Speaker Nathaniel Ledbetter named chair-elect of the Council of State Governments Southern Office
Alabama Speaker of the House Nathaniel Ledbetter (R-Rainsville) was unanimously elected to serve as the 2023-2024 chair-elect of CSG South on July 11, 2023, at the Southern Legislative Conference (SLC) in Charleston, South Carolina. As chair-elect, Speaker Ledbetter will assist incoming chair, West Virginia Senate President Craig Blair, in guiding CSG South during the coming year. He also will chair the 79th SLC Annual Meeting, to be held in Alabama in the summer of 2025. “I am proud to welcome legislators, government staff, and their guests from across the Southern region to Alabama and showcase our state’s unparalleled southern charm and hospitality,” said Rep. Ledbetter. “The purpose of this meeting is to provide Southern state lawmakers with the opportunity to work together to create more effective public policy so that we may better serve our home states.” Alabama most recently hosted the SLC meeting in 2013 in Mobile, Alabama. The 2025 meeting is expected to draw more than 1,500 attendees from its member states and will feature successful programs and policy initiatives unique to Alabama. Each year, the Southern Leadership Conference brings together experts to discuss opportunities and solutions to challenges facing policymakers and staff across the region. Ledbetter, age 61, previously served as the Mayor of Rainsville in north Alabama. Ledbetter ran for the Alabama House of Representatives in 2010 but was defeated in the general election. He switched to the Republican Party and was elected in 2014. That turbulent term saw both the Speaker of the House (Mike Hubbard) and House Majority Leader (Mickey Hammons) convicted of corruption charges. In that leadership vacuum, Ledbetter was elevated to Majority Leader as a House freshman. Speaker of the House Mac McCutcheon (R-Monrovia) – who succeeded Hubbard – chose not to run for reelection in 2022. Ledbetter was chosen by the House Republican Caucus over veteran lawmaker Steve Clouse (R-Ozark) to be the GOP candidate for Speaker following the November 2022 election – effectively making him the Speaker-elect as the Republicans hold 77 to the 105 seats in the Alabama House of Representatives. Ledbetter was chosen as Speaker by the full House during the organizational session in January without a single dissenting vote. CSG South was established In 1947. The Council of State Governments Southern Office (CSG South) is a nonprofit, nonpartisan organization that supports members in all three branches of state government. The mission of CSG South is to promote and strengthen intergovernmental cooperation among its 15 member states: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. Predominantly, this is achieved through the ongoing work of CSG South’s seven standing committees and support groups. Legislative leadership, members, and staff depend on CSG South to identify and analyze solutions for the most prevalent and unique policy issues facing Southern state governments. We facilitate outreach in state capitols, leadership development, staff exchange programs, domestic and international policy delegations, and other efforts to support state policymakers and legislative staff to build stronger, more successful states. The Southern Legislative Conference (SLC) is the largest regional gathering of legislative members and staff. SLC boasts an array of well-established programs—focusing on existing and emerging state government innovations and solutions—providing policymakers and staff diverse opportunities to interact with experts and share their knowledge with colleagues. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Public meetings on congressional redistricting announced
On Wednesday, State Sen. Steve Livingston (R-Scottsboro) and State Rep. Chris Pringle (R-Mobile), who serve as the joint chairs of the Permanent Legislative Committee on Reapportionment, announced a series of meetings and deadlines on the looming congressional redistricting. The first meeting will be on June 27 at 1:30 P.M. in the Alabama State House Room 200. This will be a meeting of the Joint Committee and a public hearing. People unable to attend can watch the proceedings online at the Legislature’s website. July 7 at 5:00 P.M. is the deadline for all plans to be submitted to the Reapportionment Committee. You can contact the committee directly by email at: district@alsenate.gov. The committee will meet again and hold a public hearing on July 13 at 1:30 P.M. in State House Room 200. On August 14, there will be a hearing at Hugo L. Black United States Courthouse in Birmingham. The House members serving on the Permanent Legislative Committee on Reapportionment members include Cynthia Almond (R-Tuscaloosa); Barbara Boyd (D-Anniston); Jim Carns (R-Birmingham); Steve Clouse (R-Ozark); Corley Ellis (R-Columbiana); Chris England (D-Tuscaloosa; Laura Hall (D-Huntsville); Sam Jones (D-Mobile); Joe Lovvorn (R-Auburn); and Rex Reynolds (R-Huntsville). In 2022 a three-judge panel of the Eleventh Circuit Court of Appeals rejected Alabama’s 2021 congressional redistricting as being in violation of the Voting Rights Act of 1965—the U.S. Supreme Court, which earlier this month agreed. The three-judge panel has given the Legislature until the middle of next month to submit a new congressional redistricting plan to the federal court. The three-judge panel has ordered the Legislature to submit a new map with two majority-minority districts or something as close to that as possible. Alabama Governor Kay Ivey is expected to call a special session no later than July 17 to attempt to comply with the court order. If the Legislature cannot reach an agreement on a redistricting plan by July 21, or the Court does not like the State’s plan, then the three-judge panel may appoint a special master to draw the districts for the State. Republicans currently control six of Alabama’s congressional seats, while Democrats control only the Seventh Congressional District. None of the seven congressional races were competitive during last year’s general election. The redistricting could make two of those districts winnable for Alabama Democrats. It could also cost Democrats a seat if they make it too competitive. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Nathaniel Ledbetter announces appointments to the Reapportionment Committee
