State lawmakers are pushing to hammer out an operational budget that will let state agencies keep functioning after October 1, and they’re running out of time.
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Gov. Robert Bentley has asked lawmakers to approve $260 million in taxes.
Senate President Pro Tem Del Marsh (R-Anniston) told Yellowhammer the reform measures were important to solving the budget shortfall without additional tax increases.
Lawmakers are in a special session to address a $200 million general fund shortfall for the fiscal year that begins in 16 days.
State Superintendent Dr. Tommy Bice tells ABC 33/40 he’ okay with the shift of $80 million from the education budget to the general fund budget. “I believe the use tax transfer does just that”.
Lawmakers approved a 25 cent increase on cigarettes, a tax on nursing homes beds and a tax on pharmacies for prescription drugs.
Three new tax increases are now out of the Alabama legislature and on their way to the governor’s desk.
On the tax front, legislators passed a 25-cent per pack tax increase on cigarettes, which will bring in an estimated $70 million annually, at least in the short term. Sen. Paul Bussman (R- Cullman). That’s a number that would allow the state to level fund the most critical needs in the General Fund, namely Medicaid, prisons, public safety and the Department of Human Resources.
“The concern I have is, as Republicans we’re for less government, less taxes”. All other agencies would require cuts.
Pittman said that previously approved revenue bills will make up some of the difference to the education budget.
“I don’t think this body has done anything but pass the buck and rob the education trust fund”, said Sen.
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The budget move isn’t yet final, as it authorizes moving twice as much money away from education as the House of Representatives approved last week, AL.com reports.
