Digital Media Center
Bryant-Denny Stadium, Gate 61
920 Paul Bryant Drive
Tuscaloosa, AL 35487-0370
(800) 654-4262

© 2024 Alabama Public Radio
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
Register for Glenn Miller Tickets in Mobile on May 30.

"Rainy Day" Fund for Education Spent

By Associated Press

Montgomery, AL – School tax revenues in Alabama didn't keep pace with budet projections in fiscal 2008, prompting the state to spend all $440 million from a "rainy day" savings fund and leaving a gloomy outlook for the new fiscal year.

The head of the House education budget committee, Rep. Richard Lindsey of Centre, says he's concerned the lack of carry-over funds could mean there will not be enough tax revenues in the coming year to pay for the $6.3 billion budget to fund K-12 schools and colleges. That would cause the governor to declare proration and force schools and colleges to cut spending.

State Revenue Director Jim Main says sales tax revenues for the 2007-2008 fiscal year that ended Tuesday were about 1 percent below the previous year's total, while income tax revenues overall were up more than 3 percent.

Sales and income taxes provide the main sources of money for the education budget.

News from Alabama Public Radio is a public service in association with the University of Alabama. We depend on your help to keep our programming on the air and online. Please consider supporting the news you rely on with a donation today. Every contribution, no matter the size, propels our vital coverage. Thank you.