Economic footprint

Active nonprofits generate $16.9 billion in annual revenue, but that total is highly concentrated: 0.35% of organizations (the 21 largest) account for nearly half of all income. The median nonprofit operates on about $200,000 a year, with two-thirds reporting less than $500,000.

Public investment

Between 2015 and 2025, Alabama nonprofits received $5.5 billion in federal awards—an average of $553 million per year. More than 60% of those dollars flow through the U.S. Department of Health and Human Services; most reach communities through state agencies such as the Alabama Department of Economic and Community Affairs (ADECA), the Alabama Department of Public Health (ADPH), and the Department of Early Childhood Education.

Philanthropic capacity

Alabama’s 822 foundations hold $4.5 billion in assets—ranking 49th per capita. Assuming a typical 5.6% payout, foundations could distribute about $226 million per year, only one-third of recent federal funding. Private philanthropy cannot replace sustained public investment.

Key finding

Alabama’s progress depends on collaboration among government, philanthropy, and community organizations. Nonprofits are not a substitute for government; they are its local expression. Strengthening this partnership—through data transparency, diversified funding, and civic trust—is essential to building a resilient Alabama.

Click here for the full report, or view below.

New research indicates that lower fines and fees raise more revenue than higher ones, and that a “collections fee” that is supposed to incentivize payment is instead associated with greater debt.

The report, Findings from the Jefferson County Equitable Fines and Fees Project from MDRC, provides insight into an issue the Legislature is struggling to address: Alabama’s patchwork system of fees and court costs. Earlier this year, the Legislature established a Joint Interim Study Commission on Court Costs to examine ways to reform and standardize the court cost system. The Commission will report to the Legislature in its upcoming session early next year.

The new report, a Jefferson County case study, uses five years of case-level data to examine drivers of court debt accumulation over time. PARCA Senior Research Associate Leah Nelson was co-founder and co-principal investigator on the project.

What are fines and fees?

Every year, criminal courts in Alabama assess an unknown amount in fines, fees, court costs, and restitution. Fines are intended as punishment, while fees (including court costs) are meant to cover the expenses associated with the case. Some people are also assessed restitution if the offense they were convicted of resulted in a financial loss to a victim.

Although the total amounts assessed and outstanding across Alabama’s criminal courts are unknown, annual collections are substantial. Criminal courts drew a total of nearly $114 million in 2024 alone, including $6.1 million that remained within the court system, while $80 million was disbursed to non-court entities such as the General Fund, the Alabama Department of Economic and Community Affairs, the State Department of Education, and American Village at Montevallo. And, finally, $12.7 million in restitution was distributed to victims.

Fines are supposed to deter involvement in the criminal justice system, while fees exist to recoup the cost of court involvement, while also generating revenue for the state. New research suggests that higher fines and fees are counterproductive: producing less revenue, creating higher levels of unpaid debt, and prolonging individuals’ involvement with the criminal justice system.

 Insights provided by Findings from the Jefferson County Equitable Fines and Fees Project include:

• People assessed lower amounts at the time of sentencing paid more money and were more likely to pay their debt down to zero, as compared to people assessed higher amounts (who typically saw their balances increase over time).  In other words, people who were assessed less debt were not only more likely to finish paying, but they paid more money.

• A 30% collection fee assessed when people are 90 days late with their payments resulted in higher unpaid balances and a decreased likelihood of paying off their fines and fees.  

• Indigent people were assessed higher financial penalties than their more affluent peers.

• Victims may never receive, or fully receive, financial restitution because of how fines and fees revenue is distributed.

• Court debt was concentrated in census tracts marked by high levels of concentrated disadvantage, a composite metric that measures a given location’s level of socioeconomic challenges.

How does the system work?

Assessment of debt

Fines, fees, and costs are assessed at the time of sentencing in nearly all criminal cases where a person is found guilty. Amounts are set by statute. A typical sentence simply includes a note that the defendant is to pay fines, fees, and costs, along with any restitution that may be due. Judges do not typically say the amount out loud at the time sentencing, so it is common for people to agree to pay as part of a plea without knowing exactly how much they will owe. While judges are required to assess fines and fees, under the Alabama Rules of Criminal Procedure (Rule 26.11), they have broad discretion to set payment plans or even forgive debt if a person is unable to pay. The same rule allows judges to incarcerate people who willfully refuse to pay.

