Each year the House and Senate alternate giving the Democratic response to the Governor’s message.  The following my response on Alabama Public Television to the Governor Riley’s State [...]]]> Thank you for the opportunity to blog during the 2010 Regular Session of the Legislature.  I enjoyed the experience last year.  It was my first time to blog.

Each year the House and Senate alternate giving the Democratic response to the Governor’s message.  The following my response on Alabama Public Television to the Governor Riley’s State of the State Address.

My fellow Alabamians, on behalf of the Democrats it is my privilege and honor to reply to the Governor’s message and to outline what we as Democrats believe is the best course for the state of Alabama at this critical time in our history.

First, and this is difficult to say as a graduate of Auburn University, congratulations to Coach Saban and the Crimson Tide Team on the national championship.  You bring honor to our state.  Roll Tide!

Today Alabama faces its greatest economic challenge since the Great Depression.  The percentage of Alabamians without jobs rose faster than almost any state in the nation last year.  In other words, more people in Alabama are looking for work today and cannot find it than ever before. From Madison and Shelby Counties with the lowest jobless number in the state, at 7.3%, to Wilcox County with the state’s highest percentage of our citizens without employment at 24.3 %, families across Alabama are suffering.

That is why Democrats in the legislature are making putting people back to work our top priority.

In addition to creating jobs, Democrats are committed to protecting Alabama’s families and children, insuring accountability and transparency in government and spending our education dollars wisely.

Democratic Senator Lowell Barron is sponsoring one such jobs bill.  It will provide $1 Billion for highway improvements over the next ten years.  When we build infrastructure we create jobs and protect our citizens.  All over this state there are roads and bridges that must be repaired.   Not only is there a need, but also now is the time to reinvest our public dollars providing private sector jobs to more Alabamians.

We must also make sure that those who serve and protect the public are secure in their jobs.  The state troopers who keep our roads safe, the prison guards who protect us against the most hardened criminals, mental health workers and teachers all deserve a priority in our budgeting process.

Education dollars must also be focused on preparing our students for the workforce.

Alabama’s Democratic legislatures for over 100 years have kept Alabama at or near the lowest taxed state in the nation.

However, this doesn’t mean our taxing structure is fair.  There are only two states in the nation that tax groceries.  Alabama is one.  It is not right or just to tax the food we eat.  This basic fundamental of fairness, not to tax what we require to live each day, is recognized by 48 states.  Democrats are leading the effort to eliminate the state sales tax on groceries.  This will put money back into the pockets of all Alabamians.

Last year House Republicans fought to defeat this effort.   On four occasions this bill came up for a vote and on four occasions House Republicans killed this bill.

We now call on all Republicans in the legislature to join with us, put party politics aside and once and for all eliminate this unfair and unjust tax.

The sole charge to the legislature in Alabama’s Constitution is to adopt a balanced budget.  This year the task is daunting. We must be cautious stewards with the limited resources of our state.  This legislature will craft a budget that neither this Governor nor his cabinet officers will have to live with but it will have long lasting consequences for the people of our state. Governor Riley’s term ends shortly after the new budget takes effect, so he will be long gone as the new legislature and the new administration try to make sure the people of this state are well served with the limited resources we have available.

The priorities of the Democrats in adopting a budget will be to focus our attention on those in our society less capable of caring for themselves:  the school children of our state who are truly the future of Alabama, those 25% of Alabamians who rely on Medicaid for health care coverage, and people with mental illness.  My faith teaches that the Bible focuses on three special classes:  children, the poor and elderly.  It is where we place our talents and our resources that reflect our values.

My children, J.K. and Emma Grace, are in the 7^th and 4^th grade respectively.  This year, as in years prior, the school sent home a list of needed supplies. On the list were wet-ones, hand sanitizer, paper towels, and other items, which should be supplied by the schools.  Schools in Alabama are woefully under funded, ranking near the bottom 46^th, 47^th or 48^th of 50 states depending on which survey you review.

