By Representative Danny Garrett
House District 44
As you are aware, the legislature will convene a second special session on Tuesday, Sept. 8. I did not accept expense reimbursement for the first special session and will not accept reimbursement for expenses for the second session.
The regular session, which ended June 4, was actually one of the most productive sessions on record. The legislature passed a number of education reforms, including a bill providing for the establishment of charter schools and a bill that established a separate board for the state’s two-year college system. These changes will provide options for students in underperforming schools and will enhance focus and resources on each level of Pre-K through grade 12 across the state. In addition, the changes will allow high schools and two-year colleges to better prepare students for career and compliment the state’s workforce development initiative. For the first time ever, the $6.0 billion education budget unanimously passed out of each committee and unanimously passed the House and the Senate!
The legislature also passed economic development bills that will benefit veterans and rural communities,as well as passing legislation that will increase accountability of economic incentives. Companies receiving economic incentive tax credits will now earn these on a “pay-as-you-go basis”, meaning jobs must be created before the incentives are realized.
The legislature also passed an extensive prison reform package that will reduce overcrowding and expand correction officers at state prisons. The legislation should also prevent a takeover of the state prisons by the federal authorities.
At the end of the regular session, Governor Robert Bentley vetoed the general fund budget passed by the House and Senate. Subsequently, state House and Senate members planned a series of working sessions during the summer to develop a General Fund budget that could be passed quickly during a special session; however, the governor abruptly called the special session early and before any plan could be developed. By law, a special session can only last ten days; therefore, there was simply not enough time to develop an acceptable General Fund plan in the first session.
Historically, the $1.8 billion General Fund has suffered every year because there is no growth revenue that feeds the fund, while more than 2/3 of the expenses of the General Fund – Medicaid and Prisons—continue to grow each year. Past legislatures (136 years controlled by Democrats) have always “borrowed” from the Education Trust Fund in order to shore up the General Fund, while never addressing the fundamental flaw in its structure. The shortfall in next year’s General Fund is $250 million – $300 million.
There are essentially three “camps” regarding how to address the General Fund: (1) those who want to raise taxes to cover the shortfall; (2) those who do not want to raise taxes, but would like to combine the revenue of both funds and allocate the combined revenue among expenses of both funds; and (3) those who want to maintain and protect a separate ETF, but will consider revenue shifting and other measures to permanently address the General Fund short fall. All three “camps” want to continue to cut the size and cost of state government.
There seems to be more support for broad based tax increases in the House, although no tax increases have passed thus far. The Senate appears more open to tax increases that do not impact individuals or consumers, and – like the House – tax increases have failed in the Senate. I currently fall under “camp 3” from above. Combining the budgets, which is the practice for 47 states, may have merit, but would ultimately require a Constitutional Amendment by vote of the people. Also, we must be careful that we continue to improve education in Alabama; this is crucial to economic and workforce development.
The Governor has called for the second special session to begin on Sept. 8. Since the first special session, there have been joint House and Senate groups working on solutions. I am optimistic that a reasonable General Fund budget will be passed by Oct. 1.