State Auditor Jim Zeigler’s operating budget on chopping block yet again
They say there’s nothing new under the sun, and that certainly seems to be the case when it comes to proposed budget cuts to state auditor’s office. On Monday, the full State Senate is expected to consider the general fund budget (SB157) and in it is a whopping cut of 47% to the state auditor’s office. The budget of the State Auditor is currently $968,433. SB157 cuts the budget nearly in half to $500,000. “The budget figure of $500,000 now listed for the state auditor in SB 157 is a completely arbitrary number with no basis whatever,” stated Zeigler. “A $500,000 appropriation would make the property inventory process inoperative. Each year, $200,000 in cost goes to software and support for the inventory, so we would be left with insufficient funds for our six staffers, rent and other basic costs. HISTORY OF CUTS This marks the fifth- time Zeigler has faced cuts to his budget. His operating budget has been cut over the last four years after it was first slashed by 28.5% when he took office in 2015, under former-Gov. Robert Bentley’s administration forcing his staff to be cut in half. Zeigler’s perennial budget cuts is far from the first action seemingly taken against the State Auditor. In 2018 Zeigler received written notice from Legislative Council informing him that he is being kicked out of the Alabama State House. The auditor’s offices had been in the State House since July of 2007. Then in 2019, parking spaces in Montgomery were revoked for him and his staff. RETALIATION OR NECESSARY CUTS? Zeigler speculates these budget cuts continue to come his way because he has a history of activism and being an outspoken state auditor. He filed the initial ethics complaint against then-governor Bentley in 2016. The ethics commission found Bentley in violation, and five days later, Bentley resigned. Zeigler’s wife Jackie was State Chair of “Vote No on Amendment One’ in the March 3rd primary. The amendment would have abolished the people’s right to vote on the state board of education members and made them all appointed by the governor. The measure was defeated 75% to 25% after passing the legislature almost unanimously. Zeigler led a successful citizens’ movement last year that blocked a toll bridge on I-10 over Mobile Bay. “Because the state auditor was the only office slashed, it shows that I have been targeted. This is retribution for my work on behalf of taxpayers,” Zeigler added. Zeigler was re-elected in November 2018 for a second and final four-year term. He is now term-limited.
Alabama State Trooper Association calls for end to public safety crisis, additional funding
On Tuesday the Alabama State Trooper Association (ASTA) called for an increase of funding from Gov. Kay Ivey and state legislators for state troopers to combat the dangerous shortage of staffing at the state level of the agency. ASTA President David Steward said despite the growth of the economy and the stability of the General Fund budget, troopers are still woefully understaffed and underfunded. “There are less than 250 Troopers to serve all of Alabama, even though recent studies suggest that over 1,000 Troopers is the appropriate number for a state the size of Alabama,” Steward said. “At current staffing levels, there is one state Trooper for every 214 square miles in Alabama.” According to ASTA, Trooper presence is the single largest deterrent of accidents on Alabama’s highways. Despite this, budget cuts have lead to a 22 percent drop in Trooper staffing since 2014. During that time, auto injuries have risen by 19 percent and auto fatalities are up a whopping 28 percent. “Seconds count in an accident and troopers are having to cover hundreds of miles,” Steward added. “Often one trooper is handling multiple counties.” This is not the first time state legislators have been called on to provide for more funding for State Troopers. In January 2017, former Alabama Law Enforcement Secretary (ALEA) Stan Stabler requested a $60 million General Fund budget increase. The extra funding would have included $14.3 million of which would be appointed to the ALEA for the cost of hiring and equipping 100 new state troopers for a year. ASTA’s request may soon be answered. Ivey requested a $3.2 million increase in Alabama’s General Fund to be allocated to the ALEA to be used for a new class of 30 state troopers. “It’s a start,” said ASTA Executive Director Neil Tew. “30 is something to build on. We’re hoping it will be more the following year.