It has been proposed that charter schools be established.  We aren’t doing a very good job now funding education.   How can we divert our precious education dollars for unproven experimental schools?  There was a time when schools were built in a communal classroom style because some education guru said it was the modern thing to do; there was a time when others promoted magnet schools, and now the new fad is Charter Schools because that’s what we hear from Washington. Just because Washington says its good doesn’t make it right for Alabama.

Almost one in four children live below the poverty line in Alabama.   My wife, Tanya, is a public school principal and is witness to some of the most abject poverty you can ever imagine.  Children living in overcrowded homes, with no access to running water or basic human needs.  She tells me stories of the heartbreak she and the teachers feel for these children. Knowing this, it is easy to establish priorities.

While countless Alabamians are without work, many children are cold and hungry,  health care is rationed, education is underfunded, our people are scared and worried about their economic future, this Governor is spending his time working on his political  legacy and what the polls tell him he should be doing to elect Republicans.

In 2002, a Riley for Governor campaign spokesman made the following comment about no-bid contracts in Alabama:  “Where there’s smoke, there’s fire, and the people of Alabama are choking on the smoke…” Ladies and Gentlemen, I believe those words are truer today than ever.

This administration has given more no bid contracts than any administration in history.  Candidate Riley ran on opposition to no bid contracts.  This administration recently gave a $13M contract to an out of state software firm called Paragon citing that Paragon was the only firm that could do the job, making them a single source provider.  However, The Huntsville Times recently reported an independent firm found that 115 Alabama software firms could have done the job, none were given the opportunity to bid on the contract.

The Paragon contract along with tens of millions of dollars more in no-bid contracts by the Riley administration is why Democrats will be supporting a bill to prohibit this type of abuse and eliminate no-bid contracts period.

This legislature passed a bill that would have required all lobbyists who lobby the Executive Branch of government, the Governor and his cabinet, to have registered with the Alabama Ethics Commission.  This Governor vetoed that legislation.  Democrats will send this legislation back to the Governor; we’ll put in the legislation an effective date of January 1, 2011, when this Governor’s term is coming to a close.  Governor Riley, neither you nor your political associates will be directly affected by this legislation. This legislation provides transparency in government. I implore you to sign it into law for the next administration.  It’s the right thing to do.

As I mentioned at the beginning, Alabama is facing the worst economic crisis in over 70 years.  Revenue from taxing and regulating gaming can go a long way to solving the budget issues we are facing.  At the very least the people of this state deserve the right to vote on the issue.

Governor Haley Barbour and former U.S. Senator Trent Lott of Mississippi, both very conservative Republicans, are huge supporters of the gaming and the revenue that comes from the casinos in Mississippi.

While at the same time, this administration has been using the limited resources of the state to oppose gaming.  Gaming should be regulated and taxed, not protected for the few or the out-of-state.

I’m reminded of the story of Bill at the healing service.  Bill walked down the aisle and knelt at the alter.  The preacher knelt down beside him and said, “Bill can I pray for you?”

“Yes,” Bill said.

“What can I pray for Bill,” the preacher asked.

“You can pray for my hearing preacher.”

The preacher laid one hand on the side of Bill’s head with his thumb in Bill’s ear.  Then he laid the other hand on the top of Bill’s head.  The preacher then began to pray a mighty powerful prayer.  When he had finished he asked Bill, “How’s your hearing?”

Bill said, “I don’t know preacher, it’s not until Thursday.”

The Governor is like the preacher.  He doesn’t understand what the people of Alabama want.  Democrats understand what is important to the people of Alabama.

Democrats are committed to putting people back to work and providing job security to those who are employed.  We will protect families and children, provide accountability and transparency in government and spend our education dollars wisely to help the children of Alabama prepare for tomorrow.

