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RSVP today for Arise's 2016 Legislative Day!
Your voice matters! Make plans now to speak up for a better Alabama by attending Arise's 2016 Legislative Day on Tuesday, March 8, 2016, in Montgomery. Registration will begin at 9:30 a.m. that day in the Capitol Auditorium, with the issue briefing starting at 10 a.m. Next will be a news conference at 11 a.m., followed by a legislative luncheon at noon and a membership meeting at 2:15 p.m.
It'll be an exciting day, and we hope to see you there. Space at the luncheon is limited, so you must RSVP by Monday, Feb. 29, 2016, to confirm your spot. Click here for more information and to RSVP today. Together, we can build a better Alabama for all!
2016 legislative update: Same old song: Alabama faces another shortfall for vital services, but lawmakers aren't eager to raise revenue to prevent cuts
Groundhog Day, the first day of the Alabama Legislature’s 2016 regular session, left advocates for human services feeling a powerful sense of déjà vu. A mere five months ago, the Legislature managed, with small tax increases and large transfers from the Education Trust Fund (ETF) budget, to pass a 2016 General Fund (GF) budget that barely maintained Medicaid, mental health care, corrections and other essential services.
It took lawmakers three tries to pass this year’s GF budget, and many advocates hoped the grueling experience would lead legislators to sober consideration of Alabama’s very real need for sustainable new revenue for the perenially cash-strapped GF. Unfortunately, that doesn’t seem to be the case for many of them.
The Legislature began consideration of the 2017 budgets this week with no indication that it will seriously consider significant new revenue measures like closing income tax loopholes or raising the cigarette tax. Instead, key legislators told the media that they saw “no appetite” for tax increases, and said any further ETF transfers were “off the table.”
Those stances are in sharp contrast to the shortfalls and unmet needs for health care, public safety and other vital services in Alabama. In pre-session budget hearings, agency leaders asked the GF budget committees for an additional $235 million just to maintain current services. The GF has a structural deficit, with normal cost growth regularly outpacing the sluggish growth of its revenue sources.
Medicaid alone needs an additional $157 million to avoid cuts and complete the shift to a new regional care organization (RCO) model designed to save money and keep patients healthier, Commissioner Stephanie Azar told lawmakers last month. Medicaid provides health coverage for one in five Alabamians – mostly low-income children, seniors, and people with disabilities.
Bentley’s plan: Move money from education to General Fund
Gov. Robert Bentley sent his proposed budgets to the Legislature on Feb. 3, as required by the state constitution. But unlike last year, he offered no recommendations for new revenue. Instead, Bentley proposed to move $181 million of use tax revenue from the education budget to the GF and to replace that money with a one-time transfer of money from the ETF Budget Stabilization Fund and the ETF Advancement and Technology Fund.
Senate President Pro Tem Del Marsh, R-Anniston, told AL.com this week that he would be “very surprised” to see lawmakers move ETF money to the GF again this year.
The Budget Stabilization Fund originally was created as a savings account to help the ETF avoid proration in years when revenues were low. The Advancement and Technology Fund was created just last year so schools would have money available for one-time expenses like buildings, buses and textbooks. Without a transfer, about $195 million will be available in these two accounts at the end of 2016, according to Legislative Fiscal Office estimates.
While use taxes would continue to bolster the GF in future years, the ETF revenue loss would only be replaced in 2017 if lawmakers pass a bill sponsored by Sen. Paul Sanford, R-Huntsville. SB 129 would spend 90 percent of the money in these two accounts in one year and leave the ETF without a source to replace lost revenues from the use tax (essentially a sales tax on out-of-state purchases) in future years.
Medicaid, public health would come up short in governor’s budget
Bentley’s budget is a starting point for the GF debate, but if history is any guide, it will not be the final product. With the help of the ETF transfer, Bentley’s proposed budget includes:
Bentley’s total proposed GF budget is only 5 percent larger than last year’s, even with the transfer from the ETF. This anemic growth would do little to make up for a 15 percent cut to the GF since 2008, and a nearly 20 percent ETF cut in that time. Alabama’s state K-12 cuts have been the nation’s second worst since the Great Recession, while its higher education cuts have been the fourth worst.
By Carol Gundlach, policy analyst. Posted Feb. 4, 2016.
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Arise Daily News Digest 2-10-2016
AL.COM - Advocates continue push for minimum wage increase in Tuscaloosa.
AL.COM - Governor would appoint taxpayer advocate under bill passed by House.
AL.COM - Opponents, advocates speak at hearing on historical monuments bill.
AL.COM - Alabama House approves small business tax credit for new jobs.
AL.COM - Capital murder suspects across Alabama seek to bar death penalty.
AL.COM – Columnist Cameron Smith: Alabama pays 14 workers more for mileage than cost of a car.
AL.COM - Governor would appoint taxpayer advocate under bill passed by House.
AL.COM - Relics of segregation found in Birmingham, across the South.
AL.COM - Medicaid: Feds approve test drive of new way in Alabama to pay for it.
