Alabama General Fund Agencies to Revise Spending Plans Due to Recession

August 21, 2009 -- MONTGOMERY - Alabama's State General Fund agencies are being told to revise their operating plans for Fiscal Year 2010 because of declines in available revenue.

“Due to the ongoing recession, tax revenues have declined and so state agencies will have to slow down their anticipated spending from the General Fund,” said Acting Director of Finance Bill Newton.

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Newton sent a memorandum to General Fund agencies on Friday saying they will have to submit a revised FY2010 operations plan. The adjusted plans will need to reflect quarterly allotments to agencies from the General Fund of 22 percent in the first three quarters of the new fiscal year and 34 percent in the last quarter. State agencies normally receive allotments of 25 percent each quarter.

“This revision only applies to your General Fund appropriation and does not apply to other funds,” including those the agencies may receive from the Education Trust Fund or the federal government, Newton’s memorandum states.

In addition, Newton said two agencies - Medicaid and Corrections - will be exempt from the changes because neither agency is able to reduce its spending further.

Source: Alabama Governor