Tough Talk at 2016 State of the State

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Sharon Schuler Kreps
I have a tremendous concern for the way we budget in Alabama. This last year it became very clear to me that we’re going to have to look into these budgets to figure out what the money is being spent for, if these programs are working, if it’s wasteful and what we need to do with it.”
Alabama Sen. Paul Bussman, R-Cullman

 

CULLMAN – At Friday’s 2016 State of the State, Cullman’s legislative delegation had some tough words for the crowd gathered at the All Steak Restaurant. The Cullman Area Chamber of Commerce’s January community luncheon was a forum to discuss issues in Cullman County, as well as the latest information out of Montgomery.

Alabama Rep. Ed Henry, R-Cullman, Alabama Rep Randall Shedd, R-Cullman, Alabama Rep. Corey Harbison, R-Cullman and Alabama Sen. Paul Bussman, R-Cullman spoke to the audience about the particular items they are working on in Montgomery. Medicaid, pay raises for teachers and overall budgets were some of the biggest issues addressed.

“Medicaid has asked for $150 million more than we gave them last year,” Henry said. “At this point we are going to be doing good if we can level fund them. I know anybody that’s in healthcare, like the hospitals, you are looking for a Medicaid expansion or at least a full funding of Medicaid. But the problem in the state is every year Medicaid comes and needs more money. So they need $150 million this year, next year they are going to need that $150 million plus another $150 million to probably $180 million, nearly $200 million, and the following year they are going to need that $300 million that we gave them plus another; it’s never ending. Our economy is not growing fast enough to subsidize that growth in Medicaid.”

Henry’s comments came after a contentious budget meeting in Montgomery on Jan. 13, where the Alabama Medicaid Agency asked for a $157 million increase. The Agency is the largest beneficiary of the state’s General Fund, and the request would be an increase of 23 percent from this year’s $685 appropriation for Medicaid.

Shedd also decried Medicaid spending and spending in general. He spoke highly of the sales tax system in Cullman County.

“My goal this year is to amend and defend legislation in this session,” said Shedd. “Medicaid is a serious problem and spending in Alabama state government is a serious problem. Yesterday I told the people at the Decatur Chamber of Commerce about the great system we have here in Cullman County. Many years ago we decided to share a system of sales tax to share with everybody so we wouldn’t have a reason to fight; I’m talking about the governmental entities. We set up a formula where everybody benefits when there is business activity. The more business we have in Cullman County, the more business we do creates revenue without raising taxes, and that is revenue stream we need in Montgomery.”

Harbison, also the former mayor of Good Hope, shared details about a possible pay increase for Alabama educators based on their performance.

“One issue we’ve discussed during our first session is a pay raise for teachers,” he began. “There is a bill called the Raise Bill, I believe, that’s coming up. I’m sure there are some good things within that bill. In Montgomery, sometimes they have to include bad things in with the bill to get them to pass along with the good things. I know there is a lot of emphasis on education, but I think we need to appreciate all state workers. I don’t believe in singling out a specific group to give raises to or not give them to. In this raise bill, I believe they are going to try to give raises to teachers based on sheer performance. I’m all about accountability for teachers, but I do have a problem with giving someone their salary based on performance of the student.”

Bussman talked about the overall budget problems facing the state.

“I think the biggest issue is going to be the budgets,” Bussman stated. “I have a tremendous concern for the way we budget in Alabama. We work of a fifteen-sheet spreadsheet, $50 million dollars for this and $30 million dollars for that and $700 million for this, and there is very little information in that budget that tells us what that money goes for. This last year it became very clear to me that we’re going to have to look into these budgets to figure out what the money is being spent for, if these programs are working, if it’s wasteful and what we need to do with it.”

Preliminary budget hearings were held in Montgomery the week of Jan. 11, with the outlook dismal. In all, state departments have requested more than $200 million in additional revenue, the Medicaid request the largest, followed by the Alabama Law Enforcement Agency (ALEA) and Department of Corrections. State budget hearings begin Feb. 1. For more information, visit http://lfo.alabama.gov/.

For more information on Chamber events, visit http://business.cullmanchamber.org/events/calendar/.