What will the Alabama Legislature tackle in the final three days of special session?
After an 11th-hour Hail Mary attempt to save it, Gov. Robert Bentley‘s proposed state lottery failed in the Alabama Senate Friday night. Bentley called the special session in July and tasked lawmakers solely with considering a state lottery. After a week of back-and-forth on various bills, Senators voted 23-7 to reject changes the Alabama House of Representatives made to the bill. The bill’s sponsor, Sen. Jim McClendon, on Friday proclaimed the legislation is “dead” for the special session. “It’s over,” he said. In the wake of the lottery bill’s failure, both chambers adjourned until Sept. 6. Meanwhile, Alabama Medicaid continues to face an $85 million shortfall in funding — an issue expected to be fixed with the BP settlement bill. In the first week of special session, the House of Representatives cleared a major hurdle in approving a bill to use the state’s settlement funds from the 2010 Deepwater Horizon BP oil spill in the Gulf of Mexico to pay debts and build roads in south Alabama. Lawmakers approved the bill 88-10. Whether or not that bill will clear the Senate remains to be seen. When the special session resumes after Labor Day, lawmakers will only have three days to land on a solution to a lottery and the issue of what to do with BP settlement funds. Bentley has not ruled out the possibility of another special session to bring the lottery back up as a permanent fix.
Presumed dead state lottery comes back to life, passes Alabama House
In the dead of night, the state lottery bill came back to life. After a constitutional amendment to establish a state lottery fell two votes shy of the number required for approval, the bill was presumed dead Thursday evening. With no clear path to passage, and a looming Friday deadline for the amendment to appear on the Nov. 8 general election ballot, lawmakers in favor of the bill began a series of long-shot resuscitation efforts to bring the bill back to life. Remarkably, their efforts worked. In an unbelievable of series of votes, supporters of the lottery managed to revive the amendment around midnight and pass it, 64-35, with just one vote more than was needed. Three Democrat representatives — Selma’s Darrio Melton, Hayneville’s Kelvin Lawrence and Grand Bay’s David Sessions — crossed the aisle to make passage possible. “I would like to thank the Democrats and Republicans for coming together and showing bipartisan leadership,” Gov. Robert Bentley said Friday morning. “I would just like to say that I appreciate what they did and what they did for the people of this state.” The amendment’s future is still not finalized, as it must now head back to the Alabama Senate for final approval, where senators must decide whether or not to go along with mostly minor House changes to the legislation they passed last week. But for the time being, the lottery bill is still alive.
Alabama lottery passes House Committee, still has hope
An Alabama lottery may still have life in it yet. And for some, there’s still hope it will make its way before Alabama voters this November. The House Economic Development and Tourism Committee approved the Gov. Robert Bentley-backed state lottery bill, a proposed constitutional amendment, by an 8-3 vote Wednesday. The full Alabama House of Representatives will debate the bill Thursday. It would take 63 votes in the 103-member House to pass the lottery bill. But to move forward, it would then need to return to the Senate for another vote, as it is a different version than what the Senate passed on Friday. Lawmakers had originally been told the proposed constitutional amendment needed to pass the Alabama Legislature no later than Wednesday, Aug. 24 in order to make it on the general election ballot Nov. 8. Secretary of State John Merrill on Wednesday reminded lawmakers of this, saying the deadline had passed. However, the bill’s sponsor, Springville Republican state Sen. Jim McClendon, said lawmakers had until Friday. Merrill is now seeking the opinion of the state Attorney General Luther Strange.
State lottery likely won’t make it on November ballot
Opponents of a state lottery in the Alabama House of Representatives used a procedural rule to block a committee from considering a state lottery bill Tuesday, effectively killing a plan to bring a lottery a statewide vote Nov. 8. In a 59-33 vote, House members fell short of the four-fifths vote necessary to suspend House rules and allow a committee to meet to consider the lottery proposal. For the lottery to still make it on the November general election ballot, the state Legislature would have to pass a state constitutional amendment by end of day Wednesday. An amendment narrowly passed the Senate Friday. Tuesday’s committee vote would have teed up the vote in the full House Wednesday, in order to make it before voters in November. Moulton Republican state Rep. Ken Johnson called for the procedural vote Tuesday to slow down the process, which he said was moving too fast. “You can call it delay, but I call it being deliberative,” Johnson said during debate on the House floor. “The power to change the constitution does not lie in your hands,” Tuscaloosa Democrat Chris England responded. “It lies in the people’s hands.” Gov. Robert Bentley called a special session of the Alabama Legislature last month to discuss his proposed lottery plan, which he projects will raise $225 million per year to pay for the state’s Medicaid program. Alabama Medicaid is perennially short of cash and Medicaid officials have warned of cuts if the state doesn’t find an additional $85 million for the program in 2017.
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.
State lottery bill fails in special session
State senators have punted a vote of a lottery bill after a test vote indicated it did not have the votes to pass. Senators stopped discussions Thursday on the bill over after a motion to end debate failed. Senate President Del Marsh said it became obvious that senators did not like the legislation. The bill would have also allowed electronic lottery terminals, which can resemble slot machines and video poker games, in Lowndes and Houston counties, in addition to four state dog tracks. Sen. Jim McClendon accepted changes to his original bill in an effort to get the stalled legislation through the Alabama Senate. Alabama voters must approve any lottery proposal. Republished with permission of the Associated Press.
