This practice which is called "proration" has negatively affected the general government operation, and especially K-12 schools and higher educational institutions by periodically cutting the appropriated budget for these institutions (Harvey, 1989).
Section four explores the impact of periodic mid-year budget shortfalls (proration) on education funding.
Functions of the state government are classified as either essential or nonessential, and proration applies to nonessential functions first.
The proration provision was established in the Budget and Financial Control Act (Fletcher Act) in 1932 in order to prevent the frequent deficits that the state had been experiencing.
Second, much of Alabama's frequent proration in education trust fund can be attributed to a centralized and unbalanced revenue system.