February 16, 2005
The 2005 Legislative Session is two weeks old and all that you hear is the hue and cry among legislators regarding what to do with the beleaguered General Fund Budget. There will be no diversion of education dollars to rescue Medicaid and the other General Fund departments. Politically diversion is not an option. To his credit the Governor is working with legislative leaders to find a solution.
February 09, 2005
When the State Senate stripped Lieutenant Governor Steve Windom of the traditional powers of his office in the 1999 organizational session a good many observers predicted that those powers were gone forever. The belief was that once the Senate garnered the trappings of committee appointments and control over legislation they would never relinquish it. They seem to be right. It was thought by some that the dethroning had occurred because Windom was a Republican and the Senate overwhelmingly Democratic, and this was probably true at the time. It probably would not have occurred if the Lieutenant Governor had not been a Republican, but the proof of the pudding came in 2003 when Democrat Lucy Baxley took the gavel. The Senate kept the power and control. Lucy became a figurehead much like Windom. The difference is that Lucy made lemonade out of lemons. She turned the other cheek and did not whine at the rebuke and loss of power. She was sort of like Brer Rabbit in the brier patch! . She softly said, "Please don't take my power away," "please don't take my power away," but when they did take her power away she laughed gently to herself and took off campaigning around the state. Because with the power gone, the fighting, bitterness, enemy making, and resentments incurred was avoided. That is why Lieutenant Governor has been a poor stepping stone in the past. Lucy is free to travel all over the state making happy speeches, avoiding issues, and making new friends.
February 02, 2005
In the classic novel, A Tale of Two Cities, the author Charles Dickens begins his classic with the words, "It was the best of times, it was the worst of times . . ." These exact words could be used to describe the state of affairs as the 2005 Regular Session of the Legislature begins. For indeed we have a tale of two budgets in Alabama government. The Education Budget, which accounts for two-thirds of all state revenues, has an abundance. The poor General Fund Budget is broke. Therefore, for education it is the best of times, but for the other functions of state government it is the worst of times.
This saga is not new. It has been this way for decades. The growth taxes, sales and income are earmarked for education. So they enjoy the incremental growth in revenue, which has been significant this year. In fact, the Education Budget finished the fiscal year on September 30th with a $150 million surplus. Tax collections were up over 8%. There will be a giant temptation to spend this surplus. However, the wisest move would be to put the surplus funds in a rainy day savings account.
The biggest dilemma facing the Legislature as the Session begins is what to do with the beleaguered General Fund Budget. It has been patched and bandaged so much that it really is on its last leg. This year may be the year that the shell game and one year quick fixes come to an end.
There have been back-to-back cuts to the General Fund Budget over the past two years totaling 25%. So in essence most agencies and departments are operating on 75% of the amount of money they were two years ago, while basic expenses are rising. Some agencies which are considered critical have received special treatment and have not received the draconian cuts. The Departments of Mental Health, Public Health, and Human Resources have been spared to a certain extent, but this has created financial havoc for other General Fund agencies like Public Safety and Corrections.
The largest gap or problem in the General Fund is Medicaid. It is the giant. Medicaid received $364 million out of the General Fund this year. However, we receive more than a 2 to 1 match from the federal government. For every 30 cents the Legislature sends to Medicaid, the federal government matched it with 70 cents. So if Alabama reduces the Medicare Budget, we lose a huge amount of federal money.
Medicaid is a social program started during the 1960s which is considered a sacred right. It provides healthcare, prescription drugs, and nursing home care for Alabama's poorest children and most of our senior citizens.
This giant money eating agency now accounts for about 30% of the General Fund Budget and 11% of all Alabama tax dollars. Because the federal government is interpreting the funding standards more strictly and shifting some funding to the states, along with the increasing costs of healthcare, there is a real shortage in the behemoth Medicaid budget. The short fall is projected to be in the area of $125 million.
The question to be answered in the Session is, "Where does the money come from to salvage the General Fund Budget?"