Tripp Pittman introduces Kay Ivey’s General Fund budget in Ala. Senate
On Tuesday, Montrose-Republican and Finance and Taxation General Fund Chairman, State Sen. Trip Pittman introduced Governor Kay Ivey’s proposed General Fund budget in the Senate. SB178, otherwise known as the proposed budget, appropriates funds for functions of government, debt service, and capital outlay for fiscal year ending September 30, 2019. According to the Governor’s office, the it does so “sensibly” and “funds state government with prudence and care.” Ivey applauded Pittman’s introduction of the budget. “I am pleased to learn that my budget was introduced today by Senator Pittman,” Ivey said. “My proposed budget is a strong, manageable budget, and is highlighted by the bright spot of a lower than expected Medicaid appropriation. Improving Medicaid delivery and controlling costs is central to my budget; that is why I instructed Commissioner Stephanie Azar in October 2017, to begin working on implementing work requirements and increased copays for Medicaid recipients. That process has been ongoing, and I look forward to future implementation of those policies.” Recent changes by the Trump Administration, have enabled states, like Alabama, to seek Medicaid work requirements. After instructing Commissioner Azar to implement work requirements and increased copays for applicable Medicaid recipients, the governor notified Pittman of the new policies shortly thereafter. The governor’s instructions are aimed at continuing to increase efficiency and decrease costs related to Medicaid, all in an effort to be good stewards of taxpayer dollars. “Since my meeting with Governor Ivey in October, we have been working hard to prepare for this change and ensure our recipients will continue to receive an adequate level of care,” said Commissioner Azar. “Last week, during my testimony to the General Fund Budget Committee, I illustrated how the work requirements and the copay increases will benefit the Alabama Medicaid Agency. Thanks to the improved economy and continued efforts to seek efficiency and decrease cost in the program, Medicaid is requesting less money than expected. We are certainly moving in the right direction to take care of the Alabamians that depend on our services.” The General Fund Budget is expected to start making its way through the legislative process, beginning in the Senate Committee on Finance and Taxation General Fund this week.
After hours of debate, Alabama House approves General Fund budget
The Alabama House of Representatives approved a $1.8 billion state budget after nearly four hours of debate over a proposed pay raise for state employees, who haven not had a cost-of-living increase since 2008. Lawmakers voted 72-28 for the budget late Tuesday, which keeps $97 million – roughly 5 percent of the total budget – in reserve for future needs after the BP oil spill settlement money is gone. The proposed pay raise for state employees would have cost the state an additional $19 million a year, which conservative lawmakers said was too high a price to pay for the cash-strapped state. Many Democrats adamantly disagreed, saying it was unfair to punish the workers for the state’s budgetary woes. “That’s unconscionable to think that people would work that long and not get a raise,” Democratic state Rep. John Knight said from the House floor during debate. The bill now moves to the state Senate. If passed, the spending plan will go into effect Oct. 1 and provide level funding to most state agencies.
General Fund budget debate expected in Alabama House Tuesday
It’s budget week in the Alabama House of Representatives. State lawmakers will begin debate Tuesday afternoon on a trimmed general fund budget in an effort to save the state money in the future. The $1.8 billion budget will fund most state agencies,as it keeps an estimated $97 million – roughly 5 percent of the total budget – in reserve for future needs. The budget does not include $19 million Gov. Robert Bentley proposed as a 4 percent pay raise for state employees.