Fines and fees may be the only sanction a person faces in a low-level case. In more serious cases, fines and fees are imposed in addition to supervision or incarceration. Many people who are assessed fines and fees are unable to pay them all at once, and it is common for judges to allow them to pay in installments.

Research shows that Alabama residents who owe fines and fees over long periods of time often make desperate choices as they seek to stay current on their debt. A 2018 survey showed that 83% gave up a basic need like rent, car payments, or medication; 44% took out a payday loan; and 38% percent admitted to engaging in unlawful activity – usually selling drugs, stealing, or sex work – in order to keep up with their court payments.

Even so, half of those surveyed told researchers they had been jailed in connection with unpaid debt. “Every time I turn around, they got a warrant out because I can’t pay,” one man said. “Having to fear the police is not right because of debt.”

Distribution of revenue

Alabama Code sections related to fees name the entity or entities to which revenue collected from fees must be disbursed. However, the order in which money is disbursed falls to the discretion of the Chief Justice of the Alabama Supreme Court. Over the decades, default priorities have been programmed into the State Judicial Information System (SJIS), which is the software used by district and circuit courts to docket and track cases.

Disbursements operate on a “cascade” basis, meaning the top priority entity must be paid in full before the next entity in line gets a single dollar. Under the current default priority system, court costs are paid first, and victims who are owed restitution are paid last. If a person who owes fines and fees falls behind on their payments by more than 90 days, they are automatically assessed a “collections fee” of 30% of what they owe. If assessed, the collections fee becomes the top priority and must be satisfied in full before any other fund receives a share of revenue. Judges have the authority to re-order priorities (for instance, to put restitution at the top of the list), but must issue reprioritization orders on a case-by-case basis.

Findings from the Jefferson County Equitable Fines and Fees (JEFF) Project

Following the money

• The average initial amount assessed in cases included in the JEFF sample was $1,253.52.
• 42% of people pay nothing at all toward their fines and fees.
• People were more likely to pay who were:
  • Not indigent
    • 50% of non-indigent people paid off their full debt, compared to 16% of people who were represented by public defenders due to low income)
  • Facing lower fines
    • People in the lowest quartile of court debt assessed (a median debt of $121) tended to pay off their debt. By contrast, people in the top quartile (with a median initial assessment of $1,827) saw their debt nearly double over the five-year period studied.
• Over 60% of cases in the sample were assessed a 30% collections fee, which is added to the balance when a person fails to pay anything toward their balance for 90 days.
  • Collections fees were associated with an average $827 increase in unpaid balances, with only $262 in payments on average after the fee was imposed. Those assessed the fee were less likely to pay off their debt.

 In other words, the collection fee, which is intended to increase revenue, is more associated with increased debt.

Geographic Concentration

• Geographically, debt was concentrated in the central valley area of Jefferson County, which is also home to a disproportionate percentage of Jefferson County’s Black residents.
• People who lived in census tracts marked by concentrated disadvantage were much less likely to pay down their debt as compared with people in more affluent areas of the county. A one-percentage-point increase in concentrated disadvantage corresponds with 13% less court debt paid.

The human consequences of fines and fees

Most people (71%) in the sample were defended by a public defender, meaning that a judge determined they were indigent at the time of trial. Unsurprisingly, people who were indigent paid less toward their court debt than those who could afford to hire a lawyer. More surprisingly, JEFF researchers found that across all charges, indigent people were assessed higher financial penalties than their more affluent peers.

In interviews, court practitioners expressed frustration with the system. They described administrative headaches associated with attempting to keep up with debtors who often have unstable housing situations and don’t receive notices reminding them to pay. They felt that the 30% collections fee was deeply problematic, but worried that the district attorney’s office couldn’t operate without the revenue it generates. They expressed a broad desire to see court and law enforcement operations fully funded by the legislative branch, rather than being tasked with generating their own revenue.

Meanwhile, people who owed court debt described feelings of fear. Few were aware that they were allowed to ask for their court debt to be forgiven, and many thought the money was kept by local police or courts. (In fact, most of it flows back to the state.) Discussing the dread associated with owing court debt, one person said, “It’s like drawing an X on your back and I got you forever.”

Tax revenues flowing into Alabama state government returned to a more normal rate of growth in 2025, after several years of unusually high gains. Revenue flowing into both the General Fund and the Education Trust Fund grew at about the rate of inflation.

A combination of unusual conditions, including historically low unemployment and an unprecedented level of Covid-relief and economic stimulus sent to the state by the federal government, produced large surges in collections. Inflation, wage growth, and high interest rates on state deposits have continued to keep revenue growth elevated, but are expected to continue to taper in FY 2026.

