10/15 Group Watch: Congrats!

The Bloom Group would like to congratulate our friend Governor Bentley’s Deputy Chief of Staff for Administration Blake Hardwich as she begins to co-lead Governor Bentley’s new leadership management team along with Deputy Chief of Staff for Policy Jon Bargainer.

10/15 Group Watch: Hammett Resigns

Seth Hammett resigned as chief of staff to Governor Robert Bentley effective October 8, 2015. Hammett will be replaced by a new leadership management team co-led by Deputy Chief of Staff for Administration Blake Hardwich and Deputy Chief of Staff for Policy Jon Barganier. Barganier will serve as the primary point of contact for the governor’s office. Governor Bentley thanked Hammett for his service and pointed particularly to the great strides in economic development and workforce training during the 2015 Regular Session. The governor said his new leadership team will help achieve his goals of creating jobs and making state government effective and efficient.

September 18, 2015 Group Watch: News & Views from the State House

2nd Special Session Update

The Alabama Legislature returned to start work in the second special session of 2015 on September 8. Over the next several days, legislators looked for ways to raise revenue to cover shortfalls and finally pass a FY2016 General Fund budget.

Here’s how they raised approximately $107 million:

• The House voted to raise the state tax on cigarettes by 25 cents a pack, to 67.5 cents. That measure will generate an estimated $66 million $66 million a year.
• The House voted to raise the automobile title fee from $15 to $28, generating an estimated $19 million a year.
• The House voted to raise the car rental tax from 1.5 percent to 2 percent, generating an estimated $6 million a year.
• The House voted to add a pharmacy tax of 15 cents per prescription, generating an estimated $8 million for Medicaid for 2016 and 2017 only.
• The House voted to add a nursing home bed tax of $400/bed, generating an estimated $8 million a year for Medicaid for 2016 and 2017 only.

The House also initially approved a bill to provide a one-time payment of $50 million to the General Fund from an education savings account before ultimately compromising with the Senate on an $80 million payment.

They ultimately approved a General Fund budget that cut some agencies but level funded agencies such as Corrections, Medicaid, Mental Health and Human Resources. Corrections will receive a separate appropriation of $16 million to implement court ordered reforms. The House passed the compromise budget by a vote of 70-21, after the Senate passed it by a vote of 23-9. The House and Senate adjourned SINE DIE, thus ending the second special session of 2015. The budget was reviewed and signed by the governor the next day (September 17), averting a government shutdown.

Here are the details of the bills passed in the Second Special Session:

Bill Status 2nd Special 2015 Bloom Group Inc

August 14, 2015 Group Watch: News & Views from the State House

Special Session Update

The Alabama Legislature returned to start work in the first special session of 2015 on August 3. The issue STILL at hand is the $200 million shortfall in the FY2016 general fund budget and how to best close this gap. The governor and the legislature remain at odds when it comes to a solution, as do the House and Senate, and the first special session ended with no consensus, meaning another special session will soon be called.
Here’s what was introduced only to die in the first special session:

• On August 4, the Senate Tourism and Marketing Committee approved a bill 6-2 that would create a state lottery and regulate casino-style gambling at four sites across the state. The measure would be a constitutional amendment and require a vote of the people and potentially generate meaningful revenue for the state. Although the bill cleared the committee, its future was described as unclear. The measure was never debated again and thus died at the end of the special session.
• The Alabama Senate passed a bill to redirect Forever Wild funds to fund the financially struggling state park system. The bill passed the Senate on a 32-1 vote, but later died in a House committee.

There were three key bills starting in the House to raise revenue and address the budget shortfall, together an attempt to spread the pain equally across individuals, businesses and education:

• Raise the amount of business income taxable under the business privilege tax and eliminate the deduction of FICA taxes paid the federal government on state income tax returns.
• Shift some money from education to the General Fund.
• Increase the tax on cigarettes by 25 cents.

The cigarette tax was defeated in committee on an 8-7 vote, which included four Democrats voting “no.” A bill to transfer education monies to the General Fund died on the House floor earlier, and the business privilege tax was subsequently never considered by the House committee. The House passed a General Fund budget which dramatically cut Medicaid. The Senate passed a budget that funded Medicaid but dramatically cut agencies, which was rejected overwhelmingly by the House. Click below for the status of bills.