Steve Flowers: Time again to focus on Alabama budgets, Medicaid problem
As the third regular session of this quadrennium begins, the paramount focus once again will be on the budgets. Even more specifically, it will be about the General Fund Budget. Alabama is one of five states that has two budgets. Our Education Budget now receives over two-thirds of our tax revenue due to the fact that our growth taxes, income and sales, are earmarked for Education’s coffers, whereas our General Fund gets the remaining one-third of revenue and that will continue to shrink because it has no growth taxes. The General Fund also has to feed the most expensive expenditure of state government – Medicaid. This Great Society program created by Lyndon Johnson in the 1960s is a money eating monster that grows exponentially and now eats up over half of the General Fund Budget. This problem is not unique to Alabama. Every state would name Medicaid funding as its most significant financial nightmare. We are affected more adversely than most states because we have a much higher indigent population. It is this long-term problem that eventually will have to be addressed. Those who are closest to the problem are aware that it is an elephant in the room that will not go away. Rep. Steve Clouse (R-Ozark), who chairs the House Ways and Means General Fund Committee, sees it as does Gov. Robert Bentley. Governor Bentley, being a former physician, is sympathetic to the needs of the less fortunate. He treated all patients during his 35 years of practicing medicine. He also wants to see his compatriot pediatricians paid to take care of poor sick children. Initially many of the Republican House and Senate members were saying enough is enough. We cannot continue to absorb 10 percent annual increases in this social program, even if the federal government matches Alabama’s contribution about three to one. However, once a crisis seemed imminent, they realized that it not only affected the poor but also the middle-class Alabamians they represent. In medium sized towns and cities throughout the state it is imperative that Medicaid be funded in order for their hospitals to exist. In Birmingham, it would cripple our crown jewel, Children’s Hospital. It would also be devastating for Alabama’s and Birmingham’s largest employer, UAB. Most respected economists say that Alabama should have taken the Expanded Medicaid Program offered by the federal government. It would have been a financial boon for that state if for nothing else than the windfall to UAB. A good many of the Republican legislators’ constituents rely on Medicaid to care for their parents and family members and probably a good many of their parents reside in nursing homes. Approximately 70 percent of nursing home residents in the state depend on Medicaid to pay their nursing home expenses, which by the way is very expensive. In short, Medicaid is here to stay. It is not going away. Legislators cannot bury their head in the sand like an ostrich and hope the problem disappears. The legislature and governor have come up with a short-term fix to our Medicaid problem. They appropriated $120 million of the one-time BP oil spill settlement funds and gave it to Medicaid. This was about 20 percent of the one-time BP windfall. Ironically, it will be disbursed over the next two years, 2017-2018. Guess what folks – that is when the quadrennium ends. Therefore, the proverbial can has been kicked down the road. The next governor and legislature will inherit this baby to take care of the following four years. Legislators may be faced with yet another issue in this overladen regular session. It may be imminent to raise the gasoline tax in the state, which has not been increased in 15 years. The reason being is that the Trump administration will probably come with a massive federal infrastructure plan to rebuild the nation’s highways and bridges. More than likely states will have to come up with some matching dollars. It will be imperative that we take advantage of this once in a lifetime opportunity. The last major federal highway initiative was the Eisenhower Federal Interstate Program. We are behind the eight ball when it comes to political capital and attaining federal dollars. Governor Bentley is blackballed and laughed at by the Trump administration, as are our Congresswomen Martha Roby and Terri Sewell. We also have a freshman Senator who will be ranked 100th in seniority. However, we have quite an ace in the hole. We have Richard Shelby to protect us. When Shelby speaks, folks in Washington listen and that includes Trump. Richard Shelby is unquestionably one of the five most powerful members of the U.S. Senate. See you next week. ___ Steve Flowers is Alabama’s leading political columnist. His weekly column appears in over 60 Alabama newspapers. He served 16 years in the state Legislature. Steve may be reached at www.steveflowers.us.
