Lt. Gov. Jim Folsom is starting some movement on a plank from his 2006 campaign: a Mobile to Florence highway through west Alabama. A joint legislative commission is to report recommendations to the 2009 legislative session. Not only is this touted as a boon to economic development - especially in the Black Belt counties it would traverse, but Folsom would no doubt like to undergird that rumored run for the governorship in 2010.
Helen Hammons offers this perspective on an issue before the Senate this week.
In 2007 I took a lot of flak from some news colleagues, politicians, and even Rush Limbaugh, even though he didn’t call me by name, for asking former New York Governor Rudolph Giuliani about the price of milk and bread. The purpose of the question was not a “gotcha,” it was simply the fact that for at least a third of Alabama’s citizens the cost of groceries was a major issue. While many in the state will never have to worry and can pay any price, it really is a struggle for many, including those with full- time jobs.
Since then, the prices have continued to climb – more people are now feeling the impact. Alabama Arise is a group that has fought to bring the issues of people seldom heard to policy makers, those at the bottom of the economic ladder in this state. They have fought long and hard to reform Alabama’s antiquated tax system, to make the system more progressive instead of regressive, and have fought to let the people of the state vote on this issue. They are right. The people should decide and it’s amazing opponents of the legislation don’t want this issue to go to the people of the state. If past votes are any indication, it will be voted down, anyway.
Dr. Keivan Deravi an economics professor at Auburn University Montgomery said on Alabama Public Television’s For the Record in April, “There is no mystery that [the state’s tax structure] is highly regressive. It penalizes people at the lower economic level. ”
“Very rich people have very smart accountants…The lower income [people] have very little to manipulate and the higher income has a lot to manipulate and they have a lot of money to hire a lot of smart people.”
The House passed a bill that would overturn the ban by the State Board of Education prohibiting state legislators from working in the 2-year community college system starting in 2010.
If the bill is not made law this year, will some legislators wish they had not gone on the record voting for it? Though some have suggested as much to me, I am doubtful that’s an issue for many.
Even if the Senate passes the bill it would be too late in the session to overturn a likely pocket veto from the Governor. If/when the bill dies this year, you can be certain that it will be back next year.
The Senate filibuster over electronic bingo in Macon County ended yesterday amid controversy. Read all about it in the Birmingham News.
Afterward, Rules Chair Lowell Barron (D - Fyffe) tried to organize “baseball,” a tradition in both houses. (You may read here Rep. Cam Ward’s account of baseball in the House last year.) In a nutshell, in 10 minutes everybody in the Senate would get to present one bill. If anybody objects to the bill, it’s killed. The idea is that Senators will bring non-controversial bills that no one objects to, perhaps of local interest to the home district, and everybody has the opportunity to take at least some little success home.
Tensions were high because of the controversial end of the filibuster, and Sen. Ben Brooks (R - Mobile) was unhappy that his bill to reform coastal insurance was not coming up. Baseball was not a hit.
One lobbyist’s observation…
The anger from ending the filibuster certainly spilled over, and will be lingering today.
They attempted to work a “non-controversial” 10 minute calendar that had at least one bill for every senator, and they couldn’t even do that. If they can’t make a 10 minute calendar work, I think they may as well go home. The confrontation between Barron and Brooks was really pretty ugly - Barron kept saying that Brooks couldn’t harass him into putting his bill on the calendar, even saying at one point that he’d never do it. Tension is very high.
The take here is that Brooks may have misplayed the hand. No question he is quite committed to the bill regarding coastal insurance. But with most of the session gone in most unproductive fashion and many folks in the chamber already agitated about the end of the filibuster, what is the harm in taking 10 minutes to zip through some non-controversial bills where every Senator can get something passed? Can anybody find me three Senators who would believe that trying to bully Lowell Barron is a good way to get your bill passed?
Another observer agreed that if the Senate can’t even play their traditional baseball, it really doesn’t look good for the session.
Update: There is a follow-up to this post here.
The House Republican caucus officially ended its filibuster of HB 350 last week, but several Republicans intend to continue the filibuster, Rep. David Grimes (R - Montgomery) has told the Political Parlor. [Proponents of HB350 say the bill makes multi-state corporations pay the Alabama taxes they have owed since 2001. Opponents claim the bill represents a retroactive tax that attempts to tax companies on past earnings.]
[Thursday,] I pressed my ‘Speak’ button along with several others and Mike Hubbard [R - Auburn] says, ‘What are you doing? The filibuster is over. We want to pass a couple of Jay Love’s bills.’
I said, ‘What? So Jay Love can get some headlines?’ He said, ‘No, it’s not just that. The Governor wants them passed.’
