Possible Impacts Resize

Alabama Policy Institute Releases Report on Possible Impacts from the Coronavirus on State Budgets, Healthcare, and more

Birmingham, Ala. – Today (April 2, 2020) the Alabama Policy Institute released a report entitled “COVID-19 in Alabama: A Primer on the Impacts of the Coronavirus on the State.” The report details the possible unprecedented impacts of the coronavirus on the health, social well-being, economy, and state government of Alabama.

According to the report, depending on the severity of the economic impact on the state, Alabama’s next fiscal year General Fund budget might need to be cut by nearly $400 million, while the Education Trust Fund could see a shortfall of as much as $1.3 billion. Poor economics are likely, conclude the authors of the report, to put pressure on the state to also cover any losses sustained by the Retirement Systems of Alabama.

The report highlights the fact that, though many Alabamians are being furloughed or even laid-off, state workers won’t feel the impact of an economic downturn at least until the true extent of coming budget shortfalls is known. If the economy falters long-term as a result of the coronavirus, state agencies may face proration and potential layoffs due to Alabama’s balanced budget requirement. Additionally, the report considers impacts on families, religious organizations, entertainment and recreation, and society at large.

“There is no question that COVID-19 is going to make an impact on how our state does business,” commented report co-author Justin Bogie, API’s Senior Director of Fiscal Policy. “We know that the state is going to see a contraction in income which is going to affect every aspect of life in our state; all we don’t know at this point is just how bad it is going to be.”

The full report can be accessed at alabamapolicy.org/research/covid19/.

Alabama Policy Institute is an independent, nonpartisan, nonprofit research and educational organization dedicated to free markets, limited government, and strong families; learn more at alabamapolicy.org

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