Windom galliher Montgomery update April 24, 2015

Legislators prepare to pick their poison Gambling, taxes, more cuts are on the table as potential GF fixes “Oh, no one knows what goes on behind closed doors.” Charlie Rich made a dollar or two on that country music hit 40 years ago. And the lyric crossed a mind or two Wednes- day afternoon as the House Republican Caucus took an extended lunch break. Despite the desires of some of the younger budget hawks in the Senate and House Republican caucuses, legislative work on the budgets – especially, the General Fund – tends to come later in the session. There are reasons for this. One reason would be to wait to see if there are any additional funds available from an unconventional source. The main reason is to take time to build SPEAKER OF THE HOUSE MIKE HUBBARD (R-AUBURN) HELD A LONG, CLOSED-DOOR consensus. This year is no different. MEETING WITH THIS CAUCUS TO DISCUSS OPTIONS Leadership wants a framework in place to guide floor debates on budgets. A free are getting antsy that no draft budget For his part, Gov. Robert Bentley has -for-all suits no one. has been developed – other than the continued to beat the drum for legisla- As the midpoint of the session conclud- “doomsday scenario” budget offered by tion to raise the $541 million he de- ed Tuesday, Speaker of the House Mike General Fund budget chairs Sen. Arthur scribes as necessary to meet next year’s Hubbard (R-Auburn) gathered his team Orr (R-Decatur) and Rep. Steve Clouse (R anticipated needs and provide a stable for a several-hour-long, serious discus- -Ozark). foundation for the General Fund for sion about the General Fund budget. Upstairs, it appears that President Pro years to come. The post-game quotes were vague, not Tem Sen. Del Marsh (R-Anniston) is going As we’ve shared before, Gov. Bentley surprisingly. to offer the Senate another path to fill has found few allies in his revenue plan the hole. Word began to creep out late – having to turn to Democrat House “We had a good meeting,” Speaker Hub- Thursday that Sen. Marsh plans to bring members to introduce many bills in the bard told reporters after Thursday’s ad- a package of bills to create a state lot- package. Only one bill – a bill to remove journment. “We heard a lot of good ide- tery and forge a compact with the Poarch income tax exemptions – has passed a as. We put them on the board, and dis- Creek tribe. We also expect a bill that committee vote. None of the other bills cussed them thoroughly.” would allow existing locations in Macon has faced a committee yet. and Greene counties to re-open and ex- As the General Fund budget will start in Earlier in the week, he sent a memo to pand. It could allow for another location the House due to the presumption that legislators that outlined what would hap- in North Alabama. We expect the full there could be revenue measures as a pen if the “doomsday scenario” oc- part of the package, the greater atten- buffet of bills to be introduced Tuesday. curred. It painted a stark picture. tion is focused on the fifth floor. It’s com- If that’s Sen. Marsh’s plan, it will un- mon knowledge that several members (Please see POISON, Page 2) doubtedly get a lot of attention. PAGE TWO WINDOM GALLIHER MONTGOMERY UPDATE april 24, 2015 A new ‘WG Update’ feature: The 10 Minute Calendar We’ll start a new feature this week, and The three-tier system creates three dif- would eliminate deductions, credits and we’ll call it “The Ten-Minute Calendar,” ferent types of players in the alcohol exemptions. Under the Hightower plan, which is legislative-speak for a floor economy – manufacturer, wholesaler, the individual tax rate would drop from 5 agenda where each member has 10 and retailer. If craft brewers have restau- percent to 2.75 percent. The corporate minutes to explain and pass a bill. If rants and sell beer for off-premises con- rate would drop form 6.0 percent to questions go past the 10-minute mark, sumption, then that would make them 4.59 percent. then the bill loses its chance goes back both manufacturers and retailers – Sen. Hightower believes the tax rate into the pile of bills. We’ll use it to share which puts the entire system and 5,200 changes would be a wash for the state, a little gossip, tidbits, and other items of jobs in jeopardy. but some say it would net the state note. --- some money. The next big move for Sen. Hightower was his introduction of a —- Sen. Bill Hightower (R-Mobile) caught a bill to reform the coastal property insur- Craft breweries continue their efforts to lot of attention this week. Just as Rep. ance pool. Sen. Hightower, who in his in expand their scope of operations in Ala- garnered (R-Guntersville) his first full term after filling former Sen. bama. They introduced bills in the House attention for his unearmarking bill, Sen. Ben Brooks’ seat in a special election, is and Senate to allow them to have res- Hightower took his turn in the spotlight taking up the mantle of fighting for his taurants at their breweries and to be for a couple of reasons. constituents on insurance issues. The able to sell beer for off-premises con- First, he took the lead on a “flat tax” pool reform bill is no easy lift, but he’s sumption, both of which are in conflict proposal that would cut the individual going to force conversations on the is- with the traditional three-tier system. and corporate income tax rates, but also sue.

