Alabama voters adopted a revised and reorganized Constitution in 2022.

However, the “new” Constitution preserved the fundamental attitudes and mechanics of the previous Constitution.

Adopted in 1901, that constitution was designed for an agrarian state, strictly limiting government power to tax land. It forbade the state from engaging in “internal improvements” and disenfranchised blacks and poor whites. Some of those provisions were loosened through amendments over time. Others were found unconstitutional and struck down by the federal courts.  

But one of the essential elements remains its concentration of power in the state government, the Legislature in particular.

Local governments were granted only the powers the Legislature or the Constitution explicitly permitted.

The ruling elite of the time looked with disdain at local government officials. Thomas L. Bulger of Dadeville, a delegate to the Constitutional Convention of 1901, expressed the prevailing attitude during the constitutional debates:

“No gentleman on this floor will contend that his Commissioners’ Court at home is more capable of legislating for the people of his county than the General Assembly, composed of 100 select men,” Bulger said.

And thus, to this day, a sizeable portion of the state Legislature’s business pertains to matters that are specific to particular counties or cities, not the state itself.

More than 35,000 local laws govern everything from local taxes to whether a sheriff’s deputy can keep his gun and badge upon retirement. Over time, in a confusing and convoluted process, the Constitution was amended over 1,000 times to meet the needs of modern life, swelling the document into the longest state constitution in the nation. It is believed to be the world’s longest constitution, and even with the 2022 reorganization, it will continue to grow.

The bulk of the state’s fundamental law is now made up of exceptions and exemptions to the general framework and principles a constitution is supposed to enumerate. Two-thirds of Alabama’s constitutional amendments apply to individual cities and counties. In effect, every county has its own version of the Constitution. And counties and cities still must ask the Legislature for the tools they need to manage basic affairs.

In many ways, though, the lack of home rule in Alabama reflects how Alabamians feel about government. They want limited government. They want limits on taxation. They do not trust governments to carry out their wishes. And they want to be left alone.

That is, until they demand that government step in and solve a problem. And, often, that requires a trip to Montgomery.

The balance of power and responsibility between state and local officials is an eternal struggle.

In the 1901 debates, Bulger was answered by John A. Rogers of Gainesville in Sumter County, who asked:

“Why is it that these people can select such fine representatives to the Legislature, and yet it is feared that they won’t be able to select satisfactory County Boards to handle these matters?”

Perhaps in the 21^st century, it is time to revisit Roger’s thoughts and consider whether the same voters who elect Alabama legislators to enact state policy can be trusted to vote for local officials from their own communities who will reflect citizen wishes on local matters.

Read the full report here: The Government Closest to the People? The Statehouse, the Courthouse and City Hall.

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This report is one of a series of reports examining Alabama’s current constitutional framework, identifying remaining obstacles to a modern constitution and possible paths forward in areas such as education, economy, healthcare, democracy, liberty & justice, finances, and related areas.

The project is supported, in part, by the Alabama Citizens for Constitutional Reform (ACCR). Both ACCR and PARCA are nonpartisan organizations, and our members and supporters are Republicans, Democrats, and independents. Former Governor Albert Brewer and former Samford University President Thomas Corts, both deceased, were founding leaders in both organizations.

Economic development—using public funds to incentivize private economic investments—is a core government function practiced by both parties and at all levels of government.

Numerous public and public-private partnerships in Alabama are tasked with some form of economic development, including the Alabama Innovation Commission. One of the Commission’s goals is to build up Alabama’s technology sector, including start-ups.

One strategy sometimes used to support such a goal is investor tax credits, including angel investing credits. Twenty-five states currently provide some form of investor incentive tax credit programs, a number of which offer refundable credits to out-of-state investors with no in-state tax liability.

Alabama has no such incentive program that directly benefits out-of-state investors.

New PARCA research asks if investor tax credits are an efficient way for Alabama to enhance its technology sector. 

Access the full report here.

Today, the Business Education Alliance of Alabama (BEA) is releasing Alabama Can Improve Student Achievement and Prepare a Future Workforce: Here’s How-Part 2, a follow-up to the Governor’s Commission on Teaching and Learning’s report issued in December of 2023. The Alabama Legislature financially supported many of the Commission’s recommendations, and today’s release by the BEA follows up on what remains to be done.

The research for Alabama Can was conducted by the Public Affairs Research Council of Alabama (PARCA).

On January 18, 2023, Governor Kay Ivey issued Executive Order 730, establishing the Governor’s Commission on Teaching and Learning. The executive order charged the 13 Commission members with providing thorough and thoughtful recommendations for enhancing the quality of elementary and secondary education in Alabama.

The Commission met eight times, hearing from state and national educational leaders, as well as receiving input from the public. Based on the information gathered, the Commission issued a series of recommendations contained in a final report issued in December 2023.

