MONTGOMERY, Ala. (WIAT) -- New data shows economic growth is slowing in Alabama, which some said could make for tighter budgets down the road.

Leaders explained how a decrease in Alabama's revenue growth could force state agencies and classrooms to cut back on spending. The general fund is financed using simplified sellers use tax, interest from state reserve and other means. Data from the Public Affairs Research Council of Alabama shows revenue from those reserves declined by $47 million in 2025.

That's because of a decreasing surplus of COVID-19 relief money and cash on hand. Thomas Spencer, senior research associate with the Public Affairs Research Council of Alabama, explained fewer federal dollars mean some school systems will have to adjust to leaner budgets.

"Understanding which

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