Senate Committee Approves Lean General Fund Budget As Special Session Looms
The Alabama Senate adjourned Thursday without passing revenue bills to offset deep cuts in the General Fund (GF) budget, virtually guaranteeing a special session this summer.
Sen. Arthur Orr, R-Decatur, who chairs the Senate Finance and Taxation General Fund Committee, proposed a plan to level fund the five largest state agencies by changing the distribution of use taxes between the Education Trust Fund and GF budgets. SB496 would have given the GF access to an additional $106 million for Medicaid, courts, corrections and the departments of Mental Health and Human Resources.
The Senate adjourned after receiving word the House of Representatives' journal had been closed, preventing Senate-passed bills from being transferred to the lower chamber. There was disagreement Thursday night about whether the journal remained open until after the Senate adjourned. Regardless, a special session seemed imminent as Thursday was the last day for the Senate to transmit bills to the House without unanimous consent.
This leaves the Senate with the option of approving a lean GF budget similar to the House-passed version - which Gov. Robert Bentley has pledged to veto - or ending the regular session without taking a vote on the budget.
Orr's committee approved a GF budget Wednesday that included no new revenue. Like the House-passed version, the $1.6 billion budget includes about $200 million in cuts to non-education state agencies, when compared to current year spending.
The main difference between the Senate committee's budget and the House version is the Senate's plan to transfer about $4.2 million from the Alabama Law Enforcement Agency to the Department of Commerce.
Alabama Farmers Federation priorities are listed below. In addition, the Senate version cuts funding for the State Soil and Water Conservation Committee by $761,000; Resource Conservation and Development (RC&D) Program by $499,000; and the Forestry Commission's rural and community fire protection program by $578,000.
AFF Priorities At A Glance - GF Budget
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Budget Item
|
Senate Committee Proposal
|
Change from Fiscal Year 2015
| | Alabama Water Enhancement Program |
$45,337
|
-$45,337
| | Concentrated Animal Feeding Operations |
$0
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-$380,000
| | State Water Assessment Program |
$500,000
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-$500,000
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Department of Agriculture and Industries
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$7,459,276
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-$2,166,698
| |
Alabama Forestry Commission
|
$7,208,823
|
-$1,548,365
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Accountability, Unearmarking Plans Gain Traction
With Alabama voters showing little appetite for higher taxes, legislators are proposing a variety of plans to cut government spending and reallocate tax revenues.
On Monday, Speaker of the House of Representatives Mike Hubbard, R-Auburn, announced creation of a commission to study earmarking, appropriations, spending oversight, and the fact that Alabama is one of only three states with two separate budgets.
Members of the Commission on Earmarking and Budget Reform are Reps. Will Ainsworth, R-Guntersville; Elaine Beech, D-Chatom; Terri Collins, R-Decatur; Steve Clouse, R-Ozark; Allen Farley, R-McCalla; Bill Poole, R-Tuscaloosa; and Rod Scott, D-Fairfield. The group is expected to report back to Hubbard before the 2016 regular legislative session.
Ainsworth is among several legislators to propose unearmarking bills this session. On Wednesday, the Senate Finance and Taxation General Fund Committee approved SB502, which would create a unified budget and eliminate all earmarks. The bill is sponsored by Sen. Gerald Dial, R-Lineville, and Rep. Arnold Mooney, R-Birmingham, has introduced a companion, HB700, in the House.
Earlier in the session, Sen. Paul Sanford, R-Huntsville, introduced SB12, which would create a mechanism to distribute recurring revenue to the General Fund and Education Trust Fund budgets. It was carried over indefinitely in Senate committee. This week, Sanford published an editorial comparing Alabama's budget situation to families balancing spending priorities in discussions around the kitchen table. He pointed out the irony of struggling to fill a gap in the General Fund budget when there's a projected surplus in revenues earmarked to the Education Trust Fund budget.
Sen. Phil Williams, R-Rainbow City, also weighed in with a budgeting solution this week. His seven-point plan includes changing the distribution of growth taxes between the two budgets; getting state government out of the alcohol sales business; allowing Forever Wild to assist with state parks; collecting taxes on online sales; allowing state agencies to raise certain fees; capping Medicaid spending; and fully funding the Prison Reform Act to avoid federal penalties.
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House Sends Education Budget To Governor
The Alabama House of Representatives concurred with the conference committee's report on the Education Trust Fund budget Tuesday, sending it to the governor.
The $5.9 billion budget includes an additional $700,000 for the Career Tech Initiative and a $375,000 increase for the Family Practice and Rural Health Board, which houses rural health programs at the University of Alabama, University of Alabama Huntsville, Tuskegee University and Auburn University.
AFF Priorities At A Glance - ETF Budget|
Budget Item
|
Conference Committee Proposal
|
Change from Fiscal Year 2015
| | Family Practice Rural Health Board |
$2,411,097
|
+$375,000
| |
Poultry Technology Center
|
$350,000
|
+$100,000
| |
Career Tech - Operation and Maintenance
|
$5,000,000
|
No change
| |
Career Tech Initiative
|
$3,957,967
|
+$700,000
| |
Office of State Climatologist
|
$850,000
|
No change
| |
Alabama Cooperative Extension System
|
$32,204,625
|
+$160,224
| |
Alabama Agricultural Land Grant Alliance
|
$5,241,283
|
+$200,000
|
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Outstanding Young Farm Family Honored At State House
|
| | Paul and Vicki Morrison of Dale County received a special commendation at the Alabama State House Thursday for being named the Alabama Farmers Federation 2014 Outstanding Young Farm Family. From left are Sen. Jimmy Holley, R-Elba; Rep. Steve Clouse, R-Ozark; the Morrisons; and Rep. Alan Boothe, R-Troy. |
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Bills at a Glance
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The Senate reconvenes at 2 p.m. Tuesday, June 2
for day 27 of the 30-day session.
The House meets at 2 p.m. the same day.
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For questions or comments on newsletter content, email:
Matthew Durdin - State Legislative Programs Director for the Senate
or
David Cole - State Legislative Programs Director for the House
For distribution questions or media inquiries, email:
A.J. Watson - Ag Communications Specialist
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