The Alabama Senate convened today at 1:00 pm. All moved smoothly, two locals bills were passed, until around 2:10 pm when Senator Bobby Singleton rose to the mic to filibuster because his local bill SB135 (Greene County Bingo Bill) has not passed the Alabama Senate. Senator Singleton threatened that he would filibuster the entire afternoon. He even encouraged other senators to go get some lunch, play some golf, get comfortable, etc. because he was going to be there for a while.
Yielding to let HB609 by Representative Hammet pass, Senator Singleton also yielded the mic for four of Senator Ted Little’s local bills.
Senator Singleton remains at the podium and it is still uncertain if the Senate will accomplish much on its special order calendar today.
Stay tuned for more up to date reports from the Alabama Senate.
Tuesday, April 7, 2009
Thursday, April 2, 2009
Lively Smoking Bill Debate in the Senate
A passionate and sometimes colorful debate took place this afternoon over SB 130 which would eliminate smoking in most public places.
Senator Vivian Figures has been a pioneer of this legislation for the past 11 years and saw some success in 2003 with the passage of measures banning smoking in certain public places and establishing requirements for designated smoking areas in public establishments. This bill would extend the areas in which smoking is prohibited.
In an emotional appeal, Senator Figures emphatically stated that “we are playing politics with people’s lives. I want a fair chance and a fair debate – a fair chance for it to come up or down. 80% of Alabamians want a smoke-free state. It is our obligation and duty to protect the health and welfare of the citizens of Alabama”
Senator Bishop raised concerns of this bill taking away the individual rights of citizens. He definitely got the attention of the chamber when he expressed “When someone can’t smoke or have sex in their private office we are in bad shape!”
Ultimately, the bill has been carried over for discussion at a later date.
Senator Vivian Figures has been a pioneer of this legislation for the past 11 years and saw some success in 2003 with the passage of measures banning smoking in certain public places and establishing requirements for designated smoking areas in public establishments. This bill would extend the areas in which smoking is prohibited.
In an emotional appeal, Senator Figures emphatically stated that “we are playing politics with people’s lives. I want a fair chance and a fair debate – a fair chance for it to come up or down. 80% of Alabamians want a smoke-free state. It is our obligation and duty to protect the health and welfare of the citizens of Alabama”
Senator Bishop raised concerns of this bill taking away the individual rights of citizens. He definitely got the attention of the chamber when he expressed “When someone can’t smoke or have sex in their private office we are in bad shape!”
Ultimately, the bill has been carried over for discussion at a later date.
Groceries at the Statehouse
Reminiscent of Governor Sanford in South Carolina bringing two pigs into the statehouse named Pork and Barrel in expression of his frustration with the out of control spending, Representative Knight wheeled in a shopping cart with $50 worth of groceries as an example for his grocery tax bill. He wanted this illustration to show the challenging numbers of the reality of just how much it costs to buy groceries for home and how little $50 purchases today.
Montgomery has a 10% sales tax, so the tax on his purchase was $5 which Rep. Knight expressed was “criminal”. It is important to note that the proposed bill only removes the state’s 4 cent portion of the grocery tax; counties and cities would still be able to tax grocery items. In this instance, if this bill were enacted, this same cart of groceries would still carry a sales tax of $3 in Montgomery.
Some argue that the language in the proposed bill actually prohibits counties and cities from removing their portion of the tax on groceries. HB 116 states on page 3 that “Local governments shall continue to levy sales taxes on food at the same rate collected for the local portion of the retail sales tax.” Represenatative Knight feels that this is not so. He stated that the bill would prevent local governments from raising their sales tax on groceries.
It is also argued that this bill creates a tax increase on those individuals that will be affected by losing their federal income tax deductions on their state income tax return. On the fiscal notes to the bill, it states that “if ratified, will increase revenue to the Education Trust Fund by an estimated $426 million annually and will reduce revenue to the Education Trust Fund by an estimated $364 million annually.” Using this date, there would be an estimated tax revenue increase to the Education Trust Fund by $62 million.
Once again, the bill failed to gain enough procedural votes in the House to move forward; however, lawmakers promised to continue working on this issue. Removing the state grocery tax may be gone for today but certainly not for good.
Montgomery has a 10% sales tax, so the tax on his purchase was $5 which Rep. Knight expressed was “criminal”. It is important to note that the proposed bill only removes the state’s 4 cent portion of the grocery tax; counties and cities would still be able to tax grocery items. In this instance, if this bill were enacted, this same cart of groceries would still carry a sales tax of $3 in Montgomery.