Alabama Can Improve Student Achievement and Prepare a Future Workforce: Here’s How-Part 2 seeks to refocus attention on recommendations, particularly those supported by the Legislature, the Department of Education, and the State Board of Education, and which are showing results. Items examined include fully funding key academic initiatives, attracting and retaining teachers, improving the learning environment, and supporting students from early childhood to career.

As the report states, in the Spring of 2024, the percentage of Alabama 3rd graders scoring proficient on the state standardized test of English Language Arts (ELA) jumped by nine percentage points to 62%, a remarkable increase rarely seen in educational statistics.

Even more encouraging, economically disadvantaged third graders made even greater gains compared to the prior year, a 13-percentage point increase in ELA proficiency, up to 53%. That produced the smallest gap in proficiency rates between economically disadvantaged and all students since the test, the Alabama Comprehensive Assessment Program (ACAP), was launched in 2021.

That’s progress on educational disparity, a central challenge for Alabama, as highlighted in the Governor’s Commission’s report.

This progress did not occur randomly. It follows five years of committed policy from and sustained investment by the Governor, the Alabama Legislature, the Alabama Board of Education, and the Alabama Department of Education. That investment more than doubled the amount spent on K-3 reading instruction to over $140 million annually in support of the Alabama Literacy Act of 2019.

Joe Morton, the chairman and president of the Business Education Alliance of Alabama states, “This report proves that the right amount of funding spent on the right initiatives propels Alabama’s schools and future workforce forward at the speed necessary to keep Alabama’s economic engine running soundly.”

The report will be shared with Governor Kay Ivey, Lt. Governor Will Ainsworth, State Superintendent Eric Mackey, members of the State Board of Education, and each member of the Alabama Legislature.  

When Alabamians vote on November 5, they will be asked to vote on one statewide amendment.

“Proposing an amendment to the Constitution of Alabama of 2022, to grant certain sixteenth section and indemnity school lands that are owned in fee simple by the Franklin County School System, are located in Fayette County and Walker County, and are for the exclusive use of schools in the Franklin County School System to the Franklin County Board of Education; and to provide for the distribution of any proceeds and interest generated by this land.”

Proposed by Act No. 2024-301 (House Bill 302, 2024 Regular Legislative Session)
Bill Sponsor: Representative Kiel

This proposal seeks to amend the Constitution of Alabama of 2022 to address the management of a piece of land in Fayette and Walker Counties that is to benefit the Franklin County Board of Education.

Since this Amendment concerns land owned in two counties and a school board in a third county, it requires a statewide vote.

The land in question is designated to support public education and stems from an eighteenth-century practice where the federal government designated land in each county for the support of public education in that county. These designations predate Alabama’s statehood.

In the late nineteenth century, the Alabama Legislature gave some school boards, including Franklin County, additional land, sometimes outside their home county, to ensure each school board owned land of approximately equal value.

State law stipulates that such lands are held in trust by the Alabama State Department of Education and managed by the Alabama Department of Conservation and Natural Resources. The Department is empowered to lease or sell the land, with revenue provided to the school system the land is designed to support.

Amendment 1 concerns land located in Fayette and Walker Counties that is to benefit the Franklin County Board of Education. The Board cannot independently manage the land and cannot sell the land without the approval of the State Superintendent of Education and the Governor.

Amendment 1, if approved, enables the Franklin County Board of Education to manage and sell the land without prior approval and retain all revenue.

Continue reading the full analysis of Amendment 1 here.

PARCA will be hosting our fifth annual Speaker Series event on the evening of Thursday, September 12th at Red Mountain Theatre Arts Campus.

Join us for an unforgettable evening of cocktails and conversation with New York Times Best-Selling author, Emmy award winner, and respected political analyst – Larry Sabato. He directs Sabato’s Crystal Ball website, a leader in accurately predicting elections since its inception, and he is the author or editor of two dozen books on American politics.

During this exclusive event, Larry Sabato will share anecdotes, answer your questions, and perhaps even reveal a few behind-the-scenes secrets. His incisive commentary has dissected elections, policy decisions, and the pulse of the nation. Whether you’re a seasoned political junkie or simply curious about the intersection of words and power, this evening promises to be enlightening, entertaining and delicious!

The event will include a reception for all guests, a private cocktail reception with Sabato, a lively discussion, a book signing, and a dessert reception. Reserve your seat now for an unforgettable soirée!

The PARCA Speaker Series brings important, relevant voices to Alabama for an evening with our state’s thought leaders and opinion makers.

Your support for this event will go toward PARCA’s mission to inform and improve the decision making of state and local leaders in Alabama through objective research and analysis.