Kay Ivey: The stage is set for budget reform
The end of the 2016 fiscal year is rapidly approaching with the current fiscal year ending on the last day of September. After five legislative sessions, our budget challenges remain a high priority and our fiscal future is shaky. The Alabama Legislature just completed the third Special Session in the last 12 months, along with two Regular Sessions, totaling five Legislative Sessions in the last 20 months. Based on statutory requirements, the Legislature has been obligated 300 calendar days during this period to conduct legislative business. On top of legislative duties while in session, Legislators have also been busy with budget and Medicaid hearings, as well as other obligations regarding their responsibilities as a Legislator. It is clear the Legislature has devoted a tremendous amount of time dealing with the General Fund Budget and the ever-increasing demands of Medicaid. Over the past year, the Legislature has struggled to identify an additional $85 million to fully fund Medicaid at $785 million. When I took office in 2011, the Medicaid appropriation was $345 million. During the past five years, funding for Medicaid has continued to increase and is expected to reach $865 million for Fiscal Year 2018, which begins a year from now. Before I leave office as Lieutenant Governor, the General Fund appropriation for Medicaid will be approaching $1 billion. For more than a decade, funding for Medicaid has grown at a double digit pace while the General Fund overall has increased by a single digit each year. Using our current budget models, in five years Medicaid and Corrections will consume nearly 100% of the General Fund. Recent Special Sessions called by the Governor have included requests for additional revenues as a result of increased taxes or revenue generated through a statewide lottery—most of the Governor’s proposals did not pass. However, one measure that did pass was an increased cigarette tax. As a result, the cigarette tax revenue is expected to have a substantial increase of $190 million this year. Alabama has one of the most unique budget models in the country. The vast majority of Alabama’s revenues are committed (or earmarked), representing one of the highest levels in the country. For almost a decade, Alabama has operated state government on one-time and non-reoccurring money either from the federal government, the State’s Trust Fund or the State’s Rainy Day Fund. The most recent Special Session was no different with current obligations and road projects funded through one-time BP Settlement monies as a result of the 2010 Deep Water Horizon disaster. Many believe the reality of our situation will result in a fiscal “train wreck” in the near future. Current budgets, earmarked revenues and growing demands for Medicaid, Corrections, Mental Health and Human Resources are on an unavoidable path that will provide extremely limited funds for the remainder of state government. On an optimistic note, Alabama continues to enjoy marginal economic growth with unemployment down to 5.4%, the lowest in nearly a decade. As more Alabama citizens enter the workforce, they and the businesses that employ them will contribute to our economy resulting in increased revenues to support our budgets. There may be light at the end of the tunnel with the recent creation of the Joint Legislative Task Force on Budget Reform (HJR62) led by Speaker Mac McCutcheon and President Pro Tem Del Marsh. The task force will begin evaluating and recommending budget reform proposals to be considered by the Legislature. I applaud Pro Tem Marsh and Speaker McCutcheon for providing the leadership to begin the process to consider budget reform. It is my understanding that the focus will be to determine how best to fund state government with existing revenues. Possible solutions include freeing up earmarked revenues and revaluating existing tax credits and deductions that will provide flexibility within our budgets and allow Legislators to prioritize and fund essential services of state government. Senator Clyde Chambliss and Representative Danny Garrett will lead the task force as co-chairs, along with Senator Greg Albritton, Senator Linda Coleman, Senator Bill Hightower, Senator Bobby Singleton, Senator Phil Williams, Rep. Anthony Daniels, Rep. Allen Farley, Rep. John Knight, Rep. Chris Pringle, Rep. Kyle South and Rep. Rich Wingo. The task force is expected to meet monthly prior to the upcoming Regular Session. The first meeting is set for Wednesday, September 28. As we near the end of this fiscal year, the Alabama Department of Revenue is projecting we will collect a record amount of revenue exceeding $10 billion. Even with a record amount of revenue, our antiquated budget models continue to create major obstacles to fulfilling our needs. The challenges we face with our budgeting process will not go away unless we begin to look further than the year ahead and start to implement solutions that fundamentally change the way we prioritize our needs and budget our revenues. After marginal success in recent special sessions and our continued appetite to operate on one-time money, the stage is set for true budget reform. It will take bold leadership and courage by Legislators to make decisions that will have a long-term impact on the future of our State. Now that the stage is set, I am encouraged by the opportunity before us and am hopeful we may accomplish this task with the attention and hard work of the task force members. ••• Kay Ivey is the lieutenant governor of Alabama. Elected in 2010, she was the first Republican woman to hold the office in Alabama’s history.