I am not going back on my word [to try to stop HB350]. If it was a bad bill yesterday, it’s a bad bill today.
Sounded like he was suggesting that Hubbard and Riley are trying to help Love win the 2nd Congressional District.
That’s exactly what they are doing. That’s exactly what they are doing. Maybe not Riley so much. But they want to allow a retroactive tax so Love can get some headlines. Love didn’t even write those bills. Someone in the Governor’s office did.
But I’m in good shape. The more they help Love, the more it helps me. Love doesn’t understand the district. It’s a rural district. That’s my people. He’s a city guy. Love was born on pillows. I was born on the ground.
He was getting warmed up.
Listen, did you know that I was instrumental in passing the first middle class tax cut in 70 years? I am going to let people know that I was instrumental in passing the first middle class tax cut in 70 years. Ever heard that before? All of Jay Love’s campaign material has that he was instrumental in passing the first middle class tax cut in 70 years. It was John Knight’s plan. Love voted for it, and so did I. Love’s bills died in committee. He gave Knight’s bill one vote. I gave it one vote. Then I guess I was instrumental in passing the first middle class tax cut in 70 years.
I don’t have to beat everybody in the primary. I just have to beat him to make the run-off with Harri Anne Smith. I’ll be in good shape.
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Our state pushes a disproportionate share of the tax burden off of the wealthiest and onto the poorest, to the point that “Alabama has the most regressive tax system in the United States,” according to Gov. Bob Riley and others. The Press-Register calls this “morally indefensible.”
Scott Stantis of The Birmingham News has a particularly nice illustration of the point in an editorial cartoon last week. I reprint it here with permission. Click on it to see a larger image.
Rep. John Knight has offered a proposal (HB 274) that would remove the state portion of sales tax on groceries (4%) and offers other tax relief for all Alabama tax filers, and would remove the state income tax deduction for federal income tax paid. General details are here and specifics are here.
Three points about the proposal:
The bill has passed the House. If it passes the Senate and is signed by Riley, the proposal will face a vote of the people in November.
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Some thoughts and observations on the House vote for HB 274 in which Randy Hinshaw (D - Meridianville) has been criticized for voting other legislators’ machines… Duwayne Bridges (R - Valley) has filed a complaint saying that Hinshaw voted Bridges’ machine as ‘yes’ on HB274, contrary to the way Bridges would have voted. Even Speaker Seth Hammett (D - Andalusia) recognized that Hinshaw was wrong on this one, according to Bridges.
Voting a legislator’s machine contrary to the way that legislator would want is particularly repugnant. The several legislators I talked to about this all agreed that it is common for other members’ machines to be voted the way the members who are away would have wanted, but I could not find even one on either side of the aisle that would defend Hinshaw.
As odious as voting a legislator’s machine contrary to that legislator’s wishes is, Hammett could say that House rules were enforced fairly - because Rule 32 was not invoked. Voting others’ machines is permitted unless Rule 32 is invoked. Early in the process, Jack Williams (R - Birmingham) had requested that Rule 32 be invoked but withdrew his request prior to the final vote. As an aside, why didn’t any other House member ask that it be invoked?
FWIW, Greg Wren (R - Montgomery) also voted another’s machine that morning - even when Rule 32 was in force and contrary to the absent legislator’s wishes. David Grimes (R - Montgomery) had stepped out of the chamber (he was “frustrated,” he told the Parlor), when a vote for the BIR on HB 274 came up. (The BIR vote determines if the bill has enough votes to be brought to the floor before the budget is passed. Failing to pass the BIR vote typically kills a bill.) According to Grimes, Greg Wren tried to help Grimes by voting Grimes’ machine ‘No’ even though Grimes actually intended to vote ‘Yes’ on the BIR.
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Politics and strange bedfellows…
Among the many proposals to get the Senate unjammed, here’s one interesting story. At least it is to me…
An unlikely Senate coalition came to life last week and quickly died.
The Senate has been hogtied in a filibuster over the bingo bills for Greene and Macon County. A proposed coalition would have had Democratic Senators Myron Penn, Quinton Ross, and Bobby Singleton along with the Senate minority coalition (Republicans and dissident Dems) move those bills forward and end the filibuster. In return, GOP Senators Scott Beason and Ben Brooks would get considerations to move bills important to them, namely on immigration and insurance reform respectively. Republicans would have some language in the bingo bills about holding back expansion of gambling and could ostensibly say they were “containing gambling.”
It’s not difficult to see why this coalition “blew up,” in the words of one Montgomery insider.
