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.
Alabama lawmakers hold special session on budget
Alabama legislators on Monday began a special session on a looming budget shortfall during which Gov. Robert Bentley will again try to persuade Republican legislators to support tax increases over deep cuts to government services. Bentley is asking lawmakers to approve $302 million in revenue. Alabamians would rather have “minimal” tax increases, Bentley argued, over slashing state services in the fiscal year that begins Oct. 1. “They want to take care of mental health. They want their hospitals to stay open. The people of Alabama, I don’t care how conservative they are, they want those services, and we have to fund them,” the governor said. Bentley said legislators need to “step up” and show leadership. Legislators met for about 15 minutes and then adjourned until Aug. 3, saying committees needed time to work on budget ideas. The opening day of the special session also came with a renewed push for gambling legislation which, like Bentley’s tax bills, faces uncertain odds. The regular session ended last month in a political stalemate and without a budget. Bentley was unable to persuade lawmakers to approve tax increases and vetoed a spending plan that would have slashed $200 million from state agencies. He faces an uncertain outlook in Round 2 with legislators. House Speaker Mike Hubbard, R-Auburn, said the House will consider the governor’s proposals, but that the House and Senate need to take responsibility moving forward. “I believe that we will be working with the Senate in coming up with what we believe is a consensus and that we can get passed,” Hubbard said. “And it’s not to say that we’re not going to keep the governor informed, but that’s the way the separation of powers work. He is going to make some recommendations to us, but that’s all they are, recommendations.” Hubbard said he has not seen the specifics of Bentley’s proposals. “I don’t believe my members are inclined to vote for a bunch of new taxes,” Senate President Del Marsh, R-Anniston, said before lawmakers convened. The governor’s proposals include a cigarette tax and an adjustment to the business privilege tax. He also wants lawmakers either to approve a soda tax or do away with the FICA tax deduction from state income taxes. The opening day of the special session also highlighted ongoing differences between Bentley and Marsh. Bentley is trying to head off discussions of gambling legislation, excluding it from his special session call. Marsh on Monday introduced legislation to legalize a lottery and casinos. “I think if you check the temperature of the public, they are ready to vote on the issue one way or the other,” Marsh said. Marsh said he is not looking at the bill as a solution to next year’s shortfall, but said the state needs to have the conversation about gambling. Marsh introduced similar legislation in the regular session. He never sought a Senate floor vote, however, since it was clear he did not have the 21 votes needed to pass a constitutional amendment. The governor said he is not opposed to people voting on gambling at some point, but he said the state needs to look at budgetary changes first. The special session can last for up to 30 calendar days. The governor said he is prepared for a Round 3, saying he will call lawmakers back for another special session if needed. “We’ll see what they do over the next 30 days. If it doesn’t get solved, we’ll come back in August,” Bentley said. Upon the House and Senate adjournment, acting finance director Bill Newton addressed a joint meeting of the bodies’ budget committees. Afterward, Senate budget chair Arthur Orr, R-Decatur, didn’t have high hopes. “I think there are a lot of different forces at work in this special session. Any budget that properly funds state government will be difficult to fund properly,” Orr said. Republished with permission of The Associated Press.
Statewide grassroots leaders ask Governor to call education special session
Grassroots activists aren’t ready to give in on their attempt to repeal Common Core and change the states education system. Today they sent the following letter asking Gov. Robert Bentley to call an education special session to take up the bill that failed during regular session. Governor Robert Bentley, We the parents and concerned citizens of Alabama respectfully demand that you, the Governor of Alabama, call a Special Session of the Legislature, and request that SB101 and HB242 be revisited. You have repeatedly expressed to grassroots leaders and concerned parents working to repeal the Common Core Standards, that you were also opposed to them. Support of Common Core will be a dark mark on your legacy, and will also severely damage anyone with future political aspirations. You are calling for tax increases to balance the general budget, but you refuse to address the fact that Common Core will bankrupt the State of Alabama. No amount of federal dollars will stay this process. The “Repeal Common Core Battle Cry” will not stop. It is rampant throughout our country. The children of Alabama will not be easily surrendered to the untested mandates of the politick. We are giving you an opportunity to stand with us, the parents of Alabama, and prove you are still a man of your word. We await your answer. Make no mistake, we are not going away. Signed, Ann Eubank Co-Chair Rainy Day Patriots Zan Green Founder Rainy Day Patriots Dawn Ray, Shelby County Republican Women Bash Agricola, Montgomery Tea Party Dee Shirley, Shelby County Republican Women Dexter Bland, Calhoun County Rainy Day Patriots Steven D. Guede, Calhoun County Rainy Day Patriots Steve Henry, Oxford, AL Lou Campomenosi, Common Sense Campaign Kelly Berry, The Madison Institute Don and Kay Day, Mobile, AL Dee L. Voelkel Lee James, Sr. George Barry, Madison, AL Richard Schultz John Mahan Lei Peavy, Huntsville, AL Mike Parsons, Huntsville, AL Dr. Miles F. Jones, Fairhope, AL Mary Lynn and Charles P. Bailey, Gurley, AL Cathy Odom Steve and Irene Stone Janet Oglesby Priscilla J. Owens Roberta Burckardt Beverly Burks Kimberly Knight Alex Balkum James Giddens, Opelika, AL George B. Williams, Athens, AL Walter F. Gray, Daphne, AL Linda King Butch Daniel, Enterprise, AL Dianna Crews, Stand in the Gap Ron Hei Steve Johnson, Rainy Day Patriots
10 lines from Gov. Robert Bentley’s special session press conference to make you say “what?”
