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.
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.
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.
As special session resumes, still no agreement on budget
The Alabama Legislature on Monday resumed a special session on a budget shortfall the same way it began three weeks ago: with absolutely no consensus on what to do. Legislators convened after taking a three-week hiatus that failed to erase the divisions among Republicans who control the governor’s office and both chambers of the Alabama Legislature. The state is two months from the start of the new fiscal year and lawmakers have yet to pass a general budget or agree on a way to fill a projected $200 million shortfall. “We’re like kudzu. All over the place and not worth a darn,” said Sen. Dick Brewbaker, R-Pike Road. Lawmakers weighed politically unsavory choices of tax increases, yanking money out of the education budget, or doing nothing and cutting state services. Gov. Robert Bentley said the only responsible solution to the state’s budget woes is to raise $300 million in new revenue. Senate President Pro Tem Del Marsh said senators remained largely opposed to tax increases. Somewhere between the two is the House of Representatives, which is headed to a vote this week on a modest cigarette tax increase. House Ways and Means General Fund Committee Chairman Steve Clouse, R-Ozark, said he has introduced a $173 million revenue plan that banks on a 25-cent per pack tax increase on cigarettes, an adjustment to the business privilege tax – so larger businesses pay more and smaller ones pay less – and a net shift of $50 million from the separate state education budget to the cash-strapped general fund. “We’ve been at this now for about the six months with the regular session, and (the Senate) can’t make a decision. We’ve got to make a decision based on what we feel that our constituents we represent in the House want us to do, and that’s to come forward with a plan,” Clouse said. Clouse said that will keep funding at the same level for prisons, Medicaid and other crucial services but other agencies would get a 5.5 percent cut. Clouse said “time will tell” if they have the votes. Marsh in a news conference suggested a scenario that largely depended on shifting up to $225 million from the education budget and deciding later how to replace the school dollars to get to a “comfort level.” “Is the comfort level raising taxes? Is the comfort level obligating some BP (oil spill settlement) money? Is some comfort level passing the gaming package?” he said. Marsh has proposed letting voters decide whether to establish casinos and a state lottery. However, other lawmakers said there would be strident opposition to taking education dollars without an agreement on how to replace them. “It’s the ultimate big can kick,” said Sen. Finance and Taxation Education Committee Chairman Trip Pittman, R-Montrose. The governor had proposed backfilling the education budget with either a new soft drink tax or ending a state income tax deduction for Social Security taxes paid, but those ideas seem to be falling flat with lawmakers. Despite the divisions, Bentley said he remained cautiously optimistic and praised the leadership in the House for being willing to look at new revenue. “That is the only solution. There is no other solution,” he said. Republished with permission of the Associated Press.
Special Session resumes with talk of second special session
Alabama Today is hearing members were told to pack for 9 days for the special session and to be ready to get comfortable once they get there because they will be working straight through the remaining days. While Governor Bentley may be optimistic about the upcoming special session, those we’ve talked to believe that the chambers are still pretty far apart from a compromise that would balance cuts with the proposals of tax increases. It sounds increasingly like a second special session will be needed to continue working through the differences. Then though there’s the very real possibility that there really aren’t enough legislators to pass the major tax increases Governor Robert Bentley has demanded. Senate President Pro Tem Del Marsh seems very hesitant to even take up most of the proposed increases while Speaker Mike Hubbard learned during the regular session that he has his own band of members, a group of outspoken freshman, who are also opposed to breaking their promise to voters by passing tax increases. House and Senate leadership made themselves clear prior to the Governor calling the session for this early date that they weren’t ready. We will see if the Governor’s surprise and risky move, of forcing their hand calling the special session so early, pays off for him or shows the continued disconnect in long term solutions for the state.
Lawmakers strive for agreement on budget shortfall
Alabama legislators return to Montgomery on Monday looking for something that eluded them for the last several months: Agreement. The new fiscal year is less than two months away and legislators have yet to settle on a way to handle a projected $200 million shortfall in the general fund budget. Lawmakers on Monday will resume a special session after taking a three-week break to try to hammer out a consensus. Gov Robert Bentley is asking lawmakers to approve $302 million in taxes to avoid deep cuts to state services. Senate President Pro Tem Del Marsh said senators were not “warm” to the idea of large tax increases. Republican senators, he said, are proposing their own plan that includes $275 million in revenue. “The bottom line is we have a plan that will work,” Marsh, R-Anniston, said. The proposals include an adjustment to the business privilege tax, a shift of use in tax money from the state’s separate education budget, agreed upon Medicaid tax on pharmacies and other healthcare providers to help fund the state’s Medicaid program. Marsh would not disclose all of the proposals until they were reviewed by House members. “We’re just to the point that we have to get a budget done that we believe is workable,” House Speaker Mike Hubbard, R-Auburn, said. Hubbard said House Republicans this week looked at a menu of options to get more money to the general fund. Bentley has proposed a pared-down tax package after failing to persuade lawmakers to approve more than $500 million in taxes in the regular session. However, some of the governor’s ideas appear to again be getting the cold shoulder from lawmakers. The largest money maker of the governor’s proposals is to end the ability of taxpayers to claim a state income tax deduction for federal Social Security taxes paid. The change would raise $182 million. Alabama is only one of four states that allow the deduction and it would only affect people who itemize their tax deductions. The governor has also suggested a possible soft drink tax if lawmakers do not want to change the deduction. Legislative leaders said they saw little support for either of those. “It clearly doesn’t have the votes in the Senate so I think that one was taken off. The soft drink tax is off the table,” Hubbard said Bentley has said he will call lawmakers back into a second special session if lawmakers fail to find an acceptable solution. Marsh has introduced gambling legislation to create multiple casinos and a state lottery. The Senate leader said he would like to see that debated this session if there is time after the budget votes. Funding cuts, or even level funding, could jeopardize the state’s ongoing efforts at Medicaid and prison reform. State Health Officer Don Williamson said the state’s Medicaid program needs an increase to continue the work of shifting Medicaid to a managed care system, something Medicaid officials hope will save money in the long run. “Basically level funding ends the three years of work of transformation,” Williamson said. Corrections Commissioner Jeff Dunn said level funding would delay building improvements designed to boost prison safety and a 5 percent funding cut would raise crowding to well over twice prison capacity. “The department would be forced to close prisons and move those displaced inmates into already significantly overcrowded facilities,” Dunn said. Republished with permission of the Associated Press.