Katherine Robertson: If the people only knew
“THE PEOPLE want to vote!” — the most oft-repeated catchphrase of the lottery debate. Even politicians who declare themselves personally opposed to a state-run lottery try to justify their support of it because “THE PEOPLE want to vote.” But politicians know full well that they have not been honest with THE PEOPLE when it comes to a lottery — that this debate isn’t over whether or not they should be able to buy scratch-offs in Alabama. No, for politicians and for bureaucrats, the lottery is merely a means to an end — and that end is bigger government. If THE PEOPLE only knew what was really going on in Montgomery, they would staunchly oppose giving politicians more of their money to spend. Despite the fact that Alabama’s government spends more money every single year, to most politicians and bureaucrats, nothing in state government has been or will ever be “fully funded.” Around the State House, these men and women flippantly and unapologetically discuss getting their hands on more of THE PEOPLE’s money — never mind that most Alabamians can’t afford to give away more. This year, the state spent $29 billion of THE PEOPLE’s state and federal tax dollars only for state leaders to then tell THE PEOPLE that Alabama faces a dire budget “crisis” over a request to spend $85 million more — a mere 0.29 percent of what has already been spent (and, if it were vital, then it could have been found). These now-annual “crises” are self-imposed by politicians who are constantly looking to pilfer more of THE PEOPLE’s money because they’ve given up on dealing with our state’s spending problem at its roots. To put it simply, the spenders have a want, but they’ve done a good job convincing THE PEOPLE that it’s a need. Attempting to reason with his colleagues on Friday, one senator reminded them government will always find a way to spend every single penny it takes in. And having more money to spend in the short term will continue to cover up the unsustainable fiscal trajectory that the state finds itself on. The government’s insatiable spending addiction will not be satiated with lottery revenue — it will be stimulated. Critical policy proposals that would help place our state on stable financial footing for the long term will not see the light of day. As a result, it won’t be long before our politicians realize that lottery revenue can’t support their spending problem. Where will they look for money next? Not only will the lottery-fueled growth in government almost instantly have to be sustained by other forms of revenue (i.e., more of THE PEOPLE’s tax dollars), but the cost of a state lottery will show up in other ways. For the state to net the governor’s $225 million estimate (more on that here), THE PEOPLE — every Alabamian 18 years of age or older — would have to spend $182 a year on lottery tickets. According to Salil Mehta, a renowned academic statistician and Ivy League professor, probability calculations indicate that an estimated 350,000 Alabamians would lose $200,000 of their lifetime savings as a result of a state lottery. Keep in mind, this is in a state with the 48th lowest median household income in the country. A state in which 19 percent of THE PEOPLE live in poverty and 25 percent receive government assistance. Who will be better off if the government is permitted to aggressively coax individuals with limited resources into wasting their money on the false hope of getting rich quick? Other states’ lotteries do exactly this — it is not speculation. What could additional government spending possibly offer THE PEOPLE to justify that level of malevolence? (And, just in case you’re thinking it, taking from those who rely on state benefits is not a clever way to recoup costs, but will leave them with even less income and further diminished means of escaping poverty.) THE PEOPLE should not be fooled into thinking the debate going on in Montgomery is over an innocuous game of chance or their freedom to play it — it’s about conning them into handing over more of their money without asking too many questions. Make no mistake, the lottery is a tax — a hidden tax, disguised as entertainment, and supplied through a state-run monopoly — and it will almost assuredly lead to more taxes as politicians are further enabled to avoid the kinds of tough decisions they were elected to make. ••• Katherine Green Robertson is Vice President of the Alabama Policy Institute (API). API is an independent, nonpartisan, nonprofit research and educational organization dedicated to the preservation of free markets, limited government, and strong families. If you would like to speak with the author, please e-mail communications@alabamapolicy.org or call (205) 870-9900.