There is hope for Alabamians, from global, to national and locally. Globally, the death toll in Iraq declined by more than half from the previous year.  Nationally, after a decline in the stock market in 2008 of over 40%, last year we saw an increase of 15%. Locally, Alabamians are hard working and inventive.  We rise when faced with adversity.

I am proud to live and work in this great state.

God Bless America and the Great State of Alabama.

The Constitution of Alabama has been amended more than 800 times. Amendments should be something rare, not common. Alabama’s constitution is government micromanagement at its worst. The converse is true for our nation’s framework [...]]]> Alabama has the dubious distinction of having the longest written constitution in the world. That’s right, the world!

The Constitution of Alabama has been amended more than 800 times. Amendments should be something rare, not common. Alabama’s constitution is government micromanagement at its worst. The converse is true for our nation’s framework of government found in its constitution, which in 222 years has been amended only 27 times.

Soon after the alleged passage of the 1901 Constitution citizens began demanding a new constitution. The word alleged is used because the election of 1901 was full of voter fraud. The election was a strong-arm attempt of the wealthy and large landowners of the state to disenfranchise poor white citizens and all black citizens. It certainly was successful in that regard.

In the early 1980s the constitution was almost revised in its entirety through one cumulative amendment, but the court struck that effort down.

In the 1990s an effort was made to revise articles one by one but as of this date no article of which there are 16 have been revised in recent years.

Several years ago the constitution was recompiled, which served to remove the dead language and organize the document. While this helped some it did not go near far enough.

In the last few years Speaker Pro Tempore Demetrius Newton D-Birmingham has lead the charge for a constitutional convention. While we are doubtful of the ultimate success of a convention (there are just too many issues to resolve) we believe this approach should be given a chance. A convention of citizens from every corner of the state looking to our state’s future with hope and promise whose sole charge is to develop a functional framework of government for Alabama.

It took three votes of the Rules Committee before a successful vote was taken to bring Newton’s resolution to the floor of the House of Representatives. However, the resolution fell far short of the 53-vote requirement for passage. Sadly, only 36 of 105 members voted to give citizens of this state the right to present a new constitution to the electorate of the state.

We applaud Speaker Pro Tempore Newton on his efforts and hope he will continue the fight. In his closing remarks upon the defeat of his resolution he eloquently reminded the member of the phoenix arising from the ashes and vowed to fight again another day for the citizens of the state.

House Republicans has blocked this measure being brought up for debate. House Republicans claim the removal of the federal [...]]]> For three legislative meetings the first bill considered was HB 116 by Representative John Knight. The bill would remove the state sales tax on groceries and in exchange phase out the federal income tax deduction.

House Republicans has blocked this measure being brought up for debate. House Republicans claim the removal of the federal income tax deduction would harm small business.

Representative Knight moments ago addressed this issue head-on with four specific tax examples. Consider the following:

A small business with an adjusted gross income of $300,000 of which $100,000 was income from Alabama, $100,000 was income from Georgia, and $100,000 was income from Florida would have a negative tax of $10,533. In other words they would pay no state income tax.

A small business with an adjusted gross income of $600,000 of which $200,000 was income from Alabama, $200,000 was income from Georgia, and $100,000 was income from Florida would have a negative tax of $43,972. In other words they would pay no state income tax.

A small business with an adjusted gross income of $1.5 million of which $500,000 was income from Alabama, $500,000 was income from Georgia, and $500,000 was income from Florida would have a negative tax credit of $138,962. In other words they would pay no state income tax.

A business with an adjusted gross income of $21 million of which $7 million was income from Alabama, $7 million was income from Georgia, and $7 million was income from Florida would have a negative tax of $1.2 million. In other words they would pay no state income tax.

To make matters worse the negative tax can be carried over from year-to-year and amounts to a credit in the event the business ever has taxable income.

It is just wrong for the removal of state sales tax on groceries bill to be blocked by House Republicans. It is a vote that cannot be justified no matter how hard one tries.

