In recent years, Alabamians’ rate of participation in elections has lagged behind other states as electoral competition has decreased and as the state has failed to adopt measures other states have that increase the convenience and access to voting. According to political scientists, Alabama “cost of voting” is among the highest in the country, ranking No. 46 among the 50 states. Meanwhile, most other states now provide measures like early in-person voting and no-excuse absentee voting, measures that correlate with increased participation.

A new report by PARCA, How Alabama Democracy Compares, provides a detailed comparison of Alabama’s approach to voter registration, access to ballots, and democratic participation with those of other states.

This report is an installment of PARCA’s yearlong series on the unfinished work of reforming Alabama’s Constitution. This project is supported, in part, by the Alabama Citizens for Constitutional Reform (ACCR) Foundation.

Alabama has a history of limiting participation in the democratic process. The state’s 1901 Constitution disenfranchised blacks and poor whites for more than half a century, until, inspired by the Civil Rights Movement, the U.S. Congress and federal court swept away discriminatory barriers to voting.

In 2022, Alabama adopted a revised and reorganized state constitution, deleting the last written relics of the original discriminatory language on voting rights. However, the report makes clear that Alabama has not kept pace with other states’ adoption of measures that make it easier and more convenient to register and vote.

In addition to the report, PARCA’s data dashboard includes interactive versions of the charts, with information drawn from the National Conference of State Legislatures, the U.S. Census Bureau, and the University of Florida Election Lab.

More Alabama high school students graduated ready for college or careers in 2023, according to data recently released by the Alabama Department of Education.

Printable PDF available here.

Students in the Class of 2023 made gains on all measures, bouncing back from the setbacks suffered during the pandemic and closing the gap between the percentage of students receiving a diploma and the percentage of students meeting the definition of college and career readiness: 91% of seniors graduated, 84% of seniors were college and career ready. That’s the highest readiness rate ever recorded.

The results show progress toward a goal established by the state Legislature and adopted by the State Board of Education that all students demonstrate college and career readiness in order to graduate.

More seniors graduated in 2023, even though this cohort of seniors was smaller than the Class of 2022. Alabama’s college and career readiness rate (CCR) increased by five percentage points over the levels recorded in 2022.

In percentage terms, student readiness increased on every measure. However, college readiness, as measured by scores on the ACT, is still lower for the Class of 2023 than it was for graduating classes before the pandemic.

Still, improved performance on the ACT accounted for the biggest gains in the number of students reaching the CCR benchmark. Follow this link for PARCA’s analysis of ACT Scores for the Class of 2023.

Close behind were big gains in the number of students earning the CCR by successfully completing career-oriented courses taught at high schools, vocational centers, or community colleges, courses known as career technical education. Also, the number and percentage of students earning a career-ready score on ACT’s WorkKeys test increased. A deeper dive into 2023 WorkKeys results is available here. The number of students earning credit through dual enrollment courses at community colleges or universities also increased.

Alabama’s high school graduation rate is among the highest in the country, though that is a relatively recent phenomenon. In 2012, Alabama’s high school graduation rate was 75%, trailing the national average of 80%. By 2018, Alabama’s graduation rate had climbed to 90%, exceeding the U.S. rate of 85%. In 2022, the most recent available year for comparison, Alabama’s graduation rate was tied with the U.S. at 88%.

With the sharp rise in the graduation rate came concerns that some students were being awarded diplomas but weren’t prepared for the next step. In 2018, despite that 90% graduation rate, Alabama’s college and career readiness rate was still at 75%.

Pressure to close that gap between graduation and college and career readiness has been building. Last year, the Legislature passed a requirement that by 2026, all students, in order to graduate, must have met one of the Alabama Board of Education’s definitions of college and career readiness. The Legislature subsequently provided $25 million in FY 2024 to support schools in expanding opportunities for college and career readiness. Last year, Gov. Ivey’s Commission on Teaching and Learning recommended allocating $25 million in ongoing support for the grant program.

Students can demonstrate that they are ready for college or the workforce in several ways:

1. Achieve a benchmark score in one subject on the ACT. Benchmarking on the ACT indicates that a student is likely to succeed in a college class in that subject.
2. Earn a Silver Certification or above on the ACT WorkKeys test. WorkKeys is a test of knowledge, communication, and comprehension as they are applied in the workplace. Scoring Silver or above indicates a student is ready to enter the workforce in most career fields.
3. Earn college credit through Advanced Placement or International Baccalaureate courses taken in high school.
4. Earn college credit through dual enrollment. A high school student can complete courses at a community college or university while in high school. These can be academic or career-related courses.
5. Complete a progression of Career Technical Education courses in a field.
6. Earn an Industry Recognized Credential as part of a career technical education course.
7. Participate successfully in an In-School Youth Apprenticeship Program approved by the Alabama Office of Apprenticeship.
8. Successfully enlist in the military.

