State officials worried over upcoming budget woes

MONTGOMERY, AL (WBRC) - Alabama faces serious shortfalls in both the general fund and education budgets says the state's top budget and finance officials. They say Alabama will be in a dire economic situation this coming year with the combination of federal stimulus money expiring and state revenue in free fall.

"I haven't found any options that would avoid layoffs entirely," said Finance Department Director David Perry. "Y'all may be able to find some options. We may be able to find some options between now and the time the budgets are passed, but at this point we don't see any way around some layoffs."

Perry says, even if the economy improves, that will not be enough to help both of the state's budgets. He says the state has no choice but to re-evaluate how it does business to cut spending long-term.

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