Alabama Education Fund Collections Decline
Montgomery, AL – Tax collections for the state Education Trust Fund dropped 12.6 percent in October compared to October 2009, but officials say the longer-term outlook doesn't appear that bad.
State Sen. Hank Sanders, D-Selma, says most of the monthly drop came because the state paid $30.2 million more in personal income tax refunds last month than in October 2009.
Without that difference in refunds, tax collections for the main source of state tax dollars for public schools and college, would have dropped 3.7 percent in October, the first month of the fiscal year.
Acting state Finance Director Bill Newton cautions against forecasting a year's tax receipts based on one month. He says it's too early to talk about possible cuts in budgeted spending.
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