On the Brink: Alabama's Looming Budget Shortfalls

Public services in Alabama have weathered the economic storm better than in most other states, but they're far from invincible. Rainy day funds and federal relief money from the American Recovery and Reinvestment Act (ARRA) have helped the state avoid massive budget cuts thus far. But with the economy still slumping and the ARRA money running out, Alabama soon could find itself facing the same kind of deep budget cuts that other states are making.

This fact sheet examines the budgetary consequences of structural problems in the state's tax system.

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