{"id":572623,"date":"2010-05-20T12:15:05","date_gmt":"2010-05-20T16:15:05","guid":{"rendered":"tag:www.southernstudies.org,2010:\/\/5.12272"},"modified":"2010-05-20T12:27:31","modified_gmt":"2010-05-20T16:27:31","slug":"state-policy-watch-alabama-and-kentucky-close-tough-legislative-sessions","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/572623","title":{"rendered":"State Policy Watch: Alabama and Kentucky close tough legislative sessions"},"content":{"rendered":"

NOTE: With state legislative sessions coming to a close, in the coming weeks Facing South will be offering reports on key policy decisions in Southern states. The following comes from the excellent weekly dispatch<\/a> published by the Progressive States Network<\/a>.<\/i><\/p>\n

Session Roundup: ALABAMA<\/p>\n

<\/strong>Alabama’s three month legislative session that
\nadjourned on April 22 was dominated by three issues — passing a state
\nbudget, a controversial bill to bring a referendum on whether to make
\nelectronic bingo legal and legislation to bail out the state’s popular
\npre-paid college tuition program.<\/p>\n

Budget, Tax and Revenue:<\/b>  As with so many
\nother states, Alabama faced a large budget shortfall this year.  Based
\non estimates from the Legislative Fiscal Office, the state’s general
\nfund faced a shortfall of about $600 million this fiscal year<\/a>. 
\nBut largely through the use of state rainy day funds and federal aid the
\n state received through ARRA money, major cuts in education, health and
\nservices programs were avoided.<\/p>\n

The legislature made their budget situation worse
\n by approving new corporate tax breaks (HB 260<\/a>) in the name of subsidizing employers who
\nhire unemployed workers up to 50 percent of wages paid to new hires. <\/p>\n

Unfortunately, a more positive measure for
\nworking families was defeated.  A broad-based campaign proposed
\nrepealing the 4 percent state tax on groceries and over the counter
\nmedications, while raising revenue by eliminating the deduction for
\nfederal taxes paid by higher-income earners.  The constitutional
\namendment (HB 1)<\/a> received a  vote of 54-42 in the House of
\nRepresentatives, but the proposal fell just 9 votes short<\/a> of the 63 votes
\nneeded to bring the bill to the House floor for debate.<\/p>\n

Electronic Bingo:<\/b> The most controversial
\nbill of the year was one that would have let voters decide whether to
\ndeclare electronic bingo legal and set up a gaming commission. While SB 515<\/a> passed the Senate, it died without a vote
\nbecause the sponsor wasn’t able to find enough backing for the bill
\namong other House members. Opponents viewed the bill<\/a> as bad public policy,
\nespecially a provision where, if it had been approved by the voters the
\nLegislature could have revisited the bill to create rules for bingo
\noperations. During the time the bill’s fate was being decided, federal
\nauthorities revealed an investigation into possible corruption in the
\nlegislature involving the bingo bill.<\/p>\n

Education:  <\/b>One major bill that did pass
\nwas to appropriate funds for the state’s prepaid college tuition program
\n (PACT).  The PACT program covers about 45,000 children.  The Prepaid Affordable College Tuition program<\/a> ran into
\n trouble when the stock market collapsed last winter.  The program’s
\nassets, once valued at nearly $900 million, were heavily invested in
\nstocks, and their value plunged below $500 million.  However, despite
\ninitial differences between the House and Senate over whether to
\nestablish a cap for state university tuition increases, Senate Bill 162<\/a> will provide the program with a
\ntotal of $236 million over eight years<\/a>, as it was signed
\ninto law on April 30th<\/sup>.<\/p>\n

Transportation<\/b>:<\/b> A major transportation bill did pass<\/a> the legislature
\nthis session. SB 120<\/a>, a proposed constitutional amendment that
\nauthorizes the Alabama Trust Fund to make payments of $100 million each
\nyear for 10 years for road & bridge construction, maintenance and
\nrepair programs in the state’s transportation infrastructure. The
\nmeasure has been placed on a November ballot initiative. If approved,
\nthe state will make an annual distribution of $25 million of the $100
\nmillion to cities and counties based on the state’s gasoline tax
\ndistribution formula, $74 million to the Alabama Department of
\nTransportation (ALDOT) and $1 million to the Alabama Shortline Railroad
\nInfrastructure Fund.<\/p>\n

Environment and Energy:<\/b> The Alabama Permanent Joint Legislative Committee on Energy<\/a>
\n and interest groups worked to pass several bills pertaining to energy
\nand energy efficiency. Among the bills passed was HB 128<\/a> , which provides for the “Codification of
\nthe Joint Legislative Committee on Energy Policy” and provides for an
\nongoing state energy study and energy plan.  Additionally, SB 315<\/a> requires the adoption of the Alabama Energy
\nand Residential Codes to comply with certain federal energy and building
\n requirements.<\/p>\n

Defeated Bills<\/b> Included<\/strong>:<\/p>\n