The Bloom Group, Inc

So What Happens Now?
FY 2016 begins promptly on October 1, and what began as a budget problem could turn into a crisis if the three parties involved — the House, the Senate and the governor — can’t come together and find some common ground and find it pretty fast. A second special session will be called soon. Some expect it as early as September 1, while others believe that in an effort to push the legislature to pass a budget — and one he agrees with — quickly, Bentley will wait and call the next special session closer to the end of September. We’ll be watching it all and will bring you all the updates in future issues of Group Watch!

8/14/15 Group Watch: No Budget by October?

The Legislature just adjourned a special session without passing a General Fund budget and with no known plan to address the budget shortfall. This is eerily similar to 1975, when then Governor Wallace called three special sessions to get General Fund and Education budgets without success. In mid-September of that year, Alabama pharmacies quit filling prescriptions for Medicaid patients, and healthcare providers told the media they would only serve Medicaid patients who could pay with cash. Despite Wallace’s pledge to pay teachers with bank loans by executive order, the State Supreme Court ruled he did not have that authority. Without a state budget, employees won’t be paid and the thousands of vendors who do business with the state won’t be paid.

8/14/15 Group Watch: Governor Defunds Planned Parenthood

Governor Robert Bentley announced he was terminating an agreement between the Alabama Medicaid Agency and Planned Parenthood. Records from the Alabama Medicaid Agency show it has paid Planned Parenthood’s two clinics in Alabama $4,351 over the last two years. Bentley said that as a doctor, the issue of human life, from conception to birth and beyond, is extremely important. This comes on the heels of the organization allegedly selling fetal tissue, which they deny.

July 2015 Group Watch: News & Views from the State House

The Special Session has begun, and legislators are working to solve the state’s budget woes, but that’s not the only thing happening in Alabama.

• Special Session Called. With very little notice and in an unexpected move, Governor Robert Bentley called the Alabama Legislature into a special session starting this past Monday. A special session was inevitable, but most thought it would be called in mid-August. The legislators met for a few minutes on Monday afternoon and then recessed for three weeks; they are now expected to reconvene on August 3. The governor asked the legislature to pass a General Fund budget, pass revenue measures needed to adequately fund the General Fund budget, budget reform measures and an economic development bond issue for improvement at Gulf State Park. (See the governor’s proclamation below.) One item notably absent from his proclamation was any discussion of gambling. Bentley is still at odds with Republicans in the House and Senate over just how to fill the approximately $200 million hole in the General Fund. Bentley’s plan calls for raised taxes, while Republicans like Senate President Pro Tem Del Marsh say more taxes would slow the state’s still-recovering economy. During the regular session, Marsh proposed a constitutional amendment that would allow the people of Alabama to vote on an omnibus gambling bill and may introduce a similar proposal again. (Read here to find out how and why he can.) Committees from both chambers will be meeting before they reconvene to look over Bentley’s proposals and work on their own. They have 30 days from July 13 to solve the budget issues or another special session will be called.
• BP To Settle Deepwater Horizon Claims. Petroleum giant British Petroleum (BP) has reached a settlement in principal arising from the Deepwater Horizon accident and oil spill in 2010. The agreement with the states of Alabama, Florida, Louisiana, Mississippi and Texas also includes settlement of claims made by more than 400 local government entities. The principal payments include a $5.5 billion civil penalty under the Clean Water Act and $7.1 billion to the federal government and the five Gulf Coast states for natural resource damages, both payable over 15 years. These amounts are in addition to the $1 billion already committed for early restoration. A total of $4.9 billion will be paid over 18 years to settle economic and other claims made by the five Gulf Coast states. Up to $1 billion will be paid to resolve claims made by more than 400 local governments. The agreements in principal are subject to execution of definitive agreements and will comprise the ultimate Consent Decree with the federal government and the five Gulf Coast states. The Consent Decree will be subject to public comment and final court approval.
• $1.2M Grant to Expand Re-employment Program. The State of Alabama recently announced the use of a $1.2 million federal grant to expand a program aimed at getting unemployed people back to work. Officials say money from the U.S. Department of Labor will expand a program that provides one-on-one services to people receiving unemployment. The program provides intensive counseling to help people re-join the work force. About 6,800 people have participated over the last year, and that number will increase to 10,000 with the federal assistance. State workers will be identifying people most likely to run out of unemployment compensation and those who are receiving benefits as military veterans. The services are available at unemployment offices around the state.