AL.COM - Columnist John Archibald: 50 years ago today: The day the music died in Alabama?
AL.COM - 2 Alabama cities among the country's Best Mid-sized Cities to Make a Living.
AL.COM - Birmingham minimum wage increase now goes into effect March 1.
AL.COM – Contributor U. S. Rep. Terri Sewell: Sec. Clinton will expand, not restrict Alabama's voting rights.
AL.COM - 2 presidential candidates getting the most money from Alabama.
AL.COM – Contributor Robert Dickerson: Honoring AG Gaston and setting the stage for the future of black business in Birmingham.
SENATE SKETCHES - “Senate Sketches,” Sen. Hank Sanders’ weekly message to his constituents.
ALABAMA POLITICAL REPORTER - Contributor Matthew Tyson: Everyone Needs A Place to Call Home
ALABAMA POLITICAL REPORTER - Zero-Based Budgeting: Some Pros and Cons
YELLOWHAMMER NEWS - ‘That’s amnesty’ — Shelby challenger Jonathan McConnell backs giving tax IDs to illegals.
YELLOWHAMMER NEWS - Trump takes the ‘Sessions Test,’ and his answers are fueling endorsement speculation.
DECATUR DAILY - Bill would create 'Education Savings Accounts' for special needs children.
DECATUR DAILY - Senate passes bill to increase penalties for abusing young children.
ANNISTON STAR - Bill to abolish state Senate postponed in Senate committee.
ANNISTON STAR - Confederate monuments bill postponed in Senate; time runs out on debate in committee.
ANNISTON STAR - The Anniston Star: Montgomery’s problem.
MONTGOMERY ADVERTISER - Historic monument bill stirs debate over Confederacy.
MONTGOMERY ADVERTISER - Feds give Alabama go-ahead for Medicaid changes.
MONTGOMERY ADVERTISER - Alabama House passes taxpayer, credit bills.
MONTGOMERY ADVERTISER - Columnist Josh Moon: Despite trolls' best efforts, America still great.
OPELIKA-AUBURN NEWS - Lottery bill to get first discussion in Alabama Legislature.
WASHINGTON POST - Trump notches an easy victory in New Hampshire’s Republican primary.
WASHINGTON POST - Sanders defeats Clinton in decisive New Hampshire primary victory.
WASHINGTON POST - For Trump and Sanders, new challenges loom after victory in N.H.
WASHINGTON POST - Supreme Court freezes Obama plan to limit carbon emissions.
WASHINGTON POST - A huge coal miners’ pension plan is on the brink of failure. One senator is blocking a fix.
WASHINGTON POST - Columnist Kathleen Parker: What Steinem, Albright, and Clinton don’t get about millennial women.
WASHINGTON POST - The Washington Post: How our leaders could start reducing the federal deficit now.
NEW YORK TIMES - Obama’s Budget Seeks to Ease Economic Fears for U.S. Workers
NEW YORK TIMES – Contributor Mark Schmitt: Is the Era of Big-Program Liberalism Over?
THE HILL - Ryan, black lawmakers, may join forces on poverty plan.
AMERICAN PROSPECT - Tickets Out of Poverty?
A big win for second chances: Alabama's lifetime SNAP and TANF bans end
It’s a quiet win for thousands of Alabamians seeking to rebuild their lives and provide for their families: Alabama is joining the majority of U.S. states by allowing people with a past felony drug conviction to receive SNAP food assistance and TANF financial assistance, as long as they are otherwise eligible. The effective starting date for this change is Jan. 30, 2016.
The end of Alabama’s SNAP and TANF bans is good news for state budgets and for families. This policy change will help cut corrections costs in the cash-strapped General Fund budget by making it easier for released prisoners to reintegrate into the community, which will help reduce recidivism. Importantly, restoring SNAP and TANF benefits also will help prevent hunger and homelessness among some of Alabama’s most vulnerable families.
SNAP time limits: What you need to know
Many unemployed Alabama adults once again face strict time limits for assistance under the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. These “able-bodied adults without dependents” – folks who do not live in a SNAP household with children – will be allowed to receive SNAP benefits for only three months during a three-year period (ending Dec. 31, 2018), unless they either meet complex work requirements or are found to be exempt from the time limit.
This federal rule was part of the 1996 welfare reform law, but because of the recession, it has not been in effect for nearly a decade. Now that the economy has improved, reinstatement of this rule will deny food assistance for many of the nation’s most vulnerable low-income people. Because Alabama’s three-month clock started ticking Jan. 1, 2016, all able-bodied adults without dependents receiving SNAP on Jan. 1, 2016, will lose benefits on April 1, 2016, if they are not working, participating in job training or declared exempt. The change could cut off SNAP benefits for nearly 50,000 Alabamians and as many as 1 million people nationwide.
This fact sheet by ACPP policy analyst Carol Gundlach takes a closer look at the SNAP time limits, the exemptions from them in Alabama and the steps that service providers can take to help people affected by the limits.