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 […]
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, […]
How Alabama Taxes Compare, 2024
Each year, PARCA uses data from the U.S. Census Bureau’s Annual Survey of State and Local Finances to compare Alabama’s tax collections to the other 50 states. The most recent data comes from the 2022 Fiscal Year. Key Findings from this year’s report, How Alabama Taxes Compare, 2024: Alabama’s rankings in per capita state and […]
A Final Upside Surprise, Signs of Slower Growth Ahead, Alabama Tax Collections, 2024
Alabama tax revenues continue to trend toward more normal patterns after a wild post-pandemic ride. The Education Trust Fund, powered by state income and sales taxes, grew modestly, collecting 2.2% more than the previous year. Meanwhile, growth in the General Fund cooled but still posted an unusually high increase of 7%, boosted by high interest […]
How Alabama Taxes Compare, 2023
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, […]
Alabama State Tax Collections, 2023
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 […]
Another Banner Year in Alabama Tax Collections, but Inflation Will Take a Bite
Alabama tax collections grew at an eye-popping rate in the 2022 fiscal year, with particularly strong growth in income tax collections (up 27% over 2021) and online sales (up more than 20%). The strong collections produced surpluses in both primary state accounts, the Education Trust Fund (ETF) and the General Fund (GF). Printable PDF available […]
Another Year of Strong Growth in Alabama Tax Collections
The thriving economy produced another year of surging tax collections for Alabama’s General Fund and Education Trust Fund (ETF), the two primary accounts that provide state funding for government operations. The better-than-projected results put the state in a good position to meet current obligations and weather a downturn should it arise. It also appears that […]
Surging economy boosts Alabama 2018 General Fund and ETF Revenues
Thanks to a booming economy, Alabama saw significantly increased revenue to both the General Fund and the Education Trust Fund (ETF) in 2018, with collections far exceeding expectations. By the September 30 end of the 2018 fiscal year, collections for the state General Fund were up 4 percent or $76 million over FY2017, bringing in […]
What is the Budget Reform Task Force Studying?
The Alabama Legislature’s Joint Legislative Task Force on Budget Reform met for a third time this week in Montgomery continuing its search for solutions to Alabama’s perennial problems with crafting budgets. The bipartisan panel of state senators and representatives has now met three times and each time has made sure to clarify what they are and […]