Some argue that the language in the proposed bill actually prohibits counties and cities from removing their portion of the tax on groceries. HB 116 states on page 3 that “Local governments shall continue to levy sales taxes on food at the same rate collected for the local portion of the retail sales tax.” Represenatative Knight feels that this is not so. He stated that the bill would prevent local governments from raising their sales tax on groceries.
It is also argued that this bill creates a tax increase on those individuals that will be affected by losing their federal income tax deductions on their state income tax return. On the fiscal notes to the bill, it states that “if ratified, will increase revenue to the Education Trust Fund by an estimated $426 million annually and will reduce revenue to the Education Trust Fund by an estimated $364 million annually.” Using this date, there would be an estimated tax revenue increase to the Education Trust Fund by $62 million.
Once again, the bill failed to gain enough procedural votes in the House to move forward; however, lawmakers promised to continue working on this issue. Removing the state grocery tax may be gone for today but certainly not for good.
Wednesday, April 1, 2009
Bill to Remove Grocery Tax Fails Again
As lawmakers met late this afternoon, atop the House calendar was Representative Knight’s bill that would remove the state’s 4 cent sales tax on groceries. This is the same controversial bill that shut down the House last week after the bill failed to receive enough procedural votes to go before the House.
This afternoon, new measures were included in the bill attempting to reach a compromise that would move the legislation along. By removing the sales tax on groceries, the state must seek alternative methods to make up the approximate $426 million that is generated each year through this tax.
The controversial portion of this bill revolves around the manner in which the state will make up those foregone tax dollars. Under this legislation, those dollars would be made up by phasing out the federal income tax deduction on the Alabama income tax return over three years. By year three, married couples with an adjusted gross income of $125,000 or more as well as individuals with an adjusted gross income of $75,000 or more would lose their federal income tax deduction.
Opponents to this bill feel that small businesses (including S-corps, LLC’s, and LLP’s) will be adversely affected. They purport that the $426 million tax burden would be placed on 10% of the state’s population.
The bill failed to receive enough votes again for consideration on the House floor.
This afternoon, new measures were included in the bill attempting to reach a compromise that would move the legislation along. By removing the sales tax on groceries, the state must seek alternative methods to make up the approximate $426 million that is generated each year through this tax.
The controversial portion of this bill revolves around the manner in which the state will make up those foregone tax dollars. Under this legislation, those dollars would be made up by phasing out the federal income tax deduction on the Alabama income tax return over three years. By year three, married couples with an adjusted gross income of $125,000 or more as well as individuals with an adjusted gross income of $75,000 or more would lose their federal income tax deduction.
Opponents to this bill feel that small businesses (including S-corps, LLC’s, and LLP’s) will be adversely affected. They purport that the $426 million tax burden would be placed on 10% of the state’s population.
The bill failed to receive enough votes again for consideration on the House floor.
Alabama to Receive $3 Billion from Economic Stimulus Package
If you are wondering where the dollars from the federal economic stimulus package are going, we now know that Alabama can count on 3 billion of those dollars.
A hearing was held this afternoon in the House chamber relating to the money that will be coming into Alabama. Jim Main (state director of finance), Drayton Neighbors (appointed by Governor Riley to oversee disbursement of stimulus money), and David Perry (also assisting with oversight of stimulus money) were present to answer questions and give an update on where Alabama is in the process.
Apparently, the dollars available for states to receive from the stimulus package are divided into two pots. From the first pot, we know that Alabama will receive $3 billion dollars. The second and larger portion of money represents dollars that states can compete for.
The $3 billion will be allocated in our state as follows:
$1 billion to education
$1 billion to general fund
$1 billion to be divided equally between transportation and existing programs (programs under ADEM)
So that Alabama may be more competitive and efficient in competing for dollars from the second pot of stimulus money, all agencies have been divided into 4 working groups: public safety and law enforcement, economic development, health and human services, and education. These groups will be provided the resources necessary such as grant writers, information, and etc. to make them as competitive as possible for those federal dollars.
In addition to providing states with additional dollars to fund programs and projects, the ultimate goal of the stimulus money is to create and maintain jobs. As a basic formula, for each $1 billion dollars spent, an estimated 28,000 jobs should be maintained / created.
The federal government is requiring states to report how many jobs have been created and / or maintained due to the receipt of these dollars. The first reporting period is in July of this year and figures will be placed on a public website for viewing.
For more information regarding the economic stimulus dollars coming into Alabama, a website has been established at stimulus.alabama.gov.
A hearing was held this afternoon in the House chamber relating to the money that will be coming into Alabama. Jim Main (state director of finance), Drayton Neighbors (appointed by Governor Riley to oversee disbursement of stimulus money), and David Perry (also assisting with oversight of stimulus money) were present to answer questions and give an update on where Alabama is in the process.