PARCA’s report Alabama State Tax Collections, 2025: Increases, Decreases and Trends in the Revenues Supporting the State Government provides a full exploration of 2025 tax collections, the factors that drove those collections, and what current trends indicate for the future. You can also explore an interactive version of the data in the visualization below.

Click the link above for the full report, or view below.

Due to a new higher standard, the number and percentage of third graders who failed to meet the grade-level reading benchmark rose in 2025. However, taking the higher standard into account, this year’s third graders showed continued improvement, indicating that the state’s focus on improving early grades literacy is continuing to pay dividends.

This spring, 11.6% of students failed to reach the benchmark on the Reading portion of the state’s standardized test, the Alabama Comprehensive Assessment Program (ACAP). Had the higher bar been in place in 2024, 13.7% of 3rd graders would have scored below the cut. In 2023, 20.8% of 3rd Graders would have scored below the cut.

Printable PDF available here.

In 2025, more students, 49,460, cleared the bar despite the higher standard. At the same time, more students, 6,470, fell below the reading sufficiency benchmark. The 2025 cohort of third graders is larger than previous years. That could mean more students will be required to repeat third grade. However, students who scored below the benchmark are offered intensive summer instruction, retesting, and alternative ways to qualify for promotion.

Improved performance

For the second year, the biggest gains in the percentage of third graders clearing the reading benchmark have occurred predominantly in rural school systems in the Black Belt. Those systems have high rates of economic disadvantage among students and have traditionally trailed other systems on various academic measures, but they have been making gains in reading.

This year, only 4% of Wilcox County students scored below grade level. That puts the system in the top 20 for performance, even though 91% of students in Wilcox County are economically disadvantaged.

Two systems, Orange Beach and Satsuma, had all their tested third graders reading on grade.

Breaking the Connection Between Poverty and Poor Reading Performance

While there is still a correlation between higher levels of economic disadvantage and high rates of reading struggles, the relationship has gotten weaker over time, with more high-poverty systems, particularly in rural areas, improving performance.

Other high-poverty systems, often in urban areas, are still struggling to close the gap. Large urban systems like Montgomery County and Birmingham City have higher concentrations and larger numbers of students testing below grade level. However, those systems also have magnet schools where all students achieved the reading benchmark. Within larger school systems, schools with similar demographics vary significantly when it comes to reading results.

The scatterplot chart below compares the percentage of students in the school who are below grade level on reading to the percentage of students from economically disadvantaged households. The higher on the chart a system is, the better its reading performance. The systems shaded green and lying to the right are schools with lower economic disadvantage. The size of the system’s circle corresponds to the number of third graders who failed to achieve the reading benchmark.

Schools

Despite the higher bar, in 42 schools, all third graders who were tested passed the reading benchmark. That included Princeton Elementary in the Birmingham system and three schools in the Montgomery County System: Bear Exploration Center, Macmillan International at McKee, and Forest Avenue Elementary School. The schools where all third graders met the benchmark ranged from Georgiana, where 86% of students are from economically disadvantaged households, to Mountain Brook and Crestline elementary schools, where only 2% of students are economically disadvantaged.

The two schools with the largest number of third graders who are below grade level in reading are virtual schools: the Alabama Virtual Academy at Eufaula City Schools, where 421 students, or 37%, failed to make the benchmark, and the Alabama Connections Academy of Limestone County, where 290 students, or 32% scored under the benchmark.

For Students Who Failed to Score At or Above the Benchmark

The 6,480 students who failed to reach the benchmark are in jeopardy of being required to repeat 3^rd grade, under the terms of the Alabama Literacy Act. However, there are several routes for promotion to the fourth grade.

Students who failed to clear the new reading sufficiency benchmark have access to intensive summer literacy camps sponsored by local school systems. After the intervention, they will be able to retest.

If they still fail to clear the bar, teachers and school officials have alternative means for evaluating the students’ reading skills. Other good-faith exemptions exist. In 2024, 4,808 students failed to pass the reading sufficiency benchmark. After retesting and applying exemptions, only 452 students were retained due to the Literacy Act, according to the Alabama Daily News reporting.

Second Grade Results

Also included in the data release were second-grade results. The cut score also went up for second grade. The second-grade score is intentionally set at a higher threshold so that more students who might be encountering reading struggles can be identified and receive intervention. Due to the higher bar, more students failed to meet the grade level sufficiency benchmark, 19% in 2025 compared to 17% in 2024. The 10,423 second-grade students who scored below the benchmark were encouraged to attend summer literacy camps and should receive special attention throughout their third-grade year.

