Alabama House approves large Medicaid cut
The Alabama House of Representatives on Wednesday narrowly approved a deep cut to the state’s Medicaid program as lawmakers continue to deadlock on a solution to the budget shortfall. The controversial budget cut came out of frustration over the stalemate and is largely seen as a way to build pressure on lawmakers to find some sort of compromise. House Ways And Means General Fund Committee Chairman Steve Clouse said it will put the focus of the budget debate on Medicaid, which consumes more than one-third of the general fund and is the largest funding challenge for lawmakers. Clouse said the health care program for the poor and disabled is also the “foundation for our health care system in the state of Alabama” – but he said many voters don’t understand the importance of funding it the way they do schools, roads or even prisons. “I think people need to realize the importance of Medicaid to our communities, to hospitals, to nursing homes, rural health clinics, doctors and nurses,” Clouse said. House members voted 46-44 for the budget amendment that would give Medicaid a $156 million reduction. The budget now goes to the Alabama Senate, where lawmakers have been even less supportive of tax increases. The proposed cut drew harsh criticism, and no praise, during three hours of debate on the House floor. “The services we are going to eliminate in this process are going to be life-threatening to many people,” said Rep. Pebblin Warren, D-Tuskegee. Black lawmakers lashed out at the plan, saying it would hurt the 1 million people – most of them children or elderly and disabled adults – who depend on Medicaid. They criticized Republicans’ opposition to expanding Medicaid under the federal Affordable Care Act. “I would like to see us have more discussion about expanding Medicaid instead of trying to totally disband Medicaid,” said Rep. Napoleon Bracy, D-Mobile. State Health Officer Don Williamson said he was uncertain the program could function under such cuts. Clouse proposed the funding cut Tuesday after the House budget committee rejected a 25-cent-per-pack cigarette tax increase that House leaders hoped would be a key plank of a spending plan. House members on Wednesday at first voted down the budget cut by a one-vote margin. Lawmakers came back and narrowly approved it. Gov. Robert Bentley called lawmakers into special session to address a projected shortfall in the state’s general fund. Lawmakers have so far rejected Bentley’s call for $302 million in new taxes but have yet to get a solution of their own through either chamber. “It’s chaos. The tension here is so thick, and there are so many factions,” said Rep. Patricia Todd, D-Birmingham. Clouse said his preference is to have a second special session just on Medicaid funding. Regardless, he thought a second special session would be required as lawmakers continue to deadlock. Senate Finance and Taxation General Fund Chairman Arthur Orr said he thought the chance of getting an answer in a single special session was, “less than 50 percent.” “And declining,” Orr said. Republished with permission of The Associated Press.
Alabama business roundup: Headlines from across the state
Here’s a roundup of some of the weekend’s top business headlines from across the state: Alabama Newscenter: Business Facilities: Alabama ranks high for auto manufacturing, workforce development Alabama got high marks for “Automotive Manufacturing Strength” and AIDT, Alabama’s workforce development agency, ranked high among “Workforce Training Leaders” in Business Facilities magazine’s annual rankings report, released last week. Record output at Alabama’s three auto assembly plants underlined the state’s No. 2 ranking in the magazine’s “Auto Manufacturing Strength” category. Alabama and Tennessee swapped positions in the rankings from the previous year. “Alabama, this year’s No. 2, is throwing down a marker for a heavyweight rematch: the Crimson Tide rolled out nearly a million vehicles in 2014 for Mercedes, Honda and Hyundai, with Mercedes expanding at Tuscaloosa to introduce a new model,” Business Facilities noted in its ranking report. Alabama’s “world-class on-site training for advanced manufacturing,” is cited for a No. 2 ranking among “Workforce Training Leaders.” AIDT, which has trained 600,000 Alabamians since its founding in 1971, is a division of the Alabama Department of Commerce. “We’re proud of the efforts that these rankings represent,” Commerce Secretary Greg Canfield said. “But there is still much work to be done. With a new workforce incentive structure and a streamlining of resources, we’re poised for even greater things in Alabama.” Under Governor Robert Bentley’s leadership, Commerce is expanding its responsibilities in workforce development with key programs being consolidated within the department. AIDT remains the centerpiece of Alabama’s workforce development efforts. “It’s always nice when rankings come out and people outside of the state recognize the job you’re doing as an organization,” said Deputy Commerce Secretary for Workforce Development and AIDT Director Ed Castile said. “But it really says more about the people of Alabama who go through training and get those advanced skill jobs and make the products that people want. They truly are the best assets we have.” Alabama also ranked No. 6 among the states in the “Education: Tech Skill Leaders” category and No. 9 for “Lowest Industrial Electricity Rates.” Business Facilities has been ranking states annually for 