By Chris Peeks January 15, 2022
The Alabama legislature just passed the largest general fund budget in states history to the tune of 2.4 billion dollars, but what is it, what is the source of it's revenue, and what does fund?
Well according to the budget.alabama.gov/state_general_fund_description/ The State General Fund (GF) is one of six major operating funds in the State of Alabama. Revenues credited to the GF are used for the ordinary expenses of the executive, legislative, and judicial departments of state government, for other functions of government, for debt service on certain general obligation bond issues, and for capital outlay. Now when you figure that out let me know. A blind, three fingered monkey could solve a Chinese math problem easier.
So how does it get funded? Well, The General Fund is largely funded through insurance premium taxes, sales and use taxes, interest on the Alabama Trust Fund, utility taxes and other sources. Wait, what? Interest on the Alabama Trust Fund? That's a fund created from off shore oil but that's a subject for another time. What other sources? Those are not named.
Where is all this money going? Stay tuned. In part two of this series a pie graph will illustrate where this money is allocated. Lawmakers are warning of a financial cliff. That may be true but there's a simple way to avoid this impending fall. Stop spending.
Reporter and columnist for Alabama Political Contributor