Background

The intense interest in 3rd-grade reading is the result of the 2019 Literacy Act. The Act was modeled on similar legislation enacted in Florida and Mississippi. Both of those states saw large gains in reading performance on national standardized tests. The laws are based on the premise that students have to be reading on grade level by fourth grade. Students are taught to read from Kindergarten through third grade. In fourth grade, students are expected to read material to learn.

Numerous studies have found that students who aren’t reading on grade level by fourth grade are more likely to struggle academically and fail to complete high school. Low literacy skills are associated with difficulties in the job market and poor health outcomes.

While the Literacy Act’s grade retention provision received attention, the more consequential portions of the bill were its increased investment in improving literacy instruction, early screening for reading difficulties, and requirements for interventions and communication with parents. The Act re-energized the Alabama Reading Initiative and led to statewide training of teachers in techniques grounded in the science of reading.

Since implementation, Alabama has seen various measures of reading performance rise. Alabama is one of only two states (Louisiana is the other) in which 4th-grade students are performing better in reading than before the COVID-19 pandemic, according to the 2024 National Assessment of Education Progress (NAEP).  

Alabama’s public high school graduation rate tied its all-time high in 2024, while the Class of 2024 also set a new record for the percentage of graduates designated ready for college and career, according to new data released by the Alabama Department of Education.

Among 2024’s senior class, 88% had earned a college and career-ready (CCR) designation, a jump of 4 percentage points over the rate for the Class of 2023. That progress also narrows the gap between the graduation and CCR rates to 4 percentage points, the smallest gap ever.

Printable PDF available here.

Alabama’s high school graduation rate has been rising since 2012, when the state set a goal that 90% of ninth graders would persist and graduate four years later. As the state’s public schools made progress toward and ultimately achieved that goal, policymakers focused on the gap between the graduation and CCR rates. Though more students were graduating, many weren’t leaving with the credentials to prove they were ready to enter college or the workforce.

In 2023, the Alabama Legislature passed a law requiring that by Spring of 2026, all graduates will have to have earned a CCR designation in order to receive a diploma. Schools have been moving toward that goal. In 2024, over 50 high schools reported a 100% graduation rate, and more than 40 reported a 100% college and career readiness rate.

Multiple Ways to Demonstrate College and Career Readiness

The Class of 2024 produced a jump in the on-time graduation rate and in multiple categories of college and career readiness.

School systems and high schools have different approaches to providing students with pathways to the CCR designation. Academic magnet schools and affluent suburban systems have higher percentages of students scoring college-ready on the ACT or by earning a qualifying score (3 or above) on an Advanced Placement test. Advanced Placement (AP) courses are college-level courses taught by high school faculty. International Baccalaureate (IB) courses are similar and also count toward CCR. Other schools, usually cooperating with the local community college, may give most students access to college courses. Many schools encourage enrollment in career technical education courses and reach over 90 percent of students through such offerings. Successful entry into the military and completing an approved youth apprenticeship is also an option.

Career Technical Education

More students are participating in career technical education courses, high school courses linked to career skills and training. The number and percentage of students demonstrating college and career readiness through completing a course in career technical education and earning an industry-recognized credential rose to 24,535, up from 21,640 in 2023. In the class of 2024, 47% of students earned a credential that should be recognized as valuable to a prospective employer, a 6-percentage point increase. 

Dual Enrollment

The number and percentage of students earning college credit, mostly through dual enrollment at a community college, also rose substantially from 21% of students in 2023 to 26% for the Class of 2024. Statewide, 13,891 students had earned credit through successfully completing a college course during high school, an increase of over 2,500 from the Class of 2023.

ACT

The percentage of Alabama public high school graduates earning a benchmark score on the ACT rose to 42%, up from 40% in 2023. ACT, the standardized test that predicts student readiness for college-level coursework, is given to all high school juniors. Scores in Alabama and nationwide dropped during and following the pandemic. In Alabama, performance is improving, though still below pre-pandemic highs. A full exploration of the Alabama ACT scores can be accessed in PARCA’s previous post, Alabama High School Class of 2024 Improves on ACT.