On Tuesday, Speaker of the House Nathaniel Ledbetter announced that he had appointed a number of House members to serve on the Permanent Legislative Committee on Reapportionment. The House members appointed are: Cynthia Almond (R-Tuscaloosa) Barbara Boyd (D-Anniston) Jim Carns (R-Birmingham) Steve Clouse (R-Ozark) Corley Ellis (R-Columbiana) Chris England (D-Tuscaloosa) Laura Hall (D-Huntsville) Sam Jones (D-Mobile) Joe Lovvorn (R-Auburn) Chris Pringle (R-Mobile) Rex Reynolds (R-Huntsville). Since this is a joint committee, it is also made up of members of the Senate. The appointment of 11 members from the House would indicate an expansion of the committee. According to the committee website, the joint committee has just six members: Sens. Steve Livingston, Dan Roberts, and Bobby Singleton, and Reps. Kyle South, Laura Hall, and Chris Pringle. South is leaving the Legislature at the end of the month to accept a position as President and CEO of the West Alabama Chamber of Commerce. Presumably, the Senate will now appoint another eight joint committee members. The Joint Committee on Reapportionment normally redistricts the congressional districts, the state board of education districts, and legislative districts every ten years following the decennial census. In 2022 a three-judge panel of the Eleventh Circuit Court of Appeals rejected Alabama’s 2021 congressional redistricting as being in violation of the Voting Rights Act of 1965. Alabama appealed to the U.S. Supreme Court, which earlier this month found that the lower court was correct in its interpretation and has restored the lower court’s ruling that the state is in violation of the Voting Rights Act. The three-judge panel has given the Legislature until the middle of next month to submit a new congressional redistricting of the state to the federal court. The three-judge panel has ordered the Legislature to submit a new map where there are two majority-minority districts or something as close to that as possible. Alabama Governor Kay Ivey is expected to call a special session no later than July 17 to attempt to comply with the court order. If the Legislature cannot reach an agreement on a redistricting plan by July 21 or the Court does not like the State’s plan, then the three-judge panel may appoint a special master who will draw the districts for the state. Republicans currently control six of Alabama’s congressional seats, while Democrats control only the Seventh Congressional District. None of the seven congressional races were competitive in the general election last year. The redistricting could make two of those districts winnable for Alabama Democrats. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Governor will host a ceremonial bill signing for legislation passed during 2023 Regular Session
On Tuesday, Alabama Governor Kay Ivey will host a series of bill-signing ceremonies to celebrate the passage of several pieces of legislation that addressed concerns facing the state of Alabama. Ivey will sign several bills, including reform of the state’s adoption laws. House Bill 101 (HB 101) is sponsored by State Representative Ginny Shaver and State Senator Arthur Orr. This bill streamlines the state’s adoption process and updates the current adoption law language. (Act 2023-092). “Alabama has consistently set state records for adoptions and placed thousands of children in loving, forever homes,” said Gov. Ivey. “Currently, we have more than 5,000 children in the foster care system, and with this modernized and streamlined process now in place, we have positioned Alabama on even firmer footing and will be able to provide more of our children with the life they deserve.” House Bill 66 (HB66) by Rep. Joe Lovvorn and Sen. Andrew Jones allows certain firefighters, law enforcement officers, and correctional officers, covered under the ERS or TRS, to purchase hazardous duty time for prior service. (Act 2023-101). HB66 removes the time limitations for Tier I firefighters, law enforcement officers, and correctional officers covered under the Employees’ Retirement System or the Teachers’ Retirement System to purchase eligible service credit prior to January 1, 2003. House Bill 164 (HB164) by Rep. Andy Whitt and Sen. Jay Hovey requires high school students to complete a personal financial literacy and money management course before graduation. (Act 2023-179). “I have got story after story from thirty years of banking experience of young people who did not have a checking account,” said Whitt. “They go to convenience stores and check cashing places to get their paychecks cashed. One young fellow was working two hours a week just to be able to get his check cashed each week.” Senate Bill 131 (SB 131) by Sen. Vivian Figures and Rep. Steve Clouse. This bill transfers the regulation of preneed funeral contracts from the Department of Insurance to the Alabama Board of Funeral Services. (Act 2023-094). The Alabama Preneed Funeral and Cemetery Act of 2023 transfers the existing Preneed Funeral and Cemetery Act and the regulation of preneed contracts from the Commissioner and Department of Insurance to the Alabama Board of Funeral Service. It authorizes the Department of Insurance to temporarily transfer certain funds to the board to defray costs associated with the administration and operation of the Alabama Preneed Funeral and Cemetery Act of 2023; Senate Bill 28 (SB28) by Sen. Tim Melson and Rep. Randy Wood would expand the scope of practice of podiatry to include treatment of the foot and ankle. (Act 2023-106). Podiatrists in most states are already allowed to treat disorders of the ankle. This expansion of the scope of practice to come in line with national standards was long overdue. Senate Bill 104 (SB 104) by Sen. Chris Elliott and Rep. David Faulkner revises the current Dram Shop