President's Message
- Volume 52, Number 4 - 2008
The 2009 Regular Session of the Alabama Legislature is just around the corner.
As economic conditions worsen, the time for action on this issue, and many others, is NOW!
A preview for this year’s Regular Session of the Alabama Legislature could easily be summed up in one word – MONEY.
There’s no question that money, or the lack of it, will dominate everything in Montgomery this year. For that matter, money is likely to be the driving force in all 67 Alabama courthouses, as well.
In November, Alabama voters approved the establishment of a “rainy-day” account with money from the state’s oil-lease trust fund. This account was to be used only in those extreme cases when the state’s revenues failed to meet expectations. Therefore, it would be necessary to reduce state services in the middle of a fiscal year.
Most felt the size of the fund would be sufficient enough to carry the state through anything except the most extreme of circumstances. Well, almost before the ink was dry in the amendment, the state has been forced to use almost the entire balance in that “rainy-day” account, and that emergency money may be just enough to keep the General Fund and Education Budgets afloat for a short while.
What will happen next is anyone’s guess.
On the county level, things aren’t any better. We’ve already received notification of the reduction of the annual payments counties receive from the investments on the same trust fund, for example. Those reductions were caused by the significant decline in the world stock markets, forcing a sharp reduction in annual investment revenue. Many counties had budgeted that money and have already been forced to make adjustments in operating plans just a couple of months after they were adopted.
If the experts are correct, the troubles are just beginning. Gasoline consumption – and the resulting tax revenue – is down. Sales tax revenues are down. And, because we’ve been successful in protecting the concept of “annual” reappraisal of property, our ad valorem tax revenue may even decline next year.
It is behind that unpleasant backdrop that we as an Association begin one of the most important legislative sessions in a long, long time. It will be our challenge to be so actively involved in the process that we are able to evaluate every proposed solution to the state’s financial woes in light of its impact on county government.
Because much of our revenue at the local level, including the majority of the money we have to operate our road and bridge departments, comes from state-levied taxes that include a provision for distributing some of the proceeds to the county commission, our financial future will be at stake as well.
Fortunately, in recent years the legislature has been very sensitive to evaluating its actions in terms of the impact on our ability to deliver services at the local level.
But, these are tough times. It will be very important for each of us to communicate with our local legislators, encouraging them to evaluate any proposals in light of their impact BOTH on the state and county commission level. Our message must be simple, “We can’t balance the state’s budget by placing county government in more serious peril.”
This will take an extra level of dedication on our parts, but we’ve faced these kinds of challenges before. I know you will respond.
All the while, we will be pushing for the passage of at least a half-dozen pieces of legislation of vital importance to our counties and the people who depend on us back home. Our entire Legislative Program, along with our priority legislation for this session is available for download. Please review the program in detail. There are a few issues that should be highlighted.
It is of the upmost importance that the legislature address the problems in Alabama law that result in many state inmates being re-arrested and taken into county jails immediately
upon their release from state prison facilities. We must also push for changes to make it clear that the medical care of all state inmates, including those who violate the conditions of their parole, is the responsibility of the state.
We can be certain that the issue of public financing, especially as it relates to the issuance of bonds by county commissions, will be in the spotlight beginning in February. The events of the last year have focused much attention on the issues of borrowing at the local level. But, it is important to remember that we now face what many are calling “a world financial crisis,” not just a crisis in one particular dot on the map.
The Association is ready with its own legislation in this area, and we expect others to also surface their ideas. I want to thank those county officials and employees who have helped us develop a piece of legislation on this most important issue.
Our legislation will improve the process of public financing in Alabama. It will generate more credibility and it will ensure more openness – something that is vitally important to the public.
We’ll continue our efforts to secure the necessary funding to make the overdue improvements to our county road and bridge system. At this writing, there is talk of a federal stimulus package aimed at interjecting revenue into the construction of infrastructure nationwide. However, we are uncertain whether this package will result in revenue reaching Alabama’s road and bridge system.
We’re continuing our dialog with a number of interested groups in an effort to construct a plan that can be embraced by the legislature during these challenging economic times. It is essential that we make progress on this issue during this year’s legislative session.
Obviously, as economic conditions worsen, the time for action on this issue – and many others – is NOW.
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