Governor Bentley’s Special Session Proclamation:

2015_1st_Special_Session_Call_by_Governor_Bentey.pd

7/15/2015 Group Watch: Tuscaloosa Mayor Bans Tobacco

In six months, the citizens and visitors of Tuscaloosa will no longer be allowed to use any tobacco products on property owned by the city. Tuscaloosa Mayor Walt Maddox recently issued an executive order banning the use of tobacco, including smokeless tobacco and e-cigarettes, at all City of Tuscaloosa facilities January 1, 2016. The policy will affect all facilities, grounds, vehicles and parking areas owned, rented or leased by the City of Tuscaloosa. The only areas not affected will be pre-existing designated smoking areas at the Tuscaloosa Amphitheater and the city’s parks. No new areas will be designated. The city cited the danger of second-hand smoke, reduction of litter and promotion of better health as the reasons for the change. The city will provide resources and an information campaign to those employees who wish to break their addiction to tobacco products.

7/15/2015 Group Watch: State Income & Sales Tax Receipts Rise

Alabamians have paid more state income tax and sales tax this fiscal year than last, which points to a growing economy. Through June, net income tax receipts for the Education Trust Fund rose 7 percent over last year. Individuals have paid $3.05 billion in income taxes, an increase of 5 percent. Gross corporate income tax collections were up 21 percent. Overall, net receipts to the Education Trust Fund, about $4.5 billion are up 3.8 percent over last year. Net receipts to the General Fund, about $1.3 billion, are up 3.2 percent. Auburn University economist Keivan Deravi said the 3 percent sale tax is average and is not robust, thus indicating a continuation of economic recovery from the recession of 2009.

June 12, 2015 Group Watch: News & Views from the State House

Last week, the Alabama Legislature passed bills to further empower local governments to address matters unique to each, to empower our military service personnel, and to protect our citizens from unwanted and unneeded products entering the marketplace.

• Tuesday (27th Day of Regular Session): The House passed Senate-passed bills to allow local school systems more flexibility in setting their school calendar; to mend the National Guard Educational Assistance Act; to prohibit the possession purchase, sell or use of powdered alcohol; to prohibit nepotism in school hiring; and to amend the Mining Regulation Act. The Senate passed several House-passed local bills before becoming mired in dilatory tactics and adjourning.
• Wednesday (28th Day of Regular Session): The House passed a Senate-passed bill to create within the Department of Finance a Division of Facilities, Leasing, Construction and Energy Management and to transfer certain duties of the state Building Commission to that Division. The House amended the measure, which now returns to Senate for concurrence or conference committee. They also passed Senate-passed bills requiring agencies to make certain reports the Executive Budget office and to the Joint Legislative Fiscal Committee; to allow state agencies to increase fees based upon the Consumer Price Index; and to allow local governments to approve a one-time lump-sum payment to retirees if they choose. The Senate adopted the conference committee to provide for more distinctive license plates and for the distribution of the proceeds to the Veterans’ Assistance Fund. They also passed a one call notification requirement for excavation projects on public streets and roadways; to establish penalties for employers who protect employees from child support enforcement; and to clarify that military deployment shall not be the sole factor in child custody orders.
• Thursday (29th and Final Day of Regular Session): The House passed bills to authorize local governments to finance for energy efficiency projects, otherwise known as the Property Insurance and Energy Reduction Act of Alabama; to restrict exemptions for residence and private dwellings by regulatory bodies; and to establish a new process for nominating trustees to the board of Alabama State University. The Senate passed bills to define the restrictions under which certain employees may not receive unemployment benefits; to provide for appropriations from the Children First Trust Fund; to provide for appropriations for the ordinary expenses of the executive, legislative and judicial branches of government, also known as the General Fund Budget; to extend the privilege assessment for nursing home facilities; to authorize municipalities to adopt regulations of minor subdivisions without notice and a public hearing under certain conditions; to provide civil immunity to contractors responding to hazardous materials that are discharged into the environment; and to transfer certain programs of the Department of Economic and Community Affairs and the Department of Post-Secondary Education to the Department of Commerce.