Act by addressing liability for providers of alcohol if a recipient injures a third party. (Act 2023-025) . Before this, only three insurance carriers would insure restaurants and bars from lawsuits due to the liability. This will make it harder for plaintiffs’ attorneys to prove a case against the establishment that sold the alcohol. House Bill 56 (HB56) by Rep. Frances Holk-Jones and Sen. Linda Coleman-Madison will expand the scope of practice for licensees of the Alabama Board of Social Work Examiners. (Act 2023-100). This will allow specially trained social workers with master’s degrees to diagnose mental illnesses. House Bill 62 (HB 62) by Rep. Ben Robbins and Sen. Keith Kelley will extend the amount of time that nonprofit veterans’ organizations have to comply with state and local building codes when acquiring a former armory building. (Act 2023-175). This bill primarily deals with an armory in Sylacauga owned by the American Legion and used by the Alabama National Guard. When the National Guard shut down its presence, it transferred back to the American Legion. The NG never updated the building during its tenure, so it lacks the sprinkler system needed to comply with state building code requirements. Tuesday will be day 24 of the 2023 Alabama Regular Legislative session. Kay Ivey has been governor since 2017. To connect with the author of this story or to comment, email brandonmreporter@gmail.com.
Steve Flowers: Legislature organizes for Quadrennium
The legislature had their every four-year organizational session earlier this month. It is exactly what the title states. They are organizing for the next quadrennium of lawmaking. They officially chose their leadership and adopted the rules for the two chambers. The 105-member House of Representatives and 35-member State Senate are elected for four-year terms, the same as the governor and other constitutional offices. However, unlike the governor, who was sworn in on Monday, January 16, as set out in the state constitution, the legislature takes office the day after they are elected in November. The state House of Representatives will have 77 Republicans and 28 Democrats. That is a veto-proof, bulldozer-shoving, anything-you-want supermajority. The Democrats have very little say with those overwhelming numbers. Two days after they were elected in November, the 77-member Republican majority met in a private caucus meeting in Montgomery and selected their leadership. Therefore, the vote for Speaker of the House two weeks ago was simply a formality. The House has chosen Representative Nathaniel Ledbetter to be the Speaker of the House. Speaker Ledbetter hails from Rainsville in DeKalb County. He is a former Mayor of Rainsville. He has only been in the House of Representatives for eight years, having been first elected in 2014. He was chosen to be the majority leader in the House in his freshman year. He was close to the former Speaker Mac McCutcheon, and he served on both the powerful agenda-setting Rules Committee, as well as the Ways and Means Education Budget Writing Committee. Representative Chris Pringle of Mobile has been chosen to be Speaker Pro Tem of the House, which is the second highest position within the body. He has served previously for 16 years in the House from the Port City. He succeeds fellow Mobilian Victor Gaston in this post. There are two young stalwarts who will be serving in Republican Party positions within the House. Representative Scott Stadthagen of Decatur will be the new House Majority Leader. Representative Wes Kitchens of Arab will serve as the Republican Leadership Caucus Vice Chair. Representative Debbie Wood from the Valley will serve as the Republican Caucus Secretary/Treasurer. The three most powerful posts in the House are the chairmanships of the two money committees and the agenda-setting Rules Committee. Representative Danny Garrett of Trussville in Jefferson County will continue to Chair the Ways and Means Education Budget Committee. Representative Rex Reynolds of Huntsville will be the General Fund Ways and Means Chairman. Reynolds replaces longtime Ways and Means Chairman Steve Clouse of Ozark. Representative Joe Lovvorn of Auburn will be the new Rules Committee Chairman. Representative Jim Hill of St. Clair will chair Judiciary. He is a former circuit Judge and a veteran of the House. All of these House leadership positions are held by Republicans. To the victor goes the spoils. The Democrats have a veteran and sterling team heading their Caucus Leadership in the House. Anthony Daniels of Huntsville will be the Democratic Minority Leader. Barbara Drummond of Mobile will be the Caucus Chair. Mary Moore of Birmingham will be the Vice Chair, and Kelvin Lawrence of Hayneville will be Secretary/Treasurer of the Democratic Caucus. The 35-member Alabama State Senate returns almost intact with their continuity and quality leadership. They will dominate and provide a stable State of Ship to help lead the state. Republicans control this upper chamber to the same degree that the GOP members do in the House. Republicans outnumber Democrats 28 to 7 in the Senate. State Senator Jabo Waggoner of Jefferson County begins his 50th year in the legislature. This is a state record. He is definitely destined for the state history books. Jabo will continue to Chair the powerful Rules Committee. Greg Reed of Walker County will be Pro Tem of the Senate again. The Majority Leader will again be Clay Scofield of Marshall County. The two money committee chairmen will continue to be in charge of how the state revenues are spent. Senator Arthur Orr of Decatur will chair Finance and Taxation/Education. Senator Greg Albritton of Escambia will chair Finance and Taxation/General Fund. These two men will be very powerful. Popular state Senator Will Barfoot of Pike Road will chair Judiciary in the Senate. Senator Clyde Chambliss of Prattville has become a stalwart leader in the Senate. He will be Majority Whip. Lieutenant Governor Will Ainsworth presides over the Senate. The Regular Session begins in early March. 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.
