Capitol Connection
IN THIS ISSUE
Bentley Calls For Tough Budget Cuts
Republican Leadership Focused On Job Creation
Irrigation Tax Credit Bill Passes Senate
Legislation Aims To Reduce Metal Theft
Insurance Bills Introduced
Federation Legislative Reception Is Feb. 15
February 10, 2012

About Us
Alabama's rich farming history is more than just soil, plants and animals. The farmers who earn their living from the earth have carved a big part of that history, and when the Alabama Farmers Federation was formed in 1921, it became the unified voice of those men and women.
Bentley Calls For Tough Budget Cuts

 

Gov. Robert Bentley warned government would have to make tough choices in light of budget shortfalls Tuesday night as he delivered a State of the State address focused on the creation of jobs, education and a healthier lifestyle for all Alabamians. Citing a 25 percent shortfall in the general fund, the governor said it is important to prioritize that money, using it first to support the most critical state services. He vowed not to raise taxes while also promising to maintain funding for public safety, the Department of Corrections and the Department of Human Resources.

 

"Unfortunately government always expands to meet the amount of money we have," Bentley said. "We must make sure the opposite occurs. We must reduce the size and scope of government, and we have already begun this process."

 

Bentley's proposed budget calls for cutting state agencies 10-24 percent and includes zero funding for some programs and departments. His budget proposal reduces the Department of Agriculture and Industries and the Alabama Forestry Commission budgets by 10 percent. Meanwhile, the Farmers Market Authority was not funded in the governor's budget, nor was the Rural Medical Scholars Program or National Poultry Technology Center at Auburn University.

 

The governor's proposed budget included a new appropriation of $4 million for Career Tech Operations and Maintenance. His budget included $2.2 million for the Career Tech Initiative which had requested $5 million. The governor's proposed FY13 budget included $120,000 for Concentrated Animal Feeding Operations (CAFO) registration fees. The Alabama Department of Environmental Management (ADEM) requested $315,000 for CAFO registration fees plus an additional $175,000 to offset 2012 registration fees.

 

Reflecting on the past year, the governor noted Alabama's unemployment rate has shrunk faster than other states. Since this time last year, there are 41,000 more Alabamians in the workforce, Bentley said.

 

He pledged his administration will continue to invest in workforce development by supporting job training and career tech programs.

 

Alabama Farmers Federation Assistant Director of Governmental and Agricultural Programs Brian Hardin said he was pleased to hear the governor's support of career tech programs.

 

"The Career Tech Initiative is extremely important to agriculture and the rural community because it focuses on giving high school students a passion for something, whether it's farming or another mechanical or technical trade," Hardin said. "Career tech prepares students to be leaders in their homes, businesses and communities."

 

As part of his plan to create jobs and support economic development, Bentley proposed making improvements to roads and bridges as soon as possible.

 

"Trucks, school buses and farm equipment must now be diverted in parts of our rural areas due to bridges that need repair. We have an obligation to preserve the roads we now have and fix our bridges," Bentley said.

 

The Federation supports making improvements to roads and bridges to enhance safety and reduce fuel and transportation costs for farmers. The Federation is studying the governor's proposal, which would fund the improvements through bonds, as well as other proposals to determine how best to fund the improvements.

 

Regarding education, the governor promised charter school legislation will pass and shared plans to form a teacher cabinet to hear directly from educators. The cabinet will include Alabama Teacher of the Year Dr. Gay Barnes, who was awarded the use of a car by Alfa Insurance and the Federation last spring.

 

"We cannot reform education by ignoring educators," Bentley said.

 

Bentley addressed health concerns in the state saying it was unacceptable for Alabama to rank so low in numerous health categories including obesity, diabetes, heart disease and infant mortality. He plans to develop a health alliance to bring different entities together to set goals for the state.

 

In closing, Bentley reflected on Alabama's reaction to the devastating tornadoes of April 27 and called on the legislature to come together to accomplish the difficult tasks at hand.

 

"Let's pull together in the face of adversity, do our jobs to the best of our ability, and let's serve the people who sent us here," he said.

 

Absent in the address was any mention of revising the immigration law passed last session.

Republican Leadership Focused On Job Creation
  

The Republican leadership wasted no time in tackling its number-one agenda item for the 2012 Regular Session: job creation.

 

On Thursday, the House of Representatives passed legislation that would provide tax incentives for the aircraft and coal industries as well as data processing centers. In addition, the House voted to change the name of the Alabama Development Office to the Commerce Department.

 

Other parts of the jobs package that passed committee this week included a bill that would provide income tax credits to businesses that hire veterans, as well as legislation that would allow companies to retain up to 90 percent of income taxes withheld on employees, provided they invest in new projects or initiatives to retain current employees.

