Mapping Alabama’s Public-Nonprofit Partnership

Mapping Alabama’s Public–Nonprofit Partnership examines how Alabama’s nonprofit sector functions as an essential partner in the delivery of public services. The report is a collaboration between Alabama Association of Nonprofits and the Community Foundation of Greater Birmingham, with research conducted by PARCA. Alabama is home to 5,996 active 501(c)(3) organizations that file regular tax returns […]

Lower Fines and Fees Raise MORE Revenue than Higher Fines and Fees, Study Finds

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 […]

State Tax Revenues Cool in FY 2025

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 […]

New Data Shows Progress on Third Grade Reading Continues

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, […]

Alabama’s $60 Billion Question: Potential Reductions in Payments?

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 […]

Data-informed Decision Making Helps Drive Down Overdose Deaths in 2024

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 […]

Alabama’s $60 Billion Question

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, […]

The Alabama Constitution’s Impact on Taxes and Spending

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 […]