Friday morning the Governor held a press conference to talk about his call for a special session. Here are some key take aways. From the “makes you think” file courtesy of Gov. Robert Bentley: “I truly believe they [legislators] are ready to solve the problems with this state” (This is in spite of both the Speaker and the President Pro Tem releasing statements saying they aren’t) “I just listened and nodded my head.” (On leadership “across the street” calling for an Aug. special session.) “Even though the people of the state are not in favor of many taxes and increase in taxes they are more unfavorable of cuts.” “Called for two reasons: I believe the legislature is ready… to take the pressure off the membership of the legislature related to the gambling issue.” “If they fail in this session we’ll come back into another one.” “We actually have not finalized the bill yet.” “I wanted to basically surprise. This in an element of surprise,” “They’ll have to override my veto” (In response to the question “What if they send a budget back like the last one?”) “Let me say, that it’s a little hard to explain because most people do not even understand what FICA is. They do not even realize that it comes out of their checks each month.” (Did he just say people don’t know they’re paying social security taxes or don’t read their pay stubs?) “You know the Senate has not been quite as ready as the House.” (In response to Sen. Del Marsh saying he will adjourn when called in on Monday.) Bonus technical stuff worth noting: “Expressly exclude gaming in this call.” “BP money will be used to pay off debts.” Says his idea is not to include taxes to water and juice as we have previously reported. Ideas you may hear including combining budgets and unearmarking. Watch the whole video on WSFA. The text of the call can be found here.
Gov. Robert Bentley to call lawmakers into special session next week
Gov. Robert Bentley is calling a special session next week on the general fund budget. The governor said Thursday that he will call lawmakers back to Montgomery on July 13. The 2015 regular session ended in a stalemate after lawmakers could not agree on tax increases. Bentley vetoed a spending plan that would have cut $200 million from state agencies. State agencies are currently operating without a budget for the fiscal year that begins Oct. 1. The governor on Friday will release his call for the session, which lists the issues he expects lawmakers to address. Republished with permission of The Associated Press.
Here’s a quick look at proposals as governor says, “I have taxes to raise”
Alabama Today is hearing the Special Session could be called for the week of Aug. 17. The goal is to pass the general revenue portion of the state operating budget. Gov. Robert Bentley doubled down on his goal for the Session on Wednesday when talking about the reasons he took down the Confederate flag saying, “I have taxes to raise; we have work to do.” Among the tax increases Alabama Today is hearing batted around for the upcoming Special Session are: Taxing streaming videos; Taxing beverages (not just sodas but juices, teas and anything that’s not milk or alcohol): There’s a strong coalition of consumers and businesses opposed to that. You can check out their website here; Eliminating the state’s deduction for federal taxes: A proposal Bentley discussed before. Speaker Hubbard is on record opposing it, saying, “I am opposed to removing the federal income tax deduction because it would basically require individuals to pay state taxes on their federal taxes which is money they never even received,” Hubbard said in an email to AL.Com; Taxing pornography through a change in statute specific to adult purchases and content; and Combined reporting for businesses is back on the table. We will follow these proposals and continue to report on additional proposals as they come in.
Governor optimistic on reaching Special Session budget solution
Gov. Robert Bentley says he’s optimistic about getting a budget agreement in a Special Session this summer despite the gridlock that plagued lawmakers in the spring. Bentley on Monday said he will begin reaching out to lawmakers this week on revenue ideas for the general fund. Bentley on Thursday night vetoed a budget that would have cut $200 million from state agencies. Legislators rejected Bentley’s call for $541 million in new taxes with some saying they would not violate campaign pledges against new taxes. Bentley said some of those lawmakers voted for local tax bills or a bill to let agencies raise fees. Republished with permission of The Associated Press.
