State Sen. Greg Albritton (R-Atmore) says it is not a question of if but when the country suffers another economic downturn. However, he says Alabama is braced for it when that time comes.
Typically in sluggish economies, state tax receipts will take a hit, and before Republican control in Montgomery, some state government services, including education, were cut back or forced into proration.
Albritton, who chairs the Alabama Senate General Fund Budget Committee, explained during an interview with Mobile radio FM Talk 106.5's "The Jeff Poor Show" that every reserve fund established for times of hardship had been replenished, including the Alabama Trust Fund (ATF).
"We're prepared," Albritton said. "We're more prepared now than we have ever been for a recession, and a recession is coming. There ain't no doubt about it. It's going to hit. We just don't know precisely when, and we don't know how deep or bad, but it is coming.
"We have taken steps for the last few years to get ourselves prepared. Every savings account we've established is completely filled. We're going to pay off the [Alabama Trust Fund] -- you remember what that was, right? Where we borrowed money in 2012, '13, '14 -- whenever that was. We borrowed money, and we've been paying it back. We're going to pay that sucker completely off this year."
Albritton explained that up until this, revenues for the state had been healthy. However, some of it was a wash, given the decline of the dollar's value and higher interest rates.
"The revenue coming in is phenomenal," he said. "Now, that's true all over, but the reason that's true is a couple of reasons. One was the Trump economy, and number two was the free printing of money. But that is being paid for by the inflation rate and the higher interest rate. Those are going to take a major toll on us."
To connect with the author of this story, or to comment, email jeff.poor@1819News.com.
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