Alabama Jobs Foundation: “Let the people vote” on gaming bill
As reported Wednesday morning, the Alabama Jobs Foundation released the results of a poll it commissioned that showed strong support (69 percent) for a gaming bill a la Sen. Del Marsh‘s proposal circulating in the Legislature, and overwhelming support (89 percent) for the right to have the debate publicly by way of a referendum on the measure. Early Wednesday afternoon, AJF officials commented about the numbers and what they mean for Alabama’s economic and political future. “These results simply confirm what I hear from Alabamians across the state,” said Pat Dye, former head football coach at Auburn University. “They are ready to vote on this issue once and for all. The voters are clear about what they support: an education lottery and gaming that brings jobs, revenue and economic development to our state.” “Alabamans get it. They see Alabama dollars flowing into other states and they want those dollars stopped and working right here in Alabama for our workers and families. It’s just good old-fashioned common sense,” Dye said. Marsh — whose gaming proposal is competing for oxygen with the Poarch Creek Indian Tribe’s plan in the public sphere and the Legislature — agreed wholeheartedly. “The voters of Alabama are speaking as loud and clear as they can on this issue,” said Marsh, a Republican and Senate president pro tempore. “They demand the right to vote on this issue. They support my lottery and gaming constitutional amendment by large numbers.” “And just as important, they oppose raising taxes, too,” Marsh said as a dig at Gov. Robert Bentley and fellow senators who have proposed balancing the books by increasing tax receipts. Marsh cited the AJF poll in a news release, which showed 66 percent of voters polled oppose Bentley’s plan to increase taxes and that 63 percent of voters indicated they were inclined to vote against sitting legislators who voting in favor of such a plan . “I think those are the kind of poll numbers that should get the attention of every legislator in Montgomery,” Marsh said.
Poll: Voters overwhelmingly support Del Marsh plan, reject Robert Bentley tax increases
In a press conference Wednesday morning the Alabama Jobs Foundation announced the release of key findings from a recently conducted poll that supports efforts by Sen. Del Marsh, Senate President Pro Tempore. Highlights of the survey include: 89 percent of Alabamians demand the right to vote on gaming. 80 percent support an education lottery 69 percent support a gaming/education lottery constitutional amendment 77 percent support the Del Marsh gaming/education plan over the Poarch Creek Band proposed monopoly plan 66 percent of Alabamians oppose new taxes Among the most interesting findings are the opposition to the tax increases that Gov. Robert Bentley and Speaker Mike Hubbard are proposing is above 60 percent across party lines. The proposal to give the Poarch Creek Band a monopoly on gaming is also at more than 60 percent opposition between Republican and independent voters, with Democrats supporting it 53 to 45 percent. When given the choice of the two plans, an overwhelming majority support the Marsh plan with 70 percent of Republicans, 78 percent Independents and a whopping 87 percent of Democrats. TargetPoint Consulting in Alexandria, Va., conducted the survey of 8,009 registered voters on July 21-23. Detailed results can be found at Alabama Jobs Foundation poll overview. Check back with Alabama Today for more information and reactions to the poll.
