August - Special Session is a Key Example of an Outdated State Constitution
August 28, 2009
Governor Bob Riley called members of the Alabama Legislature into a Special Session on August 10, 2009 to address economic concerns basically of just Jefferson County. We were successful in passing legislation that enabled Alabama's most populous county to remain in operation after a budget crisis hampered their ability to conduct daily business, but this revenue measure came with less-than-enthusiastic final approval. This legislation was accomplished within five days, the minimum amount of time required by law to pass a bill.
Gov. Riley signed the occupational tax, which only affects jobs in Jefferson County, into law after the legislative approval. This now clears the way for about 1,000 Jefferson County workers to begin returning to their jobs. It will levy a .45 percent tax on all workers in the county, replacing a more than 40-year-old occupational tax that has been thrown out by the courts. The bill also sets up a referendum in June 2012 for Jefferson County residents to vote on the tax. If the tax is defeated, it will be phased out over five years.
As a proponent of constitutional reform, this is a key example of the outdated 1901 Alabama State Constitution. By law, all Alabama state lawmakers must meet and vote on issues specific to any one county in the state, even if it has no bearing whatsoever on the district we represent. I am opposed to this type of constitutional mandate, as it proves to be costly to the taxpayers of this state to require the entire legislature to have a vote in matters that are limited to local legislation and therefore normally only just one county. In all, this special session is estimated to have cost the State of Alabama over $100,000; for this reason, I formally declined my legislative salary and per diem for this special session. I will continue to be a voice for those who agree that it is time for Alabama to review all articles plus amendment in our 108 year old State Constitution.
Following the Special Session, an actuarial report of Alabama’s Prepaid Affordable College Tuition program (PACT) prepared for the Retirement Systems of Alabama was delivered to Gov. Riley and members of the Legislature. This report was conducted by an independent group of consultants and concluded that the most conservative way to save the program is for the state to finance it over an 18-year period. It would start with the state financing more than $52 million in fiscal year 2011, but no specific source of the funds were recommended. This comes at a time when our schools are facing tremendous budget cuts and money is being borrowed from various “rainy day type funds” to offset part of a plunge in tax revenue for schools. Another option for the State would be to provide an immediate cash infusion of $641.8 million in fiscal 2011 to make the program fiscally sound. A third option would require the state to provide $100 million a year over the next seven years, and finally a fourth option would allow the state to pay nothing until fiscal 2015, when as much as $1 billion would be due, depending on the rate of tuition increases. Needless to say, the PACT program will likely run out of money in fiscal year 2015 without any action to preserve the program and it would therefore collapse.
As your State Senator, I value your comments and am interested to hear your viewpoints and concerns regarding the business conducted by the Alabama Senate. I proudly represent Lee, Russell and Tallapoosa counties and continue to maintain my accessibility to those I serve. With common goals we can continue a progressive path of growth without compromising our respect for traditional values. I invite you all to join me in this very attainable effort.
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