ALABAMA

Previous Updates:

June 8, 2009

State transportation officials announced distribution of $12.2 million in federal stimulus funds by the end of September for improvements to 10 state airports, according to Channel 19 news in Montgomery. John Eagerton IV, chief of the Aeronautics Bureau of the Alabama Department of Transportation, said the projects were shovel-ready.

June 7, 2009
The University of Alabama at Birmingham estimates it will collect an extra $80 million for research grants at its medical center this year and next. According to the Birmingham News, “14 grants worth a total of $4.5 million were approved in recent days for the UAB under the economic-stimulus package.

"The sudden infusion of new funds has tremendously boosted morale," Dr. David Curiel, director of the UAB Gene Therapy Center, told the newspaper. "We're definitely saving jobs. Then, we were able to open up new slots and do new hires. It's been dramatic."

June 1, 2009
Federal stimulus funds allocation became hot topic in race for next governor. U.S. Rep. Artur Davis sparred with Gov. Riley, who is ineligible to run again for governor, saying stimulus funds have not been allocated to address black belt economic woes in the two hardest hit counties, the Huntsville Times reported.

May 28, 2009

According to veteran political reporter Steve Flowers, the Alabama legislative session ended with a larger budget than the year before, but thanks only to $1 billion in federal stimulus funds. But, says Flowers, “both the Education and General Fund Budgets relied heavily on these one time funds to resolve their budget dilemma. This one time money will not be available in January 2011 when the new Governor will take office. Whoever is elected will be walking onto the deck of the Titanic.”

The $2.2 billion general fund budget includes $1 billion of federal stimulus funds and is 35 percent larger than this year's scaled down budget of $1.6 billion. Most state agencies are getting roughly the same amount that they are currently receiving because a good portion of the increase is for one time transportation projects called for in the stimulus package.

The $6.2 billion education budget includes $513 million in federal stimulus funds. It is about 7 percent higher than this year's scaled down budget of $5.8 billion. Both budgets take effect October 1.

April 1, 2009

The Birmingham News reports that the Alabama legislature is on its way to accepting federal stimulus funds for increased unemployment benefits over the objections of Gov. Riley. On March 31, both the Senate and House adopted resolutions saying Alabama wants to accept all federal unemployment stimulus funds. However, legislation would still need to be adopted making the necessary changes in state unemployment law. Bills to do so are pending.

 

Legislative leaders, according to The Birmingham News, are confident that the federal stimulus funds will prevent painful cuts in the budget. It is reported that Senate President Pro Tem Rodger Smitherman says the public can expect about the same level of services as last year. However the House Budget Committee Chairman John Knight is concerned that when the stimulus funds run out, spending levels may not be sustainable.

 

The Alabama legislature gave final approval to a housing stimulus program funded by $6 million from a state oil and gas revenue savings account according to an AP report. Qualified buyers would not have to make a down payment.

 

March 25, 2009

The federal government has announced funding for meals for senior citizens as part of the federal stimulus package. The Andulusia Star-News reported Alabama will collect $1.5 million.

 

About 3,800 teacher positions will be spared with the $1 billion federal stimulus funds Alabama's education budget will receive over the next two years, state Superintendent Joe Morton told local superintendents and educators today according to The Birmingham News.  

 

The Birmingham News also reported that the legislature is back in session after spring break and will be tackling taxes, gambling, budgets, smoking restrictions and other topics. Within the 2010 budget proposal, Gov. Riley will lay out more detailed plans for spending the federal stimulus funds.

March 18, 2009
According to an article in the Montgomery Advertiser, three thousand children in Alabama are at risk of losing child care subsidies on April 1 while the state waits for federal release of $38 million in stimulus funds due to Alabama. The state has been forced to cut state funds for subsidies twice already in the last six months. State Sen. Hank Sanders said he will do everything in his power to prevent these cuts. Holdups at the federal level, according to an Alabama executive branch official, include deciding the details of calculating a state's "maintenance of effort" - that is whether the state has continued to support a program sufficiently with its own funds before additional federal funds are awarded. This decision may affect Alabama's eligibility for the funds.

March 11, 2009
Though federal stimulus money is starting to trickle into Alabama and Gov. Bob Riley is working to quickly allocate the funds, the state legislature will begin work on the budget including stimulus funds after its March spring break. On March 10, the state Finance Director Jim Main said in a news article that the budget is ready for legislative consideration. Main said that Gov. Riley will resubmit new education and general fund budgets based on the "formula driven" $3 billion that Alabama will receive in the federal stimulus act over the next three years. Main said that despite keeping stimulus funds in a separate account, "We won't be able to say how many jobs were saved or how many jobs were created. We won't be able to follow the flow of the money."