While progress is being made, gaps remain.

In 29 school systems, all graduates were college and/or career-ready. In 20 of those systems, more seniors were college and career-ready than graduated.

On the other hand, in six school systems, the CCR rate was 20 percentage points lower than the graduation rate, indicating that 20% or more of the students who received diplomas hadn’t demonstrated readiness for college or the workforce.

The gaps in graduation rates between subgroups within the school population are relatively narrow: 93% of White students graduate compared to 89% of Black Students and 87% of Hispanic students. Gaps are wider when it comes to college and career readiness: 89% of White students graduate college and career-ready, but only 76% of Blacks and 79% of Hispanics do. Looking at the individual CCR measures, the gap between Blacks and Whites is highest in the percentage of students benchmarking on the ACT. It’s narrowest in terms of the percentage of students earning credit through career technical education. In that category, Black and Hispanic students have a higher CCR rate than Whites.

Using the tabs and menus in the visualization, you can explore the results for individual schools and school systems.

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Please consider supporting PARCA. A contribution to PARCA is an investment in our state’s future. As a 501(c)3, charitable contributions allow PARCA to maintain its independence and ability to provide non-partisan support to communities throughout the state. All donations are tax deductible.

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.

– 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!

The Huntsville area and Baldwin County continue to add more new residents, while growth in Shelby County and St. Clair County helped the Birmingham Metro Area return to positive growth after two years of population loss. That’s according to new estimates of population change in U.S. counties and metro areas published by the U.S. Census Bureau. The new estimates identify population totals and components of population change as of July 1, 2023.

Printable PDF available here

In addition to the growth in Shelby and St. Clair, Birmingham’s metro population got a boost from an accounting change. In the 2022 estimates, the Birmingham-Hoover MSA ranked No. 50 in population among metropolitan areas and seemed destined to fall out of the top 50 metro areas.

However, in 2023, Walker County was re-added to the Birmingham metro, which boosted the Birmingham MSA population by almost 65,000 and allowed it to climb to the 47th most populous metropolitan area.

Metro areas are clusters of counties where a significant percentage of the population moves back and forth across county lines for work and commerce. According to the most recent data, about 26% of Walker County’s resident workforce commuted to work in Jefferson County or other counties in the MSA. That’s above the 25% threshold that triggers inclusion in the MSA. Walker was historically part of the MSA.

Consisting of 7 counties with a population of 1.2 million, Birmingham is the state’s largest metro area. Huntsville’s MSA, comprised of Limestone and Madison Counties, is second with 527,254.

Trends

As observed in the PARCA’s analysis of state-level estimates released earlier this year, the decline in deaths related to the Covid-19 pandemic improved baseline conditions for population growth. In the 2021 and 2022 estimates, deaths far outnumbered births. In 2023, the number of deaths in Alabama continued to drop, though, due to an aging population and lower birth rate, deaths still outnumbered births.

International immigration to Alabama remains low, but domestic immigration continues to accelerate, according to the estimates. Alabama netted 30,744 new residents through domestic in-migration in 2023, building on an upward trend.

Domestic in-migration is powering population growth in hot spots like Madison, Limestone County, and Baldwin, as well as in suburban counties around Birmingham and Montgomery. In the latter cases, the central county is losing population while suburban counties gain. Across Alabama, 38 of the 67 counties are seeing more people moving into the county than moving out.

Calhoun and Etowah counties, home to Anniston and Gadsden, respectively, are showing population growth after years of decline. Mobile County also grew, breaking a streak of decline. In fact, all of the state’s metro areas posted population gains except for the Columbus, GA—Metro Area, which includes Phenix City and Russell County.

Rural counties, particularly in Alabama’s Black Belt, continued to lose population. The biggest drop in percentage terms was Bullock County, where the population declined by 2.4%, or 246 residents, according to the estimates. Hale County was the exception to the Black Belt trend. Hale added 289 residents, which amounts to a 2% population increase in a year.