My pick for theme song of upcoming Special Session
Our friend Cameron Smith over at AL.com selected “Bad Blood” as the song of the Session. Saying, “What used to be mad love over Republicans taking the state Legislature has turned into bad blood.” He went on to include the lyrics: Now we got problems And I don’t think we can solve them You made a really deep cut And, baby, now we got bad blood I don’t think anyone would disagree with the sentiment. Session showed part of the clear divide within the Republican Caucus. I’m hoping that before they come back for Special Session the powers that be take into account that back-room deals cut by a few but at the cost of many won’t fly. As I wrote about in my post Lessons from Bill Baxley vs. Charles Graddick, we have a lot to learn from history and the will of the people is more important than partisan gamesmanship. Not a single conservative ran on a promise to get to Montgomery and raise taxes. Not a single conservative said they’d put back-room wheeling and dealing above the needs of the voters. That said, I’m going to go ahead and call this a throwback Monday and call the song for the upcoming Special Session “True Colors.” You with the sad eyes Don’t be discouraged Oh I realize Its hard to take courage In a world full of people You can lose sight of it all And the darkness inside you Can make you feel so small But I see your true colors Shining through I see your true colors And that’s why I love you So don’t be afraid to let them show Your true colors True colors are beautiful, Like a rainbow We’re going to see the true colors of members in the Special Session. Will the same band of members who spoiled Speaker Mike Hubbard’s attempt to bring and pass tax increases to the floor prevail or will they cave? In the case of tax increases, compromise is still a loss for those who ran on a platform against tax increases and for fiscal responsibility.
State leaders push balancing budget to summer Special Session
Legislators are heading to Special Session this summer after hitting an impasse on the state’s general fund budget. The session ended with a vetoed spending plan and plenty of finger-pointing over who was to blame. Yet getting a budget this summer will depend on something in short supply this spring: agreement. Gov. Robert Bentley says he plans to again ask lawmakers to approve taxes and budget changes when they are called into a Special Session. Senate President Pro Tem Del Marsh said he wants the governor to write the Special Session call so lawmakers can address a wide variety of ideas, including gambling legislation. State agencies are without a budget for the fiscal year that begins Oct. 1. Republished with permission of The Associated Press.
Alabama legislative week in review: May 26-28
The 26th legislative day ended with reports from House and Senate lawmakers that an August Special Session is likely in order to finish discussions on overcoming the states short-term and long-term budget shortfalls. Agenda items before lawmakers in August could include Senate President Pro Tem Del Marsh’s lottery and gaming proposal, various measures to increase state revenue, and a controversial proposal from Sen. Gerald Dial to eliminate earmarks and unify the education and general fund budgets. At a public hearing on Wednesday, agency chiefs outlined a list of horrible outcomes — from prison closures to shortages in mental health services — should the austere general fund budget come to fruition. Despite those concerns, lawmakers gave the budget proposal a favorable report by a vote of 13-0, moving the stripped-down budget closer to reality. Here is a quick week in review going through all of the major headlines from this week’s legislative agenda: Alabama lawmakers offered a final unanimous vote on a bill that would allow physicians to prescribe terminally ill patients promising, but unapproved medical treatments. House Bill 463, known as the Right to Try Act, allows doctors caring for people with terminal illnesses to prescribe medications that the Food and Drug Administration has deemed promising, but not yet ready for mass consumption. Thursday’s vote makes Alabama one of at least 12 states that have passed right to try legislation this year. • • • The Alabama House passed a bill to establish integrated care networks to allow more Medicaid recipients to stay in their homes instead of nursing homes. • • • The House also voted 68-26 to expand the Alabama Accountability Act and tighten restrictions on scholarships and the groups that distribute them.’ • • • Gov. Robert Bentley appointed the state’s first commission to oversee Alabama’s 25 community and technical colleges. Lawmakers say the eight-member commission will help schools to focus on developing more specialized training programs and preparing entry-level employees to meet growing workforce demands. • • • The House Judiciary committee offered a favorable report on House Bill 657, to ban employment discrimination on the basis of “immutable” characteristics that do not effect job performance. Bill sponsor Rep. Mike Ball said that the measure would protect differences in gender expression, gender identity and sexual orientation. The following day, lawmakers blocked House Bill 615, Rep. Chris England’s proposal to establish civil rights protections against any discrimination based on sexual orientation, gender identity, or familiar status.
Budget deal still elusive in final days of regular session
Alabama Today is hearing that as we round out the end of the Regular Legislative Session the plan is to be in session two days this week, three days the next week, then skip a week, and finish the week after that. Then, of course, it’s looking like a Special Session is inevitable to address pending budget proposals. This schedule has not been finalized but is what members and staff are talking about. The Legislature is no closer to reaching a budget deal that both the House and Senate will pass than all session, and they might as well be worlds apart. Thanks to some strong-willed and principled members in the House they weren’t able to bring to a floor vote the tax increases Gov. Robert Bentley and Speaker Mike Hubbard wanted. It doesn’t look like that’s going to change in the next several weeks. That doesn’t mean the discussion about those issues or new ones are dead. We’re hearing lots of talk about possible tax proposals for the Special Session, including a soda tax. Despite loud protests to the contrary, the budget passed by the House was not intended to be the final version. It was the House punting to the Senate, so the governor can breath easier and put his veto pen down for a moment. Check back for updates on the schedule and proposals to solve the budget crisis.