WorkKeys

ACT also produces a second standardized test, WorkKeys, through which students can demonstrate college and career readiness. WorkKeys is designed to test reading and math skills as they are applied in the workplace. WorkKeys is given to seniors and is optional. Students who score high enough on WorkKeys to earn a silver, gold, or platinum certification are considered adequately prepared to enter the workforce.

Some employers use WorkKeys as a factor in hiring decisions. The visualization below allows you to explore WorkKeys results in terms of certificates earned and trends in the number of students tested. However, bear in mind that different schools use the test differently and give it selectively, so comparisons between schools and systems can be misleading.

Explore Further

Using the tabs and menus in the visualization tools, you can explore results for your local system or school. For best results, use the full screen option to display the visualization. That button can be found on the bottom right of the visualization, next to the share button.

Bear in mind that some schools may have college—and career-ready rates that exceed graduation rates. This occurs when more seniors achieve one of the measures of college and career readiness than earn a diploma.

Passage of the One Big Beautiful Bill Act (H.R. 1) in the U.S. House has sparked discussions about the impact of reductions in federal funding across the U.S. KFF, a nonprofit policy analysis organization formerly known as Kaiser Family Foundation, estimates that the House Budget Committee’s reconciliation bill would reduce federal Medicaid spending by $791 billion without accounting for interactions that would lower estimates to $723 billion. Almost 85% of the total savings derived from five features:

• Mandating work and reporting requirements ($280 billion),
• Repealing rules simplifying Medicaid eligibility and renewal ($167 billion),
• Creating a moratorium on new or increased provider taxes ($89 billion),
• Revising state-directed payment limitations ($73 billion), and
• Increasing the frequency of eligibility re-determinations for the ACA expansion group ($53 billion).

Approximately $357 billion of the reductions would only apply to states that adopted ACA expansion.

Printable PDF available here.

Federal cuts to states of $723 billion over 10 years would represent 11% of federal spending on Medicaid over the period. KFF estimates that the cuts range from 5% in Alabama, Wisconsin, and Wyoming to 15% in Washington, Louisiana, and Illinois.

Congressional Budget Office estimates a 10.3 million loss of Medicaid enrollment by 2034, representing 12% of projected enrollment in that year. At the state level, the largest reductions in Medicaid enrollment would be in Washington and Virginia, decreasing by 25% and 20%, respectively. In Alabama, that would be about 4% or approximately 47,000 people.

As described in a previous post, Alabama receives more than $60 billion in federal transfer payments to individuals from Social Security, unemployment benefits, educational benefits such as Pell Grants, or as payments on behalf of individuals in Medicare or Medicaid, etc.

As the Economic Innovation Group noted in its report, The Great Transfer-mation: How American Communities Became Reliant on Income from Government, the main reason federal transfers have increased is the increase in the percentage of the population over the age of 65. Other economic factors have contributed to a reliance on federal transfers, particularly in rural areas with declining economic conditions.

Currently, among the transfer payments are approximately $15.5 billion (2022) to medical providers on behalf of Medicare recipients and another $7.6 billion (2022) on behalf of Medicaid patients, including covering approximately 44.7% of births in Alabama in 2023. Rates vary dramatically across counties, with 78.6% of births in Wilcox County covered by Medicaid to a low of 23.3% in Shelby County. Georgetown University’s McCourt School for Public Policy found that many small towns are dependent on Medicaid/CHIP funding. With 48.6% of children in rural areas of Alabama enrolled in 2023, the state ranks 12^th in the nation on that metric.

This past legislative session, the Alabama Legislature passed Senate Bill 102, expanding Medicaid benefits for pregnant women “with an estimated addition of $1 million annually for fiscal years 2026, 2027, and 2028, consisting of $726,300 in federal funds and $273,700 in state funds, by providing certain prenatal coverage to women found presumptively eligible by a qualified provider.” Governor Kay Ivey signed the bill on May 1.

Many medical facilities in Alabama depend on federal funding from Medicaid and Medicare patients. According to KFF, Medicare covered 63% of certified nursing facility residents in Alabama, while Medicaid covered approximately 13%, with only 24% covered by other private funding sources.

For the 80 hospitals in Alabama, operating margins were approximately 2.9% in 2023. However, they are generally thinner in poorer rural areas of the state. Nationwide, operating margins in rural hospitals are notoriously thin, with 44% of rural hospitals operating in the red. According to KFF, “As of July 2024, Medicaid was the primary payer for 63% of nursing facility residents; Medicare for 13% of residents; and the remaining 24% of residents had another primary payer (ex. private insurance, out-of-pocket, etc.) Medicare does not generally cover long-term care but does cover up to 100 days of skilled nursing facility care following a qualifying hospital stay.” 