I believe the truth is that House Republicans fear this measure being on the ballot at the time they seek election in 2010.

HR _______ SPECIAL ORDER CALENDAR BY: HOUSE RULES COMMITTEE

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE LEGISLATURE OF ALABAMA, That immediately upon the adoption of this resolution, the following business, in the order set forth below, shall not be the [...]]]> PROPOSED BY THE RULES COMMITTEE
FOR WEDNESDAY, APRIL 1, 2009
THE 16TH LEGISLATIVE DAY

HR _______ SPECIAL ORDER CALENDAR BY: HOUSE RULES COMMITTEE

BE IT RESOLVED BY THE HOUSE OF REPRESENTATIVES OF THE LEGISLATURE OF ALABAMA, That immediately upon the adoption of this resolution, the following business, in the order set forth below, shall not be the special and paramount order of business for the 16th legislative day taking precedence over the regular order of business or any pending or unfinished business.

Representative Knight:
HB1400
State revenues, sales tax removed from food and whiskey, tax levied on air and dirt, revenues earmarked for country club improvements

Representative Black:
HB1998
Entertainment incentives, providing for table games and full-blown casinos, ownership of existing facilities transferred to Judiciary Committee chair, country music stars access provided for, income tax exemptions for showgirls

Representative Ward:
HB1994
Economic development, earmarking federal stimulus monies for the purchase of night clubs and saloons, further prohibiting dancing and carousing on Sundays

Representative Jackson:
HB3067
Alcoholic beverages, legalizing the sale and promoting the trade of high-alcohol-content white whiskey, repeals anti-bootlegging statutes, naming law the Free The Corn Act, prohibiting the use of corn as feed for fighting roosters

Representative Payne:
HB1999
Tobacco, cigarette lighters prohibited, matches regulated, fires caused by lightning strikes and flint sparks approved, confiscated lighters designated for North Carolina no smoking campaign

Representative Lindsey:
HB9547
Film incentives, tax credits for professional movies, tax levied on home movies, further provides for confiscation of unsuitable videos for storage in legislative archives and establishment of legislative viewing room, special tax credit for Catherine Zeta-Jones, Julia Roberts, and Angelina Jolie.

Representative DeMarco:
HB1702
Ethics, increasing the amount of a thing of value, gifts prohibited from family members, gifts allowed from lobbyists not to exceed $50,000 a day, receipt of football tickets prohibited for non-conference games, transferring powers of Ethics Commission to new state Gaming Commission

Representative McLaughlin:
HB6091
Elections, campaigns, prohibit six-pack to six-pack contributions, special tax credits for dry cleaners and numbers runners

Representative Wren:
HB5309
Energy incentives, providing tax credits for wood fireplace construction, windmill farms on Dauphin Island, flux capacitors on vehicles, incentives for river transportation by mule-drawn barge, air traffic congestion reduction through use of hot-air balloons on methane collection from agricultural sources, algae farms on navigable waterways, solar power generation at night

Representative Graham
HB4973
Government control act, Paul Hubbert declared King, tax exemption for bananas to feed 800-pound gorillas

Representative Gipson:
HB3400
Motor vehicles, graduated drivers licensing, babies under two years of age allowed to operate tractors and other farm equipment, elderly to lose privileges as age increases

Representative Dunn:
HB5921
Motor vehicles, criminal penalties, driving under the influence of politics, ignition interlock devices for listening to Rush Limbaugh

Representative McCutcheon:
HB1667
Disclosure, accountability, requiring governor to post on internet flight logs, discretionary fund expenditures and names of visitors at first lady’s garden parties, afternoon teas excepted

Representative Rogers
HB5968
Relating to weight reduction, legalization and promotion of devices for stimulation use related to length of filibusters

Representative McClendon
HB4583
Motor vehicles, prohibits text messaging while driving, allows operation of i-pods, boom boxes, DVD players, satellite televisions, hair dryers, electric shavers, and portable margarita blenders, felony penalties provided for

