MONTGOMERY, Ala. (AP) - Gov. Bob Riley's administration is
warning most state agencies to curtail their spending plans for the
new fiscal year starting Oct. 1 because state revenue is declining
due to the recession.
State agencies normally get 25 percent of their state General
Fund appropriation each quarter. But Riley's acting state finance
director, Bill Newton, sent a letter to state agencies Friday
saying they need to plan on getting 22 percent in each of the first
Then they will get 34 percent in the final quarter.
Newton says two state agencies - Medicaid and Corrections - will
be exempt because they are not able to reduce spending further.
The cutbacks are less than the 10 percent reduction most agencies had to make for the current fiscal year.