March - The American Recovery and Reinvestment Act’s impact on Alabama
March 26, 2009
The Alabama Senate will reconvene in the Regular Session this week with a great deal to accomplish between now and May 18th. As stated in my last article, I want to give an update on the Federal Stimulus package that the United States Congress in Washington passed, for which each state will receive some recovery assistance which is much needed in these dire economic times, especially with revenue normally coming to the state’s diminishing on a daily basis.
Alabama’s share of the some $800 million stimulus plan passed by the United States Congress will be $3.1 billion that will come to the state over a two year period, beginning in the early part of the summer. Education (pre-k through college) will certainly receive substantial assistance. At least $1 billion will be dedicated to education. It is uncertain at this point as to whether any of this stimulus money will be able to be considered as an alternative to assist with the PACT (Prepaid Affordable College Tuition) Program, as administered out of the State Treasurer’s office. With the strong presence of Post-secondary education in my senate district (Auburn University, Central Alabama Community College, Chattahoochee Valley Community College and Southern Union Community College), the PACT Program and its recovery is extremely important. Of the Recovery and Reinvestment Act as passed, some $830 million will be allocated to benefit Alabama Medicaid recipients and their corresponding health providers. This is an area of tremendous rapid expansion that every state is dealing with and needing help in order to meet their medicaid budget requirements. A great deal of the additional funding is left for line-item projects in the Federal Stimulus package, anywhere from weatherization to violence against women, including crime victim’s compensation funding. The whole purpose of the stimulus plan is to get people back to work and consequently this stimulus reinvestment act will help Alabama substantially with highway and infrastructure development, coordinated by the Alabama Department of Transportation. Presently, in excess of $514 million is allocated for highways, roads and bridges benefiting cities, counties and metropolitan areas throughoutour 67 county state. As we all know, the stimulus package is a double-edged sword and hopefully the burden that this huge borrowing package brings can be overcome by a much more rapid and quicker economic recovery from which this nation has been suffering now for over 16 months.
There will be a number of issues requiring a great deal of debate to be vented to the legislature in the remainder of this 2009 session as we have now completed almost one-half of it. Yet to be dealt with will be the extremely important education and general fund budgets, a decision on the removal of the state portion of sales tax on groceries, a decision on electronic bingo and, of course, many bills providing local legislation to county governments throughout this state.
Even though the last one half of this session will be hectic, I am always reasonably easy to reach. You can do so by calling my Senate office in Montgomery (334) 242-7865 or emailing me at tedlittle@mindspring.com. Additionally, I can be reached at 1-800-835-4885. Please leave a detailed message with your return phone number if I am not available. I appreciate very much the opportunity to serve you as your State Senator for Lee, Russell and Tallapoosa counties. Please continue to call on me when needed.
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