Robert Bentley details call for second Special Session of 2015
The office of newly beleaguered Gov. Robert Bentley on Thursday afternoon released the details of the call for the upcoming Special Session. Lawmakers will reconvene in Montgomery for the third time this year due to a failure to pass a budget for the next fiscal year. According to a release from the Bentley’s office, the following “reform” measures – i.e. ways of freeing up necessary revenue without raising taxes – are on the table: Transfer use tax revenue from the Education Trust Fund to the General Fund Un-earmark certain state taxes Amend the Education Trust Fund Rolling Reserve Act. Also included in the Session’s “call,” which defines the scope of what can be debated during the session, are the following proposals that would raise revenue in order to account for a looming budget shortfall: Amend the Business Privilege Tax Increase the Cigarette Tax Amend the individual income tax deduction for Federal Insurance Contributions Act (FICA) Any other revenue measures that provide revenue for the General Fund. House Speaker Mike Hubbard responded to the parameters of the call as follows: “We will certainly consider at least some of the bills in Gov. Bentley’s call and various members have their own proposals they will likely bring forward, as well,” said Hubbard in a release. “The House and Senate leadership have worked closely together in good faith, and I’m hopeful that both houses will come together on a common ground solution before the final gavel falls.” The Session is set to convene at 5:00 p.m. on Tuesday, September 8.
Alabama lawmakers set to return for second special session
Gov. Robert Bentley has called a second special session for next week to try once again to pass a state budget. Bentley announced Tuesday that he is bringing lawmakers back to Montgomery on Sept. 8. The second special session is necessary after the regular session and a first special session ended in stalemates over proposed solutions to a projected general fund budget shortfall. Bentley has proposed raising $300 million in new taxes to resolve the budget issue rather than make cuts to state agencies before Alabama’s fiscal year begins Oct. 1. However, many lawmakers have voiced opposition to the idea. “The start of Fiscal Year 2016 is quickly approaching, and there is still no General Fund Budget in place for state agencies to operate,” Bentley said in a statement. “There is still time remaining to pass a budget that does not drastically cut state services which will impact Alabamians.” Heads of several state agencies have been touring Alabama in recent weeks explaining what potential funding cuts could mean for their departments. Bentley and department chiefs have been asking voters to call their representatives to tell them to support the tax proposal. Republished with permission of the Associated Press.
Mike Hubbard asks judge to dismiss ethics case
Indicted House Speaker Mike Hubbard has asked a judge to dismiss ethics charges against him because prosecutors disclosed the names of some grand jury witnesses in a court filing. Hubbard’s defense team filed the motion Wednesday. Defense lawyer say prosecutors violated grand jury secrecy laws. The Republican speaker asked the judge to dismiss all charges against him on the grounds of prosecutorial misconduct. Prosecutors in the court filing opposed defense efforts to subpoena the grand jury court reporter. It included a May letter from prosecutors to Hubbard’s defense saying they had already provided transcripts of grand jury testimony by Hubbard, former Gov. Bob Riley and others. The Republican speaker faces 23 felony ethics charges accusing him of using his public offices to benefit his businesses.
