Gambling Enforcement News

Governor Robert Bentley said his order sending gambling enforcement back to the county level is aimed to clarify “the right approach” to the issue. According to the governor, constitutional officers such as sheriffs and district attorneys have the responsibility to interpret the law and make decision on whether they will prosecute.

He recently rescinded his 2011 executive order putting the power of gambling enforcement in the hands of Attorney General Luther Strange. That order followed an announcement earlier this year by the attorney general that said local officials would take the lead on those prosecuted in the future. Many believe both moves signaled a retreat from the state’s years-long battle with bingo operators, and may provide one way for casinos such as VictoryLand in Macon County to reopen. The governor has stated he would not oppose allowing Alabama citizens to vote on gambling. Legislative budget chairs acknowledge a need for more revenue for the General Fund and say they expect legalized gambling to be one option explored.

We’re Thankful!

As the day to give thanks approaches, we at The Bloom Group have spent a little time counting our many blessings, not the least of which are our colleagues and clients. Thanks for being a part of a very interesting 2015 with us, and we look forward to continuing to work with you and serve you through the holidays and in the coming year. Have a safe and happy Thanksgiving!

October 15, 2015 Group Watch: News & Views from the State House

With the state’s budget woes solved (for now), the legislature is currently pretty quiet, and this month’s news comes from other areas.

RSA Briefs Legislative Study Commission
The Joint Legislative Committee on Public Pensions recently received a briefing regarding the Operations of the Retirement Systems of Alabama (RSA) in Montgomery. The RSA CEO Dr. David Bronner pointed out that his job as head of the pension system and the jobs of legislators are fundamentally different because he has to focus on producing long-term results while lawmakers are more concerned with producing short-term results to keep voters happy. Data presented indicates that retirement reforms passed by the legislature and economic recovery in the market have helped to reduce the system’s unfunded liabilities. Bronner pointed out that the percentage of new hires enrolls in RSA; the liabilities should continue to decrease. Actuaries for the system and a representative from National Association of State Retirement Administrators pointed out that finances of the pension system have improved dramatically since the 2008 economic downturn and have turned a positive corner.

Justice Department Finalizes Settlement with BP
The Justice Department and five states have finalized a settlement worth more than $20 billion arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The settlement resolves all civil claims against BP and ends five years of legal fighting over the oil spill. It requires the company to commit to a widespread cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat, water quality and recreation. The settlement filed in federal court finalizes an agreement first announced in July. The next step is a 60-day public comment period. The settlement provides nearly $5 billion to five Gulf States: Alabama, Florida, Louisiana, Mississippi and Texas.

10/15 Group Watch: Senator Says “No More”

Long-time State Senator Gerald Dial (R) from Lineville recently published an op-ed chronicling the saga of not enough revenue to meet the needs of the citizenry, and proclaimed that the state has a revenue problem and not a budget problem. Dial says enough is enough, and he will stand firm on his word that no more education dollars need to be taken for the General Fund. Read his entire article here.

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.