Legislators will not try to divert money from the Education Fund Budget. Dr. Paul Hubbert will not allow this to happen. George Wallace in is heyday over 30 years ago tried to divert education dollars to the General Fund, but a young Paul Hubbert defeated Wallace's attempt. If you think Dr. Hubbert was masterful then, he is at least ten times more powerful today. The General Fund will not be rescued on the backs of the Education Fund.
It will be an interesting session.
February 02, 2005
In the classic novel, A Tale of Two Cities, the author Charles Dickens begins his classic with the words, "It was the best of times, it was the worst of times . . ." These exact words could be used to describe the state of affairs as the 2005 Regular Session of the Legislature begins. For indeed we have a tale of two budgets in Alabama government. The Education Budget, which accounts for two-thirds of all state revenues, has an abundance. The poor General Fund Budget is broke. Therefore, for education it is the best of times, but for the other functions of state government it is the worst of times.
January 26, 2005
While the Presidential race raged last year the Alabama political pot was boiling and getting ready to stew in 2006. The '06 campaigns are on the horizon and the early jockeying has begun.
January 19, 2005
Alabama’s most masterful politician, George Wallace, would confide in some of his closest cronies sage bits of his political genius. Joe Azbell was a close follower of Wallace and related a theory that Wallace lived by in politics. The theory being that once you get an enemy or hated person or entity, you run against that enemy and beat up on it constantly. During the 1960s Wallace made his boogieman the issue of segregation. Unquestionably his vicious attacks on integration caused racial turmoil throughout Alabama and the entire nation. He was considered the most ardent race baiter in America. However, when this boogieman ran its course, Wallace found another enemy: the Alabama Power Company. In the 1970s Wallace focused his venom toward the Power Company and fought and cursed it at every turn. The Power Company paid a heavy price at the hands of Wallace.
January 12, 2005
The defeat of Amendment 2 on last year’s ballot was a victory for Roy Moore over Bob Riley. Riley adamantly urged approval of the amendment that he proposed and put on the ballot. Riley declared that the amendment was simply a constitutional overhaul to take provisions supporting segregated schools and the poll tax out of our antiquated constitution. The Roy Moore followers successfully sent out the message that the benign amendment was a tax increase. The chief opponent to the proposal was Moore’s lieutenant, Justice-elect Tom Parker. Parker continues to be Moore’s spokesman. It was an amazing victory, especially because the opponents basically spent no money to successfully defeat the measure. It was like a silent drumbeat that resonated throughout the state, that “it’s another tax increase.” The rank and file conservatives don’t trust Riley. They think everything he has anything to do with is a hidden tax increase. They believe he is a Judas. It shows how deep a gash he cut on himself with his ill fated 2003 tax proposal. It is a scar that will not heal.
January 05, 2005
As the New Year begins a few additional observations from last year as a follow-up to last week’s year-end review. The most significant political event was the indictment and escape from conviction by former Governor Don Siegelman. The final script may not yet be written on Siegelman’s problems. A grand jury is still out in Montgomery.
December 29, 2004
The year 2004 has been an interesting year for Republican Governor Bob Riley. There is no question that he has worked hard to resurrect his base after destroying it in 2003 with his tax proposal. Governor Riley has campaigned all over the state, primarily in Republican Party meetings, and has only been surpassed by Lt. Governor Lucy Baxley in his efforts to press the flesh and cut ribbons. It appears that both have their eye on the 2006 Governors race.
December 22, 2004
I was saddened by the recent passing of former First Lady Helen Hunt. She was a real lady. During my tenure in the Legislature I never met a more wonderful first lady of Alabama.
I know that her husband, former Governor Guy Hunt, is deeply saddened by the early death of Mrs. Helen at age 70. You could tell by the way they looked at each other that Guy and Helen Hunt adored one another. They were childhood sweethearts in rural Holly Pond in Cullman County. They were lifetime companions who were totally devoted to each other.