11 years. Alabama Newscenter: Alabama shucks! Oyster means world for Gulf Coast farmers Alabama’s oyster reefs have historically harvested an average of one million pounds of oysters per year and have made it one of the top oyster producing states in the nation for more than a century. But changes to water temperature, environmental impacts, parasites and other issues have made the reefs unpredictable and, at times, unproductive. Oyster farming – with the help of the Auburn University Shellfish Laboratory – has emerged as a more controlled way of continuing Alabama’s oyster producing traditions. This video story put together by Joe York for the Southern Foodways Alliance based at the University of Mississippi’s Center for the Study of Southern Culture talks about how oysters have a strong future through farming in the state. “In 2009, not a single oyster farm operated on the Alabama coast. By 2015, there were eight oyster farming companies, all determined to prove that the world’s best oysters come from this Southern state. Lane Zirlott, of Murder Point Oyster Company, calls it an oyster revolution – one that focuses on presentation as much as taste, and enables hard-working families to make a consistent living on the Alabama waters,” York wrote in the introduction to the video. Officials want to see farming grow alongside increases in reef harvesting to boost oyster production in Alabama to new heights. Birmingham Business Journal: Blue Bell resumes ice cream production at Sylacauga plant Blue Bell Creameries on Wednesday confirmed that production has officially resumed at its Sylacauga facility as the company looks to move forward following a listeria scare that halted work across its footprint. The ice cream products are currently being added to the company’s inventory, but no date has been given as to when products will return to store shelves, according to a report from Fox 6. The company began trial runs at its Sylacauga plant in July, and over the last month, have continued until production was ready to return to a normal pace. A spokesman for the Alabama Department of Public Health, which has partnered with the company through the process, said Blue Bell has run tests at the Sylacauga plant and are free to produce and sell ice cream products. Blue Bell in April recalled all of its products after at least 10 people were diagnosed with listeria. Three of those infected died, according to the Centers for Disease Control and Prevention. The company closed its four locations in Alabama, Oklahoma and Texas for cleaning, in addition to saying the Blue Bell staff at all facilities would undergo training to emphasize aggressive cleaning methods. Blue Bell in May laid off more than a third of its workforce following the closing of the plants and furloughed an additional 1,400 workers. Birmingham Business Journal: Alabama among worst states for student loan debt A new report claims more than 11 percent of all student debt is currently in default – and Alabama is faring much worse than other states. That’s according to a new report by WalletHub, which ranked Alabama 44th overall on the list of the best states for student loan debt. The study took several factors into account, including average debt, student loan debt as a percentage of income, unemployment rate and percentage of student loans in default. The state scored the worst in unemployment for adults aged 25-34, coming in at 50th. Alabama ranked 44th for the percent of student loans in default and 39th for average student debt. WalletHub’s report said the best states were Utah (No. 1), Wyoming (No. 2) and North Dakota (No. 3). Yellowhammer News: High-tech European space company to launch manufacturing operation in Alabama Switzerland-based RUAG announced Friday that it will launch an Alabama manufacturing operation after forming a strategic partnership with United Launch Alliance, which produces rockets at a factory in Decatur. RUAG, one of Europe’s leading suppliers of products for the space industry, said the new Alabama
Don Williamson leaving state to be president of Alabama Hospital Association
Dr. Don Williamson is leaving his position as the State Health Officer at the Alabama Department of Health to be the new president of the Alabama Hospital Association. Gov. Robert Bentley released a statement which said: Dr. Don Williamson has been an outstanding public servant, and a dedicated member of my team. At a time when our Medicaid Agency needed major reform, Dr. Williamson more than three years ago stepped up and led the charge to make our Medicaid Agency stronger and more effective for the patients enrolled. We still have challenges to address at Medicaid, including agency funding and full implementation of the regional care organizations. I know as Dr. Williamson transitions out of his role as Chair of the Medicaid Transition Task Force, he will work closely with Acting Medicaid Commissioner Stephanie Azar on a smooth transition. I congratulate Dr. Williamson on his retirement, and I look forward to working with him in a new role with the Alabama Hospital Association. From the Alabama Hospital Association website, “Founded in 1921, the Alabama Hospital Association (AlaHA) is a statewide trade organization that assists member hospitals in effectively serving the health care needs of Alabama, through advocacy, representation, education and service. Members of the association include primarily hospitals and health systems, as well as other companies and organizations related to health care.”
