Alabama’s budget increased cumulatively more than the rate of population growth plus inflation in state funds and all funds from 2014-23, meaning that taxes are higher than the average taxpayer can afford.
- The 2023 state funds budget is $3.0 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the state funds budget grew by more than population growth plus inflation for each of the last ten years, the state spent and taxed $13.5 billion too much.
- The 2023 all funds budget is $6.8 billion higher than it would have been had spending grown at the rate of population growth plus inflation over the past decade.
- Because the all funds budget grew by more than population growth plus inflation for each year over the past decade, the state spent and taxed $27.7 billion too much.
State Funds Budget Data
- Estimated FY 2024 Only State Funds Budget ($ Billions): $22.90
- FY 2025 Only State Funds Budget Limit ($ Billions): $24.24
- FY 2025 Only State Funds Budget Limit Growth ($ Billions): 5.86%
- Cost per person of state funds budgeting more than pop+inf over the last decade in 2023 budget: $586
- Cost per family of 4 of budgeting more than pop+inf over the last decade in 2023 budget: $2,346
- Cumulative cost per person of state funds budgeting more than pop+inf over the last decade from 2014-23: $2,647
- Cumulative cost per family of 4 of state funds budgeting more than pop+inf over the last decade from 2014-23: $10,587
State All Funds Budget Data
- Estimated FY 2024 All Funds Budget ($ Billions): $38.68
- FY 2025 All Funds Budget Limit ($ Billions): $40.95
- FY 2025 All Funds Budget Limit Growth ($ Billions): 5.86%
- Cost per person of all funds budgeting more than pop+inf over the last decade in 2023 budget: 1,330
- Cost per family of 4 of all funds budgeting more than pop+inf over the last decade in 2023 budget: 5,321
- Cumulative cost per person of all funds budgeting more than pop+inf over the last decade from 2014-23: 5,429
- Cumulative cost per family of 4 of all funds budgeting more than pop+inf over the last decade from 2014-23: 21,715
Other Considerations
- Economic Freedom of North America (2021) (Rank): 24 [Fraser Institute]
- Economic Freedom (2022) (Rank): 28 [Cato Institute]
- Fiscal Policy (2022) (Rank): 31 [Cato Institute]
- Regulatory Policy (2022) (Rank): 22 [Cato Institute]
- State Tax Collections Per Capita (FY2021) ($): $2,828 [Tax Foundation]
- State Tax Collections Per Capita (FY2021) (Rank): 41 [Tax Foundation]
- State-Local Total Tax Burden per Capita (2022) ($): $4,585 [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (%): 9.80% [Tax Foundation]
- State-Local Tax Burden per Capita (2022) (Rank): 20 [Tax Foundation]
- Top Income Tax Rate (2024) (%): 5.00% [Tax Foundation]
- Top Income Tax Rate (2024) (Rank): 26 [Tax Foundation]
- Flat/Progressive/Zero Income Tax (2024): P [Tax Foundation]
- Overall State Business Tax Climate Index (2024)(Rank): 39 [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (%): 6.50% [Tax Foundation]
- Top Corporate Income Tax Rate (2024) (Rank): 27 [Tax Foundation]
- State-Local Sales Tax Rate (2024) (%): 9.25% [Tax Foundation]
- State-Local Sales Tax Rate (2024) (Rank): 47 [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (%): 0.40% [Tax Foundation]
- Property Taxes Paid as a Percentage of Owner-Occupied Housing Value (2021) (Rank): 49 [Tax Foundation]
- Economic Outlook (2024) (Rank): 20 [American Legislative Exchange Council]
- Economic Performance Rankings, 2012-2022 (2024) (Rank): 16 [American Legislative Exchange Council]
- Tax and Expenditure Limit (0-3): 0 [American Legislative Exchange Council]
- Tax and Expenditure Limit (Rank): 32 [American Legislative Exchange Council]
- Right-to-Work Law (2022) (Y/N): Y [American Legislative Exchange Council]
- State-Local Spending per Capita (2022) ($): $11,089 [US Government Spending]
- State-Local Spending per Capita (2022) (Rank): 12 [US Government Spending]
- Official Poverty Rate (2020-22) (%): 14.8 [Census Bureau]
- Official Poverty Rate (2020-22) (Rank): 43 [Census Bureau]
- Supplemental Poverty Rate (2020-22) (%): 10.9 [Census Bureau]
- Supplemental Poverty Rate (2020-22) (Rank): 44 [Census Bureau]
- Labor Force Participation Rate (Dec 2023) (%): 57.20% [Bureau of Labor Statistics]
- Labor Force Participation Rate (Dec 2023) (Rank): 46 [Bureau of Labor Statistics]