The short-lived coalition was driven more by pragmatism than ideology and faced considerable obstacles. For example…
A Senator here or there peels off, and the whole idea doesn’t hold together. But for one brief shining moment last week… you had the possibility of two most unusual sets of bedfellows - one in the coalition and one aligned against it.
The general editor of the Bible Literacy Project fires back a defense of the textbook The Bible and Its Influence in response to Sen. Scott Beason’s criticism of the project.
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The House bill on grocery sales tax that was mentioned in this morning’s post passed 63-38 this afternoon. If it passes the Senate, it will go to a vote of the people in November.
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A bill to remove the state portion (4%) of sales tax on groceries is coming before the House today. It could also come before the Senate as early as today.
The Birmingham News calls it a “a much-needed plan to make Alabama’s tax system more fair” that “can take a significant step toward making our tax system less of an embarrassment and less of a drain on our state’s poorest people.”
Studies have found the poorest 20 percent of Alabamians (who made under $13,000 a year) paid 10.6 percent of their incomes in state taxes, compared to 3.8 percent for the top 1 percent of taxpayers (whose annual earnings approached $700,000).
That’s not fair. Somebody needs to be paying less, and yes, somebody needs to be paying more.
Alabama has the lowest taxes in the nation and still shifts a disproportionate burden onto those in poverty.
The House is expected to debate a proposal from state Rep. John Knight, D-Montgomery, that would flat out remove the state sales tax on groceries and cut state income taxes for poorer Alabamians. To make up for the state’s lost income, Knight’s plan would end Alabama taxpayers’ deduction for federal income taxes, increasing the amount paid by the wealthier among us.
By Knight’s estimation, 80 percent of Alabamians will either save money or break even under his plan. Even families with incomes as high as $125,000 will come out to the good, according to the Legislative Fiscal Office.
The bill would ultimately require a statewide vote of the people for passage.
Earlier in the session, the Press-Register called our high taxes on the poor “morally indefensible.”
ALABAMA is a low-tax state that imposes some of the highest taxes in the nation on the poor.
State lawmakers are content to live with this morally indefensible dichotomy. It’s either that or they’re too cowardly to risk any political capital trying to overhaul the state’s wildly unbalanced and wholly unreliable tax system.
The Huntsville Times called this bill “perhaps the most important proposal to come before it in many years,” and has noted that Alabama is “the only state with a sales tax so harsh on a family’s weekly food bill.”
Even the University of Alabama paper The Crimson White gets in on the act and writes, “we cannot ask, due to fundamental principles of fairness and equity, for the poorest in our state to continue to bear this weight on the necessities of life.”
FWIW, other papers are talking about it: Montgomery Advertiser, Decatur Daily, Tuscaloosa News, Daily Home, Anniston Star, Gadsden Times, and Times Daily.
Tonight at 8 pm on Alabama Public Television, “For the Record” will focus on the state’s tax structure. At 8:30 pm, the national public television program “NOW” will focus its weekly program on Alabama’s regressive tax structure.
So says my email, and Tim Lennox’s blog confirms.
There are those here for whom this is Tivo material.
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Sen. Scott Beason (R - Gardendale) jumps into theological waters and offers his take on “The deception of the Bible Literacy Project” for WorldNetDaily yesterday.
Those can be difficult waters to navigate.
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A reader pointed out in email that HB393 passed the House without much fanfare this week. The bill would allow communities with fewer than 7000 residents to have a referendum to go from wet to dry or dry to wet.
We can imagine without difficulty which of the two options (changing from wet to dry or from dry to wet) will be featured in more elections. The economic incentive and deep pockets are on the side of going wet, and available campaign money will have larger influence in smaller communities. Even conservative Wal-Mart has financed elections to change communities from dry to wet.
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Alabama is one of two states that fully taxes the sale of groceries. HB274 would remove the state portion of the sales tax (4%) and raise the income tax threshold for all Alabamians. The bill is made revenue neutral by eliminating an income tax deduction that only two other states allow.
Dan at Daily Dixie has posted on it and has the details here.
The House bill is in the House Education Appropriations Committee this morning. The Senate version of the bill, SB 431, is in the Senate Finance & Taxation - Education Committee this morning.
 | Alabama Line |
(R) Jeff Sessions (1-19)
Would take a Larry Craig-type revelation to shake up this race.
(D) Vivian Figures (33-1)
Is anything shaking in this race at all?
(D) David Marsh (OFF)
A rumor here, a rumor there, but we haven’t seen that they have legs.
(D) Artur Davis (OFF)
Could have been strong underdog, but he’s out
(D) Jim Folsom (OFF)
No rumblings, whispers, or substantial rumors that he might run.