House leadership comments on massive unemployment tax cuts
Alabama House Republican Caucus Speaker Nominee Nathaniel Ledbetter and House Ways and Means Committee Chairman Danny Garrett said on Friday that a dramatic cut in unemployment insurance taxes announced by the Alabama Department of Labor this week will help keep the state’s historic economy and job market growing even more in the coming months. “Based on the Department of Labor’s announcement, the financial burden that surging unemployment forced upon employers and businesses during the pandemic has come to an end,” Ledbetter said. “And thanks to the legislature’s strategic planning and wise fiscal policies during the pandemic, Alabama has remained open for business, and our economy is currently the strongest in history.” The Labor Department announced Thursday that Alabama employers would experience a 54 percent tax cut on their unemployment insurance taxes during 2023. This tax cut has dropped Alabama into the lowest tax rate schedule, moving the state’s tax rate from Schedule D to Schedule A. After massive layoffs caused by the pandemic depleted the state’s unemployment fund, the state legislature appropriated federal COVID relief funds to replenish the coffers of the depleted trust fund. The issuance of Revive Alabama Grants by Alabama Governor Kay Ivey and actions taken by the Small Business Commission to re-open Alabama businesses faster allowed repayments to the unemployment fund much sooner than in states that stayed shut down longer during the forced economic shutdowns. “The remarkable achievement of moving from the highest to the lowest tax rate category is a direct result of the collaborative efforts over the past several years by Gov. Ivey, Lt. Gov. Will Ainsworth, the Small Business Commission, and both bodies of the legislature,” Garrett said. “These tax cuts will benefit businesses of all sizes and ensure that Alabama’s economy, which is already among the best in the nation, remains strong for the immediate future.” “Following the economic uncertainty and the record-breaking amount of unemployment compensation benefits paid out during the pandemic, it is absolutely remarkable that we have been able to lower taxes for employers and drop to the lowest tax rate schedule in this short amount of time,” said Labor Secretary Fitzgerald Washington. Ledbetter was selected by the House Republican Caucus to replace the retired Rep. Mac McCutcheon as Speaker of the Alabama House of Representatives. Since Republicans have a 77 to 28 supermajority, the Republican choice for Speaker is highly likely to be elected Speaker when the Legislature meets for its organizational session next week. Ledbetter has announced that if he is the Speaker, he will reappoint Garrett as the Chair of the powerful House Ways and Means Education Committee. Ledbetter has also announced that State Rep. Rex Reynolds will chair the House Ways and Means General Fund Committee. Reynolds replaces State Rep. Steve Clouse, who challenged Ledbetter for the Speaker’s chair. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Nathaniel Ledbetter announces fourth and final round of committee chair appointments
On Wednesday, State Rep. Nathaniel Ledbetter, the House Republican Caucus nominee for Speaker of the Alabama House, announced the final seven representatives he plans to appoint as committee chairs if elected as the next Speaker. “These committee chairs will handle some of the most important issues that affect the daily lives of Alabamians – health, public education, election integrity, veterans affairs, accountability to taxpayers, and local measures,” Ledbetter said in a statement. “And because the ability to easily transport goods plays such a vital role in Alabama’s economic development efforts, the new House committee on ports and waterways will be especially important in keeping our state growing.” Ledbetter created the new House Ports, Waterways, and Intermodal Transit Committee. State Rep. Chip Brown will be the inaugural chair of this new committee. Brown was elected to the Alabama House in 2018. He previously held a seat on the agenda-setting Rules Committee and served on the body’s Economic Development and Tourism, Urban and Rural Development, Insurance, and Mobile County Legislation committees. Brown is a commercial realtor and entrepreneur and served in the Alabama Army National Guard. He was deployed with the U.S. Army at the Central Command Forward Operations Headquarters in Southwest Asia during Operation Iraqi Freedom. He was also twice deployed as a military advisor in Afghanistan. Ledbetter said he created the new House committee because Alabama possesses more than ten percent of our nation’s freshwater. When combined with the expansion of the State Docks in Mobile, the Tennessee/Tombigbee Waterway, the ports of Huntsville and Birmingham, and the port being constructed in Montgomery, that transportation hub can be leveraged into one of the state’s strongest economic assets. State Rep. Phillip Pettus will remain as the House Fiscal Responsibility Committee Chair. Pettus also held seats on the Judiciary Committee, the Military and Veterans Affairs Committee, and the Public Safety and Homeland Security Committee in the previous quadrennium. Pettus is a retired Alabama State Trooper Captain. Following 25 years of service, he retired from the Alabama Department of Public Safety in 2013. State Rep. Bob Fincher will return as the House Constitution, Campaigns, and Elections Committee chair. Fincher was elected