Jim McClendon: A tale of two lotteries for two budgets
Let me start by clarifying I am married to only one thing in life — my beautiful wife, El. My relationship with her is nonnegotiable. “Until death do us part” is a promise between us, not just a sweet thing to say during a wedding. I understand this is an odd way to start an editorial about the lottery. However, it is necessary because I am not married to one lottery proposal over the other, considering I’m sponsoring two, including the governor’s. The people of my district and hundreds of thousands of other Alabamians are clamoring for the right to vote on a lottery. Some are for; some are against. But everyone I talk to agrees we at least need to put the lottery to an up-or-down vote of the people. So let’s get into the meat of the lottery proposal I presented at a press conference Tuesday, along with some necessary myth busting. First, I have no qualms with anyone over a moral objection to gambling. Vote “no” and take people to the polls with you to do the same. In the meantime, answer this: Are you going to provide free clinics for sick underprivileged children? Will you do in Alabama what you do on mission trips to other states and countries? Incidentally, I have never purchased a lottery ticket. I did buy a raffle ticket at my church last Sunday. I am not supporting or opposing a lottery because of moral reasons. To me, this is simply creating an opportunity for the people of Alabama, not the Legislature, to have the final say. Second, a lottery will not bring Class III gaming (table games) to our state. Speaking of the Poarch Creek Indians, I have already been forewarned they opposed lottery terminals. I would like to point out their children enjoy premium healthcare covered by the profits of their gaming machines. That is admirable, and they should support my effort to extend the same courtesy to more than a half-million other Alabama children. Now let’s talk about the governor’s bill and my bill. During the regular session, I introduced a simple 31-word bill to begin the conversation in earnest. It obviously didn’t become law, but the conversations it started in the Legislature resulted in the bill I will introduce at the beginning of the special session. Both bills create a statewide lottery and a lottery commission. Neither will affect charitable bingo or allow casinos. My proposal will allow electronic lottery terminals in counties that have local constitutional amendments already allowing parimutuel wagering. The governor’s proposal only generates $225 million and sends 100 percent of it to the general fund budget. In contrast, my concept generates $427 million every year and divides the revenue by sending $327 million to the general fund and $100 million to the Education Trust Fund. Because of the lottery terminals, my proposal will also start generating revenue in only a matter of months, not years. Finally, I included a bond issue against future lottery revenues in order to cover the $85 million Medicaid shortfall this fiscal year. It is now up to the legislative process during the upcoming special session to determine which proposal — the governor’s, mine, or someone else’s — should go before the voters in November. Come Aug. 24, which is the cutoff for placing a constitutional amendment on the general election ballot, it is my hope my colleagues in the Alabama Senate and Alabama House give voters the right to vote on the lottery. Think about which one best provides for both the short-term fix and the long-term solution. Consider the impact on you and your family if we cannot fund Medicaid, the foundation of Alabama’s healthcare system. Call your legislators today, and tell them to let you vote “yes” or “no” on a lottery. ••• Sen. Jim McClendon represents District 11 in the Alabama Senate, which includes all or parts of Talladega, St. Clair, and Shelby counties. You can reach his Senate office at 334-242-7898 or email him at jimmcc@windstream.net
Daniel Sutter: Medicaid fails the poor