Alabama Foundation for Limited Government releases radio ad against tax increases
In a new radio ad released by the Alabama Foundation for Limited Government legislators is urging Alabamians to call their legislators and insist upon no new taxes during this special legislative session. Listen to the ad here: Script (via Facebook) Out of control. Nine months ago when they ran for office, State politicians promised no new taxes. This week in Montgomery these same politicians are talking about welshing on that promise. They are meeting to raise taxes because they say they need more money to spend. They don’t need more money. They need to better spend what we have already given them. State General Fund spending for Medicaid has tripled since 2004. And this is when emergency room treatment of Medicaid patients has escalated where only 20% of Medicaid emergency room visits are for emergency treatment. Instead of ballooning Medicaid spending, the governor and bureaucrats need to put some meaningful restrictions on the over usage of health care. And prisons? The governor has requested almost $520 million for Corrections, or 70% more than just 10 years ago. This is happening while the cost for the no-bid crony prison medical contract has tripled in 12 years to a huge $80 million a year. Has your income tripled or gone up 70%? Of course, the answer is no. State politicians need to get spending under control. If they need more money, then they need to find it somewhere else besides raising taxes and raiding the Alabama Trust Fund again. Tell your legislator to keep their promise not to raise taxes, any taxes. Call your legislator at (334) 242-7600 and (334) 242-7800. Paid for by the Alabama Foundation for Limited Government, Box 710, Opelika, Alabama. The foundation’s founder John Rice wrote an op-ed published on Alabama Today earlier this week in which he detailed spending and ways to cut costs noting, “Governor Bentley needs to forgo the trappings of power and operate state government on a shoestring budget.”
Judge delays ruling on return of VictoryLand machines
A judge in Montgomery is delaying a decision on whether to return more than 1,600 gambling machines seized in a raid at the VictoryLand casino in 2013. Circuit Judge William Shashy told lawyers during a hearing Tuesday he wants to see what happens in other cases and the Legislature before deciding the request by VictoryLand owner Milton McGregor. Al.com reports that McGregor hopes to reopen his Macon County operation soon if he can find a vendor for electronic bingo machines. Shashy ruled in June that the state wrongly seized gambling machines and more than $260,000 in cash from VictoryLand during the raid. McGregor is in in court trying to get everything returned. The state attorney general’s office is trying to block the release of the machines and cash. Republished with permission of The Associated Press.
Alabama House committee votes down cigarette tax
A legislative committee on Tuesday voted down a proposed hike in Alabama’s cigarette tax, killing one of Gov. Robert Bentley‘s major proposals for filling a hole in the state’s general fund budget. Tempers and frustrations flared on the third day of Special Session as lawmakers grappled with a $200 million shortfall. Bentley said he was disappointed because lawmakers have had months to address the budget crisis. “The Legislature has failed to do that. They failed in the regular session and thus far they’ve failed in the special session,” Bentley said Tuesday evening. The House Ways and Means General Fund Committee voted down a 25-cent-per pack cigarette tax by an 8-7 vote. Committee Chairman Steve Clouse was visibly frustrated after the vote. He said the tax, which would have raised $66 million, would have helped level fund prisons, Medicaid and other crucial state functions. “I thought it was a good budget but evidently that all fell apart,” Clouse, R-Ozark, said. Clouse said he was frustrated that three of the seven ‘no’ votes were from Democrats even though their caucus endorsed the idea in past sessions. House Democrats have said they will not support tax increases as Republicans oppose Medicaid expansion and a vote on a lottery. In some political hardball, Clouse responded with a new budget that would cut the state’s Medicaid program by $156 million. State Health Officer Don Williamson said he was uncertain if the state could maintain a Medicaid program at that level. Clouse said Medicaid is the biggest problem facing the General Fund. The proposed budget will be up for debate Wednesday in the House of Representatives. Rep. Darrio Melton, D-Selma, called the move appalling. “To take and use Medicaid as a pawn is totally unfair,” Rep. John Knight, D-Montgomery, said. Testiness also was on display in the Alabama Senate as a committee narrowly approved a rival, but equally contentious, proposal to shore up the general fund by taking $225 million in use tax revenue from the state’s separate education budget. Sen. Trip Pittman, chairman of the Senate education budget committee, said taking the money increases the chances of future budget cuts and squelches chances for a teacher pay raise in coming years. Pittman said he could not support the shift without something to help backfill the budget. Senate President Pro Tem Del Marsh, the bill’s sponsor, said it was a way to help the anemic general fund. “Instead of backfill, we should be talking backbone,” Marsh said. Marsh is sponsoring a separate lottery and casino bill that he said could provide the money to the education budget if lawmakers and voters approve. Bentley has asked lawmakers to approve $302 million in taxes after failing to convince them to approve $541 million earlier this year. Lawmakers have rejected many of Bentley’s other ideas, but the cigarette tax until Tuesday appeared to have some traction in the House of Representatives. The governor on Tuesday partly blamed the gambling push for changing the landscape of the special session. “They really do not want a solution because they want to solve this with gambling,” he said. Republished with permission of The Associated Press.