to the Alabama House in 2014. He previously held seats on the House Education Policy, Agriculture and Policy, and Local Legislation Committees. Fincher is a retired educator who taught at Woodland High School and New Hope Christian School and twice served as one of Alabama’s presidential electors. State Rep. Ed Oliver will chair the House Military and Veterans Affairs Committee. Oliver joined the Alabama House in 2018 and previously held seats on the Agriculture and Forestry Committee, the Fiscal Responsibility Committee, and the Health Committee. The former Chair of the Military and Veterans Affairs Committee –Rep. Dickie Drake was defeated in the May Republican primary. Oliver is a graduate of the U.S. Army Command and General Staff College. He served as a military helicopter pilot and inspector general and devoted 31 total years to active duty, reserve, and National Guard service. He was employed for 15 years as a civilian helicopter air ambulance pilot. State Rep. Alan Baker will return as the chair of the House Local Legislation Committee. During the prior quadrennium, Baker also served as vice chair of the House Education Policy and the agenda-setting House Rules Committee. Before his election to the Alabama House in 2006, Baker worked for 27 years as an educator and football coach in Alabama public schools. While coaching at T.R. Miller High School, he won five state championships in football and five in track. State Rep. Terri Collins will return as chair of the House Education Policy Committee. Collins sponsored and passed the landmark Alabama Literacy Act in 2019. Throughout the prior quadrennium, she held a seat on the House Ways and Means Education Committee and chaired the Alabama School Safety and Student Security Task Force. Elected to the House in 2010, Collins is a retired marketing executive and businesswoman who enjoyed a 16-year career in the banking industry in Decatur. Retaining Collins is by far the most controversial committee chair choice by presumed Speaker Ledbetter, as Collins has often incurred the anger of social conservatives for her defense of the controversial Alabama College and Career Ready Standards – which many on the ultra-right feel are too tightly aligned with the Barack Obama era Common Core educational standards. State Rep. Paul Lee will return as the chair of the House Health Committee. He has served as a member of the committee since first winning election to the Alabama House in 2010. Lee is a former Dothan city commissioner. He retired from Sony’s Magnetic Tape Division as a senior production specialist following 31 years of service. He is currently the executive director of Wiregrass Rehabilitation Center in Dothan. It is highly likely that Ledbetter will be elected as the Speaker of the House during the organizational session in January, as he is the choice of the House Republican Caucus, which holds a 77 to 28 supermajority in the Alabama House of Representatives. Ledbetter defeated State Rep. Steve Clouse for the open Speaker position in a vote by the Caucus during a November meeting. Ledbetter is the former mayor of Rainsville. He follows Rep. Mac McCutcheon as Speaker. McCutcheon chose not to run for the legislature again. If elected, Ledbetter will be the third Republican Speaker of the House since the GOP’s takeover of the state Legislature in the historic red wave election of 2010 following 135 years of uninterrupted Alabama Democratic Party legislature control. Ledbetter is part of a new generation of Republican lawmakers who have never experienced being in the minority. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Nathaniel Ledbetter announces planned committee chair appointments
Rainsville Republican Nathaniel Ledbetter is expected to be elected as the next Speaker of the House in the Republican-dominated Alabama House of Representatives. On Wednesday, Ledbetter announced his first picks for Committee chairs. The Alabama House Republican Caucus has already chosen Ledbetter as their Speaker-designate but can’t formally elect a Speaker until the full House gavels in for an organizational session in January. Since Republicans occupy 77 of the 105 seats in the Alabama House of Representatives, it is a foregone conclusion that the party’s pick will be the next Speaker. Under the rules of the Alabama House of Representatives, the Speaker picks the committee chairs – normally from his or her own party. “I am confident that each of these members will serve our state well and invite new ideas and fresh perspectives to the committees they chair,” Ledbetter said in a statement. “All of them possess unique skills, talents, experiences, and abilities that make them uniquely qualified to chair the committees they will be assigned to lead.” The powerful House Rules Committee sets the proposed special order calendar for legislation that the body is to consider. Chairman Mike Jones did not return to the legislature. Ledbetter has chosen Rep. Joe Lovvorn to chair the Rules Committee. He is a retired firefighter and currently works as a realtor and small business owner. Lovvorn previously served as chair of the House Technology and Research Committee, which means that Ledbetter will be appointing a new chair for that committee as well. State Rep. Rex Reynolds will be the new Chairman of the House Ways and Means General Fund Committee. Former Chairman Steve Clouse has returned to the House, but he challenged Ledbetter for the open Speaker position when outgoing Speaker of the House Mac McCutcheon announced