VOICES for Alabama’s Children published the 2023 Alabama Kids Count Data Book today, marking the 30th edition of the book published by the nonprofit. For the 8th year in a row, PARCA worked with VOICES as a data partner for the project.

Since 1994, the Alabama Kids Count Data Book has documented and tracked the health, education, safety, and economic security of children at the state and county levels.

For the 30th edition, VOICES also interviewed the directors of Alabama’s child-serving agencies and included excerpts.

The Data Book serves as both a benchmark and roadmap for how children are faring and is used to raise visibility of children’s issues, identify areas of need, set priorities in child well-being and inform decision-making at the state and local levels.

Below are some of the findings from this year’s data:

– Children of color and children in poverty are shown to have much poorer outcomes and much poorer achievements in education.

– Child population continues to decrease. Over the last year, the number of children grew in only 20 of 67 counties.

– Children in Alabama are becoming increasingly more diverse ethnically and racially. While white and Black child populations are declining, since 2000, Hispanic children grew approximately 276%. The Asian/Pacific Islander population grew by 120%.

– The infant mortality rate has slightly decreased from 8.1 to 7.6 per 1,000 live births from 2011-2021. In real numbers, that means that 443 babies did not live to their 1st birthday in 2021. Maternity care is critical. 34.3% of Alabama counties are defined as maternity care deserts. More than 28% of Alabama women had no birthing hospital within 30 minutes, which is more than double the U.S. rate.

– In 2022, the percentage of Alabama high school students meeting college and career ready requirements was 79.1% from 76.5% in 2021.

– 2023 Work-based learning programs (Dual Enrollment and Career Training Programs) are estimated to have had an economic impact of $420,209,126.

– From 2015-2023 there has been a 16.9% increase in the number of children entering foster care services. Parental drug use is the leading reason for children entering foster care, making up 44%, followed by neglect at 22%.

– 10.4% of children in the state are living in extreme poverty. Black and Hispanic populations are disproportionately affected (38.3% and 36.7% respectively), while white children make up 13.5% of children in extreme poverty.

See how children in all 67 counties of our state are faring in education, health, economic security, and more. VOICES believers that every child in Alabama should have access and opportunity to thrive and become all they can be, and hopes that by utilizing this book’s insights, we can identify the challenges, set priorities, track our progress, and achieve real outcomes for children and families.

Access the 2023 Alabama Kids Count Data Book here.

Want to see this data at the national level? Visit the national KIDS COUNT Data Center to access hundreds of indicators, download data and create reports and graphics!

PARCA’s most recent public opinion survey finds, once again, aversion to certain taxes, support for public education, and mistrust in state government. At the same time, the survey finds a lack of consensus on how the state should respond to other critical issues.

Among the findings:

• Alabamians continue to rank education as the most important state government activity.

• Large majorities of Alabamians say the state spends too little on education and healthcare.

• Alabamians have an aversion to taxes but say upper-income residents pay too little.

• Alabamians are willing to pay more taxes to support education but do not agree on which taxes should be increased.

• A plurality (48%) of Alabamians would prefer to educate their children in public schools.

• A majority of Alabamians support school choice options.

• A large majority believe private schools receiving state funds should meet all standards required of public schools.

PARCA’s annual public opinion survey was conducted between October 24 and December 26, 2023. The mixed-mode sample includes a mix of respondents from a statewide random digit dialed (RDD) sample of cell and landline numbers and an Internet panel provided by Qualtrics. The poll of over 500 Alabama residents was conducted by Dr. Randolph Horn, Samford University, Assistant Vice President for Enrollment Research and Professor of Political Science. 

Results of the survey indicate many opportunities for officials to demonstrate responsiveness to public concerns and leadership in crafting public policy solutions.

Download the full report here.

Join us for the 2024 PARCA Annual Forum!

March 8, 2024 at The Harbert Center in Birmingham – 8:30 a.m. to 1:00 p.m.

We know about Alabama’s workforce challenges. We might not know how housing contributes to that challenge. As housing prices increase, middle-income workers—like firefighters, nurses, police officers, teachers, and others essential to our communities— often struggle to live where they work. The shortage of affordable housing complicates hiring and threatens our economic health and community vitality. PARCA’s 2024 Annual Forum will explore this issue. Engage with experts and leaders in the field as we define workforce housing and explore innovative solutions. We will learn what Alabama is doing and what Alabama could be doing to enable our workforce to live where they work and how that fosters vibrant, inclusive communities.

Speakers to date include:

The morning program will be followed by the
Governor Albert Brewer Legacy Lunch
featuring Governor Kay Ivey

If you need to purchase your tickets or table reservation by check, please reach out to
Sarah Dayhood at [email protected].