In states without Medicaid expansion, just over half (53%) of rural hospitals operate in the red. Reductions in Medicaid or Medicare could have a significant impact on rural hospitals. KFF reports that rural hospitals had an average operating margin of 1.7% in 2023. Reductions in these amounts, whether direct payments to individuals or payments on behalf of recipients, as in the case of Medicaid and Medicare, would reduce, dollar for dollar, the purchasing power in those communities.

Using the slider and program selector in the visualization below, estimates of how a percentage decrease for each kind of transfer can be adjusted to find dollar amounts for hypothetical decreases:

Alabama is not alone. The same kind of dependence can be seen across the country.

There are common patterns across the places where economic activity has been challenging, including the Texas Valley, the Mississippi Delta, Appalachia, and tribal territories. Still, many communities have aging populations, with high percentages of transfer payments compared to earned personal income, as shown below:

For details on the calculation of personal income and transfer payments, see this post on Github:
https://github.com/EIG-Research/EIG-Great-Transfer-Mation

New population estimates from the U.S. Census Bureau place Mobile as the state’s second-largest city, behind booming Huntsville and ahead of Birmingham and Montgomery, both of which saw population declines according to the most recent estimates from the U.S. Census Bureau.

Mobile’s new status takes into account the city’s 2023 annexations of neighborhoods in Mobile County that were expected to add about 20,000 to the city’s population. According to revised Census estimates, the city jumped from less than 190,000 before 2020 to almost 210,000, pushing it well ahead of Birmingham which, for 2024, had an estimated population of 196,818.

Printable PDF available here.

However, despite its annexation bump, Census estimates show Mobile is still losing population, dropping by over 500 over the past year to an estimated 201,367. Birmingham and Montgomery are also continuing to see population declines. If current trends prevail, the three cities seem destined to continue jockeying back and forth. Currently, the population estimates have Birmingham in third, just in front of Montgomery, at 195,818.

The biggest surprise of the estimates was the small Jefferson County hamlet of Brookside, which had the highest population growth rate of any municipality in the state at 13.2%. The town added 158 residents, bringing its total to 1,357 residents. The town has a new neighborhood under construction that appears to be drawing new residents. Small towns and cities around Huntsville and in Shelby and St. Clair counties, outside of Birmingham, saw higher rates of growth in percentage terms, as did suburban cities around Montgomery. Small towns in Wiregrass surrounding Dothan and Enterprise also showed growth in percentage terms. And several Baldwin County communities ranked near the top in terms of percentage growth.

In terms of growth in numbers, the city of Huntsville is the state champ, drawing in another 4,174 new residents in 2024. The City of Madison, Huntsville’s suburban neighbor, added 3,007, ranking third in the state in numeric growth, and Athens, which also borders Huntsville, added 1,641, ranking fourth.

The City of Foley in Baldwin County grew by 3,012, ranking second in the state in numeric terms and tying for second in percentage growth at 12%. Foley’s fellow Baldwin County city of Loxley also grew 12%. Fairhope added 1,011 according to the estimates, ranking 8th in the state. Gulf Shores and Daphne also ranked in the state’s top 20 in the number of residents added.

Cross state rivals Tuscaloosa and Auburn continue to grow with Auburn adding 1,310 to edge out Tuscaloosa’s gain of 1,272 new residents. Auburn also has the secret weapon of Opelika next door, which added 1,313 new residents in 2024. That far outpaces Northport which grew by 280. Together, Tuscaloosa and Northport have about 150,00 residents compared to Auburn and Opelika’s 120,000.

The sharp drop in overdose deaths in 2024, both nationally and in Jefferson County, wasn’t an accident, according to members of the task force that works to combat the epidemic of drug-related deaths. Instead, it resulted from public policy changes and the geographically targeted deployment of resources.

Figure 1. Trends in Accidental Drug and Opioid Overdose Deaths in Jefferson County, 2012-2024. Source: Jefferson County Coroner’s Office data.

Printable PDF available here.

Thanks to those interventions, Jefferson County saw its first decline in overdose deaths since 2018. According to data from the Jefferson County Coroner’s Office, drug overdose deaths peaked in the county in 2023, with 483 accidental drug-related deaths. That is more than double the number of people who died by homicide (197) in Jefferson County in 2023. And it is more than triple the number of overdose deaths Jefferson County experienced in 2012.

