Alabama Fiscal Transparency Act Introduced By Rep. Paul DeMarco
By: Stephen Crews
Updated: March 8, 2011
State
Representative Paul DeMarco today announced the introduction of the
Alabama Fiscal Transparency Act, a bill that will require more accurate
and
timely reporting of the state’s fiscal situation by the state Finance
Department.
Currently, reporting of the state’s finances lacks proper transparency, Representative DeMarco said.
“State
Agencies, local school systems and the general public have no official
source of information to monitor budget conditions and provide early
warning whenever proration
becomes likely,” Representative DeMarco said. “In other states, official
monthly financial reports exist to meet this need. It’s time our state
Finance Department provide transparent monthly reporting of budget
conditions within state government.”
At
the start of the annual budget process, the Finance Department and the
Legislative Fiscal Office each estimate the revenues available for
expenditure from the General
Fund and the Education Trust Fund. These forecasts are used to develop
the final budgets, which are required by law to be balanced. However,
these estimates are not updated periodically thereafter to track whether
actual revenues, and those expected, are sufficient
to finance all of the appropriations enacted for the year.
House
Bill 25 remedies this shortcoming by requiring the State Finance
Department to produce monthly financial reports for the General Fund and
the Education Trust Fund,
and to publish them in a prominent place on the department’s website.
This increased transparency will allow government agencies and the
public to monitor the condition of the state’s budgets, making it easier
to prepare for budget cuts, should they become
necessary.
While
this proposed legislation amounts to advanced accountability, it will
not be expensive to administer, Representative DeMarco said.
“Appropriations
are already monitored to maintain control over expenditure
authorizations, and expenditures are monitored as they are made,” he
said. “A number of these
detailed reports already are posted monthly, but there is no
straightforward report that brings the complicated details together to
focus on the overall condition of the General Fund and Education Trust
Fund. The Alabama Fiscal Transparency Act will cure this
oversight by requiring such reports every month.”
The
bill is scheduled to be before the House State Government Committee on
Wednesday at 3:00 p.m. in Room 601 of the Alabama State House.