Representative Ford
HB4287
College tuition stimulus act of 2009 to be known as the Ivey Relief Act

Representative Ward
HB7749
Cockfighting, ultimate goat wrestling, cage sheep fighting, endorsed by the World Wrestling Foundation, further exemption on chicken litter and ruminant manure as authorized and approved by the Alabama Farmers Federation

Representative Hammett
HB9848
Dirt road elimination act, to provide for the elimination of dirt roads in an area of the State of Alabama north of the state of Florida and South of Butler and Crenshaw counties which lies East of Conecuh and Escambia counties and west of Coffee and Geneva Counties.

Representative Hubbard
HB8949
Authorize sports advertising contracts, all state universities, post secondary, K-12, T-ball, youth soccer leagues, limitation 1.5 million tickets, parking spaces restricted to all those within one mile of stadium

Representative Lindsey
HB398
To impose an excise tax on the sale of wool or wool related products in the state of Alabama and direct the proceeds of said tax to the Education Trust Fund, and to further provide for a tax credit for the purchase, manufacture or use of cotton fibers, said credit to be supplanted by funds of the General Fund of the State of Alabama.

Representative Love
HB4987
To provide personal and dependent tax exemptions for those receiving rhytidectomy and for the act to be known as the Pelosi Stimulus Act.

Representative Robinson J
HB3859
Official state song and program, Sweet Home Alabama declared

Representative Bentley
HB3849
Troy King declared the official Attorney General of Alabama, governor’s ill perceived powers checked, lame duck status reconfirmed

Representative Hammon
HB7832
Immigration Act, declared if you can’t spell immigration you can’t stay, English only

Representative Martin
HB6532
Overseas voting allowed, minimum size of bottles and appropriate cork standards imposed, bottles found on the Alabama gulf coast counted, other bottles found along the Florida or Mississippi Gulf coast to be deemed provisional ballots, carrier pigeons excepted

Representative Mask
HB9830
Comic figures regulated, prohibition against public officials posing as comic figures, criminal penalties imposed. Known as the Aubie Unmasking Act of 2009, further Aubie declared the official state mascot.

Representative Barton
HB2239
Dolphin sand bar rebuilding act, to prevent nature’s fury and provide insurance coverage to those building their houses upon the sand

Representative Hall
HB5394
Reagan-Bush day established as official state holiday, Governor Sarah Palin and Rush Limbaugh honored guest at inaugural event to be held in Gulf Shores on June 9, 2009 all Republicans in Senate District 7 to be granted excused absences from employment with full compensation

Representative Allen
HB1129
Prohibiting the using of the left arm to signal right turns, to be known as the Confused Signal Act of 2009, endorsed by Alabama Association for Justice

Representative Vance
HB4960
Purchase of Colonial Bank by Retirement Systems of Alabama, conversion of bank facilities to PGA caliber clubhouses, bent grass to be on bank lawns with free putting green, Dr. David Bronner to be first President, CEO and CFO, former Colonial officers to be MIA.

Representative Page
HB4960
Assault weapons allowed in the work place, small surface to air missiles allowed for backyard use only, excepted from pistol permit requirements

Representative Bridges
HB3567
Exemption of sales tax for the sale of footwear and boots sold within the Alabama statehouse

Representative Scott
HB2059
Prohibition against ATM fees exceeding the value of a single share of bank stock.

Representative Ball
HB4969
Ethics revision, lobbyists prohibited from providing coffee to legislators, Irish coffee excluded, further providing floor privileges to registered lobbyist maintaining a minimum of ten pacs

Newton D
HB2859
Constitutional amendment 4017 proposed, to adopt a new state constitution, to let the people vote on the formation of a constitutional convention to let the people vote on a proposed new state constitution

Representative Guin
HB9999
Declaring this special order the official legislative April Fool’s joke of 2009

Currently, 4 cents of every dollar spent on [...]]]> I recently saw a bumper sticker, which simply read, “Thank God for Mississippi.” It wasn’t meant as a complement to the Magnolia State. Only two states in the nation tax the purchase of food – Alabama and Mississippi. What’s wrong with this picture?

