AL Governor Announces Proration Levels

By: Press Release
By: Press Release

MONTGOMERY— Given revenue shortfalls in the state’s education budget, Governor Robert Bentley today declared 3% proration in the FY 2011 Education Trust Fund.

Furthermore, he announced plans to declare 15% proration in the state’s General Fund, after first working with the Legislature for supplemental appropriations to protect priority agencies that provide necessary and critical services.

After thorough consideration and analysis by the Alabama Department of Finance and the Department of Revenue, estimated revenues to the State General Fund for fiscal year 2011 are insufficient to fund all appropriations at their current levels.

With one time federal stimulus money now depleted, Alabama is left with the loss of hundreds of millions of dollars in both state budgets.

The current Education Trust Fund budget has a $165 million shortfall while the current General Fund budget has a $110 million shortfall.

“Both our Education Trust Fund and our state’s General Fund budgets are based on unreliable revenue projections,” said Governor Bentley. “Now, five months into the 2011 Fiscal Year, it is clear that there is not enough revenue to sustain either budget. Proration is necessary to balance the budgets.”

“The taxpayers expect us to live within our means just as families and businesses are forced to do,” said Finance Director David Perry. “No one is pleased that we have a revenue shortfall which requires proration in the budgets that were passed last year, but mid-year cuts are necessary for Alabama to meet its constitutional obligation for a balanced budget.”

Proration in the Education Trust Fund is effective immediately.


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