 

Federation Assistant Director of Governmental and Agricultural Programs Brian Hardin commended the leadership for its efforts to create jobs and strengthen the economy.

 

"The leadership understands that encouraging businesses to hire employees and invest in Alabama will benefit the entire economy," Hardin said. "As jobs are created, families have more money to spend, and the state has more tax revenue for government services. Even in a tight budget environment, it's important to remember that the best ways to address shortfalls in the long term are controlling spending and encouraging economic growth."

Irrigation Tax Credit Bill Passes Senate

 

A bill that would provide up to $10,000 in tax credits to farmers and businesses that purchase and install irrigation systems passed the Senate unanimously Thursday, as amended.

 

SB153, sponsored by Sen. Arthur Orr, R-Decatur, would provide a one-time tax credit for irrigation expenses, including the development of water wells and reservoirs.

 

The amendment, proposed by Sen. Trip Pittman, R-Daphne, puts the tax credit at 12.5 percent of the total cost with a maximum credit of $10,000. It also limits the credit to one purchase and installation of equipment or construction of a reservoir. 

  

The Federation supports this bill and other efforts to increase on-farm irrigation in Alabama.

 

According to State Climatologist Dr. John Christy, Alabama currently uses just 2.5 percent of its available water. For comparison, Arizona uses 102 percent of its available water for irrigation. Adding just 100,000 acres of irrigated land to Alabama would have the same economic impact as two new car manufacturing plants, according to researchers.

 

To receive the credit, a surface water withdrawal system must utilize a qualified reservoir or withdraw directly from a river or stream with an average annual flow greater than 10,000 cubic feet per second. That requirement does not exist for ground water irrigation systems. The credit must be taken in the same year the irrigation equipment is installed.

 

Once signed into law, the credit would go into effect immediately for the 2012 tax year. Currently, Alabama offers are no tax incentives for farmers to install irrigation equipment.

 Legislation Aims To Reduce Metal Theft

 

A bill that would increase regulations for selling metal and stiffen the penalties for metal theft was carried over Wednesday in the Senate Judiciary Committee. SB35, sponsored by Sen. Ben Brooks, R-Mobile, would discourage illegal activities involving metal recycling by requiring the buyer to maintain greater amounts of personal information from the seller, including more video and image surveillance.

 

The Federation supports legislation that deters metal theft and protects the property of farmers and other members. Copper theft is a specific concern for many of Federation members.  

 

The bill is expected to be on the Senate Judiciary Committee agenda next week. It was carried over this week because Sen. Brooks was at the funeral for fallen Mobile Police Officer Steven Green.

 
 Insurance Bills Introduced 

 

About a dozen bills related to homeowner's insurance have been introduced in the Alabama Legislature.

 

Among the bills introduced are those that would:

  • Create catastrophic savings accounts to cover deductibles and uninsured losses;
  • provide greater flexibility for insurance rate changes within regulated parameters;
  • make certain rating and actuarial data public record;
  • provide tax credits for carriers writing businesses in coastal counties;
  • change certain rules related to the way insurance companies invest money; and
  • require insurance companies to report pricing and claims information to policyholders and/or the Alabama Department of Insurance.

The Federation and Alfa Insurance are studying the proposed bills to gauge their impact on policyholders. The organization favors insurance legislation that addresses concerns about the affordability of insurance near the coast through a market-driven approach. Concepts supported by Alfa include those that provide incentives for storm-resistant construction as well as those that promote greater competition among insurance carriers on the coast. 

 

Gov. Robert Bentley's Affordable Homeowner's Insurance Commission met for its fourth education session. The commission held a series of five public hearings last fall to solicit comments about the cost and availability of homeowners insurance in Alabama. The Mobile meeting was heavily attended, but few residents came forward to offer testimony in other parts of the state. The commission has not given a timeline for completing its work and issuing a report to the governor and Legislature.

Federation Legislative Reception Is Feb. 15

 

Alabama Farmers Federation leaders from across the state will have a chance to visit with legislators and other elected officials Wednesday night during the Taste of Alabama legislative reception at the home office in Montgomery.

 

County presidents, state board of directors and FarmPac advisory trustees who are in town for the annual FarmPac meeting invited their state senators and representatives to join them for a feast of foods produced and prepared by Alabama farmers. Federation state commodity committee chairmen also will be on hand for the reception.

 

Alabama-grown products expected to be featured at this year's reception include beef, catfish, chicken, grits, honey, peanuts, pork, shrimp, lamb, turnip greens and fried green tomatoes.

 

Last year, 19 state senators and 76 state representatives attended the event, along with Gov. and Mrs. Robert Bentley, Lt. Gov. Kay Ivey, Agriculture Commissioner John McMillan, Public Service Commissioner Twinkle Cavanaugh and several supreme court justices.

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