Currently, 4 cents of every dollar spent on food is taxed by the state. According to the United States Department of Agriculture in 2007 the average family of four spent $6,525.60 per year on food. That means the state received $261.02 from the average family for the cost of food that year in tax revenue.

The state food tax produces approximately $300 million annually for education. Because all sales tax is earmarked for education and Alabama spends near the least on education of any other state in the country it wouldn’t be prudent to simply cut out this sale tax on the backs of the students of this state.

Representative John Knight has introduced the Tax Fairness Amendment of 2009. This amendment would eliminate the state tax on food and make up the revenue by gradually eliminating the federal income tax deduction for upper level wage earners. For example, this deduction would begin to be reduced for joint fillers earnings in excess of $125,000 in adjusted gross income and the would be completely phased out for those earning over $400,000.

The net effect of the legislation on the average family of four is a reduction in taxes for all families earning under $200,000. The Alabama Legislative Fiscal Office estimates the average family of four would save $468 per year as a result of the reduction of the sales tax on food.

This will be the first bill voted upon when the legislature returns into session on Tuesday. It is an important bill. It is the only bill before the Alabama House of Representatives, which provides a middle class tax cut.

The opponents of this measure have reached into a sorted bag of tricks in an attempt to make this some type of economic class war. Many have said this just helps the poor – that’s just not true. By example, those purchasing food with Food Stamps don’t pay sales tax. This is a tax cut for the middle class. To parse the argument of the opponents one step further, what would be the problem with helping the poor? This bill doesn’t but those opposed to the bill seem to suggest there would be something wrong in reaching out to the least financially equipped among us.

There is nothing fair about the tax structure in Alabama. This is one chip from the large mountain of tax unfairness that we have as a result of living under one of the most antiquated state constitutions in the nation. The time has come for tax fairness.

It is reported a group of gaming operators have been meeting in Montgomery for months in an effort to forge an alliance, coalesce [...]]]> On Thursday HB 676 by Representative Marcel Black and SB 471 by Senator Quinton Ross regarding the play of bingo in Alabama were introduced. The introduction of these bills was long anticipated.

It is reported a group of gaming operators have been meeting in Montgomery for months in an effort to forge an alliance, coalesce support and form legislation.

The playing of bingo in Alabama should be regulated and taxed.

The play of electronic bingo is in Alabama to stay, if at a minimum at three Indian facilities. The federal government regulates this and there is nothing the legislature of Alabama can do to stop it. It’s here like it or not, and there isn’t a cent of taxes being paid to the state by these Indian casinos. There is also bingo played in other counties such as Greene, Lowndes, Macon and Walker. With the exception of Walker County I don’t know how much local tax revenue is generated. In Walker County bingo is the first or second greatest stream of tax revenue to the county government, where over $3 million is collected annually.

There should be a state gaming commission, which regulates all gaming in the state. In my home county I have personally observed how the lack of regulations has caused problems in this industry. Any gaming in Alabama should be heavily regulated. A gaming commission with long, sharp teeth, not those of a toothless paper tiger, should regulate the licensing and regulation of all facilities.

Gaming if allowed should generate the most revenue possible for the local and state governments. This legislation is seriously flawed in this area. First, the proposed law limits the amount of tax that could be levied by the local government. I disagree with that provision. Second, there are some bingo facilities that would only be taxed at a 10% rate for five years while others would be taxed at a 20% rate immediately. In my opinion the proposed tax is too low and should apply equally to all.

The concept behind this legislation is good. The problems are found in the details of the legislation, many of which I have not addressed in this post.