Accidental overdose deaths from opioids began rising in the 1990s with the proliferation of prescription pills. That was followed by a resurgence in heroin use, which was in turn followed by the arrival of fentanyl, an extremely potent synthetic opioid. Beginning in 2020, traffic fentanyl surged into Jefferson County, resulting in a skyrocketing death toll from overdoses.

In Jefferson County, the arrival of fentanyl hit the Black community especially hard. Historically, White deaths from drug overdoses had greatly outnumbered Blacks. But by 2023, Black overdose deaths eclipsed whites.

Figure 2. Trends in Overdose Deaths By Race, Jefferson County. Source: Jefferson County Coroner’s Office data.

Health officials nationally and in Alabama have been working to catch up with the epidemic. In 2017, Governor Kay Ivey established the Alabama Opioid Overdose and Addiction Council, which pulled together the state departments of Public Health and Mental Health, local health providers, and a broad coalition of health care providers, drug treatment non-profits, and first responders. Much of the coordinating and data-gathering work has been funded by the Centers for Disease Control and Prevention and its Overdose Data to Action grant program. According to the CDC, factors driving the decline in overdose deaths include the “widespread, data-driven distribution of naloxone, which is a life-saving medication that can reverse an overdose; better access to evidence-based treatment for substance use disorders; shifts in the illegal drug supply; a resumption of prevention and response after pandemic-related disruptions; and continued investments in prevention and response programs like CDC’s flagship Overdose Data to Action (OD2A) program.”

OD2A funding to the Alabama Department of Public Health and the Jefferson County Department of Health has supported the creation of a data-gathering and sharing program that is providing real-time information about where overdoses are occurring. Emergency medical services providers and hospitals are reporting overdose encounters as they happen, allowing public health officials to zero in on communities and even specific neighborhoods where overdoses are on the rise. Jefferson County’s Health Department has worked with the Jefferson County Coroner’s Office, health care providers, and researchers at the University of Alabama at Birmingham and other local agencies to gather, analyze, and act on the data.

With the data mapped and analyzed, partners from the healthcare and treatment community, first responders, and public health officials routinely meet to discuss patterns and develop a concerted approach to overdose prevention. Figure 3 shows the concentration of overdose deaths by zip code, for the peak year, 2023. Using the slider and directional arrows, you can cycle through years of data to see the rising numbers and shifting geographic concentration.

Figure 3. Mapping Overdose Deaths By Zip Code, by Year. Source: Jefferson County Coroner’s Office data.

Policy changes identified and lobbied for by the Overdose and Addiction Council set the stage for the interventions that appear to be driving down deaths. First, in June of 2022, the Alabama Legislature decriminalized Fentanyl test strips. Before the change, the strips that allow the detection of potentially fatal levels of the drug were considered drug paraphernalia, discouraging their availability and use.  Then, in March 2023, naloxone was made an over-the-counter medication, increasing access to the overdose-reversing treatment and allowing for distribution in the community.

In the wake of the changes and with an influx of funding from both federal and state opioid settlement money, a coalition of groups pushed out resources and training to make the life-saving resources available. The Alabama Department of Mental Health significantly increased naloxone distribution, distributing 46,482 kits at Back-to-School events, End Addiction Walks, and conferences and trainings for treatment providers serving high-risk individuals, local and rural law enforcement officers, and first responders. JCDH has an online Naloxone education portal on its website, www.jcdh.org, and sends Naloxone Kits and Fentanyl Test Strips by mail at no cost to people who request the kits through the website. In addition, JCDH provides both products through dispensing boxes at its health centers and at distribution boxes in other community locations.  JCDH also partners with local EMS, police, fire and rescue, and some independent pharmacies to provide the supplies as well.

Using Jefferson County Coroner’s data, the Jefferson County Health Department identified particular neighborhoods where overdose deaths were on the rise. To counter the trend, the department found avenues to distribute free Naloxone and Fentanyl test strips. They also launched public information campaigns, advertising the dangers of the drugs and resources for treatment services, in some cases, displaying the messages on the public transit buses that served the affected areas.

Jefferson County Health Officer Dr. David Hicks applauded the cooperation and the progress but stressed the need to sustain the effort.

“As we continue to address the challenges posed by overdose deaths in our community, it is crucial to recognize the progress we have made and the work that still lies ahead,” Hicks said. “Our collective efforts in prevention, education, and treatment are making a difference, but we must remain vigilant and committed to saving lives. Together, we can build a healthier and safer Jefferson County.”