his retirement. Reynolds is retired law enforcement. He is the former Police Chief of Huntsville. State Rep. Danny Garrett will be returning as the House Ways and Means Education Budget Committee Chairman. Garret is a former CFO of two different publicly traded manufacturing companies and is a former Trussville Board of Education member. State Rep. Jim Hill will be returning as Chairman of the powerful House Judiciary Committee. Hill is a retired St. Clair County Judge. He works for the Moody-based law firm Hill, Gossett, Kemp & Hufford. Committee Chairs are very powerful because they set the agendas for what bills will and will not be considered in their committees and when. In the case of the Education and General Fund budget committees, the chairs have enormous influence over the budgets that pass out of their committees. Rep. Chris Pringle has been chosen by the House Republican Caucus as their designee to fill the role of Speaker Pro Tem, replacing Rep. Victor Gaston, who also did not seek re-election. Scott Stadthagen is replacing Ledbetter as House Majority Leader. The House Democratic Caucus has already elected Rep. Anthony Daniels to return as House Minority Leader. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Steve Flowers: New fiscal year begins, teachers and state employees looking good
The new state fiscal year begins October 1, and the two state budgets are flush. Both the General Fund and the State Special Education Budgets will be the largest in state history. The General Fund Budget is a record-breaking $2.7 billion. It increases the revenue for mental health and prisons. Medicaid continues to be a money-eating monster. State employees are getting a 4% cost of living raise. This is the third time in recent history that state workers have gotten a back-to-back pay raise. In addition, retired state employees will get a bonus. State Senator Greg Albritton (R-Escambia) and Representative Steve Clouse (R-Ozark), the budget chairmen, deserve accolades. Veteran Alabama State Employees Association executive director Mac McArthur deserves a lot of credit for state employees getting a 4% pay increase this year and 2% last year. Ole Mac has put together four raises in five years for his folks. Alabama Education Association (“AEA”) head Amy Marlowe and her chief lobbyist ally, Ashley McLain, deserve kudos for garnering a 4% teacher pay raise. Once again, the AEA has become a power to be reckoned with on Goat Hill. The legislature passed a record-breaking $8.17 billion Education Budget. The historic spending plan increases education funding by about $502 million over the current year. It drew praise from all corners of education for its increases, which includes teachers’ salaries and workforce development. There will be more money for classroom materials, the hiring of technology coordinators and reading coaches, and $20 million to implement the K-5 math instruction bill. The budget includes a 4% raise for teachers and lump-sum bonuses for retirees. There is also a $33 million bonus to increase teacher longevity. Other states have been giving similar salary adjustments. One of the budget allotments that has gotten the most accolades is the increase from $700 to $900 per classroom in supply money. The story that has been building over the past several years is the resurgence of the AEA as a power player on Goat Hill. The fruits of their labor emerged immensely during the regular session. It is apparent that AEA was instrumental in crafting the Education Budget with the 4% pay increase for teachers and the money that is going into the classroom. You would have thought Dr. Paul Hubbert was still sitting in the gallery directing legislators’ votes with a thumbs up or a thumbs down. They have built AEA into a power to be reckoned with at the Statehouse. The new leadership of Marlowe/McLain have reorganized by acknowledging that Alabama, and especially the Alabama Legislature, is very Republican. They understand the rule that “money is the mother’s milk of politics” and “you win more bees with honey.” The AEA has generously donated to House Republicans like nobody’s business and no other Special Interest entity. It is no longer taboo or heresy for a Republican legislator or State Senator to accept teacher union money. They have made $10,000 to $15,000 contributions to House members on both sides of the aisle. In reviewing campaign disclosure statements, AEA is the only entity writing checks that large. Checks to senator’s coffers are $25,000 or more. AEA lobbyists, especially Ashley McLain, have earned the friendship and respect of the Republican House members and Senators. She and her team have gone out to their districts all over the state and gotten to know them and their families. They have connected the legislator with key educators in their hometowns who are respected centers of influence and can orchestrate a field or army of teachers to work the districts for their legislative friends. This footwork and shoe leather, coupled with large campaign checks, hits home with legislators of both parties. The telling blow that resonated and echoed off the walls of the Statehouse was the defeat of the so-called School Choice Bill. Senator Del Marsh made it his final mission to place state education dollars into private, parochial, and charter schools. His school choice was given a stinging defeat by none other than the AEA. Folks, make no doubt about it; the AEA is back in Alabama politics. 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.
