Salaries and fringe benefits for agency employees are exempted from being prorated. Because of the salary exemption and the fact that numerous grants have already been closed out for the year, the percentage decrease will come from other areas of administration, existing grants and future funding. We regret this action is necessary and hope it does not jeopardize your on-going or planned activities.
Proration is the process of cutting programs when revenues fall short of expectations.
Deficit budgets are unconstitutional in Alabama. Salaries and benefits are exempt from proration. Certain other fixed costs, such as rent, utilities and insurance, while subject to the proration, in actuality cannot be reduced. Indebtedness, insurance, gas, diesel fuel and utilities all are off limits as well, leaving only about 10 percent open for cuts. For organizations receiving quarterly payments, you should anticipate that your final quarterly check will be reduced by the full amount of the final proration.