October 2014 Group Watch: News & Views from the State House
Budget news is front and center as we look ahead to the next Legislative session.
- House Speaker Says General Fund Issues Will be Resolved Without Raising Taxes: As the 2014 election cycle drawing to a close, legislators are already looking toward the 2015 regular session. The $1.8 billion General Fund is a small part of the total $28 billion state budget. Most of the total state budget is earmarked for specific purposes, which gives lawmakers very little flexibility. There have been discussions about combining the state’s budgets, increasing the tax on tobacco products and a state lottery. House Speaker Mike Hubbard says that while some lawmakers are not negative towards a tobacco tax, most ran on not raising taxes. He also points out that un-earmarking or combining budgets would require a vote of the people, which could be a huge obstacle to overcome. Lastly, he says a lottery will have a difficult time getting through the legislature but suggests that creativity and collaboration will be necessary as the state moves forward.
- State Pays Off More Trust Fund Debt: Governor Robert Bentley recently announced that the state has taken another step toward repaying money borrowed to fund education during the recession. At the end of the 2014 fiscal year, the state paid $70 million to the Alabama Trust Fund. That amount includes $35 million that was required in the budget, plus $35 million that was conditioned upon the availability of funds. Bentley said that together with a conservative Republican majority in the Legislature amd legislative budget chairs, the state has made substantial progress towards repaying the debt.