In numeric terms, Jefferson County lost the most people, with a decline of 2,186. That is less of a loss than in 2021 or 2022. Deaths were down, births were up, resulting in a positive natural change of 394. International migration added 818, a slight increase over the year before. However, domestic migration remained a drain, with 3,417 more people moving out of the county than moved in, according to estimates.

Montgomery County also continues to see significant domestic outmigration, but a slight rise in international migration and births and a drop in deaths helped offset the outmigration. Montgomery County’s population has decreased by 1,321. Autauga, Elmore, Chilton, and Lee counties grew.

Mobile County grew with a smaller net decline in domestic migration, a slight increase in international migration, and a return to positive natural change (more births than deaths). According to the estimates, Mobile County posted a net addition of 242 residents.

Next-door neighbor Baldwin County added 6,976 people, mostly because of people moving to the coastal county. In percentage terms, the Baldwin County metro area, officially the Daphne-Fairhope-Foley MSA, grew faster than any of the state’s other metro areas.

However, the Huntsville MSA netted the most new residents, with Madison County adding 8,995 and Limestone County adding 3,786. Adjacent North Alabama counties like Lauderdale, Morgan, Marshall, Jackson, Lawrence, and Cullman grew.

The Dothan-area Wiregrass counties also saw population growth, as did counties on the Alabama-Georgia Border like Cleburne, Randolph, and Cherokee.  

Most counties bordering Mississippi lost population. The median age in rural counties tends to be higher, which correlates with higher death rates.

Those counties also tend to experience more people moving out than moving in.

Use the tabs and menus to explore the estimates for counties and metros you are interested in. If you want to see how Alabama compares with the rest of the United States, visualizations of the population estimates and change are available for counties and metros across the country.

Similar stats are available for metro areas as well. Use the controls to zoom in on areas of interest.

Housing inventory continues to fall, and prices continue to rise. Pressures on the housing market ripple across the economy but may have the most significant impact on middle-income workers – those earning between 80% and 120% of the median income. As housing prices increase, middle-income workers often struggle to live where they work. The shortage of affordable housing complicates hiring and threatens our economic health and community vitality. 

See links to Forum resources below

For example, while median income in Alabama is $60,000. The median home sale price in January was $263,000, one of the largest gaps in our history. Likewise, the Alabama median income supports rent of $1,240, but average rent for a three-bedroom apartment in Alabama is $1,500.

These challenges were the focus of PARCA’s 2024 Annual Forum: Housing Alabama’s Workforce.

The March 7 event welcomed over 300 state and local leaders gathered at the Harbert Center on March 8 to consider these issues and hear an address from Governor Kay Ivey.

Guiding the discussion were Lisa McCarroll of Navigate Housing Partners, Amanda Loper of David Baker Architects, Terry Harbin of Affordable Homes Gulf Coast, Mary Ellen Judah of Neighborhood Concepts, Cory Stallworth of the City of Birmingham, and James Stockard from the Harvard University School of Design.

The speakers explored the housing challenges facing the state’s middle-income workers—those vital to the economy and well-functioning communities, such as teachers, nurses, and first responders.

Lisa McCarroll made the point well, noting that some 40% of Alabamians may qualify for some type of subsidized housing. Another 44% do not qualify, but earn far less than necessary to afford market rate housing.

Amanda Loper offered examples of creative housing around the county that is both affordable and builds community.

Terry Harbin, a for profit developer Mobile, Mary Ellen Judah, Executive Director of the Huntsville-based nonprofit, Neighborhood Concepts, Cory Stallworth of the City of Birmingham, shared their differing approaches to addressing the shortage of workforce housing.

They highlighted the fact that federal tax credits for developing affordable housing in Alabama are restricted to one per county. And currently, Alabama has no state credit, though one has been introduced in the Legislature this session.

Jim Stockard challenged the audience with a series of questions to consider, including:

What are the types of publicly owned sites that might lend themselves to housing construction in Alabama cities?

Where are the existing market rate apartment buildings in your cities that might be re-purposed as mixed income complexes that could serve the workforce in their cities

What should the state allow or even  mandate in terms of local zoning ordinances?

What level of assistance might cities or the state be willing to provide to assist households in becoming homeowners? 

Encouraged…

Attendees noted they were encouraged to know there are people in Alabama working to address these concerns and that there are actually new things that the state can do.

More than 80% of surveyed attendees reported no, slight, or only moderate knowledge of housing policy before the event–and 90% of those same attendees reported the event improved their knowledge of the topic.