Email Insights: Sen. Clyde Chambliss proposes budget plan
After the failed first special session lawmakers are looking to make sure the second on isn’t a failure as well. Here’s a proposal made by Senator Clyde Chambliss this afternoon. Today, State Senator Clyde Chambliss (R-Prattville) unveiled a comprehensive state budget proposal that will avoid a cut budget for Fiscal Year 2016. Senator Chambliss’ plan also includes long-term, structural reforms to Alabama’s budgeting system that will help stabilize state finances and spur economic growth. “This plan accomplishes two important goals. It will achieve long-term financial stability for the state of Alabama and solve the budget crisis we face this year,” Chambliss said. “Financial stability will lead to more jobs. Alabama’s GDP growth has lagged behind the national average partly because companies are hesitant to locate to a state where there is a budget crisis every single year.” Senator Chambliss proposes solving the immediate problem of the FY2016 budget shortfall by moving the entire use tax from the Education Trust Fund to the State General Fund, which would mean an additional $225 million for the SGF budget. It also includes a permanent removal of the sales tax on certain groceries – raw meat, fruit, and vegetables – saving consumers $70 million annually. To backfill the revenue lost to the ETF, his plan includes new revenue of $226 million to the ETF in the form of taxes on cigarettes, soft drinks, and a change to the business privilege tax. The cigarette and soft drink taxes will immediately sunset after three years to give legislators time to accomplish structural budget reform. Alabama’s chronic fiscal challenges can be solved by Chambliss’ long-term, four-step plan to modernize the budgeting process: Isolate the budgets in the legislative process by splitting the annual legislative session into two, 60 calendar-day sessions. The first session will be for the budgets only. Study and evaluate the spending ineach government department in detail by breaking the SGF budget into parts that fit the existing committee structure. Each committee would be responsible for specific departments and would make a detailed recommendation of necessary funding levels for each department every year. Transfer the use tax to the SGF budget in FY16 so the SGF has a growth tax. Starting with FY19, each year one-third of the use tax’s obligations currently in the ETF would move to the SGF until all obligations have been transferred. Combine revenues beginning with FY17 by splitting only the growth between the two budgets, with 78% going to the ETF and 22% to the SGF, which is the historical split between the budgets over the past 15 years. “It is imperative that we modernize our antiquated budgeting system, and requiring legislators to deal first with the budgets means we won’t tiptoe up to the fiscal cliff every year,” remarked Chambliss. “Providing growth taxes to the General Fund will solve its chronic shortfalls, and revamping our appropriations process will put every state agency under the microscope,” said Chambliss. “If an agency can’t justify every single expense request, there will be cuts in that department to make government more efficient and save taxpayer dollars.”
The million dollar question for Gov. Robert Bentley
Like a riddle without an answer, a question has bugged me for months: When Gov. Robert Bentley says that members of the Legislature agree with him on tax increases, who exactly is he talking about? Prior to surprising everyone with his ill-fated decision to call a special session on the budget when both House or Ssenate leadership said they weren’t ready, the Governor said he had met with a number of legislators and felt they were ready to come back. In an interview shortly after the special session ended, Bentley was quoted as saying, “And they said if you’ll get out in front, we’ll be right there behind you. And they were. About a mile and a half back.” Who is the “they” he keeps talking about and why aren’t they coming forward? In July, Alabama Today asked the governor’s communications director, “Do you have a list of members the Governor has met with even if it’s not comprehensive?” The reply, “No. The Governor has met with individual legislators and legislative leadership on budget issues. I do not have a specific number.” Yesterday, in an interview with WSFA Senate President Pro Tem Del Marsh said, “We have never had more than 11 senators in a single sitting agree to a tax measure.” He went on to note that was on the cigarette tax. A measure that failed in the House Ways and Means General Fund Committee surprising many. Speaker of the House Mike Hubbard told the AP, “when that collapsed, everything collapsed.” “We’ve always been up front that we want to get this done,” Marsh said to the WSFA, “but we ask at this time that taxes be taken off the table.” Alabama Today is continuing to reach out to individual members to see if there’s a secret caucus of tax loving republicans out there that continues to give the Governor the idea that he will get his tax increases and we will let you know if we find one. In the meantime if you know of a member who will go on the record supporting all of the governors plans feel free to email us.
Robert Bentley: Cuts are a ‘true crisis’ for the state
Gov. Robert Bentley is continuing the tough talk as he tries to ramp up support for tax increases ahead of a second special session on the budget. The governor said in a Wednesday speech that the state will face a “true crisis” if budget cuts go into effect. The governor said funding cuts to Medicaid, mental health and law enforcement will harm all Alabamians. Bentley said if state parks close because of cuts that he might put up signs naming the lawmakers responsible. The governor is trying to convince legislators to approve $300 million in taxes to fill a projected budget shortfall. A special session ended this month without a budget agreement. The governor said he will call a second special session in early September. Republished with permission of The Associated Press.