Apparently, the dollars available for states to receive from the stimulus package are divided into two pots. From the first pot, we know that Alabama will receive $3 billion dollars. The second and larger portion of money represents dollars that states can compete for.
The $3 billion will be allocated in our state as follows:
$1 billion to education
$1 billion to general fund
$1 billion to be divided equally between transportation and existing programs (programs under ADEM)
So that Alabama may be more competitive and efficient in competing for dollars from the second pot of stimulus money, all agencies have been divided into 4 working groups: public safety and law enforcement, economic development, health and human services, and education. These groups will be provided the resources necessary such as grant writers, information, and etc. to make them as competitive as possible for those federal dollars.
In addition to providing states with additional dollars to fund programs and projects, the ultimate goal of the stimulus money is to create and maintain jobs. As a basic formula, for each $1 billion dollars spent, an estimated 28,000 jobs should be maintained / created.
The federal government is requiring states to report how many jobs have been created and / or maintained due to the receipt of these dollars. The first reporting period is in July of this year and figures will be placed on a public website for viewing.
For more information regarding the economic stimulus dollars coming into Alabama, a website has been established at stimulus.alabama.gov.
Tuesday, March 31, 2009
Filibuster Ends in House But Senate Shuts Down Once More
One week after the filibuster in the House began, bills are moving again - for now! The House will convene again tomorrow at 4:00 at which time the grocery tax bill will be the first item for discussion on the agenda. If the bill fails to pass, it would be reasonable to expect another filibuster in the House.
Whereas the House is at work late this afternoon, the Senate shut down around 3:45 due to a disagreement over a bill relating to rural telephone service, SB 373. Senator Barron brought an amendment to the bill which he said would prevent companies from raising rates on rural customers. Senator Beason also brought an amendment which he stated would accomplish this. After much discussion, Senator Barron's amendment was not adopted, so he began a filibuster with enough support from fellow senators to keep it going.
With the Senate at a stalemate, a motion to adjourn was made. The Senate will reconvene at 1:00 tomorrow.
Whereas the House is at work late this afternoon, the Senate shut down around 3:45 due to a disagreement over a bill relating to rural telephone service, SB 373. Senator Barron brought an amendment to the bill which he said would prevent companies from raising rates on rural customers. Senator Beason also brought an amendment which he stated would accomplish this. After much discussion, Senator Barron's amendment was not adopted, so he began a filibuster with enough support from fellow senators to keep it going.
With the Senate at a stalemate, a motion to adjourn was made. The Senate will reconvene at 1:00 tomorrow.
Filibuster End in Sight? Not So
Shortly after the House convened at 1:00, a small glimmer of hope that the filibuster would end today was shorted lived.
Representative Knight stated, “I know how important the grocery tax is but also realize we are midway through the session and in order to accomplish what is necessary we can’t stop work. I am working and will continue to work with anyone who would like to come with a compromise for removing sales tax on groceries.”
While Representative Knight was ready to concede, his colleague, Representative Thomas took a different perspective. He pointed out that this is not the first year Representative Knight has worked on the issue of removing the grocery tax, and within two years he believed something could have been fashioned to lift the taxes off of poor people. He declared that as far as he was concerned nothing is so important on this calendar that is paramount to this legislation – with the exception of the budgets which are not ready for consideration at this point.
Responding to Rep. Thomas, Rep. Knight said, “If I shall die trying to take the sales tax off of groceries then so be it”
Representative Thomas blames Republicans for no movement taking place toward a compromise. There was word last week that Republicans were preparing an alternative grocery tax bill; however, no bill has been presented as of today.
And the filibuster continues…
Representative Knight stated, “I know how important the grocery tax is but also realize we are midway through the session and in order to accomplish what is necessary we can’t stop work. I am working and will continue to work with anyone who would like to come with a compromise for removing sales tax on groceries.”
While Representative Knight was ready to concede, his colleague, Representative Thomas took a different perspective. He pointed out that this is not the first year Representative Knight has worked on the issue of removing the grocery tax, and within two years he believed something could have been fashioned to lift the taxes off of poor people. He declared that as far as he was concerned nothing is so important on this calendar that is paramount to this legislation – with the exception of the budgets which are not ready for consideration at this point.
Responding to Rep. Thomas, Rep. Knight said, “If I shall die trying to take the sales tax off of groceries then so be it”
Representative Thomas blames Republicans for no movement taking place toward a compromise. There was word last week that Republicans were preparing an alternative grocery tax bill; however, no bill has been presented as of today.
And the filibuster continues…
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