This year’s biggest state budget fight involved funding for Alabama Medicaid. The legislature overrode Governor Robert Bentley’s veto to pass a General Fund budget with almost $100 million less in funding than the governor requested. Budget fights over Medicaid should come as no surprise, as it is the largest item in Alabama’s General Fund budget, even though we decided against the Affordable Care Act expansion and have very strict eligibility conditions for poor adults. I recently completed a study for the Mercatus Center at George Mason University on the sources of growth of Medicaid over the past 50 years. Perhaps the most revealing thing I learned while conducting this study is how dramatically our enormously costly Medicaid system fails America’s poor. Medicaid and Medicare were established in 1965 as part of Lyndon Johnson’s Great Society to provide health insurance for the poor, disabled, and elderly. Both programs I think were the inevitable product of earlier policy decisions tying health insurance to employment. Employer-paid benefits were not treated as taxable income for employees, strongly encouraging employers to offer health insurance to employees and their families. But this also left persons without jobs without insurance, creating the need for government insurance for the retired, disabled, and poor. Although Medicaid is commonly described as insurance for low-income children and adults, almost two thirds of total spending is for the disabled and elderly. States accomplish this in part by underfunding care for low-income recipients. Medicaid features the lowest reimbursement rates for doctors and hospitals for covered treatments of any insurer, including Medicare. In addition, billing Medicaid is lengthy and time-consuming for healthcare providers. Not surprisingly, doctors try to avoid Medicaid patients; one third of doctors would not accept new Medicaid patients in 2011-12. Medicaid patients often face long waits when able to schedule appointments. The problem is widely recognized. Oregon Senator Ron Wyden once called Medicaid a “caste system” limiting the access of poor Americans to the health care they desire. Health economist Robert Graboyes notes that, “For low-income Americans, Medicaid yields poor coverage, poor care, and poor medical outcomes.” How bad are these outcomes? A University of Virginia study found that Medicaid patients had higher in-hospital mortality, longer hospital stays, and higher costs, controlling for age and other risk factors, than patients with private insurance, Medicare, and even the uninsured. Other studies from leading universities find similar results. Medicaid recipients also use emergency rooms more frequently because of the difficulty they experience scheduling appointments. Affordable Care Act proponents hoped that expanded insurance coverage would reduce healthcare costs by getting patients to see doctors before their health worsened and they went to emergency rooms. Medicaid’s inadequate reimbursement rates thwart this hope. Why does Medicaid deliver so little for low-income Americans? One factor is what I’ve previously called in this column the “spend but don’t tax” attitude among politicians. “Tax and spend” politicians want to spend lots of our money on things that they, their constituents, and special interest groups want. Politicians win votes and campaign contributions for the next election by spending our money. Tax and spenders are willing to raise taxes to fund this. Spend but don’t tax politicians want to spend and keep taxes low to score points with fiscal conservatives. These politicians want to have their cake and not pay for it. Medicaid exemplifies the consequences. Politicians take credit for providing health insurance for the poor; we constantly hear that Alabama Medicaid serves one million Alabamians. Most voters are too busy with their lives to take the time to learn how Medicaid fails to deliver its promise. Big government on the cheap is often an election-winning formula for politicians, but costly for America. How the federal government disperses money to states also contributes to the problems of Medicaid, as my study for the Mercatus Center found. Consequently reform could both contain Medicaid’s cost and improve the quality of healthcare for low income Alabamians. I’ll say more about potential reform next time. ••• Daniel Sutter is the Charles G. Koch Professor of Economics with the Manuel H. Johnson Center for Political Economy at Troy University and host of Econversations on TrojanVision. Respond to him at dsutter@troy.edu.
