How Alabama Taxes Compare, 2025
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 with those of all 50 states. The most recent data are from fiscal year 2023.
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: 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 […]
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 […]
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 […]
Alabama Grows through Domestic and International Migration
Alabama’s population increased by more than 40,000, between July 2023 and July 2024, reaching a total of 5,157,699, according to estimates issued in December by the U.S. Census Bureau. Alabama ranked 22nd in percentage population increase and No. 24 in numeric population change. Printable PDF available here. The number of new Alabama residents arriving from […]
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 […]
Revisiting PARCA’s Annual Forum
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 […]
Alabama Public Opinion Survey
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: PARCA’s annual public opinion survey was conducted between October […]