The state of Alabama's coffers are flush with cash, at least for now.
An era of fiscal responsibility by the legislature and a solid statewide economy combined with the influx of federal COVID-19 money has given the state a number of $10.6 billion on its balance sheet, according to State Treasurer Young Boozer.
During an appearance on APTV's "Capitol Journal," Boozer, who also served as state treasurer from 2011 until 2019, said not only was the state growing its treasury from collections and the federal government but from short-term investments, as well.
"Let me give you a little history about this because I've been the treasurer before," Boozer said. "When I was elected and started to serve in 2011, that treasury fund was about $2.4 billion. At the end of my two terms, eight years later, when I left office in January of 2019, that amount of money had grown to $3.6 billion. So it was up 50% over an eight-year period. If you'll recall what those time periods were, we were just coming out of the Great Recession. The economy was recovering and to increase that cash because of the growth in revenues and managing expenses, we had grown that to $3.6 billion. So that makes sense.
"Here's something that surprised me when I came back. So I came back three years later, and that $3.6 billion. Now I'll give you a number as of today, this morning – it has grown to $10.6 billion."
Boozer said that the dramatic increase is mostly due to an infusion of federal dollars.
"For the most part, it is all federal money," Boozer said. "The state is doing well. So, if you're talking about what is happening, the underlying economy in the state of Alabama is good. And that has been good for state tax revenues. But on top of that is all of this federal money that has poured in over the last two-and-a-half, three years. The amount is really remarkable."
Boozer said from October 2021 to now, projected revenues from state investments have shot up from $22 million on an annual basis to $180 million.
"That is the projected interest income that we would get on the investments that we have, as of that date," Boozer said.
To connect with the author of this story, or to comment, email jeff.poor@1819News.com.
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