The Alabama Legislature met for three legislative days this past week and has now completed one third of the allotted 30 working days for the session.
General Fund Appropriation
Senate Finance & Taxation General Fund Chairman Trip Pittman (R- Montrose) quickly moved the General Fund FY17 Appropriation bill through committee and the full Senate this week. The bill allocates $1.82 billion in spending for non-education government agencies. The bill includes level funding of $685 million for Medicaid. The Alabama Forestry Commission received $6.7 million in General Fund dollars which is a reduction of $300,000 from the current year. The funding bill appears to be on an expedited schedule and now goes to the House of Representatives.
Fuel Tax Increase
The first bill of a two bill package passed out of the Senate’s Transportation and Energy Committee yesterday. A substitute to SB180 was offered by the bill’s sponsor, Senator Gerald Dial (R- Lineville). This bill, referred to as the “Accountability” bill, sets forth the criteria for allocation of any new revenues that may materialize from a planned second bill to increase fuel taxes. Dial’s Substitute made more money available to local uses than the previous proposal. The Substitute sets aside $32 million generated by the increased taxes for a new ATRIP program that will be used as a payment stream for a new bond issue for county road and bridge projects. Additionally, each county will receive an additional $500,000 that was previously available but only with a match requirement. The Substitute removes the match requirement. There is no obligation on the counties to use their money to address structurally deficient bridges.
The second bill will actually increase the tax on diesel fuel and gasoline. Sponsored by Representative Mac McCutcheon, the bill will be introduced in the House of Representatives and is expected to propose an increase of $0.12/gallon on diesel and gasoline over a three year period. A $0.12/gallon increase results in a whopping $400 million tax increase. Local entities would get an increase of $180 million over their current allocation.
AFA is promoting a bill to reduce the uncertainty of workers compensation expense regarding future liabilities faced by the Forest Fund and its clients. SB122, sponsored by Senator Arthur Orr (R- Decatur), received a favorable vote in the Senate’s Fiscal Responsibility and Economic Development Committee on a 12-2 vote.
Special thanks should be sent to Senator Orr for handling the bill, Senator Phil Williams (R-Gadsden) the Chairman of the Committee and the following Senators for voting with us; Bill Hightower (R- Mobile), Clay Scofield (R- Guntersville), Clyde Chambliss (R- Prattville), Greg Reed (R- Jasper), Jim McClendon (R- Springville), Larry Stutts (R- Tuscumbia), Paul Sanford (R- Huntsville), Steve Livingston (R- Scottsboro), Tim Melson (R- Huntsville), and Trip Pittman (R- Montrose). You can find the contact information for the Senators at http://www.legislature.state.al.us/aliswww/SenatorsPicture.aspx.
The only two Senators voting against us were Senators Cam Ward (R- Alabaster) and Bobby Singleton (D- Greensboro). Representatives of the plaintiff lawyers association testified at the committee hearing against the bill.
The bill now moves to consideration by the Rules Committee for placement on the Special Order Calendar to allow for consideration by the full Senate.