that people depend on to live are not Poison going to be funded.” (from Page 1) Sen. Smith says she has been deluged with telephone calls from citizens that According to the Governor’s memo: have been asked to do so by government agencies. - The Alabama Department of Environ- mental Management could be damaged “They are being called and scared into to the point that it could be shut down calling me in tears and begging me not and taken over by the federal Environ- to stop their services,” she said. “This is mental Protection Agency. wrong, and the Governor needs to stop SEN. HARRI ANNE SMITH (I- this. The Governor needs to give the -Twenty-five National Guard armories SLOCOMB) TOOK GOV. ROBERT elected officials time to finish the budget could close. BENTLEY TO TASK FOR “SCARING’ hearings, and then let us make good - Approximately 130 state law enforce- decisions for our people and the state. I SENIORS AND OTHERS WITH ment officers could be laid off and 13 am sorry these tactics are being used to Trooper posts closed. THREATS OF CUTS try to create panic.” - The already overcrowded prison sys- Even so, the two Republican caucuses tem could grow even worse by closing what the cuts might mean as far as made no specific statements, but the two prisons. agencies being able to perform their mis- sense is the neither the Senate nor the sions.” House is of a mind to try to raise $541 - Medicaid would lose $320 million, in- million. There was some hallway talk that cluding federal matching funds. Others didn’t greet the memo with the the Republicans may believe that $300 same calm as Sen. Orr. - Approximately 17,000 children would million is a more workable number, but lose day-care benefits, while 30,000 Sen. Harri Anne Smith (I-Slocomb) took the path to that amount remains un- would lose Temporary Assistance for to Facebook to remind her constituents clear. Needy Families (formerly Aid to Families that the current fiscal year is secure It could come from unearmarking funds with Dependent Children). About 25,000 through September 30, and that no cuts through a scaled back version of fresh- would lose mental health benefits. are imminent. man Rep. Will Ainsworth’s plan, or per- - Fifteen of 22 state parks would close. “We are currently working on the budg- haps Sen. Bill Hightower’s (R-Mobile) ets for 2016 and some have a disagree- “flat tax” proposal to replace the state’s “Legislators need to know the impossi- ment with the Governor on how to fund individual and corporate income taxes, ble impact if we had just a budget based these programs,” Sen. Smith said, “but I or even through a cigarette tax. The next on cuts,” Orr told reporters, “and the have heard no one say that they are not 14 legislative days are sure to be enter- Governor is in a better position to see going to make sure that the programs taining as the cards are flipped over. PAGE THREE WINDOM GALLIHER MONTGOMERY UPDATE april 24, 2015

Senate simmers; House passes 2-year school overhaul

Since the emergence of the Republican supermajority, there has been one im- mutable point. Of the two chambers, the Senate has been the most volatile. Two items during the week prove the point as well as anything. On Tuesday, late in the afternoon, the Senate took up a resolution that would urge Gov. Robert Bentley not to expand Medicaid and that it was the Legisla- ture’s position to oppose expansion. Although the resolution was essentially meaningless – such resolutions are gen- erally just an expression of opinion – the Senate’s Democrats went apoplectic. To be fair, the Senate Democrats have made Medicaid expansion the No. 1 item on their wish list. But with only eight members of a 35-person body, a wish list should be called an “In Your Wildest Dreams” list. The resolution passed on a party line vote – 22-8. VETERAN REP. STEVE McMILLAN (R-GULF SHORES) SHEPHERDED A BILL TO TAKE Minority Leader Quinton Ross (D- THE OVERSIGHT OVER THE TWO-YEAR COLLEGE SYSTEM FROM THE STATE BOARD Montgomery) told the body in an impas- OF EDUCATION TO A NEW, SEPARATE BOARD. sioned floor speech that the resolution would threaten the remainder of the fore negotiating an agreement to con- year colleges have enjoyed great political session. firm Gaines Lanier of Lanett to Auburn power for decades, and many presidents “Perception is everything,” Sen. Ross University Board of Trustees and then – particularly those in years past – have said. “To give the perception that the adjourn for the week. built large kingdoms. A new board that is less worried about political power and entire Legislature opposes expanding In the House, what presumed to be a dialed in on finding workers for the Medicaid is not true.” difficult day was incredibly easy for a bill state’s jobs could be transformative. Resolution sponsor Sen. (R- with huge implications. The big money was on a protracted de- Montrose) said expansion is a non- Rep. Steve McMillan (R-Gulf Shores) bate on the bill, but less than 30 starter for financial reasons. handled Sen. Pittman’s bill to separate minutes after the bill was brought up, the two-year colleges from the State “I think it’s important to have sustaina- and after a handful of questions, the bill Board of Education place them under a bility in terms of costs,” he said. sailed through the House by an easy, 82- new board that it appointed by the Gov- 11 margin. Because the House made After the vote and immediate rise in ernor. temperature on the floor, Senate Presi- changes to the bill, Sen. Pittman will dent Pro Tem Del Marsh (R-Anniston) The new board will focus on workforce have to seek Senate concurrence, which adjourned the body and brought them development and leave the state Board is expected. to its primary role as the steward of K-12 back to work Thursday. Clearly, the Speaker, Rep. McMillan and education. Sen. Marsh, knowing that nerves were others worked the bill thoroughly before still frayed, allowed Democrats to filibus- The reality is that this is a major political it ever got to the floor. Members weren’t ter sunset bills for most of the day be- transformation as well. The state’s two- caught off guard by anything in the bill.

Windom, Galliher & Associates Www.windomgalliher.com 334-241-0078 Note: The Windom Galliher Montgomery Update will publish weekly during the Legislative Session.