ACPP news releases

Alabama's state higher ed funding cuts since 2008 are country's third deepest

Alabama’s cuts to state higher education funding over the last decade are among the deepest in the country, according to a new report from the Center on Budget and Policy Priorities (CBPP), a nonpartisan research organization based in Washington, D.C. The funding decline persisted even as the state’s economy began to rebound from the Great Recession.

Since 2008, Alabama has slashed state higher education funding by 34.6 percent or $4,290 per student, CBPP found. The state’s cuts are the nation’s third worst by dollar amount and fifth worst by percentage. Nationally, the average cuts since 2008 are 16 percent or $1,502 per student.

Alabama’s inadequate public investment in higher education over the last decade has contributed to rising tuition prices, often leaving students with little choice but to take on more debt or give up on their dreams of going to college. Between 2008 and 2018, the average tuition at public four-year institutions in Alabama jumped by $4,329, or 69.8 percent – far outpacing the national average growth of 36 percent. These soaring costs have erected barriers to opportunity for young people across Alabama, particularly for black, Hispanic and low-income students.

“Pushing the cost of college onto students and their families will not make our state stronger,” Alabama Arise policy analyst Carol Gundlach said. “We must invest adequately in higher education to be able to build an Alabama where everyone has the opportunity to succeed.”

Americans’ slow income growth has worsened the college unaffordability problem. While the average tuition bill increased by 36 percent between 2008 and 2018, median incomes grew by just over 2 percent. Nationally, the average tuition at a four-year public college accounted for 16.5 percent of median household income in 2017, up from 14 percent in 2008.

In Alabama, a college education is even less affordable, especially for black and Hispanic families. In 2017, the average tuition and fees at a public four-year university accounted for:
•    21 percent of median household income for all Alabama families.
•    32.2 percent of median household income for black families in Alabama.
•    26.8 percent of median household income for Hispanic families in Alabama.

“The rising cost of college risks blocking one of America’s most important paths to economic mobility,” said CBPP senior policy analyst Michael Mitchell, the report’s lead author. “And while these costs hinder progress for everyone, black, Hispanic and low-income students continue to face the most significant barriers to opportunity.”

Financial aid has failed to bridge the gap created by rising tuition and relatively stagnant incomes. As a result, the share of students graduating with debt has increased. Between 2008 and 2015, the share of students graduating with debt from a public four-year institution rose from 55 percent to 59 percent nationally. The average amount of debt also increased during this period. On average, bachelor’s degree recipients at four-year public schools saw their debt grow by 26 percent (from $21,226 to $27,000). By contrast, the average amount of debt rose by only about 1 percent in the six years prior to the recession.

A large and growing share of future jobs will require college-educated workers. Greater public investment in higher education, particularly in need-based aid, would help Alabama develop the skilled and diverse workforce it needs to match the jobs of the future.

“All Alabamians, regardless of their income or where they grow up, deserve an opportunity to reach their full potential,” Gundlach said. “Our state should end tax breaks for large corporations and invest in making college more affordable for the students who need assistance the most.”

High uninsured rates plague Alabama's rural areas, show need to expand Medicaid

Alabama’s small towns and rural areas have among the highest rates of uninsured low-income adult citizens in the country, and residents there are more likely to be uninsured than those in metro areas, according to a new report released Sept. 25, 2018, by Georgetown University’s Center for Children and Families (CCF) and the University of North Carolina’s NC Rural Health Research Program.

The uninsured rate for Alabama adults with low incomes is 36 percent in rural communities and small towns, and 29 percent in metro areas. Both rates are much higher than the national averages of 26 percent for rural areas and 18 percent for metro areas. Even in states that have not expanded Medicaid to cover adults with low wages, those rates have declined on average over the last decade.

But that progress has not reached many parts of Alabama, where the uninsured rate for low-income adults in rural areas and small towns was virtually unchanged between 2008-09 and 2015-16, the report found. And the Medicaid “work requirement” plan that Alabama has submitted for federal approval would drive the uninsured rate even higher by stripping Medicaid coverage from thousands of parents in poverty. Virtually all of those parents would be left with no realistic alternative for affordable coverage.

“Not only has Alabama failed to move forward on health coverage, but now our state is seeking to move backward by leaving even more people uninsured,” Alabama Arise policy director Jim Carnes said. “Alabama should drop its cruel efforts to punish people living in poverty and focus instead on expanding Medicaid so all Alabamians can get the care they need to become and stay healthy. Medicaid expansion would save hundreds of lives, create thousands of jobs and keep rural hospitals and clinics open to serve residents across our state.”

States that expanded Medicaid saw more than three times as large a decline in the uninsured rates for low-income adults living in rural areas and small towns than non-expansion states experienced between 2008-09 and 2015-16, the report found. Nationally, the uninsured rate for low-income adults fell by more than half – from 35 percent to 16 percent – in rural areas and small towns in states that expanded Medicaid. For states that have not expanded, the decline was much smaller: from 38 percent to 32 percent.