Justin Bogie: Excuses are easy — Meaningful policy change takes bold leadership
As summer turns to fall, the drumbeat for the Alabama Legislature to enact meaningful tax reform legislation has picked up its pace. But there is still no action — only discussion of temporary relief and the same old excuses as to why long-term reforms will be challenging to pursue. While major policy reforms are rarely easy, it should not be this hard. The state is likely to begin 2023 with a more than $2 billion revenue surplus, building on last year’s then-record $1.5 billion surplus. When Alabama’s government has more revenues than at any point in history, providing long-term relief to citizens should be a no-brainer. But despite having a Republican super-majority legislature and Republicans elected to all state-wide offices, Alabama continues to fall further behind other states when it comes to tax reform. Citizens are paying the price. Part of the problem is a lack of strong leadership. In August, Governor Kay Ivey’s spokeswoman, Gina Maiola said, “Right now, Alabamians and Americans alike are feeling the pinch, though, and Gov. Ivey wants to be able to help Alabamians in whatever ways we can.” I am glad that Gov. Ivey recognizes that Alabamians are feeling the pinch of inflation, but where is the action? She alone has the power to call legislators to Montgomery for a special session. Ivey could do that within days, but it seems apparent that there is unlikely to be any real movement on tax reform until at least next March, when the 2023 regular session begins. Meanwhile, 32 other states have enacted tax relief legislation this year. Missouri is currently in the midst of a special session, called by Gov. Mike Parson, aimed at passing $700 million in permanent tax cuts. That is what we need in Alabama. Instead, we are getting more excuses. Just last week, General Fund budget committee chairman State Sen. Greg Albritton (R-Atmore) said, “While y’all are focusing on how flush it appears that we are, I’m looking at what the problems are and how we’re going to resolve them.” First, the state does not appear flush with cash. It is flush with cash. In the past two years, it has collected more taxes from Alabamians than ever before. Instead of using that cash to take less money from citizens in the coming years, Albritton suggested that the best way “to help people in the long run in perpetuity is to take that money and put it into a trust account much like the Alabama Trust Fund (ATF),” and then use that fund for education. Alabama already has numerous trust funds and budget savings accounts that are intended to ease the impacts of an economic downturn. The state could draw more than $850 million from the ATF alone in 2023, if necessary. The state has not touched the account, which has a total balance of more than $3.35 billion, since 2012. Even during the onset of the COVID-19 pandemic, the reserve funds remained untapped. It was a rainy day for many Alabamians, but not for the government. The state does not need another savings account. The idea of establishing one shows how out of touch lawmakers are with Alabamians. When a recession hits, the government should not be protected at the expense of citizens. It should at the least be sharing in the pain. Another argument made against tax reform is that Alabama’s current stretch of strong economic growth will not last, and the record high surpluses are because of conservative budgeting. Legislative fiscal officer Kirk Fulford recently said, “You were conservative in both of those budgets, and because of that, and because of the enhanced federal money that came into the states, you are going to wind up with ending balances in both budgets that are far and above greater than any you’ve had in quite a while.” I am sorry, but would most Alabamians describe increasing spending at a faster pace than California or New York as remotely conservative? I do not think so. In April, Gov. Ivey praised the Legislature for sending her the “sixth consecutive balanced budget” she has signed as governor. It is easy to balance a budget when you are taxing citizens more than ever. A balanced budget in and of itself is not a sign of conservatism or fiscal responsibility. In Alabama’s recent history it represents the historic expansion of government. More taxes from you have kept the budget balanced. There is also the argument that inflationary pressures may prevent the state from being able to afford to provide long-term tax relief. In August, Representative Steve Clouse (R-Ozark) said, “We want to see if maybe the budget we passed and goes into October is adequate enough on the inflationary pressures hitting right now.” Again, shouldn’t the pain being felt by Alabamians outweigh any hardships felt by the state government? Moreover, the inflation argument makes little sense. Inflation was 8.3 percent when the two state budgets were enacted in April. At the end of August, it was still 8.3 percent. If the Legislature really did pass conservative budgets just five months ago, inflation should already be accounted for. The bottom line remains that Alabama’s state government has more of your taxpayer dollars flowing into it than ever. Instead of looking for excuses to not provide relief to citizens, it is time for bold leadership and action. Justin Bogie is the Senior Director of Fiscal Policy for the Alabama Policy Institute.
Justin Bogie: State government on pace for another record surplus; will it give Alabamians a break?
