Alabama cities face legal disputes and record budget proposals

In Guntersville, Alabama, city attorneys have filed a lawsuit against Jesus Recovery House. The legal action claims that two properties are being operated illegally as residential recovery or “half-way” houses.

In Tuscaloosa, Mayor Walt Maddox has proposed a $356 million budget for fiscal year 2027, marking the largest spending plan in the city's history. The proposal includes a $234 million general fund, an $88 million water and sewer budget, and $31 million for Elevate Tuscaloosa. While the budget includes pay raises for nearly all city employees and allocates over $100 million to public safety, it also requires a 5% operating budget cut for every city department.

Maddox noted that the record budget comes during a period of declining revenue, citing falling sales tax collections and a $28 million gap caused by factors such as state legislation, rising health insurance costs, and changes to how online purchase taxes are routed.