Del Marsh to join Alabama Jobs Foundation’s for poll release
The Alabama Jobs Foundation is holding a press conference at 10 a.m. Wednesday to announce the results of a new statewide poll. A Foundation media advisory says Sen. Del Marsh, Senate President Pro Tempore and sponsor of a plan to allow voters to vote on a constitutional amendment on gaming expansion, will be in attendance with Chip Hill, executive director of the Alabama Jobs Foundation, and Michael Meyers, a pollster with TargetPoint Consulting, Alexandria, Va. The group has backing of some of Alabama’s biggest names in business, launched with Pat Dye and Charles McCrary, and recently added Harold Ripps, and Frank Bromberg to the board. Marsh has been outspoken about his support of allowing voters to decide on gambling. In an earlier press conference with Birmingham Mayor William Bell, they expressed their preference of the amendment rather than a plan by Gov. Robert Bentley and Speaker Mike Hubbard to raise taxes. “This is a viable option that should be put to the people to decide,” he said. “The people should have the right to make this choice before we put $600 million of new taxes on them.” Birmingham Mayor William Bell joined Marsh at the press conference to lend his support to the gaming proposal because of its potential to boost economic development in his city. “We can’t stand on the sidelines,” Bell said. “In the last gubernatorial election, you had officials saying that we should let the people have the right to decide on gaming. Gaming is by choice, taxes aren’t by choice. If we have a lottery, people can choose for themselves whether to participate in that activity.” Alabama Today will be covering the event.
Harold Ripps, Frank Bromberg named directors of Alabama Jobs Foundation
Two pillars within the Birmingham business community have joined the Alabama Jobs Foundation, whose purpose is to promote Sen. Del Marsh-sponsored legislation to introduce a state lottery and casino gaming to the state as a way of raising new revenue without raising taxes. Harold Ripps and Frank Bromberg have come aboard the AJF, according to a news release on Thursday. They will both carry the title of director, joining foundation President Pat Dye — beloved longtime head football coach at Auburn University — in their mission to cover a looming budget deficit and stimulate the state economy by advancing the Marsh proposal. “These two men will bring a wealth of business experience to our cause: letting the people of Alabama vote on an education lottery and casino gaming, “ Dye said Thursday. “This addition to the Foundation Board of Directors is further proof of the momentum we are building in the business community and throughout Alabama for Sen. Marsh’s plan.” Ripps and Bromberg added their enthusiasm for the plan as well to an announcement of the foundation’s expansion. “The Marsh Plan will have a billion dollar impact on the Alabama economy, and enhance the tourism and hospitality industries,” Ripps said. “There is no question in my mind that this plan can transform the city of Birmingham into a world-class destination location. It is time to let the people of Alabama decide this question for themselves.” “With the passage of this amendment, we can create 11,000 new jobs throughout our state,” Bromberg said. “At the same time, an education lottery and college scholarship program will provide important new investments for our education system, and that attracts jobs, too.” Ripps joins the foundation by way of The Rime Co., a real estate interest he has led for four decades. Bromberg is head of Bromberg’s, a jeweler that the announcement said has operated in Alabama for 179 years.
Alabama judiciary panel chairman has no plans to quit after arrest
The chairman of the Alabama Senate’s Judiciary Committee said drinking and driving was a “huge mistake” but he doesn’t think he should resign after his arrest on a drunken-driving charge. Republican state Sen. Cam Ward of Alabaster told WIAT-TV in an interview aired late Monday that he was using alcohol as a crutch to deal with stress, and driving while doing so was a “whopper” of a mistake. But Ward said he doesn’t believe he should quit either his Senate seat or his industrial development job with the city of Alabaster. “I think I have a lot to contribute in the Senate,” said Ward, 44. Ward said he wasn’t working at the time he was stopped. Senate President Pro Tem Del Marsh previously said he had no plans to remove Ward as chairman of the Judiciary Committee, which handles bills related to legal issues, including prison reform legislation approved in the last session. Ward was stopped by Alabaster police about midday July 1. The arrest occurred about two hours after Ward posted a photo of himself on social media visiting a Bibb County vocational school, and Ward said in the interview he was driving home from Bibb County when he was stopped. Ward, who is awaiting an Aug. 12 court date, did not say in the interview whether he would plead guilty to the charge, which is a misdemeanor. But he acknowledged drinking alcohol and driving. “Obviously, I made a huge mistake. I drank alcohol while driving an automobile,” Ward said. He said his action that day “wasn’t a repeated problem.” Ward said he supports the enforcement of strong DUI laws for himself or anyone else. He said he has sought and received help since his arrest but didn’t specify what type. Republished with permission of The Associated Press.
Del Marsh is right to file gambling bill
Bravo, Del! Bravo. Filing a gambling bill this Special Session is the right thing to do. No matter what position conservatives take on gambling it’s hard to argue that the issue shouldn’t be put before the voters of the state. The Auburn study on the proposal the Senate was looking at during session was so promising that it’s worth discussing. As we previously have written, a look at the numbers in the AUM reports: A staggering 13,000 plus jobs will be created; $331,667,963 is the expected annual revenue from a state-run lottery system, and; Depending on the tax rate, the estimated revenue from expanded casinos will be with a rate of 13 percent, $63,015,148, or up to $73,863,632 with a 15 percent tax rate. That adds up to nearly $400 million in tax revenue to be collected for the general fund with the expansion of both. The gambling bill has the support of Birmingham Mayor William Bell, many in the business community as represented by a coalition headed by Charles McCrary and Pat Dye, and of enough people that it’s worth discussing. Here’s to hoping Gov. Robert Bentley reconsiders his steadfast opposition to allowing the bill to come up in the Special Session or that the legislators are able to reach the majority needed to bring it up themselves. The people deserve the opportunity to vote.