Governor Albert Brewer Memorial Lunch

Governor Ivey addressed the audience as part of the Governor Albert Brewer Memorial Lunch

Forum Resources

Annual Forum Program, including housing policy glossary, resources, and data

Why Housing? Ryan Hankins

What is Workforce Housing? Lisa McCarroll

Innovations Around the Country Amanda Loper

Opportunities in Alabama Panel

What is Possible? James Stockard

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.

Statewide Amendment 1

Proposing an amendment to the Constitution of Alabama of 2022, to amend Section 71.01 authorizing the Legislature to sign and transmit local laws or constitutional amendments before the transmission of basic appropriations.

Proposed by Act 2023-562 (Senate Bill 3, 2023 Second Special Session)
Bill Sponsor: Senator Chambliss

When voters go to the polls on Tuesday, March 5, they won’t just be voting in the Democratic or Republican primaries; they’ll also vote on an amendment to the Alabama Constitution of 2022.

Amendment 1 proposes simplifying the process of moving resolutions and local legislation through the Legislature before the state budgets are passed.

Printable PDF available here

If the amendment passes, a 3/5 vote of the Legislature would no longer be required before considering the passage of a resolution, local legislation, or a local constitutional amendment.

Proposed Amendment 1 is actually a tweak of the amendment championed by Gov. Fob James, which was ratified back in 1984. The amendment was aimed at focusing the Legislature on its most important job: passing the education and general fund budgets. It was designed to make it hard to bring up other legislation before the budgets passed.

Currently, until the budgets pass, every piece of Legislation requires two votes: one for what’s called a Budget Isolation Resolution, which requires three-fifths support to allow consideration, and a second vote on the piece of legislation itself.

While Amendment 1 will ease the process for resolutions and local legislation, the higher vote threshold (required prior to the passage of the budgets) remains in place for general laws, laws that apply statewide. Local constitutional amendments will still require a three-fifths vote to pass. They just won’t require two votes, one for a BIR and a second vote on the measure.

The original purpose of the 1984 amendment was to avoid last-minute scrambles to pass budgets. That didn’t happen. Budgets still tend to be worked on until the waning days of the session. Budgets are complicated and involve a lot of give and take. They are the culmination of a process, but they also are not all-consuming. Legislative action on other matters doesn’t necessarily get in the way of making progress on the budget.

In some circumstances, the BIR procedure does provide a mechanism for blocking or delaying consideration of controversial legislation. If more than one-third of members of either the House or Senate oppose a bill, they can band together and prevent consideration.

That blocking mechanism was more in play when the Legislature was more evenly divided along party or interest group lines. It is less relevant now that the Republicans hold a super-majority in both houses. The BIR can still come into play on bills that cut across party lines, but, for the most part, nowadays, it is simply an extra step in the legislative process.

The proposed amendment’s focus on local legislation stems, in part, from a series of lawsuits that questioned the validity of some local laws based on BIR-related votes. The Constitution requires “three-fifths of a quorum present” to vote on the BIRs. But Alabama House of Representatives rules and practice allowed BIRs to pass if three-fifths of those voting voted yes. Even though the legislative and constitutional fixes have reaffirmed previously passed legislation, proponents want to avoid future challenges by exempting local legislation.

The amendment doesn’t address the more fundamental issue of whether the state Legislature should be voting on local legislation at all. In other states, local governments have more power to conduct their own affairs. In those state the Legislature focuses on statewide policy. In Alabama, in 2023, 30% of the bills passed by the State Legislature applied to a specific county or locality, according to a PARCA analysis of legislative records. Further, the bulk of the Alabama Constitution is made up of amendments that apply to specific counties and localities. That inclusion of local matters in the state constitution helps make Alabama’s Constitution by far the longest state constitution in the U.S.

Another state constitutional amendment is on the ballot March 5, but only in Dale County. Voters there will decide whether mayors in the county are allowed to participate in the state’s retirement system.

In 2022, Alabama adopted a “new” constitution, an improved and reorganized version of the Alabama Constitution of 1901. The vote was the culmination of decades of advocacy and was rightly celebrated.

The new Constitution removed the racist and unconstitutional provisions that were relics of the White Supremacist 1901 Constitution.

Printable PDF version available here

It reorganized the document, moving relevant statewide amendments into their proper place in the main body of the Constitution, removing duplicative and repealed provisions, and organizing local constitutional amendments by county to the end of the document.

But is the work finished?