Despite the wild gyrations in the economy since the outbreak of COVID-19 in the spring of 2020, the latest comparative data from the U.S. Census Bureau finds Alabama in a familiar position: at or near the bottom in state and local government tax collections.

Key Findings

• Alabama is a low-tax state: In FY 2021, adjusted for population, Alabama collected less in state and local taxes than all but one other state. Alaska, thanks to disruptions in the oil market over the period, had the lowest per capita revenues.

• Alabama’s per capita property tax collections are the lowest in the nation. That helps owners of homes, farms, and timberland but creates a revenue deficit, leaving state and local governments with less to spend to provide government services such as education, health, and public safety.

• Alabama’s state and local sales tax rates are among the highest in the U.S., which compensate for low property taxes.

• Alabama’s income tax does not provide the balancing effect that income taxes in other states do. Low-income workers begin paying taxes at a lower threshold than any other state. At the other end of the spectrum, Alabama is the only state that allows a full deduction for federal income taxes paid, a tax break that benefits high-income earners.

Despite unusual circumstances, Alabama’s rankings in per capita state and local tax collections were generally consistent with rankings in prior years.

Motor fuel collections per capita jumped in rank because half of Alabama’s fiscal year was pre-pandemic at a time when the economy was booming and gas prices high. In contrast, most states’ fiscal years began in the months after the pandemic began. Gas prices plummeted, and the total miles traveled on American roads didn’t recover until the calendar year 2022.

Alabama’s sales and gross receipts were also elevated thanks to the state’s high sales tax rate, the elevated volume of pandemic-related buying, and the economic stimulus payments that accelerated spending beginning in April 2020.

Despite all that, Alabama continues to lag behind almost all other states in total per capita collections.

Table 1. Alabama Rank in Per Capita Tax Collections, 2019, 2020, 2021.

In the years since FY 2021, tax revenues have surged based on the infusion of federal stimulus, low unemployment, and high inflation. Legislators have responded by making needed investments, particularly in education, in the form of teacher pay raises and a surge of additional support for literacy and math instruction.

At the same time, the Legislature has also passed tax cuts. In 2022, it increased the standard deduction for low-income Alabamians, allowing more households to shield more of their earned income from the income tax. In 2023, the state sales tax on food items was reduced from 4% to 3%, with a further 1% reduction scheduled for 2024 if revenue targets are met. These targeted tax cuts are a fitting response at a time when inflation is elevated, 3 with state tax collections surging to historic highs and federal COVID-19 relief funds swelling government accounts.

Flush times could allow Alabama to address years of chronic underinvestment compared to other states. Unacceptable conditions, such as understaffed and crumbling prisons, persist. Investments in education that show positive results must be sustained. However, as growth slows and federal aid is exhausted, Alabama governments will likely return to a familiar position of having less money to spend and yet a greater need for government services.

PARCA’s interactive charts allow you to explore a variety of statistics regarding Alabama’s taxes and tax revenue in comparison to other states. For the entire analysis, see our complete report in a printable version. Or read an embedded copy of the report below.

PARCA’s How Alabama Taxes Compare, 2022 Edition, uses data published by the U.S. Census Bureau’s Annual Survey of State and Local Finances to compare tax revenues across the state. This most recent set of revenue and expenditure data cover state and local fiscal years ending between July 1, 2019, to June 30, 2020, identified as the fiscal year 2020. That means the state of Alabama’s data is from the fiscal year that ended September 30, 2019.

Key Findings

• In 2020, Alabama had the nation’s second-lowest state and local tax collections per capita.

• Alabama has the lowest per capita property tax collections in the nation.

• Alabama has among the highest sales tax rates in the U.S.

• Alabama is now the only state that allows state individual and corporate income taxpayers to fully deduct federal income taxes paid. That provides a tax advantage for high earners.

• Despite a recent change that provides some relief, Alabama begins taxing income at the lowest threshold in the U.S.

Alabama state and local taxes collections are low due to two factors: lower rates and a smaller resource base to tax. Alabama’s Per Capita Gross Domestic Product, the total value of all goods and services produced, ranks in the bottom five of states, meaning we have a lower resource base to tax. However, these other states make a greater tax effort and, thus, generate more money to provide services.

This gap between Alabama and other states will not be so obvious when newly elected lawmakers convene in March to craft budgets for FY 2024. A strong inflationary economy, high employment levels, and a flood of federal relief have supplemented state spending and stimulated record levels of state and local tax collections in the most recent year.

But as proposals are floated to make changes to tax rates, it’s important to understand the tax system in context, including a history of underinvestment compared to other states. Any changes should ensure adequate revenue, promote fairness and opportunity, and increase ease of collection and compliance.

How Alabama’s Taxes Compare, 2022 Edition, explores Alabama’s tax system in more depth and context.

Printable PDF version available here

Below are interactive versions of the charts in the report.