State government continues to take more money from Alabamians than ever before. Will it use that money to continue the historic expansion of state government or finally take less taxes from citizens? As first reported by Alabama Daily News, 2022 is on pace to be another banner year for state government. Through the end of May, state revenues totaled nearly $1.4 billion more than they did at this point last year. The state has already collected almost $8.7 billion in gross revenue. With four months remaining in the fiscal year, that revenue surplus will likely grow. If the current trend holds, lawmakers will have another historic opportunity to reduce taxes and take less from Alabamians next year. That should be priority number one. But remember, we found ourselves in this same situation just a few months ago. Alabama’s government began 2022 with a combined revenue surplus of $1.5 billion. Nearly all that surplus – excess tax dollars taken from you – went back into state government. The lone “victory” for taxpayers was around $160 million in targeted tax cuts, less than 1.3 percent of the total revenue available to the state. Most citizens saw no benefit from these tax cuts. Nothing was done to repeal the state’s sales tax on groceries, which could have mitigated some of the impacts of rising inflation. Nothing was done to suspend the state gas tax or repeal the governor and legislature’s 2019 tax increase, despite gas prices being at an all-time high. And while Alabama’s government hasn’t raised any tax rates since 2019, it has continued to collect record revenues on the backs of citizens. Gross income tax receipts are up almost 30% – more than a billion dollars – so far this year. Online sales tax collections are up over 20%. Our government is taking around 10% more in taxes from Alabamians every year than it needs to pay for an already bloated budget. Surely if the state finds itself with another massive revenue surplus heading into 2023, then that money will be used to tax citizens less, right? Don’t count on it. Based on comments made by lawmakers to Alabama Daily News, they are already looking for reasons to put any potential surplus back into government spending. Both Rep. Steve Clouse (R-Ozark) and Sen. Greg Albritton (R-Range), who are chairman of their respective General Fund Budget committees, pointed to rising inflation as a potential need for increased spending. Rep. Clouse said, “[We want to know] how inflationary pressures are hitting agencies and to see how they’re handling it.” Sen. Albritton indicated that lawmakers need more information from agencies so that they can better develop a plan to mitigate inflation impacts. While inflation may hurt the bottom line of state government, as it does Alabama families, state revenues are growing far faster than inflation. Through May, General Fund revenues had grown by 8.7 percent, while in the Education Trust Fund, which accounts for more than three quarters of state spending and receipts, revenues were up almost 22 percent. At the end of April, the U.S. inflation rate was 8.3 percent and is expected to gradually decline to around 3 percent by the end of next year. State revenue collections actually benefit from inflation at the expense of Alabama’s consumers. As the price of goods rises, so do tax collections. Through May, Alabama’s gross sales tax collections were up 8.5 percent, well above average. All the more reason for lawmakers to enact laws that will take less money from citizens. Sen. Albritton also pointed to federal stimulus funds as part of the reason for continued revenue growth. Albritton said, “That money is going to run out,” and questioned what will happen when revenues shrink. This could be the next line of reasoning that lawmakers use if they fail to pass meaningful tax cuts in the coming months. And while it is a valid concern that once all the federal intervention of the past few years wears off, state revenues will decline, this isn’t news to anyone. Lawmakers warned last year that revenue growth was unsustainable. That didn’t stop them from passing the largest budgets in state history for 2023 and adding another $1.5 billion in spending to the already then record-high 2022 budgets. If you really think that a downturn is fast approaching, why is Alabama growing spending more than California or New York? What was lost from Rep. Clouse and Sen. Albritton’s comments was how inflation, rising gas prices, increased home energy costs, and any number of other issues are impacting the citizens that they and their colleagues in Montgomery have been elected to represent. In the past few years, Alabama’s government has fared much better than many of the people it is supposed to serve. The state government continued to operate throughout the pandemic. All state employees received raises in the past two years. The same cannot be said of private businesses and their employees. It is time for the people of Alabama to demand that they be a higher priority than the government. Our neighbors are doing it, yet we continue to trail behind. Not one extra penny should be spent on Alabama’s government until the legislature enacts real tax relief that will benefit all Alabamians. Justin Bogie is the Senior Director of Fiscal Policy for the Alabama Policy Institute.
Kay Ivey signs HB 391, providing tax relief to small businesses
On Wednesday Gov. Kay Ivey signed House Bill 391, a bill that will eliminate the business privilege tax for Alabama small businesses and will provide relief to more than 230,000 small businesses. The bill was sponsored by Rep. Steve Clouse and Sen. Tom Butler. Currently, the Alabama Business Privilege Tax levies a minimum of $100 annually on corporations, limited liability entities, and other businesses in Alabama. The tax remains due every registered year until the entity is legally dissolved, regardless of whether or not such entity is actively doing business in Alabama. In a press release, Ivey emphasized the need to provide relief for small businesses. “Alabama’s small businesses are the soul of our economy, and as long as I am your governor, I will continue to be a champion for these hardworking men and women. We are providing real relief to our small businesses,” stated Governor Ivey. “I commend Chairman Clouse and Senator Butler for their leadership and the Alabama Legislature for their work to support our small businesses. This will go a long way in providing support for some 230,000 small businesses for years to come.” Ivey commented on Twitter, “I’m proud to sign HB 391, providing relief from the business privilege tax for 230,000+ AL small businesses. Small businesses are the would of our economy, & as long as I’m your governor, I’ll continue to be a champion for these hardworking men & women.” The exemption is projected to save the state’s small businesses an estimated $23 million a year. The law cuts the $100 minimum business privilege tax in half to $50 for small businesses in 2023, and it completely exempts small businesses from the minimum tax beginning in 2024.