Alabama Legislature special session to end without budget
Special session number one is in the books. Bring on round two. Alabama lawmakers on Tuesday ended a special session without a budget as lawmakers remained unable to agree on taxes or cuts to address a looming fiscal shortfall. Gov. Robert Bentley said he will call lawmakers back to Montgomery in a second special session, making another attempt at persuading them to approve $300 million in tax increases to avoid reductions in state services. “The Legislature was unable to do what their only job is and that is to pass a budget. That was the reason they were called in, and they have failed,” Bentley said in a news conference outside the Alabama Capitol. “It really boils down to, are we willing to make these drastic cuts and hurt the lives of the people of this state? Are we willing to close down state parks? Are we willing to close down hospitals? Are we willing to tell the children of this state that they can’t get immunizations?” The budget debate revealed a political chasm between Republicans willing to discuss revenue options and those taking a hard line against tax increases. The GOP has a supermajority in both chambers but hasn’t been able to agree among themselves or with the Republican governor on what to do. Senators passed a cut-filled budget that House members rejected by an overwhelming 92-2 vote on Monday night. “I’ve never seen a gulf this wide. ….. We have a huge, huge personality driven conflict between the House and Senate. There’s just no way around it,” state Sen. Cam Ward, R-Alabaster, said. Legislators do agree on one thing. They are urging Bentley to wait a few weeks before bringing them back to Montgomery. “Until the dynamic changes, you’ve got the definition of insanity, doing the same thing over and over,” Senate Finance and Taxation General Fund Chairman Arthur Orr, R-Decatur, said. Bentley would not say when he would call lawmakers back, but said it would likely be in a few weeks. The session would bump up against the Oct. 1 start of the fiscal year, ratcheting up the pressure to get a budget approved. Alabama’s general fund budget faces a projected $200 million shortfall and needs additional money for Medicaid and prisons and to repay funds borrowed from state coffers. Proposals such as a cigarette tax, a soft drink tax, ending a state income tax deduction for FICA taxes paid and yanking the money from the separate education budget were floated during the special session but all failed to get enough traction to get to a floor vote. Senators, representatives and Bentley all expressed frustration. Some lawmakers said Bentley called the session too soon, before agreements were reached. Bentley said his trust level has declined as he wrangles with lawmakers. “I have been told many things that have not come to be,” Bentley said. House and Senate budget chairmen said they are trying to work on bridging divides before lawmakers return. “We’re back to square one, but I think square one is a lot clearer now,” House Ways and Means Committee Chairman Steve Clouse, R-Ozark, said. Despite two political losses under his belt, Bentley said he remained optimistic, praising senators who said they were willing to make the hard choice and vote for taxes. Republican Senate President Pro Tem Del Marsh said senators do not have an appetite for tax increases. He said lawmakers will try to arrange meeting days so they could override any gubernatorial veto of a budget in a second special session. “You’ve got to have time for an override. I don’t think the governor is going to settle for anything short of several hundred million in tax increases. I really hope this Legislature does not give that to him,” Rep. Ed Henry, R-Hartselle, said. Republished with permission of the Associated Press.
Alabama Senate approves budget, rejects tax increases
The Alabama Senate approved a budget plan on Monday that would slash millions of dollars from Medicaid, mental health services, law enforcement and other state agencies. Senators voted 19-15 for the cut-filled spending plan after lawmakers remained unable to agree in a special session on how to fill a budget shortfall. The House of Representatives will now decide whether to go along with the budget or send the bill to a conference committee. Legislators rejected Gov. Robert Bentley‘s call for $302 million in taxes. Instead, the Senate-passed budget cuts nearly $200 million from state agencies. The budget is similar to one passed by lawmakers in June and vetoed by Bentley. “I think the citizens expect us to live within our means as they live within theirs’ and that is what we’ve done,” Senate President Pro Tem Del Marsh, R-Anniston said. “The appetite is not there in my opinion in the Senate to raise taxes and quite honestly it must not be there in the House.” The vote was uncharacteristically close in the Alabama Senate where Republicans hold a lopsided majority. Both Republicans and Democrats criticized the cuts, predicting they would have dire consequences on state services. “I plead with the governor to pocket veto it. I don’t care what you do with it, but please don’t pass this budget because it will be devastating to my district. It will be devastating to the people in my area and I have no question it will be devastating to the people of Alabama,” said Sen Paul Bussman, R-Cullman. If the budget wins final approval, the cuts would take effect in the fiscal year that begins Oct. 1. The Senate-passed budget would cut $31 million from the state’s Medicaid program, $5.3 million from the Department of Mental Health, $13 million from the court system and $14.7 million from the Alabama Law Enforcement Agency. The budget does allow a total $15.5 million increase to the state prison system and the state parole board to maintain efforts to alleviate severe crowding in state prisons. Legislators have said they fear federal intervention in the prison system, which holds nearly twice as many inmates as it was originally designed to house. Part of the money would go to the hiring of additional probation and parole officers. Bentley vetoed a similar budget passed by lawmakers in June and brought lawmakers back into special session. By law, the special session must conclude Tuesday, which means Bentley could pocket veto the budget. Some senators said they expect Bentley to bring them back into a second special session. Sen. Clyde Chambliss, R-Prattville, challenged other senators to make the “hard choice” on tax votes. “I don’t like taxes, But we find our backs against a wall and things are going to happen on Oct. 1 if we don’t fund a solution and those things are not going to be good for our state They are going to be irreparable,” Chambliss said. Republished with permission of The Associated Press.
