Last week Tuscaloosa Rotarians welcomed Jim Williams, the director of PARCA. His speech focused on the State Budget in reference to the vote that just passed to borrow $146 Million over the next three years from the Alabama Trust Fund. Without that money, the State would not have the money to operate with a balanced budget beginning October 1, 2012.

He stated that unfortunately the General and Education budgets are still in trouble, and we are not recovering as quickly as in previous recessions. There might be some revenue from the Gulf Oil Spill, but we can’t count on that.

He mentioned three areas of focus in regards to spending. First, payback the borrowed funds or there will be affects on the Education Trust Fund. Second, place a cap on local education spending. Finally, focus on the increase in Medicaid spending in prisons which has risen from 33% to 58% over 20 years.