[Congressional Record Volume 141, Number 25 (Wednesday, February 8, 1995)]
[House]
[Page H1437]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


              THE TRUTH ABOUT FEDERAL PAYMENTS TO ALABAMA

  (Mr. BROWDER asked and was given permission to address the House for 
1 minute and to revise and extend his remarks.)
  Mr. BROWDER. Mr. Speaker, I know it is difficult to correct a piece 
of misinformation once it is published, but I am going to try. Much 
attention has been directed in recent weeks to the impact of the 
balanced budget amendment on the finances of the various States. In 
that vein, several national publications have reported that my home 
State of Alabama led the nation, with 58 percent of its 1993 budget 
coming from the Federal Government.
  That figure is amazing, but it is not true. The confusion results 
from a difference in Alabama's accounting system that was not 
adequately explained when the State's budget figures were reported in 
the national survey.
  Mr. Speaker, I will include for the Record a letter from the 
Department of Finance of the State of Alabama showing that Federal 
funds accounted for 32 percent, not 58 percent, of Alabama's budget for 
fiscal year 1993.

                                                 State of Alabama,


                                        Department of Finance,

                                 Montgomery, AL, January 27, 1995.
     Hon. Glen Browder,
     U.S. House of Representatives,
     Washington, DC.
       Dear Congressman Browder: Recent news articles published by 
     Newsweek and by Time on January 23, 1995, analyzed the 
     Federal Balanced Budget Amendment and its effects on state 
     finances. Both articles reflected that 58% of Alabama's 
     Budget for fiscal year ending 1993 was received from the 
     Federal Government. This information is not correct. Actual 
     Federal revenues received by Alabama for the fiscal year 
     ending in 1993 were $2.74 billion and compared to total 
     revenues received (from all sources) of $8.52 billion is 
     approximately 32 percent.
       This confusion has been brought on by the data supplied to 
     Newsweek and Time by the National Association of State Budget 
     Officers in their ``NASBO 1994 State Expenditure Survey--
     Fiscal Years 1992-94.'' Alabama provided data for the 
     referenced NASBO survey, but our data was not adequately 
     explained. Alabama included in the section for Federal Funds, 
     expenditures from Federal funds, local funds, state earmarked 
     funds, tuition, fees, grants and, contracts with a footnote 
     to that effect. This footnote was included because 
     expenditures are made from fund accounts made up of these 
     various revenue sources thus precluding actual identification 
     of each expenditure by source of funding. A reasonable 
     estimation of the Federal percentage can be made from the 
     revenue perspective of Alabama's accounting system and for FY 
     1993 is approximately 32 percent.
       I wanted to clarify this data for you, so you would not 
     base your vote on this issue on incorrect data.
           Sincerely,
                                                      Bill Newton,
                                       Assistant Finance Director.
     

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