in the employment contracts that state employees sign. You don’t just fire people and eliminate their merit raises and cost of living increases because the state refuses to increase revenue. I’m sure this is all just fodder for whatever anti-labor union beliefs you have, or ammo for an oversimplified catch phrase such as “run guv’mint like a business,” but the reality of employment contracts is a lot more complicated than “fire people because we’re broke” or “no more raises for anybody.” Still, when you consider a head of two-year colleges just hired for $290,000, you may have a point about salaries.

  • waltm

    Princeliberty, good point about the Legislature’s unwillingness to address long term financing issues No sense in passing a pay raise without funds to cover it now and in the future..

    However, tenure and the effects of fair dismissal laws show canning education employees a lengthy, expensive process and does not lead to immediate effects.

    Stephen, might want to look at Layoffs in the Alabama Code. Now whether, the state will be willing to deal with a mass of disgruntled, politically aware folks is another question. And step raises (AKA merit raises) have been frozen.

  • princeliberty

    What you have to do it take a long term approach in cutting spending.

    Begin the process of putting pay increase and hiring levels at some level the state can manage long term.

    And addressing a reform of the laws covering state employees hiring and firing is almost surely due.

    Public school tenure is way too strong.

  • waltm

    Princeliberty, now you’re getting some where. However, long term planning does not seem to be the strong suit for the those who graze on Goat Hill.

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