“Medicaid expansion would reduce the uninsured rate for residents across the entire state; however, the most dramatic improvement likely would be felt in small towns and rural areas of Alabama,” Georgetown CCF executive director Joan Alker said. “Improved coverage rates typically translate to a more stable health care system and help rural areas and small towns maintain availability of health care providers in areas where shortages are all too common. Access to rural health providers is especially important to women of child-bearing age and those with chronic conditions like asthma.”

In Alabama and elsewhere, jobs tend to be scarcer in rural areas and small towns, meaning fewer people have health insurance through their employers. And many of the jobs available in these communities – like farming and small businesses – are less likely to come with health benefits. Ten of the 11 Alabama counties with the highest unemployment rates in July 2018 were rural counties.

Alabama's persistently high rate of uninsured adults shows the need for Medicaid expansion

New U.S. Census data show that the share of uninsured Alabamians increased between 2016 and 2017 and remained higher than the national average. Alabama Arise policy director Jim Carnes issued the following statement in response on Thursday, Sept. 13, 2018:

“The White House’s efforts to undermine the Affordable Care Act and Alabama’s refusal to expand Medicaid are making life worse for hundreds of thousands of people across our state. These bad policy choices are serving as barriers separating people from affordable health coverage.

Alabama’s steady gains in health insurance coverage since 2013 took a turn for the worse last year, this week’s new Census data show. The share of Alabamians without health insurance coverage rose to 9.4 percent in 2017, up from 9.1 percent the previous year and above the national average of 8.8 percent. These are trends in the wrong direction, and they’re the result of intentional policy choices.

“The Trump administration eroded ACA coverage by slashing funding for federal outreach and advertising to promote open enrollment for Marketplace coverage. In Congress, repeated attempts to repeal the ACA created public confusion over the status of the law. And in Alabama, the state’s ongoing refusal to expand Medicaid has left about 300,000 people trapped in a coverage gap, making too much to qualify for Medicaid but too little to receive subsidies for Marketplace plans.

“It’s time to stop undermining health coverage and start investing in it. The White House should stop attacking the ACA. Congress should shore up funding for Marketplace outreach and enrollment assistance. And Gov. Kay Ivey should expand Medicaid to save our rural hospitals, create thousands of jobs and make Alabama healthier.”

Click here to read a PDF version of this news release.

Medicaid expansion, end to grocery tax highlight Alabama Arise's 2019 priorities

Medicaid expansion and legislation to end the state sales tax on groceries are among the top goals on Alabama Arise’s 2019 legislative agenda. More than 200 Arise members picked the organization’s issue priorities at its annual meeting Saturday, Sept. 8, 2018, in Montgomery. The seven issues chosen were:

  • Tax reform, including untaxing groceries and closing corporate income tax loopholes.
  • Adequate funding for vital services like education, health care and child care, including approval of new tax revenue to protect and expand Medicaid.
  • State funding for the newly created Public Transportation Trust Fund.
  • Consumer protections to limit high-interest payday loans and auto title loans in Alabama.
  • Legislation to establish automatic universal voter registration in Alabama.
  • Reforms to Alabama’s criminal justice debt policies, including changes related to cash bail and civil asset forfeiture.
  • Reforms to Alabama’s death penalty system, including a moratorium on executions.

“Public policy barriers block the path to real opportunity and justice for far too many Alabamians,” Alabama Arise executive director Robyn Hyden said. “We’re excited to unveil our 2019 blueprint to build a more just, inclusive state and make it easier for all families to make ends meet.”

Alabama’s failure to expand Medicaid to cover adults with low wages has trapped about 300,000 people in a coverage gap, making too much to qualify for Medicaid but too little to receive subsidies for Marketplace coverage under the Affordable Care Act. Expanding Medicaid would save hundreds of lives, create thousands of jobs and pump hundreds of millions of dollars a year into Alabama’s economy. Expansion also would help keep rural hospitals and clinics open across the state.

The state grocery tax is another harmful policy choice that works against Alabamians’ efforts to get ahead. Alabama is one of only three states with no sales tax break on groceries. (Mississippi and South Dakota are the others.) The grocery tax essentially acts as a tax on survival, adding hundreds of dollars a year to the cost of a basic necessity of life. The tax also is a key driver of Alabama’s upside-down tax system, which on average forces families with low and moderate incomes to pay twice as much of what they make in state and local taxes as the richest Alabamians do.

Click here to read a PDF version of this news release.

Join us at the 2018 annual meeting!

Be part of our movement for change! Help us map the path to a better Alabama for all during the 2018 Arise annual meeting. Arise members will gather Saturday, Sept. 8, 2018, from 9:30 a.m. to 3 p.m. at Aldersgate United Methodist Church in Montgomery to choose our 2019 issue priorities, and we would love for you to join us. Click here to RSVP by Thursday, Sept. 6! (Attendance is free, though we ask you to bring $10 for lunch if you are able.)

Both member groups and individual members can help choose next year's priorities. Member groups in good standing can bring up to six representatives who can cast seven votes each, for a total of up to 42 votes per group. Individual members whose membership is current by Aug. 9, 2018, can cast five votes each. (Click here to become an Arise individual member or to renew your membership today.) A member can vote as an individual or a group representative, but not both.

Click here to RSVP for the 2018 Arise annual meeting today. If you have questions about the event or your membership status, call us at 334-832-9060. We hope to see you there!

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