Clay Scofield: Protecting the future of Alabama State Parks
Nearly 80 years ago, the Civilian Conservation Corps began construction of Alabama’s state parks system. Since the first stone buildings of Cheaha State Park opened to guests in 1939, Alabama’s State Parks have been providing memorable outdoor retreats and dozens of recreational options to guests. Alabama’s Legislature made history last week and took a major step toward ensuring our State Parks stay available to the people of Alabama for decades to come. Last Wednesday, the Alabama House of Representatives passed a bill that I was proud to sponsor — SB260 — to add a constitutional amendment to prohibit transferring funds from the Alabama State Parks System’s budget to the state’s General Fund. Now that the constitutional amendment has passed both the House and Senate by supermajorities, the people of Alabama will get an opportunity to vote on the future of their state parks system on the general election ballot in November. The need for this constitutional amendment came after the Legislature took steps to fill holes in the General Fund budget by transferring $15 million from the state parks since 2012. Luckily, a vast majority of legislators joined me in working to end this practice and to allow the state parks’ money to stay within our beautiful parks system. I’m proud of the support this constitutional amendment received from our lawmakers, and now I hope the citizens of Alabama will join us to ensure our parks’ funding is permanently protected. Our parks are God-given natural resources that belong to the people of Alabama, and I know the people of Alabama care deeply about these beautiful spaces. Over the last year and a half, I, and many other lawmakers, have received literally hundreds of phone calls imploring the State Legislature to ensure these parks remain available to the people and receive proper funding. I’ve been joined by a few other passionate lawmakers who are also eager to see our state parks system protected and fully funded. This constitutional amendment is only one of three bills moving through Alabama’s Legislature aimed at helping to protect our state parks system. This constitutional amendment is to protect the parks’ funding, but does not create new revenues streams for the parks. Sen. Gerald Dial has sponsored two bills that would create new streams of revenues for the parks. SB 163 allows citizens renewing their car tags the option of a specialty tag supporting Alabama State Parks; this special parks tag would be $50. SB79 would give citizens a similar option of a specialty tag when renewing their boat registration. The fees from these specialty tags would go directly to the Alabama State Parks System. Alabama’s state parks have a wide range of natural features, from the rich mountains in north Alabama, to incredible natural caves, lakes and streams teeming with wildlife, to pristine Gulf Coast beaches. The parks have something for everyone, whether it is enjoying a breathtaking view from a lodge restaurant, roughing it in the woods on a primitive camping trip, soaking up the sun in a canoe, or speeding through the trails on a mountain bike. The parks have continually attracted millions of people year after year, and half of all visitors to Alabama’s state parks are from out of state. As a result, Alabama’s state parks bring the people of Alabama much more than beautiful landscapes and countless recreational options. The parks provide a significant economic benefit to the state, $375 million annually. Local businesses, outfitters, hotels, restaurants and convenience stores all benefit from the hundreds of thousands of park-goers each year. Our parks are the pride of these local communities, and I hope you’ll join the fight to help ensure our parks remain fully funded and available for future generations. I encourage all Alabamians to vote in favor of this important amendment on Nov. 8. If you’re interested in getting involved with the fight to permanently fund Alabama’s State Parks, please visit ALParksPartners.com and get involved with Alabama State Parks Partners Coalition, a nonprofit organization fighting to raise awareness and support for our state parks. • • • Clay Scofield is a state senator from Guntersville, Alabama. He represents the 9th district. He represents Blount, DeKalb, Madison and Marshall counties.
Alabama lawmakers to hold hearings on state’s Medicaid dilemma
The countdown is on for Alabama lawmakers to come up with a solution for $85 million shortfall to fund the state’s Medicaid program in the eight remaining legislative days — or else risk coming back for a special session. Part of an ongoing budget impasse, funding for the state’s Medicaid program — which covers approximately a million Alabamians — has been an hot-button topic in the Legislature this year. Last month Alabama Gov. Robert Bentley vetoed the state’s General Fund budget over the lack of Medicaid funding, but lawmakers bucked his veto and voted to override it. The House and Senate general fund budget committee have scheduled a joint meeting Wednesday to discuss the Medicaid shortfall. Bentley and Alabama Medicaid Commissioner Stephanie Azar have said the program will see cuts in Medicaid services without additional funds, which could force the state to eliminate prescription drug coverage for adults, adult eyeglasses, prosthetics, outpatient dialysis, or requiring patients to go to one big box pharmacy, among other possibilities. “I think today it is very important for recipients to know that their access to care is at risk and for the Medicaid providers in the state to start preparing for the impact of these cuts,” Azar said.