On a personal note, I consider myself friends with many who support this legislation both at the state level and in my local house district, and the house sponsor, Representative Marcel Black is one of my dearest friends. However, on this issue we need to step back and look at the issue for what it is, not for who may support certain aspects of the legislation.

This legislation deserves much scrutiny as it moves through the legislative process.

The real question is what prompted this type of legislation in the first place. Often legislation is introduced, which has no [...]]]> A bill is pending in the legislature which would limit an investigation conducted by the Ethics Commission to thirty days. Thirty days is not enough time to conduct any type of meaningful investigation.

The real question is what prompted this type of legislation in the first place. Often legislation is introduced, which has no real chance of passing, but is designed for the purpose of making a statement.

Currently, law allows for an ethics complaint to be filed anonymously. This is good public policy in that we want there to be no fear of repercussion resulting from the filing of a valid complaint.

However, it is the policy of the Ethics Commission to confirm the filing of a complaint in writing to the complaining party. Too often these letters of confirmation are leaked to the news media. In many instances, whether the respondent to the ethics complaint violated the law or not, the purpose has been achieved the negative news story resulting from the filing of a complaint.

Too often the press sensationalize the filing of an ethics complaint. Rarely, would one find a new outlet to report as prominently in the dismissal of a complaint. Most complaints filed with the Ethics Commission are dismissed without hearing.

So, what statement is being made in this legislation? I can only guess, but it may be that it is time to look closely at those filing frivolous complaints or to prohibit changing the policy of official notification until a preliminary investigation has been conducted.

We want the ethics laws to be tough but at the same time fair to those wrongly accused.

Tuesday, February 24, 2009 was the [...]]]> The House of Representatives on Tuesday passed 15 general bills that ranged from oil and gas offshore severance tax to computer solicitation of a child to regulation of out-of-state certified public accountants. The diversity of topics is typical for an early day in the legislative regular session.

Tuesday, February 24, 2009 was the seventh of 30 legislative days. Thus far the house has been running in smooth oiled fashion under the leadership of Speaker Seth Hammett.

Today, Wednesday, February 25, 2009 is a busy committee day. There are a number of senate bills on the agendas of the various committees. I will be meeting with Senator Lowell Barron, the Senate Rules Chairman to discuss house and senate bills in a posture to be passed and sent to the governor.

It is my hope bills such as the Steel Coil Bill will be among the first enacted into law. Millions of dollars of needless highway repairs have been made in the Birmingham area because of trucks losing loads of steel coils.

In the education area there are $597 million [...]]]> This week in the legislature the take of the hall has centered on the true sum of stimulus dollars coming to Alabama. On first glance it appears that education, Medicaid and roads are the big winners (winners probably isn’t the best term to use in this situation).

In the education area there are $597 million in fiscal stabilization, $186 million in special education, and $197 million in Title 1. Governor Riley has the option to expend these funds over the next two fiscal years or to include the spending of these funds in the current fiscal year. There seems to be early consensus that it is in the best interest of the state to spend these dollars in future years. Proration has already occurred this year and even with these funds additional cuts will be necessitated in the coming years. The fiscally conservative approach is to defer the funds to the coming two years.

Medicaid will receive $850 million. One in four Alabamians receive some type of benefit from the Medicaid programs. For this reason the funding of Medicaid is year-to-year one of the greatest challenges we face. To many this may seem excessive, however, of the 49 programs offered from the federal government for Medicaid, Alabama only participates in the 13 mandatory programs.

The state will receive $403 million for highways and bridges and cities and counties will receive $110 million. It is my hope the Governor will focus much of the state’s funds on the completion of Corridor X in Birmingham. The completion of this project is sure to grow the economy of our states as it completes linking Alabama’s largest city to the Memphis by interstate.

The stimulus bill was over 1,000 pages with many restrictions on spending. The Alabama Legislative Fiscal Office wrote a synopsis of the bill. The synopsis was 60 pages. Needless to say it is complicated and we are learning more each day.