PARCA is involved in an effort to encourage similar efforts to share, analyze, and act on data. The Birmingham-Jefferson County Justice Governance Partnership brings together county government, municipalities, multiple law enforcement agencies, schools, health providers, non-profits, and community groups to develop a common understanding and cooperative solutions to community challenges. For more information, visit the BJC-JGP website.

Alabama relies on federal spending—Alabama residents do, too.

Alabama residents receive over $60 billion from the federal government—23% of all personal income.

These figures are based on a September 2024 report, The Great Transfer-mation: How American Communities Became Reliant on Income from Government, by the Economic Innovation Group (EIG).

These payments, known as transfer payments, include Social Security, Medicare, Medicaid, veteran’s benefits, unemployment, Pell Grants, and others.*  The report explains how an aging population and shrinking economic opportunities have shifted many communities into reliance on these transfer payments.

To put the $60 billion in perspective, Alabama’s four automakers generate $6.4 billion in total compensation, according to a report from Autos Drive America and the American International Automobile Dealers Association, as reported by al.com. That’s about one-tenth of the amount received from federal transfer payments.

In other words, a 10% reduction in these payments would have a similar economic effect on personal income as shuttering Alabama’s entire auto industry.

The impact is more pronounced in rural areas. The EIG report notes, “The transfer share of total personal income tends to run much higher in rural areas than in large population centers.” Looking at Alabama, this appears to be a consistent pattern, with most urban counties with low income from federal transfers and rural counties with higher percentages of income from federal transfers.

These trends evolved over decades, having a widespread economic impact that has grown steadily as the population ages.

Meanwhile, these programs are under increasing scrutiny in the current administration. Reducing them would have a profound impact on local communities.

Explore the chart below to see the amount of transfer payments in each county and the share of total income those payments represent. 

*Some of these payments, like Social Security, are made directly to individuals. Other payments, such as Medicare and Medicaid, are made to providers to pay for services on behalf of individuals.

For details on the calculation of personal income and transfer payments, see this post on Github:
https://github.com/EIG-Research/EIG-Great-Transfer-Mation.

PARCA is re-examining Alabama’s Constitution in light of the 2022 passage of a revised and reorganized version of the state’s fundamental law.

The approval of the Constitution of 2022 was the culmination of decades of advocacy. Some important changes were achieved, including a substantial reorganization and the removal of racist and unconstitutional provisions central to the spirit of the state’s 1901 Constitution.

And yet, the Alabama Constitution of 2022 maintains the fundamental shackles on government from the 1901 Constitution. Embedded in the Constitution is a tax system that is inadequate, inefficient, and inequitable.

Since the early 1990s, PARCA’s How Alabama Taxes Compare analysis has found that Alabama state and local governments consistently collect less per capita in taxes than almost all other states. After occupying the bottom spot for most of the past 30 years, Alabama has traded back and forth with Tennessee for last place since 2018. This year, Tennessee’s per capita collections came in $4 lower than Alabama’s, resulting in a rank for Alabama of No. 49.

Alabama continues to collect less per capita in state and local property taxes than any other state. Property taxes are strictly limited by provisions in the state constitution.

Low taxes create some advantages. Low property taxes on land and homes are attractive in some regards, decreasing the cost of homeownership and shielding rural land and farms from development pressure. Lower taxes also can be attractive to businesses and individuals moving to the state.

However, low property taxes come at a cost, creating a greater reliance on other taxes, mainly sales taxes. Those sales taxes put a particular burden on low-income Alabamians. Low tax collections also mean that Alabama state and local governments have less to invest in services such as education, health, public safety, and the justice system. That is in a state with high poverty rates, low educational attainment, poorer health outcomes, and higher rates of violent crime than most other states. In turn, high poverty and less economic activity mean less wealth to tax and, thus, lower tax collections.

Inadequate

In contrast to other states, where the state legislature and local governments generally have the power to adjust tax rates, Alabama’s constitution sets limits, rates, and procedural restraints on state and local taxes. That makes taxes hard to raise, adjust, or rebalance. In the end, Alabama’s lower base of wealth and structural and cultural resistance to taxes mean that governments here have less to spend on providing vital public services, placing Alabama in the bottom ten states in most spending categories.

Continue reading the full report here: The Alabama Constitution’s Impact on Taxes and Spending

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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. Other reports in the series include The Government Closest to the People? The Statehouse, the Courthouse and City Hall and How Alabama Democracy Compares.

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.