Paul Sanford creates Gofundme account for states $300 million budget deficit
Friday afternoon State Senator Paul Sanford created a GoFundMe account to “Fund the Alabama State Government” or more accurately as he said he created it to prove a point. The state needs $3 million dollars and as the first of what could be several special sessions comes to a close it doesn’t look like the legislature is any closer than they were before it started to find a solution. Gov. Robert Bentley and Speaker Mike Hubbard want to raise taxes but the senate seems firmly against most or all of their ideas. The comments on the account so far are mixed but I think it’s brilliant. Not a lot of people are paying attention to what’s been happening in Montgomery so this may be a great way to draw attention to a subject that will affect everyone in the states pocketbooks. GoFundMe sites are often shared through social media and can spread like wildfire. Wouldn’t it be nice if instead of the latest funny meme people were talking about their priorities for the state and giving their elected officials input on cuts vs. tax increases? The description on the site is below. So far it has raised $225.00. According to a report by WAFF Sanford said he will make sure the money gets to the Department of Revenue with the noted earmarks for what it is to be used for. The State of Alabama is experiencing tight financial times and needs your help. Legislators are debating possible financial solutions but are finding that Raising Taxes are not wanted by the citizens of Alabama. Rather than have the Government come after your hard earned money you can now send an amount that fits your budget, even request where your money be used. You can determine what functions of Government are a priority to you. In a comment left on the site he says: I do appreciate the comments but please realize this was to prove a point that most people do not want to pay more taxes but are for taxes when the other guy is to be taxed. Also, even the few donations that have been received reflect our ability to budget State functions (earmarked for education a rate of 8 to 2 (education to other govt services). It is easy to get support for education but not so easy for he remaining rolls of Government.
Too many Republicans in Montgomery? Gov. Robert Bentley thinks so
Gov. Robert Bentley spoke to an estimated 250 people at the Kiwanis Club anniversary celebration in Tuscaloosa on Friday. The Tuscaloosa News reported on the event and here’s some key shots to start your week off in case you missed the story. “I’ve always been a Republican,” Bentley said, “but we’ve got too many Republicans in Montgomery.” “We don’t have anybody to fight.” “You’ve got to have taxes. If you don’t, you don’t have government.” “And they said if you’ll get out in front, we’ll be right there behind you. “And they were. About a mile and a half back.” Chaser: The Tuscaloosa News reported in that same story, “The governor assured those in attendance that he and the Alabama legislators would will find a solution to the budgetary crisis, even if he had to call for a second or possibly third special session.” We do have a lot of republican’s in Montgomery but the problem I hear the most frequently is that there are too many republicans that act like democrats in Montgomery. The strong conservatives in Montgomery are the ones opposed to tax increases, opposed to Common Core, as it’s being implemented, and those who fall on the side of the free market, business friendly climate and limited government. We don’t have “too many” of that type of republican in Montgomery.