GOP debate lineup: Trump and Bush in, Fiorina and Perry out
Ten candidates have made the cut for the first Republican presidential debate Thursday, with polling front-runner Donald Trump hoping for a civil evening but ready to pounce if attacked. The seven others lagging in the polls and relegated to an afternoon forum? Call them the not-ready-for-prime-time players, at least in the eyes of debate organizers. Sharing the Cleveland stage with the billionaire businessman will be former Florida Gov. Jeb Bush, Wisconsin Gov. Scott Walker, Texas Sen. Ted Cruz, Kentucky Sen. Rand Paul, Florida Sen. Marco Rubio, retired neurosurgeon Ben Carson, former Arkansas Gov. Mike Huckabee, New Jersey Gov. Chris Christie and Ohio Gov. John Kasich. Candidates with time to watch that debate are former tech executive Carly Fiorina, former Texas Gov. Rick Perry, Louisiana Gov. Bobby Jindal, South Carolina Sen. Lindsey Graham, former Pennsylvania Sen. Rick Santorum, former New York Gov. George Pataki and former Virginia Gov. Jim Gilmore. The largest field of contenders in modern memory challenged debate organizers. Fox News relied on an average of five national polls to decide the lineups for the prime-time debate and the forum four hours earlier. “We never ever envisioned we’d have 17 major candidates,” said Steve Duprey, New Hampshire’s representative to the Republican National Committee who helped craft the debate plan. “There’s no perfect solution.” Republican officials were particularly concerned about Fiorina’s status, hoping she would help balance Democratic front-runner Hillary Rodham Clinton‘s push to rally women. Trump’s recent surge in the polls, a surprise to many Republican officials, damaged Fiorina’s chances. Some Republicans fear that Trump’s rhetoric on immigration and other issues could hurt the party. “I probably am the target,” he said Wednesday on ABC’s “Good Morning America.” He said he did not want to attack any of his rivals and preferred to “just discuss the issues” in the course of a “very civil” debate. Still, he made clear that if attacked, he would have “to do something back.” Trump was far and away the front-runner in the five most recent national polls that determined the debate lineup. Several candidates were grouped together in the single digits, most separated by a number smaller than the margin of error. For example, in a Monmouth University survey released Monday, Kasich was the 10th candidate with the support of 3.2 percent of voters. But after taking the margin of error into account, Monmouth noted that Kasich’s support could be as low as 1.5 percent, while almost any of the candidates who polled lower could be that high or higher. Five more party-sanctioned debates are scheduled before primary voting begins in February. “This first debate is just one opportunity of many,” Amy Frederick, an aide to Fiorina, wrote supporters. “With many more debates to come, we fully expect that Carly will soon stand on the stage and show America what real leadership looks like.” Jindal spokeswoman Shannon Dirmann issued a challenge of sorts: “The governor will debate anyone anywhere at any time.” Candidates already began to turn their attention toward Trump. Asked about Trump while courting religious conservatives on Tuesday, Bush said the businessman’s rhetoric on immigrants is “wrong.” `’We have a different tone and a different view,” he said. “I respect the fact that he’s the front-runner for the Republican nomination,” Bush continued. “This is a serious thing. But I think to win and govern the right way – we have to unite rather than divide.” Republished with permission of The Associated Press.
Alabama Ethics Commission gives Jim Zeigler a-ok to pursue PACT tuition reimbursement
On Tuesday, a lawyer with the Alabama Ethics Commission ruled that State Auditor Jim Zeigler‘s active support for full funding of state pre-paid college program is permissible. The ruling was handed down amid some controversy over the fact Zeigler’s family had purchased two of the PACT – or Pre-Paid Affordable College Tuition – plans for the couple’s own children. Those concerns were jettisoned by commissioner Hugh Evans Tuesday, opening the path for Zeigler to continue his advocacy efforts. “Mr. Zeigler cannot separate his actions from his official role, but as long as he does not use his position or the mantle of his office to receive a benefit different than that accruing to the other members of the affected class, there is not an Ethics violation,” read the decision that cleared the statewide auditor. “The class affected is all participants in the PACT program. This is a very large class, and it would appear to affect all members equally.” Zeigler, who bought two PACT plans 16 and 21 years ago repsectively, has been pushing for the Legislature and governor to approve “a modest part” of funding from the recent settlement related to the 2011 BP Deepwater Horizon oil spill to make whole parents and guardians who had purchased plans before the program went insolvent in 2009, which led to a devaluation of the plans. Zeigler has argued plan purchasers would not improperly benefit from such an arrangement because they would simply be remedially receiving funding they were owed anyway, as opposed to benefitting from a new windfall. The plans, Zeigler told ALToday.com last month, were not an investment subject to loss but rather a contract the state agreed to fulfill at “a sum certain.” “This is a wrong that needs to be righted,” said Zeigler. “The BP money may be the last chance to provide the full tuition that these families paid for and based their planning on.”
