( - promoted by mooncat)
It became clear this week that pro-ration in the General Fund Budget for the State of Alabama is about to be declared (both Republicans and Democrats in the legislature agree). The expected across the board cut is 7-8%. Even worse, are predictions for next year's General Fund budget of 30% cuts. Considering the state of the economy and the fact that 2010 is an election year, it is a safe bet that no additional revenue will be forthcoming. So, where do we cut state services? Some things to consider: 1 - Alabama offers very little in the way of state services to begin with. 2 - The 7-8% cut can be absorbed by some agencies fairly easily. These are agencies where personnel costs are a fairly low percentage of total expenditures. For example, the Highway Department can meet proration by delaying road and bridge projects. 3 - Other agencies can not absorb such cuts easily. For example, the Judicial Offices have personnel costs of 98% of their total budget ,so they will have to lay off workers. 4 - Layoffs are complicated by the merit system which requires the last hired (and usually lowest paid) employees be laid off first. The result, you must often lay off 2-3 new employees to save the same amount as one long service employee. |