Robert Bentley won’t retreat on taxes as budget stalemate continues
Republican Gov. Robert Bentley said he will not retreat as he battles with members of his own party over tax increases. The cuts to state services, which will be required if lawmakers fail to plug a revenue hole, will cause a “tremendous amount of pain to the citizens of this state,” Bentley said. “We’re dealing with real people and real people’s lives,” Bentley told The Associated Press. “We have to have some taxes. We have to have new revenue.” The GOP governor has taken up a high-profile quest to convince the Republican-controlled Alabama Legislature to approve taxes to avoid budget cuts. So far he has failed. Lawmakers rejected his call for $500 million in taxes in the regular session that ended in June. A special session, in which Bentley sought $302 million, appears as if it will conclude next week without significant new revenue. The governor said a cut-filled budget headed to the Senate floor Monday is unworkable. Lawmakers say they expect Bentley to pocket veto the bill and bring them back for a second special session. State agencies are now seven weeks from the Oct. 1 start of the fiscal year and do not have an operating budget. The governor would not say when he expected to call lawmakers back, leaving open the possibility that he could call them back right before the start of the fiscal year. The sharpest resistance has come in the Senate. “That’s where we are on total different sides right now. You’ve got a lot of people, in the Senate anyway, who believe it’s just time to live within our means,” Senate President Pro Tempore Del Marsh said. “Right now there have not been the screams from our constituents that there is a problem,” Marsh said. The House has been more willing to work on revenue ideas. A 25-cent-per-pack cigarette tax failed in committee by one vote when both Republicans and Democrats voted against it. Speaker of the House Mike Hubbard said, “when that collapsed, everything collapsed.” However, Hubbard said he thought the House was “very close” to getting a consensus for something that could pass through the chamber in a second special session “We just have to do what we believe is in the best interest of the people of the state of Alabama. Let’s put a proposal together and let’s send it up (to the Senate) and try to put the pressure on them to try to do the right thing,” Hubbard said. Marsh has proposed taking $225 million from the education budget, saying a savings account for the fund and the fund’s other taxes, which grow every year, could absorb the loss. He said lawmakers could decide later about backfilling the revenue. The state Department of Education and other education groups have launched an offensive push against that idea. Hubbard said the House would not go along with taking money from education without replacing it. Marsh has also proposed letting voters decide on establishing a state lottery and casino although that money would not be available for the immediate budget. Despite two losses with lawmakers, Bentley said he remain optimistic. He said the pressure is beginning to build on lawmakers. However, lawmakers opposed to Bentley could have an advantage in a second special session. Marsh said senators will try to arrange their meeting days so there will be time to override a budget veto. Republished with permission of the Associated Press.
Senate committee undoes Medicaid cut, revives old budget
A Senate budget committee on Friday resurrected a cut-filled budget that Gov. Robert Bentley vetoed in June as lawmakers remain at an impasse over taxes and revenue. The action essentially puts state politicians back to where they started when summer began, with state agencies facing more than $200 million in cuts and no agreement on how to fill the shortfall. Lawmakers anticipate a second special session later this fall. “I think we will be back in a second special session,” Senate Finance and Taxation Committee Chairman Arthur Orr, R-Decatur, said. The Senate committee rejected a House-passed budget that would have focused the bulk of the cuts on the state Medicaid Agency to try to build pressure for a solution. Senators said that was too risky of a strategy, adding that could lead to the collapse of the healthcare program for the elderly, poor and disabled. However, they weren’t happy with the cuts they approved in the absence of a revenue solution. “We’re replacing a sorry budget with a crappy budget,” Sen. Cam Ward, R-Alabaster, said. That spending plan, which Bentley vetoed in June and would likely do again, would have cut funding to Medicaid, the Department of Human Resources, prisons and the Department of Mental Health by about 5 percent. Other state agencies would see deeper reductions. Orr said Alabama citizens would be negatively affected by the cuts if they went into effect when the fiscal year begins Oct. 1. “You would see state parks beginning the shutdown process. You would see employees beginning to get pink slips. You would see programs beginning to be cut, shut down and abolished,” Orr said. The Senate is expected to vote on the budget Monday. The special session must end Tuesday. Lawmakers have been working since March on how to fill a projected shortfall in the general fund Proposals such a cigarette tax, a soda tax, ending income tax deductions, tightening corporate tax loopholes and yanking the money from the separate education budget haven’t gotten enough support to get to a floor vote. Senate and House leaders are meeting with Bentley on Friday to talk about the final days of the special session and the outlook for a second. Republished with permission of the Associated Press.
