By Brandon Moseley
Alabama Political Reporter
Wednesday, August 12, following an incredibly unproductive legislative Special Session, Alabama Governor Robert Bentley (R) spoke to the influential Rotary Club in Birmingham at the Harbert Center on 4th Avenue North. Gov. Bentley told them that he is making progress in convincing legislators to pass his tax increase proposals. Bentley also acknowledged that he has held talks with US Department of Health and Human Services Secretary Michelle Birdwell about expanding Medicaid in Alabama.
Governor Bentley told the members of Rotary Birmingham; “We are having some problems in Montgomery,” and acknowledged that, “It has been a struggle of wills.” Bentley said that he is trying to solve problems and that is what the people of Alabama want him to do. “The people want us solve problems.”
Bentley said that everybody in Montgomery has known since 2012 that this year was coming. The $150 million each year from the Trust Fund is used up. We owe money to the Federal government. We knew that we needed another 200 to 250 million a year in revenue for the general fund.
Gov. Bentley said, “It is not anything new. The people of the State are tired of our one-time-fixes. We have to have taxes in the General Fund that grows with the economy. We have had a banner year. Sales tax up 3 or 4 percent. But those taxes go to the Education Trust Fund (ETF) not the State General Fund (SGF) where the problem it.”
Gov. Bentley said that he has proposed moving the Use tax from education to the General Fund, but we need to make sure that we replace it.
Bentley said that he has proposed replacing it with ending the FICA tax deduction on state income tax or with a 5 cents tax on soft drinks. The soda tax wouldn’t hurt anybody. The most anyone would have to pay by the elimination of the FICA tax deduction is $276. The Governor said that he also proposed a cigarette tax. Businesses need to be involved to so he has proposed increasing the maximum rate of the business privilege tax from $15000 to $25000. These are simple suggestions; but the legislators were not ready.
Gov. Bentley told the Birmingham Rotary Club that he believes he is winning the debate on taxes and the next call for a Special Session would be very similar to what was in the last call……but he refused to say when that would happen.
Bentley said the legislature passed a budget in the Regular Session because it had too many cuts in it.
Bentley said that legislators have to be prepared to drop everything for a Special Session and you knew that when you ran for the office. “I can call them back anytime I want to.” Bentley said that the House of Representatives is almost ready to pass his plan. “The house has really taken a leadership role.” It is time for the legislators to step up and make some bold action. Rep. Bentley praised some of the freshmen Senators for stepping up. Sen. Clyde Chambliss has really stepped up.
Bentley said this is not about taxes it is about people the lives of people. The governor said that legislators need to quit worrying about re-election and do what is necessary to provide the essential services to the people of Alabama.
Bentley scoffed at the notion that the legislature is anti-tax. They have already passed $30 million in local tax increases the last session and $25 million in this session. “It is time to step up and be leaders.” We are going to get through this. I am the only one who has been consistent in this debate. We need to grow the money in the General Fund.
Bentley said, “We need leaders whether they get re-elected or not.” Anyone who is not willing to step up and do what is right for the people of Alabama, they don’t need to be serving.
Bentley said that there is plenty of money in the education budget but that in downturns in the economy then we don’t have enough revenue, which is why he is for filling the lost use taxes.
“We are the lowest per capita state in the country. We have to have more revenue and said that legislators should not honor stupid pledges to people in Washington like Grover Norquist not to raise taxes.
Bentley said that he has been,
“Like John the Baptist leading the way to prepare us for this day.”
Former Congressman Spencer Bachus (R-Vestavia) asked Bentley if it is time to expand Medicaid. We are paying for it. Is there any conversation between us and those agencies. John Kasich (R- Governor of Ohio) accepted the expansion used those moneys for mental health and it is saving Ohio prisons money.
Gov. Bentley said, “I said that we would never expand a broken system.” Since then we have totally revamped Medicaid from a fee for service system to an outcomes based system. We are fundamentally changing the Medicaid program. We have a million people on Medicaid now. When I came in we did not even really know how Medicaid works. Don Williamson did a lot. We have divided the state into five regional care organizations. UAB has been a part of that.
Gov. Bentley acknowledged that he has met with US Department of Health and Human Services Secretary Sylvia Birdwell twice about the expansion populations. Bentley said that he did not want to create any new entitlement but would be willing to expand Medicaid with the requirement that the people getting the free healthcare were either working or were in job training. “We have talked. She understands where we stand.”
Bentley told Bachus, “Y’all failed in Congress.” We thought the Supreme Court would rule the right way. Nobody fought harder than I did; but we probably have lost that battle.
Bentley said that he would support an expansion if it was designed by the State, was affordable, and was acceptable to the people of the State and the state legislature.
Bentley said that he suggested combining the two budgets in his first two years in office. There was total opposition from all of our education people. “The legislature folded. It was like a wet noodle.” What we are talking about is the beginning of that. Right now under the Alabama State Constitution every dollar of State income tax that comes in has to pay for the salary of a teacher. Bentley said that he is open to changing that but you would have to do that through amending the state constitution.
The Governor said that he wants a budget that is workable long term which is why we are going to forbid gambling in the call. A lottery will not solve any problems in 2016. I think we continue to make progress. I spoke with Speaker Hubbard this morning and he thinks they are close (to agreeing to the Governor’s demands).
Bentley said that the House needs to just pass his plan without worrying about what the Senate will do. Send that budget to the Senate and force them to deal with it there. Bentley said that the House sent a signal to the Senate when they rejected the Senate’s Austerity budget.