Is Alabama free from the shackles of the anti-democratic and pre-modern Constitution of 1901? Or are fundamental flaws still embedded in our Constitutional DNA?

Despite the new Constitution, we remain governed by the basic operating system established by the 1901 Constitution. And that operating system was recognized as obsolete and an obstacle almost as soon as it was adopted.

Alabama Governor Emmet O’Neal, in a 1914 address, observed, “No real or permanent progress is possible in Alabama until the present fundamental law is thoroughly revised and adapted to meet present conditions.”

Have those revisions been made? In this election year, the Public Affairs Research Council of Alabama (PARCA) will examine that question.

PARCA was founded to provide objective, non-ideological research to citizens and leaders, supporting the improvement of state and local governments. PARCA research is intended to help governments function efficiently and effectively in hopes that those governments provide equal treatment and opportunity to the people of Alabama.

As the Constitution is fundamental to the functioning of state and local governments, it has been a central focus of PARCA’s work.

Over the next year, PARCA will issue 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.

The mission of ACCR is to educate and advocate for an Alabama Constitution that protects and enhances life for all Alabama citizens. To that end, ACCR has two branches:

1. A foundation that focuses on educating the public about the Alabama Constitution and underlying issues that affect our citizens.
2. A nonprofit advocacy organization that works to improve the Constitution.

The foundation is providing support for PARCA’s re-examination of the Alabama Constitution. ACCR’s advocacy organization will use the research to recalibrate its ongoing work on Constitutional reform.

Alabama’s Constitution of 2022 is still, by far, the longest state constitution in the United States, three times as long as the next longest state constitution. Though now better organized, it is still complex and contradictory.

It is not a basic template and statement of principles, which should be the ideal. It more closely resembles a law code, with almost 500 pages worth of amendments that relate to localities rather than to the state as a whole.

Alabama voters have finally removed the most noxious provisions of the Constitution of 1901, which was explicitly formulated to strip the political rights of Black Alabamians, but which also disenfranchised poor whites. Gone are provisions that mandated segregated schools. Deleted are provisions allowing for involuntary servitude for those convicted of crimes. The Constitution now recognizes that females have a right to vote.

But other aspects of the Constitution remain unchanged. Power is still concentrated in the hands of the state Legislature in Montgomery. Should that power be more dispersed? Should citizens be able to initiate change and call for referendums, rights available to citizens in other states? Should more decisions be made by local communities rather than by legislators in Montgomery?

Alabama still collects less in state and local taxes than virtually any other state through a constitutionally-embedded tax system that falls disproportionately on poor Alabamians. At the same time, low taxes, particularly on property, reflect voters’ preferences. Are there changes voters would support that could increase adequacy and fairness?

Thanks to the Constitution, Alabama still earmarks more revenue than any other state. That limits legislators’ ability to shift revenue toward pressing priorities. On the other hand, voters like earmarks and don’t necessarily trust lawmakers. Is there a way to change the culture of distrust with changes that increase both flexibility and accountability? 

Does the Constitution inhibit economic development and mass transportation? Does it promote public safety and justice? Does it adequately promote the general welfare, health, and education?

Alabama’s Constitution should reflect our values. It should promote engagement in our democracy and free and fair elections. It should provide for equality of opportunity and equal treatment under the law. With the adoption of the Constitution of 2022, the people of the state took a step forward, removing obvious anti-democratic and discriminatory provisions left from a darker past.

But does the Constitution reflect the needs and aspirations of Alabamians today? Does it provide us with the outlines of a modern, efficient, effective, and responsive government? Is there still a need for Constitutional reform? We will explore those questions in the months to come. 

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.

Increases, Decreases, and Trends in the Revenue Supporting State Government

The 2023 fiscal year, which ended on September 30, was a mixed year for Alabama revenue collections.

After several years of strong growth, Alabama tax collections turned in a mixed performance in 2023, with the General Fund (GF), which supports non-education spending, up substantially. Education Trust Fund (ETF) revenues, meanwhile, were basically flat after increasing by record levels in 2022.

GF collections increased 16.6%, led by a steep rise in revenue from interest on state deposits. The ETF barely budged, up 0.11%, with sales tax revenue increasing but income tax revenue down. That’s according to reports released last month by the state.

PARCA’s interactive charts allow you to explore trends in the various revenue sources that support the operations of state government in Alabama. For a detailed review of FY 2023 collections, see our complete report in a printable version. Or read an embedded copy of the report below.