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Stimulus to help budgets, director says
Published Friday, February 27, 2009
Photo by Brent Maze
Lion cup: State Finance Director Jim Main receives a coffee cup from Lions Club member Bobby Martin after yesterday’s meeting of the Clanton Lions Club.
The money Alabama will receive from President Barack Obama’s economic recovery package will help make up for revenue deficits in the state’s budget, according State Finance Director Jim Main.
Alabama’s education budget will receive almost $1 billion over the next two years while the general fund budget especially in Medicaid will get a big boost. Main said that should make the state survive.
“Our economic situation isn’t as bad as our surrounding states,” Main said during yesterday’s Lions Club meeting. “Other states are having to lay off thousands of people. Some are even thinking about raising taxes, but we shouldn’t have to do that.”
In the education budget, $600 million for teacher retention will be divided 70 percent to 30 percent for K-12 and four-year schools respectively. A total of $200 million will go to special education while another $200 million will be used for Title I.
Main said the stimulus package money should help offset proration, which was offset some by the Education Rainy Day Fund. What caused the shortfall in education was the declining state economy.
Education is funded mostly by sales and income taxes. Thus, there is less revenue since more people are unemployed and consumers aren’t spending as much money.
“Income and sales taxes just about fell off a cliff,” Main said.
One aspect of the package that should help the general fund is help with Medicaid. Unlike Medicare, Medicaid was an unfunded mandate passed by Congress, but Main said the state is finally going to get money to help pay that bill. About $800 million over the next 27 months is coming to the state to pay a large portion of the state’s Medicaid bill.
“We’re finally going to get some help with Medicaid,” Main said.
Although the economy is struggling, not every sector of sales is reporting losses. Main said one area did see an increase — whiskey sales.
“It’s really up,” he said.
— Brent Maze can be reached at brent.maze@clantonadvertiser.com.
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Comments
Posted by Rickster263 (anonymous) on February 28, 2009 at 12:08 a.m. (Suggest removal)
what about 2year schools
Posted by TheDude (Michael Wells) on February 28, 2009 at 5:43 a.m. (Suggest removal)
"Main said one area did see an increase — whiskey sales."
If you want to speak negativity, that's a good place to start. It's a shame, but a lot of people are turning to alcohol, or more of it, to "help" cushion the blow of this recession. It's a no win situation and a dead end street. The formula for making it through tough times is God, family & friends, and the will to keep moving forward.
Posted by nonexpert (anonymous) on February 28, 2009 at 7:40 a.m. (Suggest removal)
Right on target, Dude.
Posted by romans1 (anonymous) on February 28, 2009 at 1:16 p.m. (Suggest removal)
I wonder where all this money will come from.
it is not just a matter to print money.
Posted by TheDude (Michael Wells) on February 28, 2009 at 2:42 p.m. (Suggest removal)
I don't know kw, "whiskey" didn't look like a stutter to me. I understood Mains statement to say there is an increase in whiskey sales, although the economy is struggling. I don't believe there is a "hidden" message in that. DOH!
Posted by getbizi (anonymous) on February 28, 2009 at 4 p.m. (Suggest removal)
Sure, flood the economy with money(INFLATION) that we are stealing from our posterity who will be paying it back for years.
Posted by gonefishen (anonymous) on February 28, 2009 at 6:20 p.m. (Suggest removal)
GEEEEZZZZZZ, mention alcohol in this city and county and out comes the Bible patrol.
Posted by November162000 (anonymous) on February 28, 2009 at 7:02 p.m. (Suggest removal)
I didn't need a recession to make me drink Miller Lite. It tastes good in good times or bad! I'm doing my part to help the economy.
Posted by November162000 (anonymous) on February 28, 2009 at 7:52 p.m. (Suggest removal)
That must be where the headaches come from. :)
Posted by gonefishen (anonymous) on February 28, 2009 at 8:12 p.m. (Suggest removal)
Well put KW. stimulus this, stimulus that - think I'll have a drink. Hey KW hows the snow on Mt Charleston?
Posted by November162000 (anonymous) on February 28, 2009 at 8:15 p.m. (Suggest removal)
I don't mind headaches. That's what BC powders are for.
Posted by gonefishen (anonymous) on February 28, 2009 at 8:38 p.m. (Suggest removal)
Thats right. Best place in the valley !!! Best view is on Sunrise Mountain at sunset. Spent two years across the street from the track.
Posted by gonefishen (anonymous) on February 28, 2009 at 8:59 p.m. (Suggest removal)
The team in Red, White and Blue are tops. That was my last assignment in the AF Team 92-93.
Posted by gonefishen (anonymous) on February 28, 2009 at 9:39 p.m. (Suggest removal)
No doubt. They are in the training season right now. They will start the show season later this month. Missed the F- 22, it was just a prototype when I got out. I thought the YF-23 was a little bit better flier, but the AF stayed with the F-15 look. And Yes, I Always enjoyed a red flag TDY. What happens in Vegas, Stays in Vegas. HA HA HA
Posted by November162000 (anonymous) on February 28, 2009 at 9:44 p.m. (Suggest removal)
I made two Red Flags and a Gunsmoke TDY myself quite a while back. Always had a good time at Nellis.
Posted by gonefishen (anonymous) on February 28, 2009 at 9:57 p.m. (Suggest removal)
HA HA HA Never made Gunsmoke. Stationed at MacDill, we did not get the gunnery TDY's. We always went to Red and Green Flag. Best TDY - Cope Thunder Clark AFB, PI
Posted by gonefishen (anonymous) on February 28, 2009 at 11:27 p.m. (Suggest removal)
Went TDY and on vacation there while stationed At Osan AFB The Rok.
Posted by November162000 (anonymous) on March 1, 2009 at 10:55 a.m. (Suggest removal)
Korat AB, Thailand was pretty interesting.
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