(D) Pete Johnson (OFF)
Said August 3 that he will not run. (B’ham News, 8/4/07)
(D) Ron Sparks (OFF)
Flirted with idea. Announced June 12 that he will not seek the office.
(R) Jo Bonner (1-29)
No obvious chinks in the armor.
(D) Benjamin Lodmell (>100-1)
Charge of soliciting more than votes gives him the longest of odds.
(D) Bobby Bright (3-2) NEW
Shoo-in for Democratic nomination, then the task toughens.
(R) Harri Anne Smith (3-1) NEW
Outright win only thing to keep her out of a GOP primary run-off.
(R) Jay Love (4-1) NEW
Easily the most viable of the Montgomery-area GOP candidates.
(R) David Woods (20-1) NEW
Is he crazy like a Fox-20 President?
(R) David Grimes (30-1) NEW
Showing least energy among those with some name ID.
(R) Craig Schmidtke (90-1) NEW
Oral surgeon will be able to numb the pain of loss.
(D) William Boyd (>100-1) NEW
Montgomery Mayoral hopeful will lose to Bright again.
(R) John W. Martin(>100-1) NEW
Army veteran will struggle to be competitive.
(R) Terry Everett (OFF)
The incumbent announced his retirement Sept. 26.
(R) Mike Rogers (1-11)
Heavy favorite but other incumbents have more favorably drawn districts.
(D) Josh Segall (19-1) NEW
District & early signs of professionalism up his chances a bit.
(R) Robert Aderholt (1-29)
Has built a base and enjoys powerful advantages of incumbency.
(D) Greg Warren (40-1)
It’s a sleeper race, and it’s still snoozing.
To be updated. See the AL-05 Big List.
(R) Ray McKee (tba)
The only announced challenger when Cramer announced retirement.
(D) Bud Cramer (OFF)
The incumbent announced his retirement on March 13.
(R) Spencer Bachus (1-70)
Most senior Republican in the state, in the most GOP District.
(D) Artur Davis (1-49)
Will be extremely difficult to unseat one of state Dems' leading lights.
(D) Jim Folsom (6-1)
LG has lots going for him, but plenty of obstacles until inaugural.
(R) Bradley Byrne (7-1)
Two year college ban is political gold. How rich is the vein?
(R) Troy King (17-2)
Top-ranking GOP candidate. Fierce detractors and fierce supporters.
(D) Artur Davis (9-1)
Little doubt that the popular Dem is considering a run.
(R) Mike Hubbard (13-1)
Party chair has nice launch pad but not committing to run.
(R) Jack Hawkins (15-1)
Transparent interest, would Riley's blessing be boon or bane?
(R) Kay Ivey (17-1)
Hitched her wagon to the wrong presidential candidate.
(D) Seth Hammett (18-1)
Maybe ties to 2-year college scandal are a little too close
(R) Tim James (19-1)
Announced, but politically inexperienced & has GOP detractors.
(R) Beth Chapman (20-1)
Too crowded. No reason for the SoS not to wait.
(D) Ron Sparks (20-1)
With Folsom & Davis obvious Dem frontrunners, he’ll likely pass.
(D) Mike Dow (22-1)
Too early to dismiss him from what may be his last shot.
(R) Tony Petelos (22-1)
Hoover Mayor focusing on re-election first.
(R) Luther Strange (22-1)
Might be more likely to run if King passes on this race.
(R) Charles Bishop (75-1)
Perennial possibility. Probably picked up pugilists’ support.
(R) Roy Moore (75-1)
Can’t rule him out until there is a stake in him. Is he still in GOP?
(R or I) Stan Pate (75-1)
Rumor says GOP curmudgeon considering. Perhaps as Independent?
(?) David Bronner (OFF)
He gets The Jimmy Rane TreatmentTM (See Rane below)
(L) Loretta Nall (OFF)
Tells the Parlor she won’t run for governor in 2010.
(R) Rob Riley (OFF)
The rumors are stale. Might run for AG.
(R) Harri Anne Smith (OFF)
She’ll be representing CD-2 or tainted by the loss.
(D) Susan Parker (OFF)
Democratic Party team player not needed off the bench.
(R) Jimmy Rane (OFF)
No indication that he is running despite earlier rumors.
(R) Richard Shelby (OFF)
Riley/Shelby office swap intriguing idea but no indication that he’ll run.
The Alabama Line and its contents are the creation of Doc’s Political Parlor, reflect consensus from insiders and well-connected folks on both sides of the aisle, and will be updated as conditions change. These odds are meant to inform, entertain, and provoke, not to serve as actual means for losing money. Permission granted to use this material if PoliticalParlor.net is cited as the source.
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