Luther Strange weighs in on Alabama lottery legislation
Various lottery bills are being considered by Alabama state lawmakers Tuesday, but Alabama Attorney General Luther Strange doesn’t support any of them. Strange released a statement Tuesday morning, calling the proposed state lottery a “Band-Aid” for the state’s ongoing budget shortfall. “I am personally opposed to any lottery to fund state government,” said Strange. “I believe the lottery is, at best, a Band-Aid on the state’s budgetary problems and will not provide the kind of longterm solution we need.” He also said he believes one of the lottery proposals could open loopholes that would lead to casino gambling. Strange continued, “As attorney general, I have been approached by the Legislature to offer a legal interpretation of the impact of the various lottery proposals upon the state. My office has reviewed the governor’s proposed constitutional amendment (SB3). If the amendment passes as proposed and is followed by responsible enabling legislation, my legal team believes it will create a limited lottery without the kinds of loopholes that will lead to casino gambling or protracted litigation. However, if Sen. McClendon’s proposed constitutional amendment (SB11) passes, my legal team believes it will not only allow for a lottery, but will lead to casino gambling and protracted litigation.” A special session of the state Legislature began Monday to consider a state lottery. There, Gov. Robert Bentley is asking state lawmakers to approve a referendum that would allow state voters to decide whether or not Alabama should have a lottery. Bentley said a lottery could raise an estimated $225 million per year.
Lottery bills get first test in Alabama Legislature
Lottery bills are getting their first test with Alabama lawmakers. The Senate Tourism and Marketing Committee is meeting Tuesday morning for public hearings on five different lottery bills. The committee could vote as soon as Tuesday afternoon. The proposals up for debate include Gov. Robert Bentley‘s plan to set up a lottery to fund Medicaid. However, lawmakers have introduced several rival proposals. One would also allow electronic lottery terminals, which can resemble slot machines, at four state dog tracks, and seek a compact with the Poarch Band of Creek Indians. Another bill would limit a lottery to multistate games, such as Powerball, to save administration costs. Alabama is one of six states without a lottery. However, lawmakers say the bills face an uncertain outlook in the special session. Republished with permission of The Associated Press.
Alabama Legislature 2016 special session preview
A topic that has long divided the Alabama Legislature will take center stage Monday when lawmakers return to Montgomery for a special session called by Gov. Robert Bentley last month. Starting 4 p.m. Monday, lawmakers will begin to consider the fate of a state lottery as a solution to the state’s perennial budgetary shortfall. The state last considered a lottery in 1999, under Gov. Don Siegelman, when it was voted down. In order for a lottery proposal to make it on the general election ballot Nov. 8, the Legislature would need to approve it no later than Aug. 24. Friday, Bentley announced he’d also allow the Legislature the opportunity to address the allocation of the state’s BP settlement, but he wasn’t optimistic lawmakers could come to an agreement on how to use the funds. In the regular 2016 session, spending proposals fell apart over a disagreement between northern and southern Alabama lawmakers over how much money should be spent on state debt versus road projects in south Alabama. But before any of the policy proposals are considered, the Legislature will name the new Speaker of the House — a vacancy created after former House Speaker Mike Hubbard was convicted in June of 12 felony counts of public corruption. “This call [for a special session] is designed for the Alabama Legislature to address adequate support of essential state services including children, the elderly, people with mental illness and support for men and women in law enforcement,” Bentley said. “A primary focus of this special session is for legislators to allow the people within their district the right to vote on a statewide lottery. I am looking forward to working with lawmakers over the next few days as we address legislation that is simple, clean and transparent.” Updated at 8/15/16 at 12:25 p.m. with statement by Gov. Bentley.
Lawmakers set to begin special session on state lottery
The Alabama Legislature is set to give a state lottery the first serious debate since 1999, but many lawmakers say the idea faces tough odds amid continuing disagreements over if, and how, to legalize gambling in the state. Gov. Robert Bentley is calling lawmakers back to Montgomery on Monday to begin a special session focused on a proposed state lottery to generate money for the state’s Medicaid program. Lawmakers are also expected to debate how the state should use $1 billion the state will receive over the next two decades from oil spill settlement funds. Bentley called a lottery the “only option that we have left” to get additional funds for the state’s Medicaid program. “We tried everything else. The Legislature realizes we are not going to pass any more taxes, but they also realize we have a real problem in the general fund, especially dealing with Medicaid,” Bentley said during an interview with The Associated Press. The governor said he was “reasonably optimistic” ahead of the session’s start, but some lawmakers were less so. Republished with permission of The Associated Press.
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
Robert Bentley releases proposed constitutional amendment for Alabama lottery
Gov. Robert Bentley Friday released a proposed amendment to the Alabama Constitution that would allow voters in November to decide whether the state should have a state lottery. The three-page proposal designates proceeds from the lottery to first be applied to cover the operational expenses of the lottery and paying prizes. Remaining proceeds would then be deposited in the state’s general fund budget. Bentley estimates the lottery would generate roughly $225 million a year. On Aug. 15 the Alabama Legislature will meet in a special session, called by Bentley last week, to consider the lottery proposal. “We must once and for all solve problems that have held our state back for decades,” Bentley said last week. “The time has come for us to find a permanent solution …. This solution will provide funding that we can count on for year after year without ever having to raise your taxes or put one more band-aid on our state’s money problems.” Three-fifths of the members of both the Alabama Senate and the House would have to approve the amendment, which would then be subject to a statewide referendum. In order for the proposal to make it on the general election ballot Nov. 8, the Legislature would need to approve Bentley’s proposal no later than Aug. 24.
